Tile Mountain Limited - Limited company accounts 25.1

REGISTERED NUMBER: 08335002 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

TILE MOUNTAIN LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

19

DIRECTORS:

J P Harris

M Iqbal

N D Ounstead

REGISTERED OFFICE:

Connaught Street

Tunstall

Stoke On Trent

ST6 5TQ

REGISTERED NUMBER:

08335002 (England and Wales)

AUDITORS:

Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

Principal activity

The principal activity of the company during the period was the retail sale of tiles, stone, and accessories.

REVIEW OF BUSINESS

Despite challenging market conditions, Tile Mountain Group continues to produce strong financial results.

During the year Tile Mountain's revenue grew almost £6m to more than £37m with EBITDA increasing by 13%.

The Consolidated Group revenue grew by £28m to more than £130m, with EBITDA growing by more than 12%.

More details about the trading performance can be found on pages 11 to 39.

PRINCIPAL RISKS AND UNCERTAINTIES

Identifying and minimising risk is a key objective of the Company's board. The Key risks to be are considered to

be:

General Economic Risk

The company faces the same global economic factors that challenge its competitors. However, given its strong trading history and significant online presence, it is well placed to handle economic turbulence. The board proactively seek to identify risks and deal with them proactively.

Foreign Exchange Risk

A significant proportion of the product purchases are settled in foreign currencies. As a result, there is potential for currency gains or losses. However, the board's foreign exchange strategy is considered sufficient to ensure this risk is minimised.

Liquidity Risk

The company has sought to minimise any potential cash flow issues by obtaining sufficient structured debt products necessary to ensure there is sufficient liquidity in the balance sheet.

SECTION 172(1) STATEMENT

The company's Board meet regularly to discuss performance and plan future strategy. The directors have overall responsibility for the operations of the business.

The Directors and senior management teams meet weekly, to review KPI's, discuss commercial opportunities, risks, operational activities, compliance, employee matters and H&S. The availability of high quality, timely information is a key reason for the success of these meetings. This enables the group to make proactive decisions, in the best interest of stakeholders.

Understanding the market, customer expectations, providing the right product, at the right price, on a timely basis and with good service is a fundamental operating ethos across the Group. The group operates in both the retail and wholesale markets. A bespoke approach to each market is implemented.

The Group seeks to engage with the local communities in which we operate, both in the UK and in the overseas offices. Throughout the year we have supported charities and sponsored local organisations.

The development and skills of our workforce are essential factors in achieving our growth aspirations. The board continues to place employee development at the centre of our future growth.

Operating systems and IT are other essential tool in the organisation. We utilise the resources of selected outsourced IT specialists along with a strong team of internal IT staff to create, implement, maintain and develop strong operating systems across all aspects of the group. These include website trading, stock management, finance and KPI's and transport.

The group's board and senior management team have significant experience in the global procurement of tiles and bathroom products with industry leading manufacturers. These relationships are based on long standing personal relationships which are maintained through ongoing interaction.

Another key stakeholder of the group is our transport partners. In relation to both carriage in and out. These business relationships are also built on several years of positive trading

FUTURE DEVELOPMENT AND OUTLOOK

Despite several corporate failures in the Bathroom and Tile industries, the Group continued to see significant levels of growth in 2024 with additional further growth evident in 2025.

The Group seek to continue growing sales and profitability in future years. To support this objective, during the year, Eurorad Limited commenced trading from a purpose built 200,000 sq ft automated warehouse. The significantly increased capacity and efficiency which the new facility provides will enables the Group to achieve its growth objectives.

In the previous year, the board set out to expand the Group retail estate to 50 showrooms across the UK.

Actual new store openings keep this objective on track, with the new showrooms producing strong financial results to date.

After the balance sheet date, the group purchased a 30 acre site, adjacent to its existing Tunstall warehouse network. This site will provide additional capabilities to further enhance the business growth plans.

ON BEHALF OF THE BOARD:

J P Harris - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of retail sale of tiles, stone, and accessories.

DIVIDENDS

An interim dividend of £0.0921 per share was paid on 15 October 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 500,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

J P Harris

M Iqbal

N D Ounstead

CHARITABLE DONATIONS

During the year the group made charitable donations totalling £6,166 (2023; £17,398) . The donations were as follows:

Ghausia Mosque Cobridge £3,100

Misc donations £2,000 and under; £3,066

ENGAGEMENT WITH EMPLOYEES

The Group believes in clear communication and engagement with its employees. Employee communication is

achieved through regular senior management meetings, with senior staff communicating as necessary to

employees in their respective teams. Communication is also provided by the online HR system and throughout

the workplace on notice boards.

