REGISTERED NUMBER: 01651304 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Sotech Limited

Page

Company information

1

Strategic report

2

to

3

Report of the directors

4

to

5

Report of the independent auditors

6

to

9

Statement of income and retained earnings

10

Statement of financial position

11

Statement of cash flows

12

Notes to the statement of cash flows

13

Notes to the financial statements

14

to

21

Directors:

J A Egginton

G Todd

M J Egginton

R D Egginton

J C Symonds

Registered office:

Unit 2

Traynor Way

Whitehouse Business Park

Peterlee

Co. Durham

SR8 2RU

Registered number:

01651304 (England and Wales)

Senior statutory auditor:

Matt Storey FCCA, ACA, BFP

Auditors:

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

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

The principal activity of the company during the period was the manufacture and sale of metal rainscreen cladding systems and ancillaries.

Development and performance of the company during the financial period

The company's overriding objective set by its shareholders is to secure the longevity of the business. The strategy agreed to achieve this is to maintain a stable and financially robust business, pursuing development opportunities appropriate to that strategy in terms of the risk and return profiles in relation to the core business of the company.

The directors and shareholders of the business believe that the financial performance during the year herein reported and for the years immediately preceding demonstrate that the company is being managed in accordance with that objective and strategy, and further that the future business plan will continue to meet those requirements.

Principal risks and uncertainties

The company's Board of Directors and management team consider together the risks of significant business decisions and changes in the external environment and in the company's operations.

Geo-political tensions continue to materially affect all industries leading to high pressures costs in all areas. Uncertainty surrounding long-term inflation and interest rate levels have affected long term capital expenditure planning.

Market conditions and industry specific uncertainties

The financial robustness of the company has allowed it to trade without impediment.

The market conditions in which the company operates are mixed due not only to competitive

pressures but the ongoing enhancements to building regulations, Building Safety Act 2022 and Building Safety Regulator.

Financial risk

The company's operations expose it to a variety of financial risks that include the effect of changes in credit, liquidity, interest and exchange rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Insurance and trade credit risks are managed through the continual development of strong relationships with all stakeholders across the market chain.

The company does not use derivative financial instruments to manage interest rate costs and as such no hedge accounting is applied. The company has robust credit checking policies in place for both current and potential customers. In addition to this the company insures the recoverability of commercial credit sales through an external credit insurance company.

Liquidity risk

The company continues a policy of careful cash flow management. This is achieved whilst also making what we believe are astute long investments in people, processes and materials.

Sotech continues to have the full backing of its supporting financial institutions. Credit rating companies such as Dun & Bradstreet continue to consider the company as very low risk. The directors are confident that the company has sufficient funds available to support its activities in the future.

Operating risk

The company's reputation and continued success depends on its ability to provide products that are valued by its clients. The company regularly reviews the quality, health and safety processes and maintains ISO 9001:2015, ISO14001 and ISO 18001 certification via external and independent auditing.

The company continues to invest in its IT infrastructure security and management information systems to improve the efficiency and effectiveness of daily activities and communication, assisting the ability to work remotely where necessary.

The company has continued to invest in its staff, developing and training both in-house and via professional education. Sotech continues to recruit new employees who will add to the development of the business and further its strategic aims.

Future opportunities & research and development activities

The company's leadership team considers the company to be in a strong financial position to take advantage of new opportunities despite an increasingly challenging and uncertain world.

The combined effects of tightening Building Safety regulations, difficulties with the Gateway approvals process and Government procrastination has had a detrimental, short term effect on company performance. Projects have been delayed in approvals stage throughout the UK and has affected all levels of the construction industry,

To mitigate any further risk, the company has continued to invest significant resources in building systems development, engineering software and associated resources. These positive steps have sought to further enhance Sotech's in-house engineering capabilities providing confidence to all stakeholders within the construction industry to assist accelerating the company's ability to meet mandatory Building Safety Regulator Gateway approvals.

Sotech has also underpinned its commitment to the UK Building Safety by completing enhanced structural performance testing with its key strategic partners.

As a result Sotech systems are now fully UL Certified Internationally for structural performance as well as being certified for fire performance.

