REGISTERED NUMBER: 08742002 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

SELKENT FASTENINGS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Statement of Cash Flows

16

Notes to the Financial Statements

17

DIRECTORS:

J A Bushnell

S Bushnell

V Bushnell

K Bushnell

REGISTERED OFFICE:

Osprey House

Crayfields Business Park

New Mill Road

Orpington

Kent

BR5 3QJ

REGISTERED NUMBER:

08742002 (England and Wales)

SENIOR STATUTORY AUDITOR:

Andrew Pountney

AUDITORS:

Dean Statham

29 King Street

Newcastle under Lyme

Staffordshire

ST5 1ER

The directors present their strategic report for the year ended 31st December 2024.

REVIEW OF BUSINESS

The Directors are pleased with the year's results and strong trading performance through 2024 with another year of revenue growth. The increased demand led to the decision to move to a new larger warehouse facility which is key to our plans for company growth, enhanced customer fulfilment, and ever-improving sustainable operations. Overhead costs have increased as a result, but with a focus on delivering construction supplies to projects across the country, the new warehouse in Sittingbourne will act as a hub for our operations and we hope that our facility will provide increased business and careers in the local community for years to come.

KEY PERFORMANCE INDICATORS

The directors consider the key performance indicators to be:

2024

2023

£

£

Turnover

22,270,173

21,620,609

Gross profit

7,794,351

8,012,311

Gross profit %

35.00%

37.06%

EBITDA

2,301,097

3,535,456

EBITDA %

10.33%

16.35%

Debtor days

68.00

66.39

Creditor days

67.62

52.94

Gearing %

18.32%

21.74%

PRINCIPAL RISKS AND UNCERTAINTIES

The company uses a number of financial instruments which include stock funding, cash, equity and other various items such as trade debtors and trade creditors which arise directly from, its operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The significant risks arising from the company's financial instruments are interest rate risk, liquidity risk and credit risk. The directors review and agree policies for the management of each of these risks which are noted below. These policies are consistent with those from the previous year.

Interest rate risk

The company utilises a number of traditional funding facilities to manage its working capital position. Management continually monitor their usage to ensure that interest charges are kept to a minimum.

International risks

International geopolitical risks are increasing in the EU, Russia and China which may adversely affect the UK and these developments are being closely monitored. De-coupling from China in particular and having multiple areas to source high quality products from is seen as key to ensuring we are able to maintain good stock levels and mitigate against issues seen in previous years such as COVID-19 and war. We will therefore be constantly reviewing stock levels and adjusting orders and suppliers accordingly.

Liquidity / financial risks

The objective in managing liquidity is to ensure that we can continue to meet our financial obligations as they fall due. Our debt-to-equity ratio remains within industry standards, suggesting a balanced capital structure and prudent financial management to ensure we continue to have the ability to meet our short and long-term finance obligations.

Whilst price of materials and interest rates which have steadily risen again during the year leading to increased interest payable, our cash position has improved and whilst we regularly offer credit terms to our customers, we will continue to only grant credit to existing customers who continue to satisfy credit worthiness and those that pay to terms.

The company makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the company is able to meet its foreseeable debts as they fall due and to invest any cash assets profitably.

Operational risks

Mitigating the risk of inadequate or failed internal processes, people and systems is key to achieving any future ambitions. We aim to minimise operational failures through the establishment and subsequent investment in sound systems, controls and audit functions.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited and therefore the principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. These credit limits are reviewed regularly by the directors together with the aged debtors and collection history.

Economic climate

With interest rates and inflation having been high and the resulting rising cost of living, a wide spectrum of businesses and individuals are still trying to come to grips with the new economic landscape. As we write this report, inflation is settling down to within / close to the Government's target. However, following the recent Autumn Budget, changes in national insurance for employers is adding further pressures to the business that will impact the company from April 2025. We continue to work hand-in-hand with our team, clients and suppliers to ensure they're receiving the appropriate communications to manage and maximise their finances.

Suppliers

The company operates a purchasing policy which is believed to be fair with our suppliers. We aim to pay invoices on time and conduct our interactions with suppliers in a professional manner.

Foreign currency risk

The company does not transact in any currencies other than GBP and as such the foreign currency risk is trivial.

Our customers - our partners in business

The company is proactive in communicating with our customers on a regular basis using various communication methods in a range of methods from face-to-face meetings to social media campaigns. We enhance our service through expert content and case studies supporting them on their business journey. The content is delivered through our website, newsletters, targeted email campaigns, social media and PR. All clients have direct contacts in the company at either director or manager level (or both), becoming an extension of their team and their first point of contact.

Manufacturers' supply of new and improved products

The company is reliant on new fastenings, fixings & tool products from its various manufacturer & distribution partners. This exposes the company to risks in a number of areas as the company is dependent on its manufacturer/supplier in respect of; availability of new and existing products, quality of new and existing products, pricing of new and existing products. The directors are confident that future new products from its manufacturer partners will continue to be competitively priced and of high quality and therefore consider this "manufacturer risk" minimal. Our manufacturer and distribution partners continue to demonstrate increased investment, development and introduction of innovative products, thus ensuring our product offering remains prominent in the construction supply market.