The Group holds departmental meetings, which provide a platform for employees to discuss matters they

consider relevant to their own interests or broader matters throughout the Group.

To engage employees with the financial success of the Group, a performance related bonus scheme is in

operation. Bonuses are payable when KPI’s are met.

Disabled employees

The Group fully considers applications of employment of disabled persons. Equal consideration is given to all

applicants and their capability to undertake the role.

In the event a member of staff becomes disabled whilst in employment of the Group, every effort is made to

ensure they remain employed by the Group, either in the same role or an alternative role which may be more

suitable to any specific needs. Additional support or training is provided as necessary.

The employment, training and career development of disabled persons and non-disabled persons are

considered.

The Group is committed to creating a culture in which diversity and equality of opportunity are promoted actively

and in which unlawful discrimination is not tolerated. The Group recognizes the real business benefits of having

a diverse community of staff and to this end, our aim is to ensure that individuals are treated fairly and equally.

This policy supports The Group objective of providing a working environment free from all forms of

discrimination

BUSINESS RELATIONSHIPS

Business relationships are discussed within the Strategic Report on page 2, in accordance with the provisions of s172(1)(c) of the Companies Act 2006.

STREAMLINED ENERGY AND CARBON REPORTING

Greenhouse gas emissions, energy consumption and energy efficiency action

The Group’s primary energy consumption is vehicle fuel used across both the commercial vehicle and car fleets.

Energy consumed to heat and light the warehouse portfolio also represents a significant proportion of the overall

usage.

The Group's greenhouse gas emissions and energy consumption are as follows:

2024

2023

Emissions resulting from activities for which the Group is responsible involving the
combustion of gas or oil (in tonnes of CO2 equivalent)

174

122

Emissions resulting from activities for which the Group is responsible involving the
combustion of fuel (in tonnes of CO2 equivalent)

663

896

Emissions resulting from the purchase of the electricity by the Group for its ownuse,
including the purposes of transport (in tonnes of CO2 equivalent)

265

182

The increased emissions in 2023 relate to new store openings.

The utility emissions stated above have been calculated based on information provided by our energy suppliers,

applied to a Government energy emissions conversion factor. The vehicle emissions stated above have been

calculated by our in house transport team, based on actual miles travelled multiplied by standard transport

industry emissions data.

With a view to reducing our carbon footprint and saving costs, the Group continues to implement energy saving

measures. Including the installation of sensor lighting, centralised and automated air conditioning / heating to

operate when required during working hours only.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Fairhurst Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Harris - Director

29 September 2025

Opinion

We have audited the financial statements of Tile Mountain Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 six, 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 group's and the parent 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 group or the parent 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect in the determination of material amounts and disclosures in the financial statement, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatements of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

-

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. As a result of these procedures we consider that the most significant laws and regulations that have a direct impact on the financial statements are FRS 102 and the Companies Act 2006.

-

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing minutes of meetings and inspecting legal correspondence.

In assessing the susceptibility of the financial statements to material misstatement, including obtaining and understanding of how fraud might occur;

-

We gained an understanding of the controls that management have in place to prevent and detect fraud.

-

We enquired of management about any instances of fraud that had taken place during the year.

To address the risk of fraud through management bias and override of controls;

-

We performed analytical procedures to identify any unusual or unexpected relationships;

-

We tested journal entries to identify unusual transactions; and

-

We assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of

internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

Louise Webster BSc BFP ACA (Senior Statutory Auditor)

for and on behalf of Fairhurst Audit Services Ltd

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

30 September 2025

TILE MOUNTAIN LIMITED (REGISTERED NUMBER: 08335002)

CONSOLIDATED

STATEMENT OF COMPREHENSIVE

INCOME

for the Year Ended 31 December 2024

2024

2023

Notes

£

TURNOVER

4

130,145,767

101,873,573

Cost of sales

60,737,998

47,343,310

GROSS PROFIT

69,407,769

54,530,263

Distribution costs

37,411,188

27,722,834

Administrative expenses

23,505,662

18,778,138

60,916,850

46,500,972

8,490,919

8,029,291

Other operating income

5

1,666,784

1,197,084

OPERATING PROFIT

7

10,157,703

9,226,375

Interest receivable and similar income

9

163,369

72,121

10,321,072

9,298,496

Interest payable and similar expenses

10

1,938,171

1,852,634

PROFIT BEFORE TAXATION

8,382,901

7,445,862

Tax on profit

11

2,581,004

2,171,243

PROFIT FOR THE FINANCIAL YEAR

5,801,897

5,274,619

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

5,801,897

5,274,619

Profit attributable to:

Owners of the parent

5,801,897

5,274,619

Total comprehensive income attributable to:

