REGISTERED NUMBER: 07137654 (England and Wales)

LEDWOOD PROTECTIVE COATINGS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

A T Davies

C Ferguson

N D Revell

L N Revell

SECRETARY:

A Miller

REGISTERED OFFICE:

Units 9 - 11

Waterloo Industrial Estate

Pembroke Dock

Pembrokeshire

SA72 4RR

REGISTERED NUMBER:

07137654 (England and Wales)

INDEPENDENT AUDITORS:

Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

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

BUSINESS REVIEW AND FULL YEAR HIGHLIGHTS

The company achieved strong revenue growth in 2024, increasing by 95% compared to the prior year. However, challenging market conditions and sustained price pressures meant that trading difficulties experienced in 2023 continued into 2024. Despite higher revenues, profitability was not maintained.

Encouragingly, the company returned to profitability toward the end of 2024, although margins remain under pressure due to rising labour, material, and utility costs. Competitive pricing within the sector has also impacted profitability.

Demand for specialised coatings increased during the year, particularly within the construction sector and for maintenance projects. Internal group demand also rose, driven by the ramp-up of the HPC contract via Ledwood Mechanical Engineering Limited and other internal contracts.

Looking ahead, management has initiated several efficiency and improvement projects expected to strengthen trading performance over the next 12-24 months. These measures are anticipated to deliver continued revenue growth alongside improvements in profitability and working capital generation.

The company is well positioned to benefit from the expected rise in external site-based work with both new and existing customers. Internal group demand will continue to contribute to revenue growth, albeit at lower margins.

PRINCIPAL ACTIVITIES

The company's principal activities remain the provision of protective coatings and aligned services to support the wider Group, specifically Ledwood Mechanical Engineering Limited. These services underpin the Group's engineering, fabrication, and construction projects. The company also aims to expand its external customer base to fully utilise its facilities and enhance profitability.

BUSINESS STRATEGY & OBJECTIVES

The company's strategy is to strengthen its position as a leading service provider to the energy sector by supporting existing and future clients, employees, and the communities in which it operates.

Aligned with this, the company is committed to maximising shareholder returns through:

- Operational excellence,

- Investment in systems and new technologies, and

- Ongoing development of its workforce.

KEY PERFORMANCE INDICATORS

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these include but are not limited to the following :

Financials

2024

2023

2022

£'000

£'000

£'000

Revenue

1,756

902

1,022

Revenue Decrease % YoY

95%

(12%

)

40%

Operating Profit/(Loss)

(90

)

(208

)

50

Profit/(Loss) Before Tax

109

(58

)

50

FT Employees

16 FTE

9 FTE

15 FTE

Revenue Per Employee

110

100

68

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks and uncertainties faced by the company relate to demand levels, competitive pricing, economic volatility, and inflationary pressures driving up costs.

The company seeks to mitigate these risks through:

- Diversification into new markets,

- Securing longer-term contracts, and

- Improving project pricing models.

Additionally, operations are exposed to financial risks, including interest rate fluctuations and the wider impacts of global geopolitical and economic instability. A risk management programme is in place to reduce exposure.

EMPLOYMENT POLICIES AND EMPLOYEE INVOLVEMENT

The company promotes a culture of continuous improvement by investing in people at all levels. Recruitment and retention of suitably qualified staff remains a key challenge, which management addresses through long-term project planning and ongoing training and development.

The company is committed to providing equal opportunities and ensuring there is no bias or discrimination in employment practices.

ENVIRONMENT, SUSTAINABILITY, GOVERNANCE (ESG) DISCLOSURES & PRIORITIES

As a responsible employer and contractor in the construction industry, the company recognises the importance of minimising environmental impact and contributing positively to society.

Key ESG priorities include:

- Reducing energy consumption, emissions, water use, and waste,

- Supporting local communities through education, charitable programmes, and sponsorship,

- Delivering products and services that help customers reduce carbon emissions, energy use, and waste, and

- Providing an environment in which employees can reach their full potential.

For more than 40 years, Ledwood has delivered engineering, infrastructure, and construction projects with a focus on meeting the needs of people and communities. The company remains committed to conducting business in a way that creates long-term positive impacts for both the environment and society.

FUTURE DEVELOPMENTS

With the forecast growth of major energy projects in the UK, Ledwood is optimistic about the next 5-10 years. The company is well placed to benefit from substantial investment in the low-carbon and alternative energy sectors, as outlined in the UK Government's Energy Policy.

