The directors present the strategic report for the year ended 31 March 2025.

Hardscape Products Ltd is engaged with the supply of hard landscaping material to the construction industry and the provision of bespoke surface artwork through advanced production & design technology and methods.

The financial year ended 31st of March 2025 saw sales revenue of £26.5m (2024: £22.5m). The Company stands alone amongst its peers in that it provides an independent design led selection and supply service coupled with access to the very latest "in-house" design and production facilities that mean we can provide a hard landscaping solution that is truly unique. As ever our core operational ethos is to provide a secure and sustainable platform for future growth by acting in a responsible and ethical manner profit before tax was £1.16m (2024: £952k) despite the challenging market and order inputs throughout 2025 and beyond remain strong.

In Nov 2024 Hardscape celebrated its 30th birthday. To reach such a milestone is a great achievement and a testament to the fundamental principles that the Company has been built on. By establishing robust and reciprocal relationships with our supply chain and customers, we have been at the forefront of supplying hard landscaping materials to some of the most innovative and inclusive infrastructure schemes in the UK.

Hardscape Products and the wider group is employee owned by virtue of an Employee Ownership Trust (EOT), and in 2025 will mark its third year of employee ownership. We will celebrate this with our annual AGM and social whereby we celebrate the achievements of the previous year, outline our plans for growth and also take the opportunity to celebrate together. Hardscape is proud to be employee owned and secure in the knowledge that the future of the Company is in the hands of its greatest asset – its employees.

Financial performance

The Directors have determined that the following financial indicators are the most effective when measuring progress towards the Companies financial objectives:

The Board regard the results as satisfactory. The Board also monitor performance by reference to certain "non-financial KPI's". These include customer satisfaction and the review of staff numbers.

There are a number of potential risks and uncertainties which could have a material impact on the performance and could cause actual results to differ materially from expected and historical results.

The principal risks inherent in the Company's business model, include the following:

Operational risk

The activities of the Company subject it to risks relating to its ability to implement and maintain effective systems to process high volumes of transactions with its customers. A breakdown of the IT systems of the Company may affect its ability to operate its business effectively.

To address this risk, management has implemented a strong control system, including the retention of IT experts, to ensure that the Company's systems remain robust and adequate for purpose.

As a responsible manufacturer the Company recognises its role in protecting the environment. We value the principles of ISO 14001 and will continue to develop our operational practices in line with the standard.

Competitor risk

The Company faces competition in the core markets in which it operates. There is a danger that its profitability and/or market share may be impaired.

To manage this risk the Company maintains relationships with its customers, introducers and other significant participants in the markets in which it is active, as well as being active in industry-wide organisations and initiatives.

Supplier risk

The Company sources products from around the globe. There is the possibility that logistical problems in certain areas of the world may impact on its ability to supply.

In order to mitigate this risk, the Company has invested in strong relationships with suppliers who share our core values and has a comprehensive portfolio of products that mean it is able to supply from a variety of sources and minimise any disruption to supply.

Foreign exchange risk

Being at the forefront of supplying leading edge paving materials that are recognised internationally, the Company sources product from a variety of locations throughout the world. As such it purchases in a number of currencies. It is therefore exposed to the potential of Foreign Exchange risk should there be a movement in the Foreign Exchange rate between order and payment.

To manage this risk, the Company has a proactive approach to the purchase of foreign currency which takes into account both its commitments and expected revenues streams to minimise any potential risk. The Company policy permits, but does not demand, that these exposures may be hedged in order to fix the cost in Sterling. This hedging activity involves the use of foreign exchange forward contracts were appropriate.

The Company is mindful of the worldwide trade situation and the potential impact world events have upon material availability. To counter this we have a robust and established supply chain well placed to cope with any temporary market anomalies.

Liquidity and finance risk

The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring that the Company has sufficient liquid resources to meet the operating needs of the business.

The Company operates through cash reserves built up through strict control of working capital and does not suffer interest rate fluctuations in any way other than from poor return on investments.

The Company is mindful that in these times timely and accurate financial information is necessary to make sure that appropriate decisions are made to meet operational demands.

Credit risk

The Company insures all of its customers and each must go through a full test procedure before credit facilities are granted.

Companies can lose this facility if persistently trading outside of agreed terms.

