Bellegrove Ceramics Plc Company accounts

COMPANY REGISTRATION NUMBER: 00591557

BELLEGROVE CERAMICS PLC

FINANCIAL STATEMENTS

31 December 2024

BELLEGROVE CERAMICS PLC

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

Contents	Pages

Officers and professional advisers	1

Strategic report	2 to 3

Directors' report	4 to 6

Independent auditor's report to the members	7 to 10

Statement of comprehensive income	11

Statement of financial position	12

Statement of changes in equity	13

Statement of cash flows	14

Notes to the financial statements	15 to 23

BELLEGROVE CERAMICS PLC

OFFICERS AND PROFESSIONAL ADVISERS

The board of directors	Marco Fregni (Resigned 28 November 2024)
	Carlo Raimondi (Resigned 10 May 2024)
	Sebastiano Stocchetti (Resigned 22 January 2025)
	Roberto Tamagnini (Served from 11 May 2024 to 17 May 2025)
	Marco Zorzetto (Appointed 28 November 2024)
	Daniele Piazzalunga (Appointed 22 January 2025)

Company secretary	Neill Lebbell

Registered office	Bellegrove House
	651-661 Princes Road
	Dartford
	Kent
	DA2 6EF

Auditor	Opass Billings Wilson & Honey LLP
	Chartered Certified Accountants & statutory auditor
	Numeric House
	98 Station Road
	Sidcup
	Kent
	DA15 7BY

Bankers	Barclays Bank Plc
	Leicester
	Leicestershire
	LE87 2BB

BELLEGROVE CERAMICS PLC

STRATEGIC REPORT

YEAR ENDED 31 DECEMBER 2024

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

Business Review The principal activity of the company continued to be that of the wholesale supplying of ceramic tiles and related products. The directors consider the current economic climate to be challenging, reflected by the downturn in revenue of 25% on the previous year. The focus continues to be on quality European Group products aimed at the independent and contracts markets. Gross margins are broadly inline with the previous year, due in part to a strengthening Sterling exchange rate. The Board continues to maintain a tight control over its overheads with particular attention to its recurring costs. The Board has therefore made the decision that the company will cease trading in the 2025 accounting period. At the year end the company recorded total assets less liabilities of £550,845 (2023 - £1,216,177) and net current assets of £550,845 (2023 - £762,686). The directors are therefore of the opinion that the company's position is weakening.

Principal risks and uncertainties The directors have assessed the main risks facing the company as follows: - pressure on pricing and margins from cheap imported products from outside of Europe, to mitigate the effects the company is concentrating on higher end ranges which offer better returns and are less susceptible to competition. - increased energy and fuel costs impacting on the cost of goods sold - the additional impact of Brexit, in terms of product delays and increased importation costs.

Financial key performance indicators The company finances its operations through profitability, use of local currency bank accounts and forward contracts to carefully manage the timing and conversion of foreign currency transactions. Surplus funds are held in short term bank deposit accounts allowing the company to take advantage of changing circumstances at short notice. The Board regards the following as key performance indicators for the company: 1. Gross Profit Percentage The Gross Profit Percentage achieved in 2024 was 35.17% and in 2023 it was 39.15%. The board are happy with the consistency of the gross profit percentage. 2. The ratio of current assets to current liabilities The ratio of current assets to current liabilities at 31st December 2024 was 2.15 and at 31st December 2023 it was 2.41. The board are satisfied with this result.