Owners of the parent

5,801,897

5,274,619

FIXED ASSETS

Intangible assets

14

13,768,041

15,349,578

Tangible assets

15

56,620,706

50,987,749

Investments

16

-

70,388,747

66,337,327

CURRENT ASSETS

Stocks

17

23,288,452

16,038,766

Debtors

18

6,960,171

2,670,845

Cash at bank

19

1,562,942

3,905,980

31,811,565

22,615,591

CREDITORS

Amounts falling due within one year

20

35,664,983

26,953,565

NET CURRENT LIABILITIES

(3,853,418

)

(4,337,974

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

66,535,329

61,999,353

CREDITORS

Amounts falling due after more than one year

21

(27,012,240

)

(22,631,308

)

PROVISIONS FOR LIABILITIES

24

(4,570,115

)

(3,815,887

)

NET ASSETS

34,952,974

35,552,158

CAPITAL AND RESERVES

Called up share capital

25

5,429,707

6,016,680

Share premium

26

4,235,435

Capital redemption reserve

26

1,356,044

769,071

Merger reserve

26

15,347,633

Retained earnings

26

8,584,155

9,183,339

SHAREHOLDERS' FUNDS

34,952,974

35,552,158

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J P Harris - Director

FIXED ASSETS

Intangible assets

14

596,490

442,821

Tangible assets

15

30,769,886

29,574,004

Investments

16

26,993,234

26,993,134

58,359,610

57,009,959

CURRENT ASSETS

Stocks

17

5,378,692

4,363,029

Debtors

18

10,617,179

5,403,385

Cash at bank

19

547,776

574,398

16,543,647

10,340,812

CREDITORS

Amounts falling due within one year

20

23,724,200

21,076,919

NET CURRENT LIABILITIES

(7,180,553

)

(10,736,107

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

51,179,057

46,273,852

CREDITORS

Amounts falling due after more than one year

21

(22,887,240

)

(15,570,139

)

PROVISIONS FOR LIABILITIES

24

(1,396,279

)

(1,395,945

)

NET ASSETS

26,895,538

29,307,768

CAPITAL AND RESERVES

Called up share capital

25

5,429,707

6,016,680

Share premium

26

4,235,435

Capital redemption reserve

26

1,356,044

769,071

Merger reserve

26

15,347,633

Retained earnings

26

526,719

2,938,949

SHAREHOLDERS' FUNDS

26,895,538

29,307,768

Company's profit for the financial year

3,988,851

491,710

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J P Harris - Director

Called up

share

Retained

Share

capital

earnings

premium

£

Balance at 1 January 2023

6,016,680

4,408,720

4,235,435

Changes in equity

Profit for the year

-

5,274,619

-

Total comprehensive income

-

5,274,619

-

Dividends

-

(500,000

)

-

Total transactions with owners,
recognised directly in equity

-

(500,000

)

-

Balance at 31 December 2023

6,016,680

9,183,339

4,235,435

Changes in equity

Profit for the year

-

5,801,897

-

Total comprehensive income

-

5,801,897

-

Dividends

-

(500,000

)

-

Company purchase of own shares

(586,973

)

(5,901,081

)

-

Total transactions with owners,
recognised directly in equity

(586,973

)

(6,401,081

)

-

Balance at 31 December 2024

5,429,707

8,584,155

4,235,435

Capital

redemption

Merger

Total

reserve

equity

£

Balance at 1 January 2023

769,071

15,347,633

30,777,539

Changes in equity

Profit for the year

-

5,274,619

Total comprehensive income

-

5,274,619

Dividends

-

(500,000

)

Total transactions with owners,
recognised directly in equity

-

(500,000

)

Balance at 31 December 2023

769,071

15,347,633

35,552,158

Changes in equity

Profit for the year

-

5,801,897

Total comprehensive income

-

5,801,897

Dividends

-

(500,000

)

Company purchase of own shares

586,973

-

(5,901,081

)

Total transactions with owners,
recognised directly in equity

586,973

-

(6,401,081

)

Balance at 31 December 2024

1,356,044

15,347,633

34,952,974

Called up

share

Retained

Share

capital

earnings

premium

£

Balance at 1 January 2023

6,016,680

2,947,239

4,235,435

Changes in equity

Profit for the year

-

491,710

-

Total comprehensive income

-

491,710

-

Dividends

-

(500,000

)

-

Balance at 31 December 2023

6,016,680

2,938,949

4,235,435

Changes in equity

Profit for the year

-

3,988,851

-

Total comprehensive income

-

3,988,851

-

Dividends

-

(500,000

)

-

Company purchase of own shares

(586,973

)

(5,901,081

)

