ACCOUNTS - Final Accounts preparation

Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:

Registered number: 06522931

LONGWATER CONSTRUCTION SUPPLIES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

LONGWATER CONSTRUCTION SUPPLIES LIMITED

COMPANY INFORMATION

Directors	N Carter
	W Littleboy
	Mrs M A Carter
	P P Wilcox


Company secretary	W Littleboy


Registered number	06522931


Registered office	William Frost Way
	Longwater Business Park
	Costessey
	Norwich
	Norfolk
	NR5 0JS


Independent auditors	MA Partners Audit LLP
	7 The Close
	Norwich
	Norfolk
	NR1 4DJ

LONGWATER CONSTRUCTION SUPPLIES LIMITED

CONTENTS

	Page
Strategic report	1 - 3
Directors' report	4 - 5
Independent auditors' report	6 - 9
Profit and loss account	10
Balance sheet	11 - 12
Statement of changes in equity	13
Notes to the financial statements	14 - 29

LONGWATER CONSTRUCTION SUPPLIES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The Directors present the Strategic Report for the year ended 31 December 2024.

Principal Business Activities
The Company distributes a wide range of construction materials to a wide base of both trade and retail customers. Traditionally heavily biased towards servicing the civil engineering market, the business has developed significant income streams and relationships with larger housebuilders, property developers, small builders, landscaping specialists, DIY’ers and the general public. The Company has continued to broaden its stock portfolio from basic groundworks materials to insulation, timber, and landscaping. The aim is to be the best all round builders merchant in East Anglia.

Business review

We aim to present a balanced and comprehensive analysis of the Company’s activity during the year and the position of the Company’s business at the year end consistent with the size and complexity of the operation.
The Directors are pleased to report that revenue increased slightly in 2024 to £30.3m (2023: £29.0m) although gross margin decreased to 19.1% (2023: 20.0%) reflecting challenging market conditions. Overhead costs came under significant upward pressure resulting in a reduction in operating profit to £656k (2023: £1.05m)
Trading conditions across the building merchanting sector remained very challenging throughout 2024. Levels of demand in the construction sector have continued to decline meaning competition between merchants has been very intense. This has put downward pressure on prices and margins and increasing overhead costs have had to be absorbed by the business. The new build housing sector in our core Norfolk market has also been severely affected by the nutrient neutrality regulations causing delays and difficulties getting planning consent for new developments.
The Company continues to maintain close relationships with suppliers and uses its membership of the H&B Buying Group to best advantage. This enabled the company to secure wide supply chains and continue to procure materials at market competitive rates.
The new branch opened by the Company during 2023 continued to grow turnover and expand our market share and customer base. The new branch though is still having a negative effect on overall profitability while the revenue at the branch continuers to grow. The directors expect the branch to generate a positive contribution to profit in 2025.
Despite the challenging trading environment, the business has continued to invest to support the future needs of the business. During the year the Company committed to purchasing 7 new delivery trucks across the group to increase the size of the fleet and replace some older vehicles.

Page 1

LONGWATER CONSTRUCTION SUPPLIES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties

Looking to 2025 and beyond, the continued low levels of demand in the construction sector is expected to remain a significant challenge with price competition and margin erosion an ongoing risk. Wage costs will increase significantly in 2025 due to the National Minimum Wage and Employers National Insurance Contributions announced in the budget. These costs will be difficult to pass on due to the competitive environment in the sector putting downward pressure on overall profitability.
The Directors believe the strategy of maintaining close relationships with suppliers and major customers will allow the Company to maintain market share and margins and manage the expected market conditions.
Credit risk is mitigated by setting credit limits for customers based on information from external credit reference agencies, customer payment history and utilising debtor protection insurance. These credit limits are regularly reviewed by the Directors and the Company maintains close relationships with key customers, as well as expanding and diversifying the customer base.
The Company makes use of an invoicing financing facility to fund some of its liquidity requirements and this facility is exposed to changes in the Bank of England base rate. Interest costs incurred in 2024 remained higher than in previous years but this started to ease in the second half of the year. The Directors keep this facility under constant review to minimise the increased costs.
The Company’s approach to risk management is to minimise the effects of adverse external conditions and the Directors believe that risks to the business are well managed.