The UK's low-carbon energy sector is projected to require up to £50 billion in annual investment until at least 2030 to achieve government targets. Opportunities are expected to arise particularly in nuclear power generation and large-scale offshore wind, both areas where the company has proven expertise.

Furthermore, industry consolidation, Brexit impacts, and the change of UK government in 2024-with more ambitious Net Zero targets-have created opportunities for established UK contractors.

With its strong track record and capabilities, Ledwood is well positioned to capitalise on these developments, both domestically and potentially in overseas markets.

ON BEHALF OF THE BOARD:

N D Revell - Director

16 September 2025

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

DIVIDENDS

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

A T Davies

C Ferguson

N D Revell

L N Revell

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N D Revell - Director

16 September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

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

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

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

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to:

-

identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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

Use of our report

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

Henry Lloyd-Davies (Senior Statutory Auditor)

for and on behalf of Bevan Buckland LLP

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

16 September 2025

TURNOVER

3

1,756,186

901,722

Cost of sales

(1,572,539

)

(855,904

)

GROSS PROFIT

183,647

45,818

Administrative expenses

(274,506

)

(254,239

)

OPERATING LOSS

5

(90,859

)

(208,421

)

Amounts written off investments

6

200,000

150,000

PROFIT/(LOSS) BEFORE TAXATION

109,141

(58,421

)

Tax on profit/(loss)

7

19,398

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

128,539

(58,421

)

PROFIT/(LOSS) FOR THE YEAR

128,539

(58,421

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

128,539

(58,421

)

FIXED ASSETS

Investments

8

7,683,500

7,683,500

CURRENT ASSETS

Debtors

9

628,207

367,157

Cash at bank

115,071

216,078

743,278

583,235

CREDITORS

Amounts falling due within one year

10

8,251,726

8,220,222

NET CURRENT LIABILITIES

(7,508,448

)

(7,636,987

)

TOTAL ASSETS LESS CURRENT LIABILITIES

175,052

46,513

CAPITAL AND RESERVES

Called up share capital

11

2

2

Retained earnings

12

175,050

46,511

SHAREHOLDERS' FUNDS

175,052

46,513

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2025 and were signed on its behalf by:

N D Revell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

2

104,932

104,934

Changes in equity

Total comprehensive income

-

(58,421

)

(58,421

)

Balance at 31 December 2023

2

46,511

46,513

Changes in equity

Total comprehensive income

-

128,539

128,539

Balance at 31 December 2024

2

175,050

175,052

1.	STATUTORY INFORMATION

Ledwood Protective Coatings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Consolidated financial statements

The company is exempt from the requirement to prepare consolidated financial statements under Section 400 of the Companies Act 2006 as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent company.

The parent company is Ledwood Holdings Limited, whose registered office is: Units 9–11, Waterloo Industrial Estate, Pembroke Dock, Pembrokeshire, SA72 4RR, United Kingdom.

Copies of the consolidated financial statements of Ledwood Holdings Limited are available from Companies House.

Financial Reporting Standard 102 - reduced disclosure exemptions

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

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be appropriate and reasonable in the circumstances.

a) Critical judgements in applying the company's accounting policies

The directors do not consider there to be any critical accounting judgements to the financial statements.

b) Key accounting estimates and assumptions

Long term contracts

Where the company enters into long term contracts, revenue is recognised on the percentage of completion basis. Under the percentage of completion method, the company makes an estimate of the percentage to complete for a project and recognises the proportion of revenue and profit accordingly. In forecasting the profitability of contracts, management makes best estimates of the impact of customer disputes and claims brought by contractors. Any expected losses on long term contracts are recognised immediately and are written off to the statement of comprehensive income.

Revenue recognition

Revenue, which excludes value added tax and trade discounts is the fair value of the consideration received and receivable and represents the invoiced value of goods and services supplied and the value of contract work undertaken during the year.

Long term contract balances are assessed on a contract by contract basis and are reflected in the profit and loss account as contract activity progresses. Any expected losses on long term contract balances are recognised immediately and are written off to the profit and loss account. Where it is considered that the outcome of a long term contract can be assessed with reasonable certainty before its conclusion, the prudently calculated attributable profit is recognised in the profit and loss account as the difference between reported turnover and related costs for that contract.

