Registration number:
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Nikwax Limited
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Brebners
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Nikwax Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Statement of Financial Position |
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Notes to the Financial Statements |
Nikwax Limited
Company Information
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Directors |
Mr A Arnold Mr J Nash Mr N Doyle Mr M Viney |
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Registered office |
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Auditor |
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Nikwax Limited
Strategic Report for the Year Ended 31 July 2025
The directors present their strategic report for the year ended 31 July 2025.
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW
The principal activity of the company is that of the manufacture and sale of emulsion based waterproofing, cleaning and conditioning products mainly to the outdoor leisure market. In addition, Nikwax provides industrial solutions, offering PFAS-free cleaning and waterproofing products suitable for commercial use.
Nikwax is the market leader in manufacture of high-quality cleaning and waterproofing products. Nikwax’s vision is ‘To enhance the enjoyment of the outdoors whilst protecting and preserving the natural environment; with sustainable treatments that extend the life of clothing, footwear and equipment, and to elevate performance’.
The directors are pleased with the results and direction the company has taken for the year.
Fair review of the business
Turnover for the year ending 31 July 2025 decreased by £349,412 to £13.26m and gross profit has also decreased by £0.11m to £7.12m. The gross profit margin has increased from 53.08% to 53.66% through the continued development of sales channels and supply chain control. The directors have continued to keep close control of overheads where possible contributing to sustainable profit levels.
During the year, the company has continued to invest in different market areas, looking at diversifying the range of products produced as we continue to develop our product ranges and strive to innovate. The directors expect the principal activity of the company for the year ending 31 July 2026 to remain consistent and are hopeful that performance levels will be sustained throughout 2026.
Non-Financial Key Performance Indicators
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£m |
13.26 |
13.61 |
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Gross profit |
£m |
7.12 |
7.23 |
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Gross profit margin |
% |
53.66 |
53.08 |
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Current ratio |
2.44 |
2.25 |
Amongst these non-financial indicators being measured monthly and reported against target are:-
Energy (Gas & Electricity) and Water Consumption of its Primary Activities (Manufacturing, Filling & Bottling and Administration)
Scope 1, 2 and 3 Greenhouse Gas Emissions
Waste Creation
Proportion of Waste Recycled
The company seeks to ensure that responsible business practice is fully integrated into the management of all operations and into the culture of all parts of the business. The company is 100% employee-owned through an Employee Ownership Trust. This enables the company to take a longer-term view on strategic goals and investments, and it has facilitated the business to stay true to the principles and values which differentiate it as the ethically positioned market leader in environmentally sustainable cleaning and waterproofing treatments. The board look forward to continuing a pattern of sustainable growth, whilst maintaining the best interests of all stakeholders, specifically our customers, suppliers, and Partners (employees).
Nikwax Limited
Strategic Report for the Year Ended 31 July 2025
Operational risk
Operational risk is caused by failures in business processes, or the systems or physical infrastructure that support them, that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud.
The regulated environment in which the company operates imposes reporting requirements and continuing self assessment and appraisal. The company seeks to continually improve its operating efficiencies and standards. Operational risks are also limited by following the working practices required to maintain ISO 9001 accreditation (in the UK).
Credit risk
Credit risk is the risk that counter-parties will not be able to meet their obligations as they fall due. There are regular credit reviews of counter-party limits. Nikwax Limited mitigates its risk by taking out credit insurance and through continuous contact with its customers.
Liquidity risk
The company ensures that liquidity is maintained by monitoring it, both as an absolute measure and as a ratio. In the UK flexibility is maintained by ensuring sufficient space exists between actual cash being used and available cash through invoice discounting. The company monitor borrowing against working capital and report this on a weekly basis.
Market risk
The company recognises the existence of market risk and, in particular, the effects of weather on demand for the product. Correlation of sales growth to historical deviation from normal weather conditions is constantly monitored. Forward forecasts of weather and climate are taken into consideration for both short and long term planning.
Foreign currency risk
A number of hedging instruments are available to Nikwax Limited through its bankers, HSBC Plc. Exposure to fluctuating euro/sterling exchange rates has been mitigated to some degree by selling forward a limited amount of anticipated Euro, CHF and PLN sales ledger receipts.
Interest rate risk
The company is exposed to interest rate risk. The directors continually monitor cashflow and ensure interest exposure is minimal and maintain a strong relationship with its bankers, HSBC Plc.
Environmental risk
The company continues the ethos of its founder and systematically challenges itself to not only lessen the impacts of running a manufacturing business, but also to positively contribute to the health of local communities and the preservation of wild places, near and far.
The company recognises its impact on the environment which it seeks to reduce by offsetting 100% of its primary carbon footprint and sourcing green energy. In the UK the company has attained ISO14001 accreditation.
Risk summary
The directors continuously monitor and respond to changes in the company's risk environment, so ensuring that the company remains well placed to address operational, reputational, financial and business risks in a timely and appropriate manner.