Promotion of the success of the company The Board recognises its responsibility to have regard to matters set out in Section 172(1) a-f Companies Act 2006 when performing their duty under Section 172. The Board recognises that Directors of a company must act in a way that they consider to be in good faith, and will be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have had regard to the follows:- a. The likely consequences of any decision in the long term - The Board has made the decision that the company will cease trading in the 2025 accounting period. b. The interests of the Company's employees - The Board recognises the importance of the Company's employees as stakeholders in the organisation, and is very mindful of their interests. c. The need to foster the Company's business relationships with Suppliers, Customers and Others - The Company is careful to ensure that the Company's business relationships with suppliers, customers and others match the culture of the Company, and the objective is to generate long term, reliable, and mutually beneficial interests. d. The impact of the Company's operations on the Community and the Environment - The Board is very conscious of the Company's overarching obligations to the community and the environment, and this thinking flows through all of its operations. e. The desirability of the Company maintaining a reputation for high standards of business conduct - The Board ensures that the Company maintains its long tradition of acting within the highest levels of business integrity. f. The need to act fairly as between members of the Company - The Board ensures that there is a collegiate relationship between members of the Company and that fairness flows through each of the operational transactions.

This report was approved by the board of directors on 27 June 2025 and signed on behalf of the board by:

Marco Zorzetto

Director

BELLEGROVE CERAMICS PLC

DIRECTORS' REPORT

YEAR ENDED 31 DECEMBER 2024

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

Directors

The directors who served the company during the year were as follows:

Sebastiano Stocchetti
Roberto Tamagnini	(Appointed 11 May 2024)
Marco Zorzetto	(Appointed 28 November 2024)
Marco Fregni	(Resigned 28 November 2024)
Carlo Raimondi	(Resigned 10 May 2024)

Dividends

No dividend has been declared or paid during the year (2023 - £Nil)

Future developments

Since the year end the Directors have sold the Glasgow property and are in the process of selling the Dartford property. Once this has been sold the company plans to cease all trading activity.

Employment of disabled persons

Full and fair consideration is given to applications for employment by the company made by disabled persons, having regard to their particular aptitudes and abilities.

Employee involvement

The company aims to provide employees systematically with information on matters of concern to them as employees and consulting employees or their representatives on a regular basis so that the views of employees can be taken into account in making decisions which are likely to affect their interests.

Financial instruments

The company's activities expose it to a variety of financial risks, including the effects of interest rates and foreign exchange rates. The company's overall risk management policy focuses on monitoring potential adverse effects where considered material.

The company accepts a certain degree of interest rate risk and other market price risks and continues to monitor these on an ongoing basis. Prudent cash management is used to reduce any exposure to liquidity risk together with foreign exchange arrangements to mitigate the effect of foreign currency movements. The instruments purchased are denominated in Euros.

The company has no specific concentration of credit risk.

Going concern

As a result of the sale of both properties, the company will then cease all trading activiy. The financial statements have been prepared on a basis other than going concern.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 27 June 2025 and signed on behalf of the board by:

Marco Zorzetto

Director

BELLEGROVE CERAMICS PLC

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BELLEGROVE CERAMICS PLC

YEAR ENDED 31 DECEMBER 2024

Qualified opinion

We have audited the financial statements of Bellegrove Ceramics Plc (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

Due to the unavailability of suitable records maintained supporting the closing stock position, together with non-attendance of a stock count, we have been unable to provide an opinion over closing stock.

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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Material uncertainty related to going concern

We draw attention to Note 4 to the financial statements which explains that the directors intend to liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 4. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of of this other information, we are required to report that fact. As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £322,084 held at 31 December 2024. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. Arising solely from the limitation on the scope of our work relating to stock, referred to above: - we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and - we were unable to determine whether adequate accounting records have been kept. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made;

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - 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 identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the tiling and bathroom sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, environmental and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias - investigated the rationale behind significant or unusual transactions; and - observed and identified internal controls in place In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - enquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC and reviewing for evidence of correspondence with legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report

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

Philip Benson Woodman FCCA

(Senior Statutory Auditor)

For and on behalf of

Opass Billings Wilson & Honey LLP

Chartered Certified Accountants & statutory auditor

Numeric House

98 Station Road

Sidcup

Kent

DA15 7BY

27 June 2025

BELLEGROVE CERAMICS PLC

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2024

		2024	2023
Note		£000	£000
Turnover	5	1,615	2,163

Cost of sales	1,047	1,316
	-------	-------
Gross profit	568	847

Administrative expenses		1,282	901
Other operating income	6	37	32
		-------	----
Operating loss	7	( 677)	( 22)

Other interest receivable and similar income	10	16	17
Interest payable and similar expenses	11	4	1
		-------	----
Loss before taxation		( 665)	( 6)

Tax on loss	12	–	1
		----	----
Loss for the financial year and total comprehensive income		( 665)	( 7)
		----	----

All the activities of the company are from continuing operations.

