Cementaid (UK) Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Cementaid (UK) Limited is a private company, limited by shares, incorporated in England & Wales, registered number 02769568 . The registered office is 1 Baird Close, Crawley, West Sussex, RH10 9SY.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

Although the turnover of the company decreased in the year and it posted a loss before taxation of £494,738 (2023 – loss of £171,070), the company still had net current assets of £36,572 (2023 - £479,100) at the year end and the financial statements have been prepared on the going concern basis which the directors believed to be appropriate for the following reasons.

The director has prepared cash flow statements for a period in excess of 12 months from the date of approval of these financial statements which indicate that the company will have sufficient funds to meet its liabilities as they fall due for that period through funding arrangements. These cash flow statements were prepared on a worst case scenario basis and the assumptions behind them were considered very realistic based on both the future plans and on past trading.

Cementaid International Holdings Limited has given an undertaking that it is willing and able to continue to provide such support for the foreseeable future and although not legally binding, has issued a letter of support. As with any company placing reliance on other group entities for financial support, the director acknowledges that there can be no certainty that the support will continue, but at the date of approval of these financial statements they have no reason to believe that it will not do so. The company remains an integral part of the group and features heavily in its plans for the future. The funding arrangements in place consist of amounts set aside to introduce as and when it is required by the company based on expected future cashflows.

It is the intention of the director and parent company to push through this difficult period of trading and there are very positive signs at the company will be profitable again in 2026. It is the view of the director that the improvement in results will come from a combination of a general increase in activity in the industry and new superior products lines with the required certification that adhere to stringent quality standards.

Based on the above, the director believes the company is well placed to continue to trade for at least 12 months from the date of signing these financial statements and have therefore prepared the financial statements on the going concern basis of accounting. The financial statements do not include any adjustments that would result if that was not the case.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	25% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	25% reducing balance
Computer Equipment	25% reducing balance

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Cementaid (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.7. Financial Instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flow.

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

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Cementaid (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.10. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

2.11. Research and development

Expenditure on research and development is written off in the year in which it is incurred.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 30 (2023: 30)

4. Prior Period Adjustment

During the year a claim for Research & Development SME tax credits was made for the financial year ended 31.12.23. A total repayment of £66,082 was received in February 2025 and the associated costs of the claim were £18,150 and this has been accounted for as a prior year adjustment as it relates to 2023.

Summary of prior year accounting impact as at 1st January 2024:

Increase in tax recoverable under debtors £66,082

Increase in accrued expenses £18,150

Increase in distributable reserves by £47,932

5. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 January 2024	191,033	534,747	12,712	-	738,492
Additions	790	3,800	-	5,729	10,319
Disposals	-	(118,636 )	-	-	(118,636 )

As at 31 December 2024	191,823	419,911	12,712	5,729	630,175

Depreciation
As at 1 January 2024	185,359	286,503	12,612	-	484,474
Provided during the period	1,435	59,697	-	634	61,766
Disposals	-	(96,674 )	-	-	(96,674 )

As at 31 December 2024	186,794	249,526	12,612	634	449,566

Net Book Value
As at 31 December 2024	5,029	170,385	100	5,095	180,609

As at 1 January 2024	5,674	248,244	100	-	254,018

6. Stocks

	2024	2023 as restated
	£	£
Materials	160,008	151,810
Finished goods	83,296	70,436

	243,304	222,246

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Cementaid (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

7. Debtors

	2024	2023 as restated
	£	£
Due within one year
Trade debtors	438,209	678,245
Prepayments and accrued income	17,769	27,070
Other debtors	16,808	11,894
Corporation tax recoverable assets	66,082	224,490
Amounts owed by group undertakings	5,981	15,788

	544,849	957,487

8. Creditors: Amounts Falling Due Within One Year

	2024	2023 as restated
	£	£
Net obligations under finance lease and hire purchase contracts	21,763	24,635
Trade creditors	216,467	197,283
Other taxes and social security	76,516	50,124
VAT	38,163	73,937
Other creditors	16,465	14,363
Accruals and deferred income	161,413	225,231
Amounts owed to group undertakings	287,791	284,416

	818,578	869,989

9. Creditors: Amounts Falling Due After More Than One Year

	2024	2023 as restated
	£	£
Net obligations under finance lease and hire purchase contracts	66,040	87,663

10. Obligations Under Finance Leases and Hire Purchase

	2024	2023 as restated
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	21,763	24,635
Later than one year and not later than five years	66,040	87,663

	87,803	112,298

	87,803	112,298

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Cementaid (UK) Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

11. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 January 2024	32,429	32,429
Origination and reversal of timing differences	(9,562 )	(9,562 )

Balance at 31 December 2024	22,867	22,867

12. Share Capital

	2024	2023 as restated
	£	£
Allotted, Called up and fully paid	2	2

13. Pension Commitments

The company operates a defined contribution pension scheme for all employees. The assets of the scheme are held separately from those of the company in an independently administered fund. At the balance sheet date unpaid contributions of £15,655 (2023 £13,715) were due to the fund. They are included in Other Creditors.

14. Related Party Transactions

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

15. FRC's Ethical Standard - Provision Available for Small Entities

In common with other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

16. Ultimate Controlling Party

In the current and previous financial year, the company is a wholly owned subsidiary of Hanco Limted which itself is the wholly owned subsidiary of Cementaid International Holdings Ltd, both companies being incorporated in Hong Kong.

17. Audit Information

The auditor's report on the accounts of Cementaid (UK) Limited for the year ended 31 December 2024 was unqualified.

The auditor's report was signed by MICHAEL NEALE (Senior Statutory Auditor) for and on behalf of NEALE BUTLER LIMITED , Statutory Auditor.

NEALE BUTLER LIMITED

Bassett House

5 Southwell Park Road

Camberley

Surrey

GU15 3PU

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		2024		2023 as restated
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	5		180,609		254,018

			180,609		254,018
CURRENT ASSETS
Stocks	6	243,304		222,246
Debtors	7	544,849		957,487
Cash at bank and in hand		66,997		169,356

		855,150		1,349,089
Creditors: Amounts Falling Due Within One Year	8	(818,578 )		(869,989 )

NET CURRENT ASSETS (LIABILITIES)			36,572		479,100

TOTAL ASSETS LESS CURRENT LIABILITIES			217,181		733,118

Creditors: Amounts Falling Due After More Than One Year	9		(66,040 )		(87,663 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(22,867 )		(32,429 )

NET ASSETS			128,274		613,026

CAPITAL AND RESERVES
Called up share capital	12		2		2
Profit and Loss Account			128,272		613,024

SHAREHOLDERS' FUNDS			128,274		613,026