Employee and contractor interests

We value our workforce as our greatest asset and as a result, we regularly review our working practices and remuneration approach to ensure we not only attract great talent but that the working environment is conducive to well-balanced working relationships and good work-life balance, as the directors consider this to be the highest priority for sustaining the continued long term success of the business. In this regard additional business staff have been on boarded in the last few years to manage and support the following for the company:

a) the development and growth of the team,

b) the change of premises to improve hybrid working and employee wellbeing, and

c) foster the company's business relationships with suppliers, customers and other stakeholders.

Economic outlook

The success of the business is reliant on consumer spending which fuels the construction industry. Any economic downturn, resulting in a reduction of consumer spending power, will have a direct impact on the income achieved by the company. In response to this risk, senior management aims to keep abreast of economic conditions. In cases of severe economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.

Directors' statement of compliance with duty to promote the success of the company

The directors are aware of their responsibilities pursuant to section 172 of the Companies Act 2006. In order to promote the success of the business for all stakeholders and for the long term the directors regularly review internal external stakeholder relationships and the impact that the activities of the business have on these stakeholders

Long-term success

We are committed to the long-term success of the company. All of our strategic decisions take into account the impact on the company's financial performance, sustainable growth of shareholder value and enhancing the products we have to offer to our business partners within the construction industry.

Future developments

The company continues to invest in its team, technology, processes and expansion plans via both organic and acquisitive means if necessary.

Engagement with stakeholders

We actively engage with our stakeholders to understand their concerns and expectations. This includes shareholders, employees, contractors, customers, suppliers, and the wider construction supply chain community. This engagement informs our decision-making process and helps us balance competing interests. As a result of these activities, the directors believe that they have demonstrated compliance with their legal duty under s.172 of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Post balance sheet review

The directors confirm that the business remains adequately funded, with sufficient liquidity and facilities in place to support ongoing operations. The Board continues to monitor economic conditions, customer demand, and supplier relationships closely, ensuring the company remains well positioned to respond to emerging opportunities and challenges in 2025 and beyond.

Since the year end, the company has continued to experience steady demand from core customers, despite bottlenecks in the Gateway 2 approvals system which has stalled the start of high-rise residential projects across the country.

ON BEHALF OF THE BOARD:

J A Bushnell - Director

24th December 2025

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

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2024 will be £ 1,215,720 .

FUTURE DEVELOPMENTS

Please refer to the strategic report for activities and the likely future developments of the company and a discussion of the risks and uncertainties.

DIRECTORS

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

J A Bushnell

S Bushnell

V Bushnell

K Bushnell

EVENTS AFTER THE REPORTING PERIOD

There are no significant events to report.

DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT

The directors have opted to disclose the company's results and its financial risk management objectives and policies within the strategic report as they consider these items to be of sufficient strategic importance to the financial statements.

GREENHOUSE GAS EMISSIONS AND ENERGY CONSUMPTION

The company has not consumed more than 40,000 kWh of energy in this reporting period. Therefore, the company qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

GOING CONCERN

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue In operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The directors have reported a record profit for the period. The company continues to be cash generative and continues to meet its obligations as they fall due.

STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of discussion of engagement with employees, and the need to foster the company's business relationships with suppliers, clients and other stakeholders.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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;

-	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.

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 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.

AUDITORS

The auditors, Dean Statham, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J A Bushnell - Director

24th December 2025

Opinion

We have audited the financial statements of Selkent Fastenings Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, other 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 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 profit 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.

Qualification

We were not appointed as auditor of the company until after 31 December 2024 and thus did not observe the counting of physical stock quantities at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2024, which are included in the balance sheet at £2,499,831, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the 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

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 misstatement in the strategic report or the directors' report.

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, 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.

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.

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.

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 business 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 the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, 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.

- Investigated the rationale behind significant or unusual transactions.

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 identified as critical were indicative of potential bias.

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;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims;

- Reviewing correspondence with HMRC, relevant regulators and the company's 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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 Pountney (Senior Statutory Auditor)

for and on behalf of Dean Statham

29 King Street

Newcastle under Lyme

Staffordshire

ST5 1ER

25th December 2025

TURNOVER

4

22,270,173

21,620,609

Cost of sales

14,475,822

13,608,298

GROSS PROFIT

7,794,351

8,012,311

Administrative expenses

5,890,762

4,811,890

1,903,589

3,200,421

Other operating income

5

114,101

73,222

OPERATING PROFIT

7

2,017,690

3,273,643

Interest payable and similar expenses

9

133,754

140,190

PROFIT BEFORE TAXATION

1,883,936

3,133,453

Tax on profit

10

518,855

708,802

PROFIT FOR THE FINANCIAL YEAR

1,365,081

2,424,651

PROFIT FOR THE YEAR

1,365,081

2,424,651

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,365,081

2,424,651

FIXED ASSETS

Intangible assets

12

53,463

-

Tangible assets

13

1,186,282

910,820

1,239,745

910,820

CURRENT ASSETS

Stocks

14

2,592,605

2,657,533

Debtors

15

6,812,708

5,756,224

Prepayments and accrued income

311,852

239,901

Cash at bank

478,537

751,840

10,195,702

9,405,498

CREDITORS

Amounts falling due within one year

16

4,647,053

3,640,508

NET CURRENT ASSETS

5,548,649

5,764,990

TOTAL ASSETS LESS CURRENT LIABILITIES

6,788,394

6,675,810

CREDITORS

Amounts falling due after more than one year

17

(1,696,649

)