Financial key performance indicators

		2024	2023
		£'000	£'000

Turnover	30,265	29,031

Gross margin	19.1%	20.0%

Operating profit	656	1,050

Profit after tax	272	629

Page 2

LONGWATER CONSTRUCTION SUPPLIES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

This report was approved by the board and signed on its behalf.

N Carter

Director

Date: 23 September 2025

Page 3

LONGWATER CONSTRUCTION SUPPLIES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £272,233 (2023 - £629,429).

Total dividends paid in the year amount to £295,000 (2023 - £720,000).

Directors

The directors who served during the year were:

N Carter

W Littleboy

Mrs M A Carter

L Healy (resigned 7 November 2024)

P P Wilcox

Future developments

The Company will continue its customer service approach to all business activities. Continued investment in personnel development and training, effective marketing and further additions to its stock and materials offering will all add to business growth and profitability.

Page 4

LONGWATER CONSTRUCTION SUPPLIES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, MA Partners Audit LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

N Carter

Director

Date: 23 September 2025

Page 5

LONGWATER CONSTRUCTION SUPPLIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER CONSTRUCTION SUPPLIES LIMITED

Opinion

We have audited the financial statements of Longwater Construction Supplies Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity and the related notes, 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 Company's affairs as at 31 December 2024 and of its profit 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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.

Page 6

LONGWATER CONSTRUCTION SUPPLIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER CONSTRUCTION SUPPLIES LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 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.

Matters on which we are required to report by exception

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.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 4, 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.

Page 7

LONGWATER CONSTRUCTION SUPPLIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER CONSTRUCTION SUPPLIES LIMITED (CONTINUED)

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 an Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit in respect of 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 to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the Company.

Our approach was as follows:

∙We obtained an understanding of the legal and regulatory requirements applicable to the Company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

∙We obtained an understanding of how the Company complies with these requirements by discussions with management and those charged with governance.

∙We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

∙We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' report.

Page 8

LONGWATER CONSTRUCTION SUPPLIES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGWATER CONSTRUCTION SUPPLIES LIMITED (CONTINUED)

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 Auditors' 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.

Frank Shippam BSc FCA DChA (Senior statutory auditor)

for and on behalf of

MA Partners Audit LLP

7 The Close

Norwich

Norfolk

NR1 4DJ

30 September 2025

Page 9

LONGWATER CONSTRUCTION SUPPLIES LIMITED

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	3	30,264,997	29,031,214
Cost of sales		(24,480,655)	(23,210,252)
Gross profit		5,784,342	5,820,962
Distribution costs		(2,031,696)	(1,799,846)
Administrative expenses		(3,096,642)	(2,971,195)
Operating profit		656,004	1,049,921
Income from shares in group undertakings		75,000	75,000
Interest receivable and similar income	7	1,036	2,367
Interest payable and similar expenses	8	(306,274)	(309,715)
Profit before tax		425,766	817,573
Tax on profit	9	(153,533)	(188,144)
Profit for the financial year		272,233	629,429

There are no items of other comprehensive income for 2024 or 2023 other than the profit for the year. As a result, no separate Statement of comprehensive income has been presented.

The notes on pages 14 to 29 form part of these financial statements.