-

Balance at 31 December 2024

5,429,707

526,719

4,235,435

Capital

redemption

Merger

Total

reserve

equity

£

Balance at 1 January 2023

769,071

15,347,633

29,316,058

Changes in equity

Profit for the year

-

491,710

Total comprehensive income

-

491,710

Dividends

-

(500,000

)

Balance at 31 December 2023

769,071

15,347,633

29,307,768

Changes in equity

Profit for the year

-

3,988,851

Total comprehensive income

-

3,988,851

Dividends

-

(500,000

)

Company purchase of own shares

586,973

-

(5,901,081

)

Balance at 31 December 2024

1,356,044

15,347,633

26,895,538

Cash flows from operating activities

Cash generated from operations

1

9,773,354

18,324,199

Corporation tax paid

(299,576

)

(425,174

)

Net cash from operating activities

9,473,778

17,899,025

Cash flows from investing activities

Purchase of intangible fixed assets

(1,170,462

)

(982,161

)

Purchase of tangible fixed assets

(7,373,482

)

(21,208,354

)

Sale of intangible fixed assets

1,084

-

Sale of tangible fixed assets

516,988

25,199

HP interest paid

-

(3,132

)

Interest received

163,369

72,121

Net cash from investing activities

(7,862,503

)

(22,096,327

)

Cash flows from financing activities

New loans in year

12,000,000

12,300,000

Loan repayments in year

(7,615,061

)

(4,442,330

)

Repayment of finance leases

-

(48,125

)

Share buyback

(5,901,081

)

-

Equity dividends paid

(500,000

)

(500,000

)

Interest paid

(1,938,171

)

(1,849,502

)

Net cash from financing activities

(3,954,313

)

5,460,043

(Decrease)/increase in cash and cash equivalents

(2,343,038

)

1,262,741

Cash and cash equivalents at beginning of
year

2

3,905,980

2,643,239

Cash and cash equivalents at end of year

2

1,562,942

3,905,980

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

Profit before taxation

8,382,901

7,445,862

Depreciation charges

3,855,293

3,331,164

Loss on disposal of fixed assets

119,159

16,942

Finance costs

1,938,171

1,852,634

Finance income

(163,369

)

(72,121

)

14,132,155

12,574,481

Increase in stocks

(7,249,686

)

(1,742,321

)

Increase in trade and other debtors

(4,289,326

)

(55,213

)

Increase in trade and other creditors

7,180,211

7,547,252

Cash generated from operations

9,773,354

18,324,199

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

Cash and cash equivalents

1,562,942

3,905,980

Year ended 31 December 2023

31/12/23

1/1/23

£

Cash and cash equivalents

3,905,980

2,643,239

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

Net cash

Cash at bank

3,905,980

(2,343,038

)

1,562,942

3,905,980

(2,343,038

)

1,562,942

Debt

Debts falling due within 1 year

(7,661,323

)

889,312

(6,772,011

)

Debts falling due after 1 year

(18,960,389

)

(5,274,251

)

(24,234,640

)

(26,621,712

)

(4,384,939

)

(31,006,651

)

Total

(22,715,732

)

(6,727,977

)

(29,443,709

)

1.	STATUTORY INFORMATION

Tile Mountain 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 General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

As at the balance sheet date, the Group had net current liabilities of £3,853,418, this includes a revolving trade loan facility of £5,000,000 (2023: net current liabilities £4,337,974, this was due to a £6.0m bank loan facility which was subsequently refinanced in 2024 with the company's existing bank, the repayment terms of the two new loans received are three and five years).

As at the balance sheet date the Company had net current liabilities of £7,180,553 which includes a number of intercompany loans with subsidiaries and the above mentioned trade loan facility of £5,000,000(2023: net current liabilities of £10,736,107 which includes the £6m loan as outlined above, and a number of intercompany loans with subsidiaries). The Directors of the Group (who are also Company and subsidiary Directors) have pledged that these loans will only be repaid when it is not detrimental to the working capital of the Company.

Taking the above factors into account, the directors have prepared the financial statements on a going concern basis.

The following principal accounting policies have been applied:

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;

-

the Group 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 Group 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.

Rendering of Services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-

the amount of revenue can be measured reliably;

-

it is probable that the Group will receive the consideration due under the contract;

-

the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-

the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

The estimated useful lives range as follows:

Goodwill

-

10 years

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Tangible fixed assets

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

Freehold property

-

not provided

Short leasehold

-

33% on cost and 10% on cost

Plant and machinery

-

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

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost and 20% on cost

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.

There is no depreciation charged on freehold assets as the assessed residual value is equal to or more than the cost.

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.

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Stocks

Stocks are stated at the lower of cost and net reliable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in first out basis. Finished goods does not include labour but does include attributable overheads.