(1,830,436

)

PROVISIONS FOR LIABILITIES

22

(246,809

)

(149,799

)

NET ASSETS

4,844,936

4,695,575

CAPITAL AND RESERVES

Called up share capital

23

100

100

Retained earnings

24

4,844,836

4,695,475

SHAREHOLDERS' FUNDS

4,844,936

4,695,575

The financial statements were approved by the Board of Directors and authorised for issue on 24th December 2025 and were signed on its behalf by:

J A Bushnell - Director

S Bushnell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

100

3,365,224

3,365,324

Changes in equity

Dividends

-

(1,094,400

)

(1,094,400

)

Total comprehensive income

-

2,424,651

2,424,651

Balance at 31st December 2023

100

4,695,475

4,695,575

Changes in equity

Dividends

-

(1,215,720

)

(1,215,720

)

Total comprehensive income

-

1,365,081

1,365,081

Balance at 31st December 2024

100

4,844,836

4,844,936

Cash flows from operating activities

Cash generated from operations

1

2,221,050

2,195,550

Interest paid

(116,967

)

(117,458

)

Interest element of hire purchase and finance lease rental payments paid

(16,787

)

(22,732

)

Tax paid

(384,951

)

(853,511

)

Net cash from operating activities

1,702,345

1,201,849

Cash flows from investing activities

Purchase of intangible fixed assets

(55,788

)

-

Purchase of tangible fixed assets

(605,466

)

(430,871

)

Sale of tangible fixed assets

48,923

158,917

Net cash from investing activities

(612,331

)

(271,954

)

Cash flows from financing activities

Loan repayments in year

(154,699

)

(152,674

)

Capital repayments in year

7,102

(10,569

)

Amount introduced by directors

-

603,798

Amount withdrawn by directors

-

(226,417

)

Equity dividends paid

(1,215,720

)

(1,094,400

)

Net cash from financing activities

(1,363,317

)

(880,262

)

(Decrease)/increase in cash and cash equivalents

(273,303

)

49,633

Cash and cash equivalents at beginning of year

2

751,840

702,207

Cash and cash equivalents at end of year

2

478,537

751,840

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

1,883,936

3,133,453

Depreciation charges

265,445

310,229

Loss/(profit) on disposal of fixed assets

17,962

(48,416

)

Finance costs

133,754

140,190

2,301,097

3,535,456

Decrease/(increase) in stocks

64,928

(266,602

)

(Increase)/decrease in trade and other debtors

(1,128,436

)

81,528

Increase/(decrease) in trade and other creditors

983,461

(1,154,832

)

Cash generated from operations

2,221,050

2,195,550

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

478,537

751,840

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

751,840

702,207

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

751,840

(273,303

)

478,537

751,840

(273,303

)

478,537

Debt

Hire purchase and finance leases

(552,940

)

(7,102

)

(560,042

)

Debts falling due within 1 year

(152,675

)

(7,349

)

(160,024

)

Debts falling due after 1 year

(1,537,279

)

162,048

(1,375,231

)

(2,242,894

)

147,597

(2,095,297

)

Total

(1,491,054

)

(125,706

)

(1,616,760

)

1.	STATUTORY INFORMATION

Selkent Fastenings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 08742002 and the registered office address is Riverside House, Kangley Bridge Road, Sydenham, London, SE26 5DA.

The principal activity of the company is that of the supply of fastenings, fixings and tools to the construction and civil engineering sectors.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the accounting policies.

Functional currency

The financial statements are prepared in sterling (£). The functional currency of the company is sterling (£).

Related party exemption

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

Significant judgements and estimates

In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the company. It may later be determined that a different choice would have been more appropriate. Management considers that certain accounting estimates and assumptions relating to revenue, taxation, stock, tangible fixed assets and provisions are its critical accounting policies.

Turnover

Turnover 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 is only recognised when the risks and rewards of ownership are transferred to the customer at an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods. For the sale of services, revenue is recognised when the service has been completed.

Where customers have a right to return purchased goods in exchange for a refund, a liability for returns is recognised within other payables and is based on historic trends and offset against revenue and cost of sales in the period in which the sale was made.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of five years.

Intangible assets

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.

Other intangible assets are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

25% on cost and 25% on reducing balance

Fixtures and fittings

-

25% on cost and 10% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost and 25% on cost

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is calculated on a moving average basis. Net realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.