Nikwax Limited
Strategic Report for the Year Ended 31 July 2025
Future developments
The principal activity and trading performance of the company is expected to remain consistent for the foreseeable future. The directors intend to continue to make investments in the business to ensure the company not only maintains but enhances its reputation in the outdoor leisure market. The directors are pursuing several ways to continue to increase and diversify turnover through global opportunities and are excited for the next financial year which they feel holds great potential to continue sustainable growth and in turn profitability.
Approved by the
.........................................
Director
Nikwax Limited
Directors' Report for the Year Ended 31 July 2025
The directors present their report and the financial statements for the year ended 31 July 2025.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information in the strategic report
The company has chosen in accordance with section 414c (11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the large and medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial risk management, exposure and future developments.
Research and development
Nikwax Limited remains committed to advancing its knowledge of fabric capabilities and developing its products to make the best use of new technology. During the year the company expended the following towards research and development:
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2025 |
2024 |
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£ |
£ |
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Research and development |
378,083 |
515,061 |
Directors' liabilities
The company maintains Directors' and Officers' liability insurance for Directors and Officers as permitted by section 233 of the Companies Act 2006.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the director on
.........................................
Mr J Nash
Director
Nikwax Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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). 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Nikwax Limited
Independent Auditor's Report to the Members of Nikwax Limited
for the Year Ended 31 July 2025
Opinion
We have audited the financial statements of Nikwax Limited (the 'company') for the year ended 31 July 2025, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows, and 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 July 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 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.
Nikwax Limited
Independent Auditor's Report to the Members of Nikwax Limited
for the Year Ended 31 July 2025
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and 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 our 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 and 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 Statement of Directors' Responsibilities (set out on page 6), 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.
Auditor’s 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Nikwax Limited
Independent Auditor's Report to the Members of Nikwax Limited
for the Year Ended 31 July 2025
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:
Based on our understanding of the company and the retail industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws and environmental legislation, health and safety legislation, anti-bribery legislation and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management and those responsible for legal and compliance procedures. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
1 Suffolk Way
TN13 1YL
Nikwax Limited
Statement of Income and Retained Earnings for the Year Ended 31 July 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
- |
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Operating profit |
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Interest payable and similar charges |
( |
( |
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(52,658) |
(67,673) |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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Retained earnings brought forward |
6,896,840 |
5,724,948 |
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Retained earnings carried forward |
7,476,341 |
6,896,840 |
Nikwax Limited
Statement of Financial Position as at 31 July 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Intangible assets |
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- |
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Tangible assets |
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Investment property |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
123,776 |
123,776 |
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Capital redemption reserve |
3,789 |
3,789 |
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Profit and loss account |
7,476,341 |
6,896,840 |
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Shareholders' funds |
7,603,906 |
7,024,405 |
Company registration number: 03101664
Approved and authorised by the
.................................................
Mr J Nash
Director
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of the manufacture and sale of emulsion based waterproofing, cleaning and conditioning products mainly to the outdoor leisure market.
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS102. Its financial statements are consolidated into the financial statements of Gearform Holdings Ltd. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS102:
(a) No cash flow statement has been presented for the company.
(b) No disclosure has been made of financial instruments measured at fair value through profit or loss..
Going concern
The company made a profit for the year ended 31 July 2025 and had net assets at that date of £7,603,906.
The company's cashflow forecasts show that the company has sufficient working capital for a period exceeding 12 months from the date of approval of the financial statements.
On the basis of the above, and after making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
Judgements and key sources of estimation uncertainty
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. |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and other estimation uncertainties provide a risk of causing a material adjustment to the carrying values of assets and liabilities. |
Judgements and estimates that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
Goodwill is amortised over three years; factors such as expected future performance and economic viability have been considered when estimating and judging the life of goodwill. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when goods are packed and despatched to customers. Retail sales are recognised at the point of sale.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Freehold property |
Straight line between 10-50 years |
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Leasehold property |
Straight line over period of the lease |
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Leasehold improvements |
Straight line over 20 years |
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Motor vehicles |
Straight line over 4 years |
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Plant and equipment |
Straight line between 3-10 years |
In respect of the company's freehold and leasehold property the amount of depreciation provided takes account of the directors' estimate of net residual values.
Investment property
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Component stock is determined using the weighted average method and finished goods are determined on a FIFO basis.
The cost of stock comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Finance leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.