At each reporting 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.

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

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 debtors and creditors, 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 in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:

-

At fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly
traded or their fair value can otherwise be measured reliably;

-

At cost less impairment for all other investments.

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.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position 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.

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

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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting 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 further taxable profits;

-

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

-

Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint
ventures and the Group can control the reversal of the timing differences and such reversal is not considered
probable in the foreseeable future.

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 and laws that have been enacted or substantively enacted by the reporting date.

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Hire purchase and leasing commitments

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

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

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

Operating Leases: the Group as lessor

Rental income from operating leases is credited to profit and loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the profit and 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 on the lessee's benefit from the use of the leased asset.

Pension costs and other post-retirement benefits

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Interest income

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

Finance costs

Finance costs are charged to profit or loss items over the term of the debt using effective interest methods 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.

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 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.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Creditors

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

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group 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 profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

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.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Significant judgements

Management do not feel that there are any judgements (apart from those involving estimations) that have been made in the process of applying the entity's accounting policies which have a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year as follows:

Estimated useful life and residual value of fixed assets

Depreciation of tangible fixed assets have been based on the estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives and residual values, as evidenced by disposals during current and prior accounting periods.

Stock provisions

The company sells tiles and is subject to consumer demand and design trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provision required. When calculation the stock provision, management considers the nature and condition of stock, as well as applying assumptions around anticipated saleability of the various stock types.

Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing the impairment of trade debtors, management include factors including the current credit rating of the debtor, the ageing profile of the debtors and historic experience.

Investments

Investments in subsidiaries are valued at cost. The directors annually consider the need for any impairment and provide as appropriate.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is as follows:

2024

2023

£

Sale of Goods

130,145,767

101,873,573

130,145,767

101,873,573

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5.	OTHER OPERATING INCOME

2024

2023

£

Discounts and rebates received

1,588,415

1,151,737

Sundry receipts

78,369

45,347

1,666,784

1,197,084

6.	EMPLOYEES AND DIRECTORS

2024

2023

£

Wages and salaries

9,633,268

8,813,190

Social security costs

876,053

747,574

Other pension costs

161,454

159,903

10,670,775

9,720,667

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

2024

2023

Direct staff

280

250

Administration staff

59

45

Support

71

149

Management staff

12

13

422

457

During the year, staff costs of £202,230 (2023: £771,636) were paid relating to the support staff located in Pakistan. The staff costs are included in intangible fixed assets, and are not reflected in the staff costs table presented above.

2024

2023

£

Directors' remuneration

134,325

132,975

Directors' pension contributions to money purchase schemes

1,321

Benefits in kind to the directors totalling £26,432 (2023: £1,224) are not included in the above table.

The highest paid director received remuneration of £105,000 (2023: £105,000)

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the

highest paid director amounted to £1,321 (2023: £1,321)

Directors remuneration of £Nil (2023:£32,004) has been capitalised in the group as a software development intangible fixed asset and is not included in the table above.

During the year retirement benefits were accruing to 1 directors (2023: 1) in respect of defined contribution pension schemes.

The board consider the directors to be the Key Management Personnel.

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

Other operating leases

639,706

551,631

Depreciation - owned assets

1,104,378

707,812

Depreciation - assets on hire purchase contracts or finance leases

-

8,213

Loss on disposal of fixed assets

119,159

16,942

Goodwill amortisation

1,995,979

1,994,440

Computer software amortisation

754,936

620,699

Foreign exchange differences

(273,073

)

(245,377

)

8.	AUDITORS' REMUNERATION

2024

2023

£

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

13,025

12,350

Fees payable to the company's auditors for other services to the group:

The auditing of accounts of any associate of the company

29,075

24,150

Total audit fees

42,100

36,500

Taxation compliance services

14,100

11,025

Other non- audit services

13,750

10,175

Total non-audit fees

27,850

21,200

Total fees payable

69,950

57,700

9.

INTEREST RECEIVABLE AND SIMILAR INCOME

2024

2023

£

Deposit account interest

163,369

72,121

10.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

Bank loan interest

1,859,566

1,511,125

Other loan interest

78,605

338,377

Hire purchase

-

3,132

1,938,171

1,852,634

11.