Compliance

As an employer and contractor/subcontractor within the construction sector we are required to comply with regulatory framework that underpins our industry in areas such as:

• Modern Slavery Act

• General Data Protection Regulation (GDPR)

• Health & Safety

• Taxation

• Bribery & Corruption

• Gender Pay Gap & Minimum Wage

It is vital that we are aware of our obligations in these areas and the consequences of any non-compliance.

Where appropriate staff are given training either internally or externally to ensure that policies, behaviours and expectations are understood and communicated throughout the Company.

The Company is mindful of its responsibilities in relation the environment. We stated our net zero carbon emissions in 2021 but we realise our responsibility is wider than that. As a truly independent supplier of materials our role is not only to provide the landscaping profession with materials that have the lowest carbon content but also to challenge the traditional principles around installation, sourcing and more importantly re-use, rather than disposal of existing materials.

We will continue to develop our product range relating to green infrastructure and work within our wider industry to support projects that lead to a safer and healthier society for all.

The Company is conscious that its greatest asset is its people and will continue to advance their skills and capabilities through our training and development programs. It is vital in this day and age that we have a skilled and diverse workforce able to meet the faceted and complex demands of the modern construction industry. Our management team has been strengthened and streamlined with far more staff engagement and empowerment in order to meet customer demands in an extremely dynamic and complex environment.

Remuneration and incentive packages are reviewed annually to make sure that they are appropriate and assist in the attraction and retention of our workforce.

The Company regularly communicates with its employees by briefings and updates on performance and and the plans and objectives for the year ahead and as part of the EOT has established an employee council which organises an annual AGM in order that the Company can communicate its results and plans.

In 2024 the Group will celebrate its 30th Anniversary with all members of staff and business partners and will be organising a series of events and commemorations to celebrate this feat.

Hardscape has long been a leader in the field of ethical compliance. We are regularly audited successfully to maintain ISO:9001 and 14001 to provide operational and sustainable excellence throughout the operation. We are continuing our journey on additional quality standards to provide further quality assurance for our operational excellence Zero Carbon ambitions are also being actioned and further developed.

Our commitment to ethics, sustainability and the wider carbon footprint have been further supported with the employment of a sustainability manager. In particular the carbon impact of our operation and our supply chain is being identified, quantified and improved upon with the full knowledge that in order to do so we need to share with our customers and suppliers as much information and education as possible as and when such resources become available.

The Board recognises its place within the local community and in the lives of its stakeholders. We have continued to assist our partnered charities in their good works and we are proud to have links with several local sporting clubs supporting them with sponsorship opportunities.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

During the period, the company paid dividends of £94,080 (2024: £689,346).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The auditor, Xeinadin Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Hardscape Products Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 opinion.

Conclusions relating to going concern

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

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

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

Other information

The 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 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 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 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.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

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

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.

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 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.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

• The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;

• Results of the enquiries of management about their own identification and assessment of the risks of irregularities

• Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

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

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

  • the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and foreign currency translation. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

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

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be the inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Hardscape Products Limited is a private company, limited by share capital and incorporated in England and Wales, registration number 02986234. The address of the registered office and principal place of business is Eagley House, Deakins Business Park, Blackburn Road, Egerton, Bolton, BL7 9RP.

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related transactions with wholly owned subsidiaries within the group.

Turnover is measured as the fair value of the consideration received or receivable, excluding value added tax.

Turnover principally consists of income from the delivery of landscaping and paving products to customers across the UK, excluding duty and value added tax which is recognised at the point of which the goods are provided.

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

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

At each reporting date, the group reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately.

Stocks are valued at the lower of cost and net realisable value and Work-in-Progress are amounts billed for work performed on a construction contract.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are represented by cash at bank and in hand. Bank borrowings are included within creditors.

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 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 those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of timing difference.

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

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

The costs of short-terms employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or assets.

The cost of any unused holiday entitlement is recognised in the period in which the employees services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in the consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. the assets of the plan are held separately from the group in independently administered funds.

Hire purchase and leasing commitments

Rentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight line basis over the lease term.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company accounts for provisions in accordance with FRS 102. There are currently the following types of provisions:

As a result of claims made by customers and the ongoing relationship with clients, a provision has been made to account for any potential future refunds to clients of £51,313 (2024 - £155,913).

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company's ultimate parent is Hardscape Group Limited, incorporated in England and Wales. The parent company of the largest and smallest group that includes the company and for which group financial statements are prepared is Hardscape Group Limited. Consolidated financial statements of the group can be requested from Hardscape Group Limited, Eagley House Deakins Business Park, Blackburn Road, Egerton, Bolton, BL7 9RP.