Investments in subsidiaries

Investments are recorded at cost plus incidental expenses less any provision for impairment. Impairment reviews are performed by the directors when there has been an indication of potential impairment.

Taxation

Taxation for the year 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 year 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.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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.

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.

Cash

Cash includes cash in hand and at bank, along with restricted cash balances held in escrow in support of contractual commitments. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

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.

Finance costs

Finance costs are charged to the Statement of Comprehensive Income 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.

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Distribution to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

Related party transactions

The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

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, loans from banks and other third parties and loans to related parties.

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 outright 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 Statement of Comprehensive Income.

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 flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Distribution to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

Related party transactions

The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

Going concern

The financial statements are prepared on the going concern basis. Despite the year-end position resulting in a negative balance sheet, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of further uncertainties which may cause doubt on the company's ability to continue as a going concern.

The company has been impacted by the ongoing cost of living crisis and rising costs of inflation. As a result, the sector, like many others, has had to bear the increasing cost of materials due to the hike in raw material costs, in order to meet contract obligations. Due to the nature of the business and work being carried out under contract, the company has been required to absorb the increases in material costs in relation to those aforementioned delayed contracts.

The company continues to be supported by the parent company where necessary and the parent company has provided a letter of support to express the fact it will continue to offer financial support to the end of 31 December 2026.

The financial statements do not include the adjustments that would result if the company were unable to continue as a going concern.

3.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

1,756,186

901,722

1,756,186

901,722

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

988,431

431,172

Social security costs

95,356

43,638

Other pension costs

11,880

5,942

1,095,667

480,752

The average number of employees during the year was as follows:

2024

2023

Production

14

8

Admin

2

1

16

9

2024

2023

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

2024

2023

£

£

Hire of plant and machinery

29,384

58,323

Auditor's remuneration - audit fees

2,380

2,205

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2024

2023

£

£

Amount w/p intercompany

(200,000

)

(150,000

)

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2024

2023

£

£

Deferred tax

(19,398

)

-

Tax on profit/(loss)

(19,398

)

-

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit/(loss) before tax

109,141

(58,421

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

27,285

(13,741

)

Effects of:

Income not taxable for tax purposes

(50,000

)

(35,281

)

Group relief

3,317

49,022

Total tax credit

(19,398

)

-

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

7,683,500

NET BOOK VALUE

At 31 December 2024

7,683,500

At 31 December 2023

7,683,500

Fixed asset investments comprise equity shares in Ledwood Mechanical Engineering Limited, which is not publicly traded.

Ledwood Mechanical Engineering Limited

The company owns 95.1% of the equity share capital of Ledwood Mechanical Engineering Limited (2023: 95.1%). During the year the company received dividends of £nil from Ledwood Mechanical Engineering Limited (2023: £nil). The company's registered office is at Units 9-11, Waterloo Industrial Estate, Pembroke Dock, Pembrokeshire, SA72 4RR.

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

400,314

195,917

Amounts recoverable on contract

198,529

168,016

Tax

19,398

-

VAT

9,966

3,224

628,207

367,157

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

72,724

42,536

Amounts owed to group undertakings

8,147,645

8,134,312

Social security and other taxes

19,577

12,391

Other creditors

3,780

22,983

Accrued expenses

8,000

8,000

8,251,726

8,220,222

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

2

Ordinary

1

2

2

12.

RESERVES

Retained

earnings

£

At 1 January 2024

46,511

Profit for the year

128,539

At 31 December 2024

175,050

13.	RELATED PARTY DISCLOSURES

During the year the following related party transactions took place:

- £1,253,261 (2023: £488,441) was received from Ledwood Mechanical Engineering Limited for painting and blasting services.

Intercompany Loan Balance

At 31 December 2024, the company owed £8,147,645 (2023: £8,134,312) to Ledwood Mechanical Engineering Limited. The key terms of the balance are as follows:

-The loan is interest-free.

-The loan is repayable on demand.

-Management has considered the recoverability of the balance and concluded no impairment is required.

-The ability to repay the balance in full is achievable with support from Ledwood Holdings Limited, if required.

Ultimate Controlling Party

The ultimate controlling party of Ledwood Protective Coatings Limited is Ledwood Holdings Limited, a company registered in the United Kingdom. Ledwood Holdings Limited exercises control over the company through its ownership of the majority of voting rights and the ability to appoint the majority of the board of directors.