BELLEGROVE CERAMICS PLC

STATEMENT OF FINANCIAL POSITION

31 December 2024

	2024		2023
Note	£000	£000	£000

Fixed assets

Tangible assets	13		–	454

Current assets

Stocks	14	491	678
Debtors	15	105	536
Property held for sale	16	434	–
Cash at bank and in hand		2	87
		-------	-------
		1,032	1,301

Creditors: amounts falling due within one year	18	481		539
		-------		-------
Net current assets			551	762
			----	-------
Total assets less current liabilities			551	1,216
			----	-------
Net assets			551	1,216
			----	-------

Capital and reserves

Called up share capital	21	2,000	2,000
Profit and loss account	22	( 1,449)	( 784)
		-------	-------
Shareholders funds		551	1,216
		-------	-------

These financial statements were approved by the board of directors and authorised for issue on 27 June 2025 , and are signed on behalf of the board by:

Marco Zorzetto

Director

Company registration number: 00591557

BELLEGROVE CERAMICS PLC

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Profit and loss account	Total
	£000	£000	£000
At 1 January 2023	2,000	( 777)	1,223

Loss for the year		( 7)	( 7)
	-------	----	-------
Total comprehensive income for the year	–	( 7)	( 7)

At 31 December 2023	2,000	( 784)	1,216

Loss for the year		( 665)	( 665)
	-------	----	-------
Total comprehensive income for the year	–	( 665)	( 665)

	-------	-------	-------
At 31 December 2024	2,000	( 1,449)	551
	-------	-------	-------

BELLEGROVE CERAMICS PLC

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£000	£000

Cash flows from operating activities

Loss for the financial year	( 665)	( 7)

Adjustments for:
Depreciation of tangible assets	22	21
Government grant income	( 26)	( 21)
Other interest receivable and similar income	( 16)	( 17)
Interest payable and similar expenses	4	1
Tax on loss	–	1
Accrued expenses	7	6

Changes in:
Stocks	187	( 38)
Trade and other debtors	431	( 9)
Trade and other creditors	( 41)	( 26)
	----	----
Cash generated from operations	( 97)	( 89)

Interest paid	( 4)	( 1)
Interest received	16	17
Tax paid	( 1)	–
	----	----
Net cash used in operating activities	( 86)	( 73)
	----	----

Cash flows from investing activities

Purchase of tangible assets	( 2)	–
Proceeds from sale of tangible assets	434	–
Purchases of other investments	( 434)	–
	----	----
Net cash used in investing activities	( 2)	–
	----	----

Cash flows from financing activities

Proceeds from loans from group undertakings	( 86)	( 9)
Government grant income	26	21
	----	----
Net cash (used in)/from financing activities	( 60)	12
	----	----

Net decrease in cash and cash equivalents		( 148)	( 61)
Cash and cash equivalents at beginning of year		87	148
		----	----
Cash and cash equivalents at end of year	17	( 61)	87
		----	----

BELLEGROVE CERAMICS PLC

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Bellegrove House, 651-661 Princes Road, Dartford, Kent, DA2 6EF.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Stock expenditure

Included in cost of sales is £1,044,739 (2023: £1,314,170), which represents the cost of finished goods purchased for resale during the year.

4. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Debtors

Debtors are initially recorded at fair value and are assessed for impairment at each reporting date. If any impairments exist the debtors are remeasured to their present value of the expected future cash inflows.