TAXATION

Analysis of the tax charge

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

2024

2023

£

Current tax:

UK corporation tax

1,482,742

(41,306

)

(Over)/under provision in prior year

344,034

(52,404

)

Total current tax

1,826,776

(93,710

)

Deferred tax

754,228

2,264,953

Tax on profit

2,581,004

2,171,243

Reconciliation of total tax charge included in profit and loss

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

2024

2023

£

Profit before tax

8,382,901

7,445,862

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

2,095,725

1,751,267

Effects of:

Expenses not deductible for tax purposes

18,090

10,109

Capital allowances in excess of depreciation

(488

)

(59,420

)

Goodwill arising on consolidation

498,995

469,092

Current tax under/(over) provision in prior year

344,010

(95,591

)

Deferred tax(over)/ under provided in prior year

(375,328

)

(89,480

)

Deferred tax not recognised

-

49,099

Effect on deferred tax of change in tax rates

-

136,425

Marginal relief

-

(258

)

Total tax charge

2,581,004

2,171,243

12.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

13.

DIVIDENDS

2024

2023

£

Ordinary shares of £1 each

Interim

500,000

14.	INTANGIBLE FIXED ASSETS

Group

Computer

Goodwill

software

Totals

£

COST

At 1 January 2024

19,984,974

2,519,418

22,504,392

Additions

-

1,170,462

Disposals

-

(789,796

)

(789,796

)

At 31 December 2024

19,984,974

2,900,084

22,885,058

AMORTISATION

At 1 January 2024

5,839,150

1,315,664

7,154,814

Amortisation for year

1,995,979

754,936

2,750,915

Eliminated on disposal

-

(788,712

)

(788,712

)

At 31 December 2024

7,835,129

1,281,888

9,117,017

NET BOOK VALUE

At 31 December 2024

12,149,845

1,618,196

13,768,041

At 31 December 2023

14,145,824

1,203,754

15,349,578

Company

Computer

software

£

COST

At 1 January 2024

1,111,878

Additions

438,270

Disposals

(449,353

)

At 31 December 2024

1,100,795

AMORTISATION

At 1 January 2024

669,057

Amortisation for year

283,603

Eliminated on disposal

(448,355

)

At 31 December 2024

504,305

NET BOOK VALUE

At 31 December 2024

596,490

At 31 December 2023

442,821

15.	TANGIBLE FIXED ASSETS

Group

Freehold

Short

Plant and

property

leasehold

machinery

£

COST

At 1 January 2024

40,627,103

2,940,665

8,328,136

Additions

1,469,458

2,454,613

2,893,909

Disposals

(36,019

)

(502,376

)

(6,850

)

At 31 December 2024

42,060,542

4,892,902

11,215,195

DEPRECIATION

At 1 January 2024

398,008

684,893

816,016

Charge for year

-

448,926

327,920

Eliminated on disposal

(21,390

)

(172,879

)

(477

)

At 31 December 2024

376,618

960,940

1,143,459

NET BOOK VALUE

At 31 December 2024

41,683,924

3,931,962

10,071,736

At 31 December 2023

40,229,095

2,255,772

7,512,120

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2024

359,899

559,179

730,497

53,545,479

Additions

37,042

213,533

304,927

7,373,482

Disposals

(76,777

)

(154,270

)

(267,678

)

(1,043,970

)

At 31 December 2024

320,164

618,442

767,746

59,874,991

DEPRECIATION

At 1 January 2024

181,348

211,008

266,457

2,557,730

Charge for year

52,008

135,555

139,969

1,104,378

Eliminated on disposal

(18,572

)

(65,074

)

(129,431

)

(407,823

)

At 31 December 2024

214,784

281,489

276,995

3,254,285

NET BOOK VALUE

At 31 December 2024

105,380

336,953

490,751

56,620,706

At 31 December 2023

178,551

348,171

464,040

50,987,749

The total carrying value tangible fixed assets are pledged by way of a fixed and floating charge as security for the Group's bank loans.

Company

Freehold

Short

Plant and

property

leasehold

machinery

£

COST

At 1 January 2024

27,104,993

2,348,293

824,034

Additions

138,856

1,879,059

48,791

Disposals

(36,019

)

(443,409

)

-

At 31 December 2024

27,207,830

3,783,943

872,825

DEPRECIATION

At 1 January 2024

388,855

540,720

500,928

Charge for year

-

333,944

131,574

Eliminated on disposal

(21,390

)

(145,827

)

-

At 31 December 2024

367,465

728,837

632,502

NET BOOK VALUE

At 31 December 2024

26,840,365

3,055,106

240,323

At 31 December 2023

26,716,138

1,807,573

323,106

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

COST

At 1 January 2024

319,413

280,312

567,793

31,444,838

Additions

14,043

178,658

225,029

2,484,436

Disposals

(76,507

)

(145,322

)

(233,839

)

(935,096

)

At 31 December 2024

256,949

313,648

558,983

32,994,178

DEPRECIATION

At 1 January 2024

165,044

84,954

190,333

1,870,834

Charge for year

41,118

81,538

104,741

692,915

Eliminated on disposal

(18,414

)

