The directors present the strategic report for the year ended 31 December 2024.

Principal Activity

The principal activity of the Company is the supply of high-end technical and decorative lighting.

Fair review of the business

Atrium's core proposition revolves firmly around the concept of quality, encompassing the Quality of Light, Quality of Solution, and Quality of Service. Our mantra of Quality of Light is Quality of Life is at the core of everything we aim to do. Atrium operates within a competitive sector that has become highly commoditised in recent years. We distinguish ourselves by collaboratively engaging with brands of the utmost quality and who reflect our values, a synergy that sets us apart from competitors. Unlike many in our industry who are wholly owned subsidiaries of European manufacturers, our independence continues to stand as a significant competitive advantage, particularly in an era where swift decision-making holds increasing importance. Presently, our business boasts a wealth of industry and product knowledge, a diverse skill set, and an extensive customer network. These elements collectively contribute to our well-established and robust reputation.

A proforma profit and loss account has been included below:

As Atrium Ltd looks to the future, our growth strategy is rooted in innovation, sustainability, and differentiation. We aim to lead the market not only by distributing world-class architectural lighting but by identifying and investing in emerging niches—such as biophilic lighting solutions that support plant life within the built environment, and re-manufactured luminaires that meet the highest standards of quality and circular design. By leveraging our technical expertise and close relationships with architects and designers, the creators of the built environment, we will continue to champion the importance of light quality in human-centric spaces, while exploring growth opportunities that others may overlook. This includes pioneering new applications in wellness, biophilia, acoustics and adaptive reuse of lighting systems—ensuring Atrium remains competitive, forward-thinking, and a trusted partner in shaping the future of light.

Key Performance Indicators

The Directors’ views on KPIs are that these remain consistent with the prior year as turnover, gross margins, operating profit and EBITDA.

The growth in turnover in 2023 also came with an increase in the gross margin. Unfortunately, overheads grew significantly in 2022 and into the initial part of 2023. Action was taken from August 2023 to reduce overheads aggressively and this action continued into 2024. We were on track for the first 10 months of the year to deliver an EBITDA profit for 2024, however a natural disaster in early November meant that we were unable to receive goods from one of our largest suppliers for a period of time, meaning goods could not be delivered to our customers and we were unable to invoice. Our focus on improving our margin and reducing our overheads in 2024 has resulted in a decreased loss at both EBITDA and operating margin of £427k and £412k respectively compared to 2023, this is especially pleasing given revenues were £2,049k lower in 2024.

Through the course of 2024 we have continued to concentrate our efforts on optimising our efficiency and on developing a strong forward pipeline for 2025 and beyond. We have also been developing our future strategy to allow us to go beyond light, to enable the business to move into the wider arena of health and wellbeing within the built environment. As we move into 2026, we will also be offering acoustic and acoustic lighting solutions to our clients for their projects. Light quality and noise issues are key sources of occupant dissatisfaction in commercial office environments, having solutions for these issues forms part of our growth strategy for the 2026 and beyond as we align our sales focus with the concepts of salutogenic design principles.

Principal risks and uncertainties

Atrium’s strategy takes into account risks, as well as opportunities, which need to be actively managed. Effective risk management is essential to executing our strategy, achieving sustainable long-term value, protecting our reputation and ensuring good governance.

1) Brand and Reputational Risk

The vitality of the Atrium brand and its reputation, along with those of its suppliers, forms the bedrock of our business. Potential harm to Atrium can arise from internal actions or the conduct of external partners, with the risk of enduring substantial reductions in revenue in the event of brand damage.

Atrium distinguishes itself as a brand selector, not merely a collector. Presently, our criteria for choosing brand partners extend beyond the products they offer; we prioritise shared values and a demonstrated commitment to innovation. Our portfolio strikes a balance—sufficiently extensive to provide diverse solutions yet compact enough to allow dedicated attention for effective promotion. Each brand, both collectively and individually, must excel in design, innovation, and responsiveness to the evolving demands of artificial lighting. We maintain continuous monitoring of our relationships with these brands.

In addition, our commitment extends to providing robust After Sales care through a dedicated team, ensuring swift resolution of any issues that may arise.

2) Supply Chain

Our adherence to quality standards hinges on the reliability of our chosen brands. The timely delivery and adherence to specifications are crucial factors, as any deviations pose a potential risk to our revenue.

To proactively address this risk, we maintain close collaboration with our selected brands. Our strategic approach involves partnering with high-end brands known for delivering exceptional product quality. This deliberate selection process serves as a key measure to mitigate potential impacts on our revenue.

3) Economic Activity in the UK

The UK economy remains modestly active, with real GDP rising by 0.7% in Q1 2025, driven by a 0.7% uptick in services and 1.1% growth in production. However, recent monthly data show a contraction of ‑0.1% in both April and May 2025, largely due to declines in manufacturing and construction.

Principal risks and uncertainties (continued)

The dwindling number of independent organisations is a conspicuous trend, with many succumbing to acquisitions by their prominent foreign suppliers. Atrium's unique position as an independent entity, coupled with the excellence of our products and the commitment of our long-serving, knowledgeable team to delivering superior work, remains the cornerstone of our prosperity—a tradition upheld for the past 49 years.

4) Financial Risks

a) Liquidity Risk

Every business faces the inherent risk of being unable to meet its financial obligations when they come due. Atrium addresses this risk through robust management of operating cash flow, complemented by a judicious dividend policy and vigilant credit control measures. In the event that operating cash flow falls short of covering financial obligations, the company has access to credit facilities as a contingency measure. This comprehensive approach ensures a proactive stance in safeguarding the company's financial stability and meeting obligations as they arise.

b) Credit Risk

There is a risk that an Atrium customer may be unable to pay its debts on the due date. The company manages this risk through asking for deposits on account, maintaining strong customer relationships and closely monitoring outstanding debts from all sources.

c) Interest Rate Risk

A substantial increase in interest rates could escalate the cost of debt, exerting a detrimental influence on both cash flow and profitability. The surge in interest rates since the close of 2021 has exerted pressure on the economy, leading to a contraction in consumer spending. The company has close relationships with its lender and continues to monitor the costs of borrowing.

d) Foreign Exchange Risk

Atrium, being reliant on imported products, is inherently susceptible to foreign currency risks, predominantly in Euros. The Board consistently reviews and establishes policies to effectively manage exchange rate risks. In appropriate circumstances, the company employs financial instruments to mitigate these risks. All engagements in derivatives, notably forward exchange contracts, are exclusively undertaken for the purpose of risk management, with no speculative transactions being pursued. This cautious approach ensures a proactive stance in safeguarding the company against adverse currency fluctuations.

5) Our People

Atrium’s performance and success are dependent on its capacity to attract and retain the best people. Not employing the best people at all levels could affect the company’s operations and prospects. We continue to navigate uncertainty caused by Brexit. Global trading disruption continues to impact our people’s ability to meet planned business goals. We are committed to ensuring we have a strong employee brand and culture in order to attract and retain the best people.

Actions taken include:

• Regular reviews of salaries and bonus structures.

• Improved healthcare provision and maternity benefits, and additional holiday.

• Empowering and equipping our leaders to lead through change.

• Defining the company’s Roots, Passion & Vision.

• Setting up an Employee Experience Committee to help drive improvements in company culture and morale.

• Regular surveys of employee engagement resulting in clearly defined actions.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The results for the year are set out on page 11.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

In accordance with section 485 of the Companies Act 2006, a resolution proposing that Arnold Hill & Co LLP be reappointed as auditor of the company will be put at a General Meeting.

A Strategic Report, which forms part of the Director's Report, is separately presented (see page 1). A Strategic Report is included in these financial statements in accordance with section 414C(II) of the Companies Act 2006. Further information regarding the company's principal risks and uncertainties and future developments can be found in the Strategic Report.

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

During the current and preceding periods, the company has maintained adequate cover for its directors and officers under a director's and officer's liability insurance policy.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors continue to monitor the impact of COVID-19 and potential implications on future operations. The directors have undertaken a number of scenario projections to understand the potential impact on the business and remain satisfied that the company is able to meet its liabilities as they fall due over the next 12 months. Thus it has adopted the going concern basis in preparing the annual financial statements.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

The directors are responsible for preparing the Strategic Report, Directors' Report 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) including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 of the profit or loss of the company 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;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures being disclosed and explained in the financial statements; and

- 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 of the profit or loss of the company 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; and

• 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Atrium Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 31 December 2024 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the 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.

As explained more fully in the directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.

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 an auditor’s report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Atrium Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.

These financial statements have been prepared in accordance with FRS 102 and the requirements of the Companies Act 2006.

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 £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

Turnover represents the amounts earned by the company from the supply of goods exclusive of VAT and all other sales discounts. Turnover for goods supplied is recognised at the point of the despatch of the goods. From time to time, the company also earns commission from its suppliers, where the company has introduced a customer to its suppliers. Commissions turnover is immaterial and infrequent and as a result, has not been separately presented in these financial statements.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Inventories, which comprise finished lighting components, are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

These financial statements are separate company financial statements for Atrium Limited.

Details of the company's subsidiaries at 31 December 2024 are as follows:

These financial statements are separate company financial statements for Atrium Limited.

Details of the company's associates at 31 December 2024 are as follows:

Included in other debtors is an amount for £437,115 in respect of a rent deposit for leased office space. This amount is considered to be recoverable in greater than a year.

The bank loans are secured by first legal charges over the freehold property held by the group and fixed and floating charge over all assets of the company including book debts.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

In 2021, the company issued 144,280 ordinary C shares with a nominal value of £0.01. The shares were issued at a average premium of £0.096 per share.

In 2022, the company cancelled 4,625 ordinary C shares with a nominal value of £0.01.

In 2023, the company cancelled 159,250 ordinary C shares with a nominal value of £0.01.

In 2024, the company cancelled 2,625 ordinary C shares with a nominal value of £0.01.

Operating leases represent the rental of office and warehouse space. Both leases have been negotiated over a term of 10 years and rentals are fixed for 5 years. Leases include a provision for five-yearly upward rent reviews according to prevailing market conditions.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Subsequent to the reporting date, on 13th June 2025, the Company entered into an agreement to surrender its lease for office space. The surrender was agreed with the landlord and became effective on 18th June 2025, resulting in the Company being released from all future obligations under the lease agreement.

As the lease surrender occurred after the end of the reporting period and was not indicative of conditions existing at the balance sheet date, it is classified as a non-adjusting event under FRS 102 Section 32 "Events after the End of the Reporting Period". Accordingly, no adjustments have been made to the financial statements as at 31 December 2024.

The surrender may have implications for future operating costs and cash flows, but does not impact the assets or liabilities recognised in the statement of financial position as at the reporting date.

As at 31 December 2024, Mr S Kelly, a director of the company, owed the company £28,287 (2023: £55,275).

As at 31 December 2024, the company owed Mr P Dormoy, a former director of the company, £586,945 (2023: £586,945). The loan is interest free and repayable on demand.

The Directors are considered to be the key management personnel of the company and as such, their remuneration is disclosed in note 6 of these financial statements.

As at 31 December 2024, the company was owed £31,822 (2023: £24,875) from Atrium Group Holdings Limited, the company's immediate parent.

During the year, the company paid rent of £163,216 (2023: £163,216) to Acanthus Investments Limited, a related party.

The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102 33.1A from the requirements to disclose details of transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

Throughout the year, Atrium Group Holdings Limited was considered to be both the immediate undertaking and the ultimate controlling party by the directors. This is the largest and smallest group for which consolidated accounts are prepared.

The registered office of Atrium Group Holdings Limited is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT, from which copies of its financial statements can be obtained.