REGISTERED NUMBER: 04559872 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

AJW GROUP LTD

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and loss account

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Cash Flow Statement

16

Notes to the Consolidated Cash Flow Statement

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

A Woods

J Woods

T Woods

C L Woods

G M Woods

REGISTERED OFFICE:

Units 6-7

Honeysome Industrial Estate

Honeysome Road

Chatteris

Cambridgeshire

PE16 6TG

REGISTERED NUMBER:

04559872 (England and Wales)

AUDITORS:

Thompson Taraz Rand Audit and Assurance Limited

Statutory Auditors

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

The director's are pleased to provide their annual strategic report for the year to 31st March 2024 for the AJW Group of companies.

REVIEW OF BUSINESS

The year ended 31 March 2025 was a transformational period for the Group following the consolidation of trading operations into a single Limited Company and the purchase of Castle Roofing Supplies Ltd in February 2024. Group turnover marginally improved to £25.7 million (2024: £24.6 million, restated), Despite challenging market conditions within the construction sector, the Group delivered a profit after tax of £268,522 (2024: £49,285).

Gross margin improved during the year, supported by increased purchasing scale, improved supplier terms. Operating profit also increased, notwithstanding higher operating costs associated with the enlarged scale of the business, including increased staffing, depot-related costs and depreciation arising from investment in fleet and plant.

The Directors consider the financial performance for the year to be satisfactory, particularly in the context of the significant organisational change undertaken.

PRINCIPAL RISKS AND UNCERTAINTIES

The group faces a number of principal risks and uncertainties, which are considered to be:

Liquidity risk:

The group seeks to manage financial liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs

Credit risk:

The Groups principal financial assets are cash and trade debtor. The credit risk associated with cash is limited. The principal credit risk is therefore trade debtors . In order to manage credit risk the directors set credit limits for customers based on trading history, third party credit reference checks. Resource is allocated to to monitors the groups sales ledgers to help mitigate and manage financial loss.

People:

Our colleagues are key to the overall success of the group. The ability to recruit, develop and retain staff is critical to the high levels of customer service that group looks to deliver, with strong product knowledge. The group regularly reviews the remuneration and benefits packages to ensure these remain appropriate to the work and skills which our colleagues bring.

Cyber and data security:

Incidents of cybercrime represent a significant and increasing threat from ever more sophisticated methods. The group looks to mitigate this risk through investment in appropriate technology and enhanced control processes and colleague awareness.

Continuity of supply and supplier relationships

Product availability has remained a risk and has been addressed through strong supplier relationships ensuring increased stock levels is held where possible and product is well distributed across across the different trading locations.

Economic uncertainties:

Cost inflation continues to be seen in both product and overhead. This is mitigated by a proactive pricing policy to ensure pricing is monitored and adjusted as necessary.

FUTURE DEVELOPMENTS

The Directors remain cautiously optimistic about the Group's prospects. While uncertainty remains within the construction sector, the Group is well positioned following the restructuring, with a simplified operating model, strengthened balance sheet and improved operational scale.

The focus for the coming year will be on:

o Embedding the benefits of the group reorganisation

o Continued tight control over working capital

o Maintaining strong supplier and customer relationships

o Investing selectively in fleet, systems and people to support sustainable growth

The Directors believe the Group is well placed to continue trading successfully and develop its operations over the medium term

KEY PERFORMANCE INDICATORS (KPI'S)

The Group tracks its performance using a range of KPIs that the directors believe are key indicators of its progress against its strategic and financial targets. Financial KPI's used are as follows :

2025

2024

Gross margin

20.6%

20.0%

Debtor days

40

40

Creditor days

69

85

Trading ratio

11.25%

11.00%

ON BEHALF OF THE BOARD:

A Woods - Director

23 December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the sale of roofing, cladding and general building materials.

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2025 will be £ 103,381 .

DIRECTORS

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

A Woods

J Woods

Other changes in directors holding office are as follows:

T Woods - appointed 23 April 2024

C L Woods - appointed 23 April 2024

G M Woods - appointed 23 April 2024

POLITICAL DONATIONS AND EXPENDITURE

During the year under review charitable donations totalling £600 (2024: £6,798 ) were paid.

