REGISTERED NUMBER: SC211936 (Scotland)

SUNDOLITT LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

to

4

Report of the Independent Auditors

5

to

8

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

to

29

DIRECTORS:

K J Sunde

B Sunde

SECRETARY:

C K Brunton

REGISTERED OFFICE:

Suite A2

Stirling Agricultural Centre

Stirling

Stirlingshire

FK9 4RN

REGISTERED NUMBER:

SC211936 (Scotland)

SENIOR STATUTORY AUDITOR:

Kirsty Mackie BAcc CA

AUDITORS:

Azets Audit Services

Chartered Accountants

Statutory Auditor

Titanium 1

King's Inch Place

Renfrew

PA4 8WF

SOLICITORS:

Holmes MacKillop

35 William Street

Johnstone

PA5 8DE

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The key financial highlights are as follows:

2024

2023

2022

£

£

£

Turnover

13,195,354

10,716,219

9,115,494

The net assets of the group have decreased from £2,654,909 at 31 December 2023, to £2,269,319 at 31 December 2024.

Turnover has increased by 22.35% on the prior year. The 2024 volumes reflected the relocation of production facilities following the acquisition of a new site and the closure of an existing site in the prior year.

The directors aim to maintain the management policies adopted during the year ended 31 December 2024 and consider the group is well placed to take advantage of opportunities which may arise in the current year.

PRINCIPAL RISKS AND UNCERTAINTIES

Competitive pressure continues in the market place and the directors strive to ensure that the margins and profitability will improve from year to year.

In addition the directors seek to control overhead costs in order to improve the reported results.

FUTURE DEVELOPMENTS

The directors continue to review products and developments in the business to best meet the needs of its customers.

GOING CONCERN

Based on current trading levels and projected future results, the directors have assessed the company to be a going concern.

FINANCIAL INSTRUMENTS

The company's principal instruments comprise bank balances, trade creditors and loans from a commercial bank. The main purpose of these instruments is to finance the group's operations.

The loan carries interest at a margin over base and is repayable in instalments commencing on 15 September 2021, being fully repayable by 30 June 2026.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Credit risk on liquid funds is limited due to the counterparties being banks with credit ratings assigned by international credit-rating agencies.

ENVIRONMENT

The company recognises the importance of its environmental responsibilities, and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:

B Sunde - Director

18 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the manufacture and supply of expanded polystyrene (EPS) insulation products for the packaging and construction sectors plus related products including XPS.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors during the year under review were:

K J Sunde

B Sunde

The directors holding office at 31 December 2024 did not hold any beneficial interest in the issued share capital of the company at 1 January 2024 or 31 December 2024.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Azets Audit Services, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B Sunde - Director

18 September 2025

Opinion

We have audited the financial statements of Sundolitt Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Kirsty Mackie BAcc CA (Senior Statutory Auditor)

for and on behalf of Azets Audit Services

Chartered Accountants

Statutory Auditor

Titanium 1

King's Inch Place

Renfrew

PA4 8WF

18 September 2025

TURNOVER

3

13,195,354

10,716,219

Cost of sales

(10,076,054

)

(8,706,652

)

GROSS PROFIT

3,119,300

2,009,567

Administrative expenses

(3,367,984

)

(2,309,213

)

(248,684

)

(299,646

)

Other operating income

-

50,488

OPERATING LOSS

(248,684

)

(249,158

)

Interest receivable and similar income

29,183

31,404

(219,501

)

(217,754

)

Interest payable and similar expenses

5

(237,762

)

(282,926

)

LOSS BEFORE TAXATION

6

(457,263

)

(500,680

)

Tax on loss

7

71,673

483,532

LOSS FOR THE FINANCIAL YEAR

(385,590

)

(17,148

)

Loss attributable to:

Owners of the parent

(385,590

)

(17,148

)

LOSS FOR THE YEAR

(385,590

)

(17,148

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(385,590

)

(17,148

)

Total comprehensive income attributable to:

Owners of the parent

(385,590

)

(17,148

)

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

6,018,735

6,352,583

Investments

11

-

-

6,018,735

6,352,583

CURRENT ASSETS

Stocks

12

1,031,213

754,147

Debtors

13

1,501,758

1,608,685

Cash at bank

348,415

428,793

2,881,386

2,791,625

CREDITORS

Amounts falling due within one year

14

3,335,769

2,947,593

NET CURRENT LIABILITIES

(454,383

)

(155,968

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,564,352

6,196,615

CREDITORS

Amounts falling due after more than one year

15

(3,275,000

)

(3,450,000

)

PROVISIONS FOR LIABILITIES

19

(20,033

)

(91,706

)

