REGISTERED NUMBER: 09332744 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

CPF COMMERCIAL LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Statement of Financial Position

8

Company Statement of Financial Position

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Statement of Cash Flows

12

Notes to the Consolidated Financial Statements

13

DIRECTOR:

C P Fox

REGISTERED OFFICE:

Station Road

Stoney Stanton

Leicestershire

LE9 4LX

REGISTERED NUMBER:

09332744 (England and Wales)

AUDITORS:

Magma Audit LLP

16 Davy Court

Castle Mound Way

Rugby, CV23 0UZ

Magma Audit LLP is part

Of the Dains Group

SOLICITORS:

Knights PLC

34 Pocklingtons Walk

Leicester

LE1 6BU

The Director presents his strategic report of the group for the year ended 31 December 2024.

The Director is pleased to report that the group has experienced a successful year and has traded well. The results of the group for the year are set out in the consolidated income statement on page 7 of the financial statements.

REVIEW OF BUSINESS

The group's main trading company, Stressline Limited, has performed well throughout a period of intense raw material and key resource price increases due to lack of supply chain performance. These costs have in the main been passed efficiently and promptly to our customers.

The other companies in the group have traded consistently.

The increase in demand, effectively targeting sales and controlling respective costs for manufacturing and distribution and an increased rental property revenue has resulted in a group turnover of £9,025,056 and a gross profit of £2,531,600, which considering the current trading conditions is excellent.

Both net current assets and net assets for the group have increased compared to the prior year, and are £2,413,436 and £5,491,153 respectively at 31 December 2024.The company's loss for the year of £143,372 has resulted in a fall in Net Assets to £3,575,293.

KEY PERFORMANCE INDICATORS

Given the nature of the business, the Director believes that the only necessary KPI's that give an understanding of the development, performance or position of the business to be: turnover, margin percentage and profit before tax.

PRINCIPAL RISKS AND UNCERTAINTIES

Management and the board regularly review the risks facing the group. The perceived risks are; credit risk, liquidity risk and cash flow risk, each are reviewed and managed by the Director and Senior Management on a routine frequency.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debts.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

FINANCIAL INSTRUMENTS

The principal financial instruments of the group comprise bank balances and borrowings, trade creditors, trade debtors and hire purchase contracts. The main purpose of these instruments is to raise funds for the group's operations and to finance its continuing operations. Liquidity risk is managed by the use of bank balances, overdraft facilities and a bank loan along with efficient monitoring and forecasting of cash flows to ensure there are sufficient funds to meet liabilities.

Trade debtors are managed in respect of credit and cash flow risk by policies monitoring the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits.

FUTURE DEVELOPMENTS

The outlook for the group is positive and the Director is confident that the group is well positioned to continue to grow and maintain market share into 2025.

ON BEHALF OF THE BOARD:

C P Fox - Director

30 September 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the group are the design, manufacture and distribution of a range of structural building products, pre-stressed and pre-cast concrete products, decorative reconstructed stone, and steel fabricated products, property investment and the letting of its freehold property and the transportation of building and construction material.

DIVIDENDS

Interim dividends of £50,000 (2023: £857,000) were declared and paid during the year.

FUTURE DEVELOPMENTS

Information relating to future developments is given in the Group Strategic Report.

DIRECTOR

C P Fox held office during the whole of the period from 1 January 2024 to the date of this report.

FINANCIAL INSTRUMENTS

Information relating to financial instruments is given in the Group Strategic Report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C P Fox - Director

30 September 2025

Opinion

We have audited the financial statements of CPF Commercial 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 Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Based on our understanding of the Group and the industry, we identified the principle risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principle risks were related to posting inappropriate journal entries, and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

-

Discussions with management, including consideration of known or suspected instances of non-compliance

with laws and regulation, and fraud;

-

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations,

with unusual descriptions, or posted at unusual times;

-

Challenging assumptions made by management in their significant accounting estimates, such as those used

to value the defined benefit pension scheme, potential provisions that could exist with regards to slow

moving and obsolete stock, the recoverability of debtors and the valuation of investment property.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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.