(56,126

)

(97,700

)

(339,457

)

At 31 December 2024

187,748

110,366

197,374

2,224,292

NET BOOK VALUE

At 31 December 2024

69,201

203,282

361,609

30,769,886

At 31 December 2023

154,369

195,358

377,460

29,574,004

16.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1 January 2024

26,993,134

Additions

100

At 31 December 2024

26,993,234

NET BOOK VALUE

At 31 December 2024

26,993,234

At 31 December 2023

26,993,134

Subsidiary undertakings

The following were subsidiary undertakings of the Company:

Name

Class of
shares

Holding

Walls and Floors Limited

Ordinary

100%

Eurorad Limited

Ordinary

100%

Highgate 2 Limited

Ordinary

100%

Highgate 3 Limited

Ordinary

100%

Eazy Dynamics Limited

Ordinary

100%

17.

STOCKS

Group

Company

2024

2023

2024

2023

£

Stocks

23,288,452

16,038,766

5,378,692

4,363,029

Group stock is stated net of provisions of £1,059,199 (2023:£713,690). Company stock is stated net of provisions of £274,289 (2023:£231,785).

Stock in transit, at the end of the reporting period for the Group, totalling £9,309,172 (2023: £5,863,275) is included in the above table. Stock in transit, at the end of the reporting period for the Company, totalling £1,767,070 (2023: £1,124,767) is included in the above table.

The total carrying amount of stock is pledged by way of a fixed and floating charge as security for the group's bank loans.

18.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Trade debtors

407,824

511,867

2,263

51,103

Amounts owed by group undertakings

-

5,642,000

4,000,000

Other debtors

3,810,597

256,716

3,607,979

241,742

VAT

239,824

-

Prepayments and accrued income

2,501,926

1,902,262

1,364,937

1,110,540

6,960,171

2,670,845

10,617,179

5,403,385

The total carrying amount of debtors is pledged by way of a fixed and floating charge as security for the Group's bank loans.

19.	CASH AT BANK

Group

Company

2024

2023

2024

2023

£

Bank account no. 1

1,483,369

3,602,818

485,545

356,600

Bank account no. 2

79,573

303,162

62,231

217,798

1,562,942

3,905,980

547,776

574,398

20.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans and overdrafts (see note 22)

6,772,011

7,661,323

6,399,573

7,290,823

Trade creditors

10,930,808

8,258,677

3,690,777

3,536,572

Amounts owed to group undertakings

-

9,466,688

7,200,000

Tax

726,314

(800,886

)

(176,873

)

(165,324

)

Social security and other taxes

3,608,580

3,212,106

949,122

901,181

Other creditors

2,098,265

1,608,184

550,774

493,943

Accrued expenses

11,529,005

7,014,161

2,844,139

1,819,724

35,664,983

26,953,565

23,724,200

21,076,919

Group bank loans of £6,772,011 (2023: £7,661,323) and Company bank loans of £6,399,573 (2023: £7,290,823) are secured via a fixed and floating charge over the assets of the Group.

At 31 December 2023, included within Group and Company bank loans is a £6.0m loan facility which was refinanced in 2024. The repayment terms of the two new loans received are three and five years.

21.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans (see note 22)

24,234,640

18,960,389

20,109,640

14,468,722

Other creditors

2,541,350

3,403,169

2,541,350

833,667

Accruals and deferred income

236,250

267,750

236,250

267,750

27,012,240

22,631,308

22,887,240

15,570,139

Group bank loans of £24,234,640 (2023: £18,960,389) and Company bank loans of £20,109,640 (2023:£14,468,722) are secured via a fixed and floating charge over the assets of the Group.

22.

LOANS

An analysis of the maturity of loans is given below:

Group

Company

2024

2023

2024

2023

£

Amounts falling due within one year or on

demand:

Bank loans

6,772,011

7,661,323

6,399,573

7,290,823

Amounts falling due between one and two

years:

Bank loans - 1-2 years

1,745,000

1,544,742

1,378,333

1,178,075

Amounts falling due between two and five

years:

Bank loans - 2-5 years

18,489,640

17,415,647

14,731,307

13,290,647

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans more 5 yrs non-inst

4,000,000

-

4,000,000

-

23.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Non-cancellable

operating leases

2024

2023

£

Within one year

1,492,119

1,421,585

Between one and five years

4,648,704

3,071,512

In more than five years

4,478,560

1,949,167

10,619,383

6,442,264

The total future minimum lease payments receivable under non-cancellable operating leases are as follows:

Group

2024

2023

£

Within one year

22,000

34,929

Between one and five years

5,500

27,500

In more than five years

-

27,500

62,429

Operating lease commitments payable for the company are as follows

Company

Non-cancellable

operating leases

2024

2023

£

Within one year

1,110,089

653,554

Between one and five years

4,381,921

2,574,772

In more than five years

4,478,560

1,949,167

9,970,570

5,177,493

24.	PROVISIONS FOR LIABILITIES

Group

Company

2024

2023

2024

2023

£

Deferred tax

4,570,115

3,815,887

1,396,279

1,395,945

Group

Deferred

tax

£

Balance at 1 January 2024

3,815,887

Charge to Statement of Comprehensive Income during year

1,129,556

Prior year adjustment

(375,328

)

Balance at 31 December 2024

4,570,115

Company

Deferred

tax

£

Balance at 1 January 2024

1,395,945

Charge to Income Statement during year

357,979

Prior year adjustment

(357,645

)

Balance at 31 December 2024

1,396,279

25.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

5,429,707

Ordinary

£1

5,429,707

6,016,680

During the year the company repurchased 586,973 of its own ordinary shares (nominal value £1) for £10 each.

26.

RESERVES

Group

Capital

Retained

Share

redemption

Merger

earnings

premium

reserve

Totals

£

At 1 January 2024

9,183,339

4,235,435

769,071

15,347,633

29,535,478

Profit for the year

5,801,897

-

5,801,897

Dividends

(500,000

)

-

(500,000

)

Company purchase of own shares

(5,901,081

)

-

586,973

-

(5,314,108

)

At 31 December 2024

8,584,155

4,235,435

1,356,044

15,347,633

29,523,267

Company

Capital

Retained

Share

redemption

Merger

earnings

premium

reserve

Totals

£

At 1 January 2024

2,938,949

4,235,435

769,071

15,347,633

23,291,088

Profit for the year

3,988,851

-

3,988,851

Dividends

(500,000

)

-

(500,000

)

Company purchase of own shares

(5,901,081

)

-

586,973

-

(5,314,108

)

At 31 December 2024

526,719

4,235,435

1,356,044

15,347,633

21,465,831

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Merger reserve

This reserve records the merger relief available upon the acquisition of shares in the subsidiary companies.

Profit and loss account

This reserve records retained earnings.

27.	CONTINGENT LIABILITIES

There is an existing cross guarantee between the Tile Mountain group companies. The group's bank loans are secured via a fixed and floating charge over the group's assets. The group bank loans total £31,006,651 (2023: £26,621,712).

In relation to Eurorad Limited a subsidiary company, on 27 March 2023 an industrial incident occurred outside the Canal Lane Warehouse involving an external contractor. The case has been reviewed by the HSE and at the date of signing this report is ongoing.

28.	CAPITAL COMMITMENTS

2024

2023

£

Contracted but not provided for in the

financial statements

311,273

2,663,671

At 31 December 2024 (and 31 December 2023) , the company had entered into a contract to purchase a pallet wrapping machine for 345,000 EUR, 40% deposit had been paid before the year end leaving a balance of 207,000 EUR remaining.

The company had also entered into a contract to purchase a conveyor system for £1,800,000 of which £140,000 was outstanding at the year end but not provided.

29.	RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)

2024

2023

£

Interest paid on loan

54,228

49,914

Loans settled during the year

886,195

-

Loans received during the year

1,250,000

-

Amount due to related party

1,197,472

833,667

Amounts due to related parties above are recognised within other creditors due after one year.

Other related parties

2024

2023

£

Loan interest accrued

24,376

-

Loans made during year

2,808,885

219,073

Loans settled during the year

1,720,000

-

Loans received during the year

1,319,502

-

Amount due from related party

3,027,958

219,073

Amount due to related party

1,343,878

2,569,502

Amounts due to other related parties above are recognised within other creditors due after one year.

During the year the company made a further loan of £2,808,885 (2023: £219,073) to Tile Mountain Tiles & Flooring Materials Trading LLC registered in Dubai UAE, giving a balance due at the year end of £3,027,958 (2023: £219,073). The loan was registered with Tile Mountain Limited holding security over the present and future assets of Tile Mountain Tiles & Flooring Materials Trading LLC.

During the year the liability held by Eurorad Limited to Tycoon Day of £1,720,000 was settled by Tile Mountain Limited leaving a balance of Nil (2023 £1,720,000).

During the year Tile Mountain Limited received a shareholder loan of £1,343,878 which includes accrued interest of £24,376 and is disclosed within other creditors due after one year.

30.	POST BALANCE SHEET EVENTS

During August 2025 the group purchased approximately 30 acres of land for £5.5m. This was financed by Tile Mountain Limited by increasing the loan facilities held with its bankers Barclays bank.