Page 10

LONGWATER CONSTRUCTION SUPPLIES LIMITED

REGISTERED NUMBER: 06522931

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Tangible assets	11		1,475,470		1,590,374
Investments	12		88,800		188,800
			1,564,270		1,779,174
Current assets
Stocks	13	1,747,495		1,721,168
Debtors: amounts falling due within one year	14	4,245,264		4,771,369
Cash at bank and in hand	15	139,453		333,230
		6,132,212		6,825,767
Creditors: amounts falling due within one year	16	(3,511,314)		(4,250,691)
Net current assets			2,620,898		2,575,076
Total assets less current liabilities			4,185,168		4,354,250
Creditors: amounts falling due after more than one year	17		(4,167)		(105,805)
Provisions for liabilities
Deferred tax	20	(253,834)		(298,511)
			(253,834)		(298,511)
Net assets			3,927,167		3,949,934

Capital and reserves
Called up share capital	21	40,000	40,000
Profit and loss account	22	3,887,167	3,909,934
		3,927,167	3,949,934

Page 11

LONGWATER CONSTRUCTION SUPPLIES LIMITED

REGISTERED NUMBER: 06522931

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2025.

N Carter

Director

The notes on pages 14 to 29 form part of these financial statements.

Page 12

LONGWATER CONSTRUCTION SUPPLIES LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 January 2023	40,000	4,000,505	4,040,505
Comprehensive income for the year
Profit for the year	-	629,429	629,429
Contributions by and distributions to owners
Dividends: Equity capital	-	(720,000)	(720,000)

At 1 January 2024	40,000	3,909,934	3,949,934
Comprehensive income for the year
Profit for the year	-	272,233	272,233
Contributions by and distributions to owners
Dividends: Equity capital	-	(295,000)	(295,000)
At 31 December 2024	40,000	3,887,167	3,927,167

The notes on pages 14 to 29 form part of these financial statements.

Page 13

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Longwater Construction Supplies Limited is a private company limited by shares. It is both incorporated and domiciled in England and Wales. The address of its registered office is William Frost Way, Longwater Business Park, Costessey, Norwich, Norfolk, NR5 0JS.
The Company's principal activity is that of builders merchants.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

∙the requirements of Section 7 Statement of Cash Flows;

∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);

∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;

∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Longwater Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.

2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 14

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Revenue

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. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 January 2023 to continue to be charged over the period to the first market rent review rather than the term of the lease.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 15

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.11

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method or on a reducing balance basis..

Depreciation is provided on the following basis:

Property improvements	-	2%	- 50% straight-line
Plant and machinery	-	10%	straight-line
Motor vehicles	-	25%	reducing balance
Office equipment	-	25%	reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 17

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 18

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Turnover

All turnover arose within the United Kingdom.

Fees payable to the Company's auditors for the audit of the Company's financial statements

14,000

12,600

Wages and salaries	2,379,583	2,228,472
Social security costs	243,728	228,867
Cost of defined contribution scheme	47,934	119,545
	2,671,245	2,576,884

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Employees	65	64

Total remuneration key management personnel during the year was £253,352 (2023 - £340,082).

Page 19

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

6.	Directors' remuneration
		2024	2023
		£	£

Directors' emoluments	230,044	237,723
Company contributions to defined contribution pension schemes	1,996	76,996
	232,040	314,719

During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

7.	Interest receivable
		2024	2023
		£	£

	Other interest receivable	1,036	2,367
		1,036	2,367

8.	Interest payable and similar expenses
		2024	2023
		£	£

Service charges	160,194	168,902
Finance leases and hire purchase contracts	6,967	10,600
Discounting charges	137,954	130,213
Other interest	1,159	-
	306,274	309,715

Page 20

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Corporation tax
Current tax on profits for the year	198,210	178,434

Total current tax	198,210	178,434

Deferred tax
Origination and reversal of timing differences	(44,677)	9,710
Total deferred tax	(44,677)	9,710


	Tax on profit	153,533	188,144

Profit on ordinary activities before tax

425,766

817,573

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)	106,442	204,393
Effects of:
Other timing differences leading to an increase (decrease) in taxation	63,997	9,451
Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment	(18,750)	(18,750)
Other differences leading to an increase (decrease) in the tax charge	1,844	(6,950)
Total tax charge for the year	153,533	188,144