Victoria Craig (Senior Statutory Auditor)

for and on behalf of Magma Audit LLP

16 Davy Court

Castle Mound Way

Rugby, CV23 0UZ

Magma Audit LLP is part

Of the Dains Group

30 September 2025

TURNOVER

2

9,025,056

9,822,768

Cost of sales

(6,493,456

)

(6,997,820

)

GROSS PROFIT

2,531,600

2,824,948

Administrative expenses

(2,253,929

)

(2,126,509

)

277,671

698,439

Other operating income

24,942

27,948

OPERATING PROFIT

5

302,613

726,387

Interest receivable and similar income

6

6,353

11,121

308,966

737,508

Interest payable and similar expenses

7

(177,922

)

(166,217

)

PROFIT BEFORE TAXATION

131,044

571,291

Tax on profit

8

(67,391

)

(190,432

)

PROFIT FOR THE FINANCIAL YEAR

63,653

380,859

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

63,653

380,859

Profit attributable to:

Owners of the parent

63,653

380,859

Total comprehensive income attributable to:

Owners of the parent

63,653

380,859

FIXED ASSETS

Intangible assets

11

105,543

309,377

Tangible assets

12

2,523,635

2,482,103

Investments

13

-

-

Investment property

14

2,535,411

2,535,411

5,164,589

5,326,891

CURRENT ASSETS

Stocks

15

1,331,679

1,682,968

Debtors

16

2,464,658

1,646,714

Cash at bank and in hand

382,819

720,138

4,179,156

4,049,820

CREDITORS

Amounts falling due within one year

17

(1,765,720

)

(1,720,613

)

NET CURRENT ASSETS

2,413,436

2,329,207

TOTAL ASSETS LESS CURRENT LIABILITIES

7,578,025

7,656,098

CREDITORS

Amounts falling due after more than one year

18

(1,898,060

)

(2,013,661

)

PROVISIONS FOR LIABILITIES

22

(188,812

)

(164,937

)

NET ASSETS

5,491,153

5,477,500

CAPITAL AND RESERVES

Called up share capital

23

28,334

28,334

Other reserves

24

2,360,311

2,360,311

Retained earnings

24

3,102,508

3,088,855

SHAREHOLDERS' FUNDS

5,491,153

5,477,500

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

C P Fox - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

9,138,523

9,138,523

Investment property

14

-

-

9,138,523

9,138,523

CURRENT ASSETS

Debtors

16

3,455,926

2,550,926

Cash at bank

303

10,298

3,456,229

2,561,224

CREDITORS

Amounts falling due within one year

17

(7,392,765

)

(6,250,937

)

NET CURRENT LIABILITIES

(3,936,536

)

(3,689,713

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,201,987

5,448,810

CREDITORS

Amounts falling due after more than one year

18

(1,626,694

)

(1,680,145

)

NET ASSETS

3,575,293

3,768,665

CAPITAL AND RESERVES

Called up share capital

23

28,334

28,334

Other reserves

24

2,360,311

2,360,311

Retained earnings

24

1,186,648

1,380,020

SHAREHOLDERS' FUNDS

3,575,293

3,768,665

Company's loss for the financial year

(143,372

)

(131,402

)

The financial statements were approved by the director and authorised for issue on 30 September 2025 and were signed by:

C P Fox - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

28,334

3,564,996

2,360,311

5,953,641

Changes in equity

Dividends

-

(857,000

)

-

(857,000

)

Total comprehensive income

-

380,859

-

380,859

Balance at 31 December 2023

28,334

3,088,855

2,360,311

5,477,500

Changes in equity

Dividends

-

(50,000

)

-

(50,000

)

Total comprehensive income

-

63,653

-

63,653

Balance at 31 December 2024

28,334

3,102,508

2,360,311

5,491,153

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2023

28,334

2,368,422

2,360,311

4,757,067

Changes in equity

Dividends

-

(857,000

)

-

(857,000

)

Total comprehensive income

-

(131,402

)

-

(131,402

)

Balance at 31 December 2023

28,334

1,380,020

2,360,311

3,768,665

Changes in equity

Dividends

-

(50,000

)

-

(50,000

)

Total comprehensive income

-

(143,372

)

-

(143,372

)

Balance at 31 December 2024

28,334

1,186,648

2,360,311

3,575,293

Cash flows from operating activities

Cash generated from operations

29

1,275,636

981,925

Tax paid

(182,696

)

(86,336

)

Net cash from operating activities

1,092,940

895,589

Cash flows from investing activities

Purchase of tangible fixed assets

(66,922

)

(62,579

)

Sale of tangible fixed assets

2,632

37,355

Interest received

6,353

11,121

Net cash from investing activities

(57,937

)

(14,103

)

Cash flows from financing activities

Loan repayments in year

(133,446

)

(259,834

)

Hire purchase repayments in year

(105,954

)

(160,033

)

Movement in directors loan account

(955,000

)

(80,000

)

Interest paid

(162,000

)

(153,754

)

Interest element of hire purchase

(15,922

)

(12,463

)

Equity dividends paid

-

(857,000

)

Net cash from financing activities

(1,372,322

)

(1,523,084

)

Decrease in cash and cash equivalents

(337,319

)

(641,598

)

Cash and cash equivalents at beginning of year

30

720,138

1,361,736

Cash and cash equivalents at end of year

30

382,819

720,138

1.	ACCOUNTING POLICIES

General information

The parent company is a private company limited by shares and is incorporated in England. The address of the registered office is Station Road, Stoney Stanton, Leicestershire.