Going concern

As noted in the Directors' Report, the company is intending to cease activity within the next 12 months and accordingly, the financial statements have been prepared on the basis other than going concern.

Creditors

Creditors are initially recorded at fair value and are remeasured to the present value of the expected future cash inflows.

Judgements and key sources of estimation uncertainty

In preparing the financial statements, the directors have had to make the following judgements: - Company stock levels are constantly reviewed and should there be an indication of impairment or obsolescence the inventory is written down to its assessed net realisable value. - Depreciation rates and assets useful lives are areas of estimation. These are reviewed annually to ensure they remain appropriate. - Provisions for debtors are judgemental. Individual debtor balances are reviewed for recoverability and provisions are made specifically where recovery is in doubt.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: - the company has transferred the significant risks and rewards of ownership to the buyer; - the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; - the amount of revenue can be measured reliably; - it is probable that the company will receive the consideration due under the transaction; - the costs incurred or to be incurred in respect of the transaction can be measured reliably;

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	4% per annum - straight line
Improvements	-	10-20% per annum - straight line
Plant and machinery	-	15% per annum - reducing balance
Motor vehicles	-	25% per annum - straight line
Office Equipment	-	20% per annum - straight line and 15% per annum - reducing balance

Impairment of fixed assets

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 proceed with the carrying amount and are recognised within "other operating income" in the statement of comprehensive income.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost includes all direct costs and an appropriate portion of fixed and variable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Financial instruments

The company's activities expose it to a variety of financial risks, including the effects of interest rates and foreign exchange rates. The company's overall risk management policy focuses on monitoring potential adverse effects where considered material. The company accepts a certain degree of interest rate risk and other market price risks and continues to monitor these on an ongoing basis. Prudent cash management is used to reduce any exposure to liquidity risk together with foreign exchange arrangements to mitigate the effect of foreign currency movements. The instruments purchased are denominated in Euros. The company has no specific concentration of credit risk.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

5. Turnover

Turnover arises from:

	2024	2023
	£000	£000
Sale of goods	1,615	2,163
	-------	-------

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

6. Other operating income

	2024	2023
	£000	£000
Rental income	11	7
Government grant income	26	21
Other operating income	–	4
	----	----
	37	32
	----	----

7. Operating loss

Operating profit or loss is stated after charging:

	2024	2023
	£000	£000
Depreciation of tangible assets	22	21
Impairment of trade debtors	394	15
	----	----

8. Auditor's remuneration

	2024	2023
	£000	£000
Fees payable for the audit of the financial statements	13	11
	----	----

Fees payable to the company's auditor and its associates for other services:

Other non-audit services	2	3
	----	----

9. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	5	6
Administrative staff	5	5
Management staff	3	3
	----	----
	13	14
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£000	£000
Wages and salaries	407	390
Social security costs	35	35
Other pension costs	36	35
	----	----
	478	460
	----	----

10. Other interest receivable and similar income

	2024	2023
	£000	£000
Interest on cash and cash equivalents	16	17
	----	----

11. Interest payable and similar expenses

	2024	2023
	£000	£000
Interest on banks loans and overdrafts	4	1
	----	----

12. Tax on loss

Major components of tax expense

	2024	2023
	£000	£000

Current tax:

UK current tax expense	–	1
	----	----
Tax on loss	–	1
	----	----

Reconciliation of tax expense

The tax assessed on the loss on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).

	2024	2023
	£000	£000
Loss on ordinary activities before taxation	( 665)	( 6)
	----	----
Loss on ordinary activities by rate of tax	48	( 1)
Effect of capital allowances and depreciation	–	4
Utilisation of tax losses	–	( 2)
Unused tax losses	( 48)	–
	----	----
Tax on loss	–	1
	----	----