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

10.	Dividends
		2024	2023
		£	£

	Dividends	295,000	720,000
		295,000	720,000

11.	Tangible fixed assets

	Property improve-ments	Plant and machinery	Motor vehicles	Office equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	549,382	183,851	2,603,636	567,924	3,904,793
Additions	112,582	52,721	10,859	73,882	250,044
Disposals	(153,547)	(342)	(194,528)	(25,359)	(373,776)
Transfers between classes	(33,534)	-	-	33,534	-
At 31 December 2024	474,883	236,230	2,419,967	649,981	3,781,061
Depreciation
At 1 January 2024	192,211	51,647	1,689,695	380,866	2,314,419
Charge for the year on owned assets	34,494	20,707	117,182	58,582	230,965
Charge for the year on financed assets	-	-	111,398	-	111,398
Disposals	(153,397)	(181)	(172,442)	(25,171)	(351,191)
Transfers between classes	(19,445)	-	-	19,445	-
At 31 December 2024	53,863	72,173	1,745,833	433,722	2,305,591
Net book value
At 31 December 2024	421,020	164,057	674,134	216,259	1,475,470
At 31 December 2023	357,171	132,204	913,941	187,058	1,590,374

The net book value of assets under finance leases or hire purchase contracts, included in the above are £334,193 (2023 - £445,591).

Page 22

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Fixed asset investments

	Investments in subsidiary companies	Unlisted investments	Total
	£	£	£
Cost or valuation
At 1 January 2024	37,500	151,300	188,800
Disposals	-	(100,000)	(100,000)
At 31 December 2024	37,500	51,300	88,800

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Longwater (South East) Limited

William Frost Way Longwater Business Park, Norwich, United Kingdom, NR5 0JS

Ordinary

50.005%

	The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
	Name	Aggregate of share capital and reserves	Profit £

Longwater (South East) Limited

1,251,790

278,484

13.	Stocks
		2024	2023
		£	£

Raw materials and consumables	1,747,495	1,721,168
	1,747,495	1,721,168

The carrying value of stocks are stated net of impairment losses totalling £85,979 (2023 - £95,119).

Page 23

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.

Debtors

					2024	2023
					£	£


Trade debtors excluding factored debts	565,473	942,737
Factored debts	1,303,614	1,614,604
Amounts owed by group undertakings	1,083,445	998,507
Other debtors	900,399	810,074
Prepayments and accrued income	392,333	405,447
	4,245,264	4,771,369

					2024	2023
					£	£


Gross factored debts outstanding for the invoice financing facility	4,449,978	3,280,630
Non-recourse finance of factored debts	(3,146,364)	(1,666,026)
Factored debts	1,303,614	1,614,604

Security is provided by the Company for the invoice financing facility.

15.	Cash and cash equivalents
		2024	2023
		£	£

Cash at bank and in hand	139,453	333,230
	139,453	333,230

Page 24

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

16.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Bank loans	50,000	50,000
Trade creditors	2,285,102	3,135,551
Corporation tax	140,167	113,091
Other taxation and social security	112,314	125,605
Obligations under finance lease and hire purchase contracts	47,961	118,630
Other creditors	182,565	309,840
Accruals and deferred income	693,205	397,974
	3,511,314	4,250,691

The finance lease and hire purchase liabilities are secured on the assets concerned.

17.	Creditors: Amounts falling due after more than one year
		2024	2023
		£	£

Bank loans	4,167	54,167
Net obligations under finance leases and hire purchase contracts	-	51,638
	4,167	105,805

The finance lease and hire purchase liabilities are secured on the assets concerned.