Statement of compliance

The group and individual financial statements of CPF Commercial Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented in relation to the company's subsidiary undertakings, unless otherwise stated.

Basis of preparing the financial statements

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of land and buildings and certain financial assets and liabilities measured at fair value through the income statement.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the notes to the accounts.

The financial statements are presented in Sterling (£).

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings.

A subsidiary is a controlled entity of the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Going concern

As at 31 December 2024 the company had net current liabilities of £3,936,536 (2023: £3,689,713). The group has net current assets of £2,413,436 (2023: £2,329,207). The director has prepared the financial statements on a going concern basis as it is considered that the group to have sufficient resources and support to meet it liabilities as they fall due for at least 12 months from the signing of these financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the provision of goods and services and rents receivable during the period, net of returns, discounts and rebates allowed by the group and value added taxes.

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.

Distributions to equity holders

Dividends to the parent 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 company’s shareholders until they are paid. These amounts are recognised in the statement of changes in equity.

Dividend income

Dividend income is recognised when the right to receive payment is established.

Intangible fixed assets

Intangible fixed assets represents goodwill and patents. Goodwill recognised represents the excess of the fair value and directly attributable costs of the purchase consideration over the fair values of the Group’s interest in the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill is amortised over its expected useful life. Goodwill is being amortised evenly over its estimate useful life of 10 years. Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the income statement. Reversals of impairment are recognised when the reasons for the impairment no longer apply.

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

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings

-

1% straight line

Plant and machinery

-

12.5%-50% straight line

Motor vehicles

-

20% reducing balance and 14%-25% straight line

Fixtures, fittings and equipment

-

12.5%-50% straight line

Freehold land is not depreciated.

Investment property

Investment property is stated at valuation. Any aggregate surplus or deficit arising from changes in the fair value is recognised in the income statement.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised.

Raw material cost is based on the cost of purchase on a first in, first out basis. The valuation of finished goods and goods for resale is based on direct costs plus attributable overheads based on normal level of activity.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the income statement. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the income statement.

Trading stock consists of land available for sale. Trading stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Estimated selling price less costs to complete and sell is the estimated net proceeds of disposal.

Financial instruments

The Group has adopted Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and investments are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the income statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

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

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

(i) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

(ii) Deferred tax

Deferred tax arises from timing difference that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Research and development

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

Foreign currencies

At each year 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 the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

All foreign exchange gains and losses are presented in the statement of comprehensive income account within administrative expenses.

Hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the statement of comprehensive income on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits

Where material, the expected cost of pensions in respect of the group defined benefit pension scheme is charged to the income statement over the term of working lifetimes of employees in the scheme in accordance with section 28 of FRS102. Actuarial surpluses and deficits are spread over the expected remaining working lifetimes of employees.

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately from the group in independently administered funds.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term 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.

Investments

Investment in the subsidiaries are held at cost less accumulated impairment losses.

Critical accounting estimates and assumptions

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Valuation of investment properties

The group makes an estimate as to the fair value of the investment properties at the year end date. Management have utilised available data to assess the market values including but not limited to, the changes in the rental market and the economic climate of the relevant locations.

(ii) Defined benefit pension scheme

The group has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends.

(iii) Stock valuation

The company manufactures and sells steel and concrete lintels and is subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and and condition of the stock as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

(iv) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

(v) Impairment of debtors

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(vi) Carrying value of investments

The estimates and assumptions made around the carrying value of the Company's investment in subsidiaries have a significant risk of causing a material adjustment. They are initially measured at cost and subsequently impaired. Directors assess any potential impairment charge annually, or more frequently if events or changes in circumstances indicate that the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use.

2.

TURNOVER

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

An analysis of turnover by class of business is given below:

2024

2023

£

£

Sale of goods and services

8,621,867

9,423,538

Rental income

403,189

399,230

9,025,056

9,822,768

All turnover arises in the UK.