Since the year end, the projects previously stalled within Gateway are in process allowing the company to move to more familiar trading conditions and have provided a springboard for improved commercial performance for the new financial year.

In addition, there has been some internal restructuring, and the company is currently in the process of acquiring the manufacturing premises from the existing landlords. Further projects are also under consideration that will continue to require significant capital investment.

On behalf of the board:

J A Egginton - Director

23 December 2025

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

Principal activity

The principal activity of the company is the manufacture of metal rainscreen systems and ancillaries.

Dividends

No dividends will be distributed for the year ended 31 March 2025.

Future developments

Future developments are disclosed in the strategic report.

Directors

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

J A Egginton

G Todd

M J Egginton

R D Egginton

J C Symonds

Post balance sheet events

There have been no significant events affecting the company since the year end.

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, Moore Thompson, will be proposed for appointment at the forthcoming Annual General Meeting.

On behalf of the board:

J A Egginton - Director

23 December 2025

Opinion

We have audited the financial statements of Sotech Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of income and retained earnings, Statement of financial position, Statement of cash flows and Notes to the statement of cash flows, 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 company's affairs as at 31 March 2025 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 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 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 directors are responsible for the other information. The other information comprises the information in the 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.

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 Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 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 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.

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

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 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 client company's 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;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journals entries to identify unusual transactions;

-

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

-

investigated the rationale behind significant or unusual transactions.

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 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.

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.

Matt Storey FCCA, ACA, BFP (Senior Statutory Auditor)

for and on behalf of Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

23 December 2025

Turnover

4

8,898,492

11,949,598

Cost of sales

6,415,882

8,764,564

Gross profit

2,482,610

3,185,034

Distribution costs

383,147

408,728

Administrative expenses

2,424,829

2,588,823

2,807,976

2,997,551

(325,366

)

187,483

Other operating income

146,539

153,059

Operating (loss)/profit

6

(178,827

)

340,542

Interest receivable and similar income

15,179

5,521

(163,648

)

346,063

Interest payable and similar expenses

8

11,194

16,105

(Loss)/profit before taxation

(174,842

)

329,958

Tax on (loss)/profit

9

64,376

170,411

(Loss)/profit for the financial year

(239,218

)

159,547

Retained earnings at beginning of year

3,514,314

3,354,767

Retained earnings at end of year

3,275,096

3,514,314

Fixed assets

Intangible assets

10

553,356

436,840

Tangible assets

11

1,894,634

1,208,390

2,447,990

1,645,230

Current assets

Stocks

12

251,360

431,263

Debtors

13

2,010,266

2,429,901

Cash at bank and in hand

1,240,070

1,456,152

3,501,696

4,317,316

Creditors

Amounts falling due within one year

14

1,883,262

2,131,624

Net current assets

1,618,434

2,185,692

Total assets less current liabilities

4,066,424

3,830,922

Creditors

Amounts falling due after more than one year

15

(437,797

)

(27,453

)

Provisions for liabilities

18

(339,529

)

(275,153

)

Net assets

3,289,098

3,528,316

Capital and reserves

Called up share capital

19

14,002

14,002

Retained earnings

20

3,275,096

3,514,314

Shareholders' funds

3,289,098

3,528,316

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:

J A Egginton - Director

Cash flows from operating activities

Cash generated from operations

1

372,907

1,009,836

Interest element of hire purchase payments paid

(11,194

)

(16,105

)

Tax paid

(91,031

)

(35,166

)

Net cash from operating activities

270,682

958,565

Cash flows from investing activities

Purchase of intangible fixed assets

(172,961

)

(106,287

)

Purchase of tangible fixed assets

(781,682

)

(151,644

)

Sale of intangible fixed assets

207

73,931

Sale of tangible fixed assets

7,231

153,400

Interest received

15,179

5,521

Net cash from investing activities

(932,026

)

(25,079

)

Cash flows from financing activities

Capital repayments in year

444,762

(99,461

)

Government grants

500

9,031

Net cash from financing activities

445,262

(90,430

)