Amounts falling due within one year
Bank loans	50,000	50,000
Amounts falling due 1-2 years
Bank loans	4,167	50,000
Amounts falling due 2-5 years
Bank loans	-	4,167

	54,167	104,167

Page 25

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Within one year	47,961	118,630
Between 1-5 years	-	51,638
	47,961	170,268

20.	Deferred taxation

		2024
		£

	At beginning of year	298,511
	Charged to profit or loss	(44,677)
	At end of year	253,834

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

	Accelerated capital allowances	253,834	298,511
		253,834	298,511

Page 26

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

Ordinary C shares of £1.00 each	10,000	10,000
Ordinary D shares of £1.00 each	10,000	10,000
Ordinary E shares of £1.00 each	3,011	3,011
Ordinary F shares of £1.00 each	645	645
Ordinary G shares of £1.00 each	5,161	5,161
Ordinary H shares of £1.00 each	4,731	4,731
Ordinary I shares of £1.00 each	6,452	6,452

	40,000	40,000

22.

Reserves

Profit and loss account

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

23.	Contingent liabilities

The Company is party to an unlimited multilateral bank guarantee dated 31 January 2020.

	Contracted for but not provided in these financial statements	1,079,765	-
		1,079,765	-

25.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £47,934 (2023 - £44,545). Contributions totalling £Nil (2023 - £9,792) were payable to the fund at the balance sheet date and are included in creditors.

Page 27

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Not later than 1 year	-	30,000
Later than 1 year and not later than 5 years	-	52,500
	-	82,500

Lease payments of £30,000 (2023 - £30,000) are recognised as an expense in the profit and loss account.

27.	Transactions with directors

At 1 January 2024, the Company was owed £53,654 by a director. During the year, directors received advances of £860. The director resigned in the year. The balance payable to the Company as at 31 December 2024 was £55,549, included in other debtors in Note 14 of the financial statements. The loan is unsecured and Interest is charged at 2.25% per annum. Interest charged in the year was £1,037.
At 1 January 2024, the Company owed £164,249 to directors. During the year, directors received advances of £105,077 and dividends of £95,000. The balance payable by the Company as at 31 December 2024 was £154,173 included in other creditors in Note 16 of the financial statements.

Page 28

LONGWATER CONSTRUCTION SUPPLIES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

28.

Related party transactions

The Company, being a wholly owned subsidiary of Longwater Limited, has taken advantage of the exemption contained in Financial Reporting Standard 102 section 33.1a and has therefore not disclosed transactions with wholly owned members of the same group.
During the year, the Company purchased goods and services from Longwater (South East) Limited amounting to £49,566 (2023 - £12,666), sold goods and services amounting to £22,891 (2023 - £8,873) and charged a management fee of £75,000 (2023 - £75,000). Longwater (South East) Limited is a subsidiary of the Company. At the year end, the Company was owed £185,460 (2023 - £262,226) from Longwater (South East) Limited.
During the year, the Company purchased goods and services from The Longwater (Gravel) Company Limited amounting to £385,142 (2023 - £145,137), sold goods and services amounting to £70,693 (2023 - £84,823) and paid rent of £134,800 (2023 - £134,800). The Longwater (Gravel) Company Limited is a company with shareholders and a director in common. At the year end, the Company owed £20,511 (2023 - £73,203) to The Longwater (Gravel) Company Limited.
During the year the Company purchased goods and services from Geomesh Ltd amounting to £95,659 (2023 - £670,768) and sold goods and services amounting to £303,199 (2023 - £567,604). Geomesh Ltd is a company with a shareholder and director in common. At the year end, the Company was owed £256,775 (2023 - £212,919) from Geomesh Ltd.
At the year end, the Company was owed £Nil (2023 - £60,610) from TT Investments (Norfolk) Limited, a company with a shareholder and director in common.

29.	Controlling party

The ultimate parent undertaking is Longwater Limited, a company incorporated in England and Wales. Longwater Limited's registered office is 7 The Close, Norwich, Norfolk, NR1 4DJ. The Company's financial statements are consolidated in the financial statements of the ultimate parent undertaking and the consolidated financial statements may be obtained from Companies House.
The directors have concluded that the ultimate controlling parties are N Carter and Mrs M A Carter.

Page 29