REGISTERED NUMBER: 13524272 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST JULY 2025

FOR

MERLIN TIMBER FRAME LIMITED

Page

Company information

1

Balance sheet

2

Notes to the financial statements

4

Directors:

G G Thomas

B H Thomas

Registered office:

Unit 5 Brierley Way

Southern Avenue

Leominster

Herefordshire

HR6 0RW

Registered number:

13524272 (England and Wales)

Fixed assets

Tangible assets

4

127,499

134,322

Current assets

Stocks

5

354,525

320,839

Debtors

6

186,977

156,288

Cash at bank

157,516

40,028

699,018

517,155

Creditors

Amounts falling due within one year

7

593,802

381,927

Net current assets

105,216

135,228

Total assets less current liabilities

232,715

269,550

Creditors

Amounts falling due after more than one year

8

(163,992

)

(253,986

)

Provisions for liabilities

9

(16,600

)

(6,600

)

Net assets

52,123

8,964

Capital and reserves

Called up share capital

10

100

100

Retained earnings

52,023

8,864

Shareholders' funds

52,123

8,964

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st July 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st July 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1st October 2025 and were signed on its behalf by:

B H Thomas - Director

1.	Statutory information

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

2.	Accounting policies

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Long-term contracts are those where the time taken substantially to complete the contract is such that the contract activity falls into different accounting periods. Long-term contracts are assessed on a contract by contract basis and reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. The degree of completion of the contract is assessed by comparing the cost of the work completed at the financial year end to total anticipated cost of the contract.

When it is probable that total contract costs exceed total contract turnover, the expected loss is recognised as a cost immediately.

Tangible fixed assets

Tangible fixed assets are stated in the Balance Sheet at cost less depreciation.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, at the following rates:

Property improvements

10% SL

Plant & machinery

20% RB

Office equipment

20% SL

Motor vehicles

20% RB

Stocks & work-in-progress

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work-in-progress has been valued as a percentage of the full contract value according to the level of completion.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at the cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows have been affected. 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 assets original effective interest rate. The impairment loss is recognised in profit or loss. 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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducing all of its liabilities. Basic financial liabilities, including trade and other payables are measured at the transaction price. Other financial liabilities, including bank loans and preference shares that are classified as debt, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

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

Pension costs & other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	Employees (including officers)

The average number of employees during the year was 11 (2024 - 7 ) .

4.	Tangible fixed assets

Property

Plant &

Motor

Office

improvements

machinery

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1st August 2024

38,425

134,464

13,750

2,689

189,328

Additions

4,850

10,110

-

6,009

20,969

At 31st July 2025

43,275

144,574

13,750

8,698

210,297

Depreciation

At 1st August 2024

3,843

44,980

4,950

1,233

55,006

Charge for year

4,328

19,970

1,760

1,734

27,792

At 31st July 2025

8,171

64,950

6,710

2,967

82,798

Net book value

At 31st July 2025

35,104

79,624

7,040

5,731

127,499

At 31st July 2024

34,582

89,484

8,800

1,456

134,322

5.

Stocks

31.7.25

31.7.24

£

£

Stocks

76,279

52,072

Work-in-progress

278,246

268,767

354,525

320,839

6.

Debtors: amounts falling due within one year

31.7.25

31.7.24

£

£

Trade debtors

120,586

116,938

Other debtors

8,149

-

Corporation tax

2,178

3,078

VAT

44,099

23,227

Prepayments

11,965

13,045

186,977

156,288

7.

Creditors: amounts falling due within one year

31.7.25

31.7.24

£

£

Trade creditors

244,518

103,368

Social security & other taxes

-

4,616

Other creditors

119

396

Directors' loan accounts

-

2,908

Accruals & deferred income

349,165

270,639

593,802

381,927

8.

Creditors: amounts falling due after more than one year

31.7.25

31.7.24

£

£

Amounts owed to related party

163,992

253,986

9.	Provisions for liabilities

31.7.25

31.7.24

£

£

Deferred tax

16,600

6,600

Deferred tax

£

Balance at 1st August 2024

6,600

Provided during year

10,000

Balance at 31st July 2025

16,600

10.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.7.25

31.7.24

value:

£

£

100

Ordinary shares

£1

100

100

11.	Contingent liabilities & lease commitments

There were no contingent liabilities or lease commitments as at 31st July 2025.

12.	Related party disclosures

Directors

During the year, the directors used a current account with the company to record amounts due to them and amounts drawn by them. The balance owed by the company at the end of the year was £nil (2024: £2,908).

The following transactions took place with related parties on normal commercial terms during the year:

Sales

Loans

Balance creditor

£

£

£

Transactions with entities with common key management personnel

242,183

(18,315

)

163,992

The loans were made interest free and were repayable on demand.