(Decrease)/increase in cash and cash equivalents

(216,082

)

843,056

Cash and cash equivalents at beginning of year

2

1,456,152

613,096

Cash and cash equivalents at end of year

2

1,240,070

1,456,152

1.	Reconciliation of (loss)/profit before taxation to cash generated from operations

2025

2024

£

£

(Loss)/profit before taxation

(174,842

)

329,958

Depreciation charges

134,979

274,414

Loss/(profit) on disposal of fixed assets

9,466

(5,308

)

Government grants

(500

)

(9,031

)

Finance costs

11,194

16,105

Finance income

(15,179

)

(5,521

)

(34,882

)

600,617

Decrease in stocks

179,903

424,551

Decrease in trade and other debtors

419,635

469,486

Decrease in trade and other creditors

(191,749

)

(484,818

)

Cash generated from operations

372,907

1,009,836

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 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,240,070

1,456,152

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,456,152

613,096

3.	Analysis of changes in net funds

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,456,152

(216,082

)

1,240,070

1,456,152

(216,082

)

1,240,070

Debt

Finance leases

(120,474

)

(444,762

)

(565,236

)

(120,474

)

(444,762

)

(565,236

)

Total

1,335,678

(660,844

)

674,834

1.	Statutory information

Sotech Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported. These estimates and judgements are continually

reviewed and are based on experience and other factors, including expectations of future events that

are believed to be reasonable under the circumstances. Revisions to accounting estimates are

recognised in the period in which the estimate is revised if the revision affects only that period or in the

period of the revision and future periods if the revision affects both current and future periods.

Estimation of useful life

The useful economic life used to depreciate tangible fixed assets relates to the expected future

performance of the assets acquired and management's estimate of the period over which economic

benefit will be derived from the asset.

Estimation of residual value

The residual value of an asset is the estimated fair value of that asset at the end of its useful economic

life and therefore is also dependent upon the estimation of that life span.

Historically, changes to the useful economic life and residual values have not had a material impact on

the amortisation or depreciation amount charged to the profit and loss.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Development costs are being amortised evenly over their estimated useful life of 10 to 11 years.

Computer software is being amortised evenly over its estimated useful life of 10 to 11 years.

Tangible fixed assets

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

Long leasehold

-

Straight line over 15 years and Reducing balance 6.7%

Plant and machinery

-

Reducing balance 15%

Fixtures and fittings

-

Reducing balance 15%

Motor vehicles

-

Straight line over 10 years

Computer equipment

-

Straight line over 3 years

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the weighted average cost method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a

similar debt instrument, those financial instruments are classed as financial liabilities. Financial

liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to

financial liabilities are included in the profit and loss account. Finance costs are calculated so as to

produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a

financial liability then this is classed as an equity instrument. Dividends and distributions relating to

equity instruments are debited direct to equity.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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.

4.

Turnover

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

8,898,492

11,949,598

8,898,492

11,949,598

5.	Employees and directors

2025

2024

£

£

Wages and salaries

2,337,217

2,634,601

Social security costs

190,322

79,188

Other pension costs

45,547

48,214

2,573,086

2,762,003

The average number of employees during the year was as follows:

2025

2024

Production and drawing

39

40

Administration

18

17

Management

7

7

64

64

2025

2024

£

£

Directors' remuneration

383,147

408,728

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

137,549

179,669

Total emoluments for the highest paid director include an exceptional pension contribution made during the year.

6.	Operating (loss)/profit

The operating loss (2024 - operating profit) is stated after charging/(crediting):

2025

2024

£

£

Hire of plant and machinery

166,215

197,708

Depreciation - owned assets

78,741

209,533

Loss/(profit) on disposal of fixed assets

9,466

(5,308

)

Development costs amortisation

32,477

41,223

Computer software amortisation

23,761

23,658

7.	Auditors' remuneration

2025

2024

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

9,390

8,950

8.

Interest payable and similar expenses

2025

2024

£

£

Hire purchase

11,194

16,105

9.

Taxation

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

-

91,041

Deferred tax

64,376

79,370

Tax on (loss)/profit

64,376

170,411