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

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

S.B. Joinery Installations (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 33 The Clarendon Centre, Salisbury Business Park, Dairy Meadow Lane, Salisbury, Wiltshire, SP1 2TJ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

The company is dependent on the support of its truefellow group companies who, at the balance sheet date, had an intercompany account included in creditors due within one year. The directors have considered the group’s future financial performance given. Given the financial resources available, the strong order book including the addition of a new revenue stream, and the expected profitable out-turn of projects, the group is able to confirm support to the company for the foreseeable future. The directors consider the going concern basis to be appropriate and hence the financial statements do not contain any adjustments that might be necessary if this support was withdrawn.

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered. Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term 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 non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s 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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

Recognised amounts of construction contract revenues and related receivables reflect management’s best estimate of each contract’s outcome and stage of completion. This includes the assessment of profitability of on-going construction contracts. No provision has been made as it is believed that all ongoing contracts at the year end are profit making. For complex contracts, cost to complete and the contract profitability are subject to significant estimation uncertainty.

The directors consider the recoverability of the company’s trade debtor balances in the balance as at 30 December 2024. Based on the review of post year end receipts and discussions with key customers, the directors are satisfied with the recoverability and that there is adequate provision for any possible bad debts. The provision for bad debts is based on the best available facts and circumstances including the length of the business relationship and ongoing discussions with the customer.

There are retentions on projects where customers are able to claim against the group if there were any issues with the installation or the product. The list of outstanding retentions recognised as income was reviewed at the year end and a judgement was made regarding the value of recoverable amounts and the estimated costs to resolve any ongoing issues. It was deemed that no provision was required. The decision was based on current correspondence with customers and an ongoing complaints, a review of historic data did not identify any issues.

The company has recognised a deferred tax asset in respect of carried-forward tax losses to the extent that it is probable that future taxable profits will be available against which the losses can be utilised.

The recognition of this deferred tax asset requires significant judgement. Management has assessed the likelihood of future taxable profits based on approved budgets and forecasts, which include assumptions regarding future revenue growth, operating margins and cost control, as well as the period over which the losses can be utilised under current tax legislation.

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

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is qualified and includes the following:

Qualified opinion

In our opinion, except for the possible effects of the matter described in the 'Basis for qualified opinion' section of our report, the accounts:

• give a true and fair view of the state of the company's affairs as at 30 December 2024 and of its loss 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 qualified opinion

The company has not maintained detailed project budgets and costing records resulting in our being unable to verify the amounts recorded as turnover, direct costs, work in progress and amounts recoverable on contracts. In this respect, we have not received sufficient, appropriate audit evidence in these areas nor were we able to undertake alternative procedures to verify these amounts. As a result of these matters, we were unable to determine whether any material adjustments might have been required to the amounts recorded in turnover, cost of sales, inventories and debtors and the elements making up the statement of comprehensive income, balance sheet, statement of changes in equity and statement of cash flows.

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.

The company is the wholly owned subsidiary of SB Joinery Holdings Limited. The ultimate parent undertaking, SB Joinery Holdings Limited, is a limited company registered in England and Wales, which is under the control of Mr S and Mrs D Brown who are the majority shareholders. The registered address of the ultimate parent undertaking is 33 The Clarendon Centre Salisbury Business Park, Dairy Meadow Lane, Salisbury, SP1 2TJ.

The company has taken advantage of the exemption under FRS 102 not to disclose details of related party transactions conducted between entities which are 100% owned within the group. The financial statements of the company are included within the consolidated financial statements of the SB Joinery Holdings Limited, which is the largest and smallest group of undertakings for which consolidated financial statements are drawn up. The consolidated accounts are available to the public and may be obtained from 33 The Clarendon Centre Salisbury Business Park, Dairy Meadow Lane, Salisbury, SP1 2TJ.

During the financial year errors have been identified relating to the processing of sales invoices, as a result sales & trade receivables have been overstated in previous financial years. A prior year adjustment has been raised to remove the sales invoices raised in error.