NET ASSETS

2,269,319

2,654,909

CAPITAL AND RESERVES

Called up share capital

20

1,000,000

1,000,000

Retained earnings

21

1,269,319

1,654,909

SHAREHOLDERS' FUNDS

2,269,319

2,654,909

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

B Sunde - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

6,018,735

6,352,583

Investments

11

14,000

14,000

6,032,735

6,366,583

CURRENT ASSETS

Stocks

12

1,031,213

754,147

Debtors

13

1,501,758

1,608,685

Cash at bank

348,415

428,793

2,881,386

2,791,625

CREDITORS

Amounts falling due within one year

14

3,335,769

2,947,593

NET CURRENT LIABILITIES

(454,383

)

(155,968

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,578,352

6,210,615

CREDITORS

Amounts falling due after more than one year

15

(3,289,000

)

(3,464,000

)

PROVISIONS FOR LIABILITIES

19

(20,033

)

(91,706

)

NET ASSETS

2,269,319

2,654,909

CAPITAL AND RESERVES

Called up share capital

20

1,000,000

1,000,000

Retained earnings

21

1,269,319

1,654,909

SHAREHOLDERS' FUNDS

2,269,319

2,654,909

Company's loss for the financial year

(385,590

)

(17,148

)

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2025 and were signed on its behalf by:

B Sunde - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000,000

1,672,057

2,672,057

Changes in equity

Total comprehensive income

-

(17,148

)

(17,148

)

Balance at 31 December 2023

1,000,000

1,654,909

2,654,909

Changes in equity

Total comprehensive income

-

(385,590

)

(385,590

)

Balance at 31 December 2024

1,000,000

1,269,319

2,269,319

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000,000

1,672,057

2,672,057

Changes in equity

Total comprehensive income

-

(17,148

)

(17,148

)

Balance at 31 December 2023

1,000,000

1,654,909

2,654,909

Changes in equity

Total comprehensive income

-

(385,590

)

(385,590

)

Balance at 31 December 2024

1,000,000

1,269,319

2,269,319

Cash flows from operating activities

Cash generated from operations

1

831,284

377,245

Interest paid

(237,762

)

(282,926

)

Tax paid

5,729

-

Net cash from operating activities

599,251

94,319

Cash flows from investing activities

Purchase of tangible fixed assets

(273,812

)

(3,000,057

)

Sale of tangible fixed assets

-

1,852,001

Interest received

29,183

31,404

Net cash from investing activities

(244,629

)

(1,116,652

)

Cash flows from financing activities

Loan repayments in year

(175,000

)

(175,000

)

Movement in related party balances

(260,000

)

984,808

Net cash from financing activities

(435,000

)

809,808

Decrease in cash and cash equivalents

(80,378

)

(212,525

)

Cash and cash equivalents at beginning of year

2

428,793

641,318

Cash and cash equivalents at end of year

2

348,415

428,793

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Loss before taxation

(457,263

)

(500,680

)

Depreciation charges

607,659

483,443

Profit on disposal of fixed assets

-

(1,146,715

)

Finance costs

237,762

282,926

Finance income

(29,183

)

(31,404

)

358,975

(912,430

)

(Increase)/decrease in stocks

(277,066

)

612,260

(Increase)/decrease in trade and other debtors

(105,616

)

140,871

Increase in trade and other creditors

854,991

536,544

Cash generated from operations

831,284

377,245

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

348,415

428,793

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

428,793

641,318

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

428,793

(80,378

)

348,415

428,793

(80,378

)

348,415

Debt

Debts falling due within 1 year

(175,000

)

-

(175,000

)

Debts falling due after 1 year

(3,450,000

)

175,000

(3,275,000

)

(3,625,000

)

175,000

(3,450,000

)

Total

(3,196,207

)

94,622

(3,101,585

)

1.	STATUTORY INFORMATION

Sundolitt Limited, is a private company, limited by shares, registered in Scotland. The company's registered number is SC211936 and registered office address is Suite A2, Stirling Agricultural Centre, Stirling, Stirlingshire, FK9 4RN.

The nature of the company's operations and its principal activity was that of the manufacture and supply of expanded polystyrene (EPS) insulation products for the packaging and construction sectors plus related products including XPS.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Basis of consolidation

The group financial statements consolidate the financial statements of Sundolitt Limited and its subsidiary undertakings drawn up to 31st December each year. No profit and loss account is presented for Sundolitt Limited in accordance with section 408 of the Companies Act 2006.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In preparing these financial statements, the directors have not made any critical accounting judgements or utilised any key sources of estimation uncertainty.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Consideration is given to the point at which the company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due;

- the costs incurred can be measured reliably.

Goodwill

Goodwill is the difference between the cost of an acquired entity and the aggregate of the fair values of that entity's identifiable assets and liabilities.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. This had previously been assessed at 20 years. The implementation of FRS102 has resulted in the useful economic life being reassessed at 5 years with this policy resulting in the restatement of the figures in 2014. It is reviewed for impairment at the end of the first full year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

at varying rates on cost

Improvements to property

-

at varying rates on cost

Plant and machinery

-

at varying rates on cost

Motor vehicles

-

20% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all costs incurred in bringing each product to its present location and condition as follows:

Raw materials and goods for resale - purchase cost on a first-in, first-out basis.

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity.

Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal.