REGISTERED NUMBER: 02108888 (England and Wales)

Audited Financial Statements

for the Period 1 June 2024 to 31 December 2024

for

Cova Security Gates Limited

Page

Balance Sheet

1

Notes to the Financial Statements

2

FIXED ASSETS

Intangible assets

4

261,474

314,456

Tangible assets

5

266,784

347,235

528,258

661,691

CURRENT ASSETS

Stocks

395,601

482,174

Debtors

6

1,015,961

1,373,811

Cash at bank

390,102

30,164

1,801,664

1,886,149

CREDITORS

Amounts falling due within one year

7

(1,613,062

)

(1,498,948

)

NET CURRENT ASSETS

188,602

387,201

TOTAL ASSETS LESS CURRENT LIABILITIES

716,860

1,048,892

CREDITORS

Amounts falling due after more than one year

8

(16,077

)

(61,503

)

NET ASSETS

700,783

987,389

CAPITAL AND RESERVES

Called up share capital

5,000

5,000

Revaluation reserve

59,401

65,798

Retained earnings

636,382

916,591

SHAREHOLDERS' FUNDS

700,783

987,389

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

Mr A J Wells - Director

1.	STATUTORY INFORMATION

Cova Security Gates Limited is a private company, limited by shares, domiciled in England, registration number 02108888. The registered office is Unit 11 Springvale Business Centre, Millbuck Way, Sandbach, Cheshire, CW11 3HY.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Turnover

Turnover represents net invoiced sales of goods and services in respect of manufacture and installation of security gates, excluding value added tax.

Turnover comprises the fair value of manufacture and installation of security gates carried out in the year, based on an internal assessment of work carried out. Once the outcome of a contract can be estimated reliably, profit is recognised on a stage of contract completion basis by reference to either costs incurred to date and total forecast costs on the contract as a whole, or certified value.

Losses expected in bringing a contract to completion are recognised immediately as soon as they are forecast. Where the outcome of variations is uncertain, the company only recognises turnover and associated profit where it is probable that the client will approve the variation. Where the outcome of claims is uncertain, the company only recognises turnover when negotiations have reached an advanced stage such that it is probable that the customer will accept the claim.

Amounts due from construction contract customers which are included within debtors, represent turnover less progress payments received. Where progress payments exceed turnover and other contract balances, the excess is shown as amounts due to construction contract customers within current liabilities.

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.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Development costs are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets and depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

10% on cost

Plant and machinery etc

-

25% on cost, 20% on reducing balance, 10% on reducing balance and 5% on reducing balance

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Going concern

The directors of the company have reviewed the company's financial position for 12 months from the balance sheet signing date. The shares of Cova Security Gates Limited were acquired by CLD Group Holdings Limited in June 2024. On acquisition, the group provided funds to clear the bank overdraft, invoice discounting facility and director loans and fully support the company during its transition into the CLD Group. The CLD Group has continued to invest in further developments of the Cova business and is funding its further development as the company becomes an increasingly important part of the wider CLD Group. It is the directors' belief that the company should prepare financial statements on a going concern basis, as the company has appropriate support from the CLD Group.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 46 (2024 - 44 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 June 2024

and 31 December 2024

469,748

AMORTISATION

At 1 June 2024

155,292

Charge for period

52,982

At 31 December 2024

208,274

NET BOOK VALUE

At 31 December 2024

261,474

At 31 May 2024

314,456

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 June 2024

89,627

641,438

731,065

Additions

18,072

1,064

19,136

Disposals

-

(83,239

)

(83,239

)

At 31 December 2024

107,699

559,263

666,962

DEPRECIATION

At 1 June 2024

33,156

350,674

383,830

Charge for period

6,283

51,683

57,966

Eliminated on disposal

-

(41,618

)

(41,618

)

At 31 December 2024

39,439

360,739

400,178

NET BOOK VALUE

At 31 December 2024

68,260

198,524

266,784

At 31 May 2024

56,471

290,764

347,235

Cost or valuation at 31 December 2024 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2020

-

(42,194

)

(42,194

)

Cost

107,699

601,457

709,156

107,699

559,263

666,962

If plant and machinery had not been revalued it would have been included at the following historical cost:

31.12.24

31.5.24

£

£

Cost

207,398

207,398

Aggregate depreciation

207,398

207,398

Plant and machinery was valued on an open market value basis on 31 March 2020 by the directors of the company .

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST OR VALUATION

At 1 June 2024

320,650

Disposals

(83,239

)

At 31 December 2024

237,411

DEPRECIATION

At 1 June 2024

155,481

Charge for period

39,070

Eliminated on disposal

(41,618

)

At 31 December 2024

152,933

NET BOOK VALUE

At 31 December 2024

84,478

At 31 May 2024

165,169

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.5.24

£

£

Trade debtors

304,367

600,939

Amounts owed by group undertakings

254,074

-

Amounts recoverable on contract

240,709

579,544

Other debtors

216,811

193,328

1,015,961

1,373,811

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.5.24

£

£

Bank loans and overdrafts

-

238,964

Hire purchase contracts

48,691

71,270

Payments on account

343,203

371,865

Trade creditors

456,046

603,672

Amounts owed to group undertakings

571,499

-

Taxation and social security

153,049

54,522

Other creditors

40,574

158,655

1,613,062

1,498,948

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.24

31.5.24

£

£

Hire purchase contracts

16,077

61,503

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.24

31.5.24

£

£

Bank overdraft

-

238,964

Hire purchase contracts

64,768

132,773

64,768

371,737

Hire purchase contracts are secured on the assets to which they relate.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Craig Clinton (Senior Statutory Auditor)

for and on behalf of Drummond Laurie CA

11.	ULTIMATE PARENT ENTITY

The company's ultimate parent company is Modsec Investments Ltd, registered in England under registration number 16022981. The financial statements of Modsec Investments Ltd can be obtained from Companies House and its registered office is Modsec House, Moston Road, Sandbach, Cheshire, CW11 3HL.