13. Tangible assets

	Land and buildings	Improvements	Plant and machinery	Motor vehicles	Equipment	Total
	£000	£000	£000	£000	£000	£000
Cost
At 1 Jan 2024	693	163	305	196	817	2,174
Additions	–	2	–	–	–	2
Transfer to current assets	( 693)	–	–	–	–	( 693)
	----	----	----	----	----	-------
At 31 Dec 2024	–	165	305	196	817	1,483
	----	----	----	----	----	-------
Depreciation
At 1 Jan 2024	259	159	291	196	815	1,720
Charge for the year	–	6	14	–	2	22
Disposals	( 259)	–	–	–	–	( 259)
	----	----	----	----	----	-------
At 31 Dec 2024	–	165	305	196	817	1,483
	----	----	----	----	----	-------
Carrying amount
At 31 Dec 2024	–	–	–	–	–	–
	----	----	----	----	----	-------
At 31 Dec 2023	434	4	14	–	2	454
	----	----	----	----	----	-------

Tangible assets held at valuation

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

	Freehold property
	£000
At 31 December 2024
Aggregate cost	440
Aggregate depreciation	–
	----
Carrying value	440
	----

At 31 December 2023
Aggregate cost	440
Aggregate depreciation	–
	----
Carrying value	440
	----

14. Stocks

	2024	2023
	£000	£000
Raw materials and consumables	491	678
	----	----

15. Debtors

	2024	2023
	£000	£000
Trade debtors	73	130
Amounts owed by group undertakings	–	375
Prepayments and accrued income	32	31
	----	----
	105	536
	----	----

16. Property held for sale

	2024	2023
	£000	£000
Property held for sale	434	–
	----	----

17. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£000	£000
Cash at bank and in hand	2	87
Bank overdrafts	( 63)	–
	----	----
	( 61)	87
	----	----

18. Creditors: amounts falling due within one year

	2024	2023
	£000	£000
Bank loans and overdrafts	63	–
Trade creditors	106	127
Amounts owed to group undertakings	115	201
Accruals and deferred income	38	31
Corporation tax	–	1
Social security and other taxes	61	71
Other creditors	98	108
	----	----
	481	539
	----	----

The overdraft of £63,317 is covered by an overdraft facility up to the value of £175,000. This is repayable on demand. Against this overdraft facility, the bank holds a first legal charge on the Glasgow property - 571/573 Lawmoor Street, Glasgow, Scotland, G5 0TT. As of April 2025, as part of the shut-down of operations, this charge was satisfied and the property sold for value of £950k.

19. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 36,422 (2023: £ 35,306 ).

20. Government grants

The amounts recognised in the financial statements for government grants are as follows:

	2024	2023
	£000	£000

Recognised in other operating income:

Government grants recognised directly in income	26	21
	----	----

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£000	No.	£000
Ordinary shares of £ 1 each	500,000	500	500,000	500
Redeemable Preference shares of £ 1 each	1,500,000	1,500	1,500,000	1,500
	------------	-------	------------	-------
	2,000,000	2,000	2,000,000	2,000
	------------	-------	------------	-------

22. Reserves

Retained Earnings Retained earnings represent cumulative profits and losses net of dividends paid and other adjustments. Included in retained earnings is a revaluation reserve of £252,816 that represents the difference between the retained book value of land and buildings, previously valued at 1st February 1999, and the original cost.

23. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£000	£000	£000
Cash at bank and in hand	87	(85)	2
Bank overdrafts	–	(63)	(63)
Debt due within one year	(201)	86	(115)
Current asset investments	–	434	434
	----	----	----
	( 114)	372	258
	----	----	----

24. Controlling party

The immediate parent undertaking is Gruppo Ceramiche Ricchetti SpA, a company registered in Italy. The ultimate parent undertaking and controlling party is QR Partners S.r.l. a company registered in Italy, which is the parent undertaking of the largest group to consolidate these financial statements. Copies of QR Partners S.r.l. and Gruppo Ceramiche Ricchetti SpA's consolidated financial statements can be obtained from the Company Secretary, Bellegrove Ceramics Plc, Bellegrove House, 651-661 Princes Road, Dartford, Kent, DA2 6EF.