GOING CONCERN

Having considered a period of 12 months from the date of approval of these financial statements the directors have a more than reasonable expectation that the Group has the required resources to continue in operational existence for the foreseeable future. In making this assessment the directors have considered the Groups financial resources at the time of approving the financial statements as well as anticipated future activity and results.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Thompson Taraz Rand Audit and Assurance Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A Woods - Director

23 December 2025

Opinion

We have audited the financial statements of AJW GROUP LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Profit and loss account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinion on other matters

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: the Companies Act 2006, FRS 102 'the Financial Reporting Standards applicable in the UK and Republic of Ireland" and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. as well as Employment Legislation The risk of non-compliance with Health and Safety laws and regulations was addressed through inquiries of management.

We made inquiries with management to understand whether there were any instances of non-compliance with laws-and regulations or whether they had any knowledge of actual, or suspected fraud. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud.

We evaluated directors and managements incentives and opportunities for fraudulent manipulation of the financial statements (including management override of controls) and determined the principal risks were related to the posting of manual journal entries, management bias through application of judgement and assumptions in significant accounting estimates particular relating to allocation or management charges and rebates across the group, slow moving and obsolete stock provision and revenue recognition, recognition of rebates earnt but not yet received at the balance sheet date

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and. performed our audit in accordance with auditing standards; For example, the further· removed none compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standard would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non­ compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Andrew Rand BA FCA (Senior Statutory Auditor)

for and on behalf of Thompson Taraz Rand Audit and Assurance Limited

Statutory Auditors

10 Jesus Lane

Cambridge

Cambridgeshire

CB5 8BA

23 December 2025

TURNOVER

25,688,781

24,587,252

Cost of sales

(20,395,898

)

(19,735,889

)

GROSS PROFIT

5,292,883

4,851,363

Administrative expenses

(4,896,174

)

(4,663,131

)

396,709

188,232

Interest receivable and similar income

9,282

17,356

405,991

205,588

Interest payable and similar expenses

6

(137,469

)

(80,737

)

PROFIT BEFORE TAXATION

7

268,522

124,851

Tax on profit

8

(72,021

)

(53,086

)

PROFIT FOR THE FINANCIAL YEAR

196,501

71,765

Profit attributable to:

Owners of the parent

196,501

65,944

Non-controlling interests

-

5,821

196,501

71,765

PROFIT FOR THE YEAR

196,501

71,765

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

196,501

71,765

Total comprehensive income attributable to:

Owners of the parent

440,805

65,944

Non-controlling interests

(244,304

)

5,821

196,501

71,765

FIXED ASSETS

Intangible assets

11

-

31,552

Tangible assets

12

1,534,338

1,232,625

Investments

13

-

-

1,534,338

1,264,177

CURRENT ASSETS

Stocks

14

2,292,288

2,454,009

Debtors

15

3,623,588

4,135,579

Cash and cash equivalents

1,167,544

1,146,667

7,083,420

7,736,255

CREDITORS

Amounts falling due within one year

16

(5,652,205

)

(5,953,874

)

NET CURRENT ASSETS

1,431,215

1,782,381

TOTAL ASSETS LESS CURRENT LIABILITIES

2,965,553

3,046,558

CREDITORS

Amounts falling due after more than one year

17

(711,965

)

(676,386

)

PROVISIONS FOR LIABILITIES

21

(90,941

)

(56,839

)

NET ASSETS

2,162,647

2,313,333

CAPITAL AND RESERVES

Called up share capital

22

600

100

Retained earnings

23

2,162,047

2,068,927

SHAREHOLDERS' FUNDS

2,162,647

2,069,027

NON-CONTROLLING INTERESTS

24

-

244,306

TOTAL EQUITY

2,162,647

2,313,333

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

A Woods - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

13,946

94,446

13,946

94,446

CURRENT ASSETS

Debtors

15

270,393

985,181

Cash and cash equivalents

18,716

11,231

289,109

996,412

CREDITORS

Amounts falling due within one year

16

(64,095

)