The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Research and development
Research and development expenditure is written off in the period in which it is incurred.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
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2025 |
2024 |
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Sale of goods |
|
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|
Rental income from investment property |
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|
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The analysis of the company's turnover for the year by market is as follows:
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2025 |
2024 |
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UK |
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Europe |
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Rest of world |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2025 |
2024 |
|
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Exceptional income - waiver of intercompany loan |
- |
|
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Operating profit |
Arrived at after charging/(crediting)
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2025 |
2024 |
|
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Depreciation expense |
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Research and development cost |
- |
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Bad debts |
(798) |
2,306 |
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Foreign exchange losses |
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Operating lease expense - plant and machinery |
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Profit on disposal of property, plant and equipment |
( |
( |
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Interest payable and similar expenses |
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2025 |
2024 |
|
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Interest on bank overdrafts and borrowings |
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|
Interest on obligations under finance leases and hire purchase contracts |
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Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2025 |
2024 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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Product development wages |
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Other employee expense |
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The average number of persons employed by the company during the year, analysed by category was as follows:
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2025 |
2024 |
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Production and manufacturing |
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Administration and support |
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|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
247,338 |
279,312 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
119,308 |
106,165 |
|
Company contributions to money purchase pension schemes |
3,612 |
5,565 |
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Auditor's remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other services |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the income statement
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
181,797 |
59,032 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
|
Tax increase/(decrease) from effect of adjustment in research and development tax credit |
|
( |
|
Total tax charge |
|
|
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Accelerated capital allowances |
|
|
Other timing differences |
( |
|
Investment property revaluations |
|
|
|
|
2024 |
Liability |
|
Accelerated capital allowances |
|
|
Other timing differences |
( |
|
Investment property revaluations |
|
|
|
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Intangible assets |
|
Software development |
Total |
|
|
Cost or valuation |
||
|
Additions in the year |
|
|
|
At 31 July 2025 |
|
|
|
Carrying amount |
||
|
At 31 July 2025 |
|
|
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Tangible assets |
|
Land and buildings |
Long leasehold property |
Assets under construction |
Plant, equipment and fixtures |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 August 2024 |
|
|
- |
|
|
|
|
Additions |
- |
|
|
|
- |
|
|
Disposals |
- |
- |
- |
- |
( |
( |
|
At 31 July 2025 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 August 2024 |
|
|
- |
|
|
|
|
Charge for the year |
|
|
- |
|
|
|
|
Eliminated on disposal |
- |
- |
- |
- |
( |
( |
|
At 31 July 2025 |
|
|
- |
|
|
|
|
Carrying amount |
||||||
|
At 31 July 2025 |
|
|
|
|
|
|
|
At 31 July 2024 |
|
|
- |
|
|
|
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Plant, equipment and fixtures |
214,987 |
182,762 |
|
Investment properties |
|
2025 |
|
|
Fair value |
|
|
At 1 August 2024 and 31 July 2025 |
|
The investment properties are included at fair value at 31 July 2025 as estimated by the directors at an amount of £455,439 based upon a previous professional valuation which the directors believe remains appropriate based upon their knowledge of the property and the rental yield achieved.
|
Stocks |
|
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
|
Finished goods |
|
|
|
|
|
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Amounts owed by group undertakings |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
Corporation tax asset |
- |
|
|
Total current trade and other debtors |
|
|
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
58,638 |
105,312 |
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Amounts owed to group undertakings are unsecured, interest free and payable on demand.
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 August 2024 |
|
|
|
Additional provisions |
( |
( |
|
At 31 July 2025 |
|
|
|
|
||
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Guarantees and Commitments |
Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount charged to the profit and loss in respect of operating leases amounted to £
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary shares of £1 each |
123,776 |
123,776 |
123,776 |
123,776 |
There are no restrictions on the distribution of dividends or the repayment of capital.
|
Profit and loss account |
The profit and loss account includes an amount of £186,565 (2024: £186,565) which is non-distributable.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Bank loan |
|
- |
|
Hire purchase obligations |
|
|
|
|
|
|
|
2025 |
2024 |
|
|
Current loans and borrowings |
||
|
Bank loan |
|
|
|
Bank overdrafts |
|
|
|
Hire purchase obligations |
|
|
|
|
|
|
The company's bank loan and overdrafts are secured by a fixed charge over certain book debts and a fixed and floating charge over the other assets and undertakings of the company.
Obligations under hire purchase and finance leases are secured on the assets concerned.
|
Transactions with directors |
During the year there was a repayment from a director of £10,000. At 31 July 2025 an amount of £Nil (2024: £10,000) was due from a director. No interest is payable to the company and there are no agreed terms.
Nikwax Limited
Notes to the Financial Statements for the Year Ended 31 July 2025
|
Related party transactions |
Key management personnel
Key management personnel includes the directors and senior managers of the company.
|
2025 |
2024 |
|
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with group companies
|
Holding company |
The smallest and largest group preparing group accounts including the results of the company is headed by Gearform Holdings Ltd, which is both the immediate and ultimate parent undertaking.
The registered address of Gearform Holdings Ltd is Unit F, Durgates Industrial Estate, Wadhurst, East Sussex. TN5 6DF.
Ultimate control vests with Gearform Trustees Limited.