(758,550

)

NET CURRENT ASSETS

225,014

237,862

TOTAL ASSETS LESS CURRENT LIABILITIES

238,960

332,308

CAPITAL AND RESERVES

Called up share capital

22

600

100

Retained earnings

238,360

332,208

SHAREHOLDERS' FUNDS

238,960

332,308

Company's profit for the financial year

9,533

61,026

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

The financial statements were approved by the Board of Directors and authorised for issue on 23 December 2025 and were signed on its behalf by:

A Woods - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1 April 2023

100

2,044,651

2,044,751

379,707

2,424,458

Changes in equity

None controlling interest

distribution in specie

-

-

-

(141,222

)

(141,222

)

Dividends

-

(41,668

)

(41,668

)

-

(41,668

)

Total comprehensive income

-

65,944

65,944

5,821

71,765

Balance at 31 March 2024

100

2,068,927

2,069,027

244,306

2,313,333

Changes in equity

Issue of share capital

500

-

500

-

500

Dividends

-

(103,381

)

(103,381

)

-

(103,381

)

Total comprehensive loss

-

196,501

196,501

(244,304

)

(47,803

)

Balance at 31 March 2025

600

2,162,047

2,162,647

2

2,162,649

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100

312,850

312,950

Changes in equity

Dividends

-

(41,668

)

(41,668

)

Total comprehensive income

-

61,026

61,026

Balance at 31 March 2024

100

332,208

332,308

Changes in equity

Issue of share capital

500

-

500

Dividends

-

(103,381

)

(103,381

)

Total comprehensive income

-

9,533

9,533

Balance at 31 March 2025

600

238,360

238,960

Cash flows from operating activities

Cash generated from operations

1

727,045

226,650

Interest paid

(42,351

)

(7,184

)

Interest element of hire purchase and finance lease rental payments paid

(95,118

)

(73,553

)

Tax paid

(57,547

)

(213,835

)

Net cash from operating activities

532,029

(67,922

)

Cash flows from investing activities

Purchase of tangible fixed assets

(106,721

)

(69,681

)

Sale of tangible fixed assets

45,968

-

acquired

-

(192,777

)

Interest received

9,282

17,356

Net cash from investing activities

(51,471

)

(245,102

)

Cash flows from financing activities

New loans in year

-

316,004

Loan repayments in year

-

(200,000

)

Capital repayments in year

(386,311

)

(95,600

)

Amount introduced by directors

41,376

-

Amount withdrawn by directors

(11,365

)

(58,821

)

Share issue

-

125

Equity dividends paid

(103,381

)

(41,668

)

Net cash from financing activities

(459,681

)

(79,960

)

Increase/(decrease) in cash and cash equivalents

20,877

(392,984

)

Cash and cash equivalents at beginning of year

2

1,146,667

1,539,651

Cash and cash equivalents at end of year

2

1,167,544

1,146,667

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

196,501

71,765

Depreciation charges

355,862

285,186

Profit on disposal of fixed assets

(45,968

)

-

Finance costs

137,469

80,737

Finance income

(9,282

)

(17,356

)

Taxation

72,021

53,086

706,603

473,418

Decrease in stocks

161,721

451,861

Decrease/(increase) in trade and other debtors

729,189

(545,706

)

Decrease in trade and other creditors

(870,468

)

(152,923

)

Cash generated from operations

727,045

226,650

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

1,167,544

1,146,667

Year ended 31 March 2024

31/3/24

1/4/23

£

£

Cash and cash equivalents

1,146,667

1,539,651

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1/4/24

Cash flow

changes

At 31/3/25

£

£

£

£

Net cash

Cash and cash equivalents

1,146,667

20,877

1,167,544

1,146,667

20,877

1,167,544

Debt

Hire purchase and

finance leases

(904,959

)

386,311

-

(1,035,435

)

Debts falling due

within 1 year

(316,004

)

(587,378

)

-

(903,382

)

(1,220,963

)

(201,067

)

-

(1,938,817

)

Total

(74,296

)

(180,190

)

-

(771,273

)