Company registration number 01371982 (England and Wales)
CLAYGATE DISTRIBUTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
CLAYGATE DISTRIBUTION LIMITED
COMPANY INFORMATION
Directors
M B Streek
D N Banks
T J Bartlett
R N Mancais
A I Tattersall
M A Thomas
S J Walton
Company number
01371982
Registered office
Claygate Distribution Limited
Pattenden Lane
Marden
Tonbridge
Kent
United Kingdom
TN12 9QJ
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
Business address
Claygate Distribution Limited
Pattenden Lane
Marden
Tonbridge
Kent
United Kingdom
TN12 9QJ
Bankers
Barclays Bank PLC
66 High Street
Ashford
Kent
United Kingdom
TN24 8TL
CLAYGATE DISTRIBUTION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
CLAYGATE DISTRIBUTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

A stronger performance was achieved in 2025 partly due to the introduction of new product lines and growth in the OEM segment of the business.

Principal risks and uncertainties

Foreign currency risk – There is not much exposure to risk as in the past as most trade is now conducted in sterling.

Liquidity risk – Claygate still keeps a tight hold on the liquidity position of the business ensuring there is sufficient working capital to meet necessary demands.

Credit risk – With the majority of sales being credit sales, there is a risk that customers will default on their debts. Claygate continues to have a good record for keeping the risk to a minimum and this is shown in a low bad debt write off rate.

Competition - Competitive pressures have influenced gross margin performance over the last few years. Claygate has looked to try and mitigate this with better inventory control and focusing on Customer needs.

Development and performance

Improvement in performance has been driven by the introduction of new product lines and continued growth within the OEM segment of the business.

To facilitate this expansion, additional warehouse space adjacent to the existing site has ben leased and will accommodate new products taken on board. Claygate is also exploring the possibility of securing further warehouse capacity to enable further business growth.

Claygate continues to strengthen its presence in the Midlands, where turnover increased last year by 30%, rising from £1.3m (2024) to £1.7m (2025). The forecast for this region in 2026 is £2m.

Key performance indicators

The directors consider the level of sales and gross profit margin to be key performance indicators.

There has been an increase in turnover of around 8% in 2025 compared with 2024. Gross Profit margin % increased from 27.8% in 2024 to 28.9% in 2025.

The increase in turnover and the improved margin is due to improvements in overall performance of the business. It is hoped, despite challenging trading conditions further improvements will be seen in 2026.

On behalf of the board

S J Walton
Director
21 May 2026
CLAYGATE DISTRIBUTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2025.

Principal activities

The principal activity of the company continued to be that of wholesale dealers in bathroom and plumbing materials.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £240,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M B Streek
D N Banks
T J Bartlett
R N Mancais
A I Tattersall
M A Thomas
S J Walton
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible 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:

- select suitable accounting policies and then apply them consistently;

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

- 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 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 company’s auditor 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 company’s auditor is aware of that information.

CLAYGATE DISTRIBUTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
S J Walton
Director
21 May 2026
CLAYGATE DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLAYGATE DISTRIBUTION LIMITED
- 4 -
Opinion

We have audited the financial statements of Claygate Distribution Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 December 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 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 contained within the annual report. 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. 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 course of 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 our audit:

- the information given in the strategic report and the directors' r eport 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.

CLAYGATE DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLAYGATE DISTRIBUTION LIMITED (CONTINUED)
- 5 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

We have nothing to report in respect of the following matters in relation to which 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' r esponsibilities s tatement, 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CLAYGATE DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLAYGATE DISTRIBUTION LIMITED (CONTINUED)
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 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.

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.

Catherine Cooper FCCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services, Statutory Auditor
Chartered Accountants
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
22 May 2026
CLAYGATE DISTRIBUTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
Year
Year
ended
ended
31 December
31 December
2025
2024
Notes
£
£
Turnover
3
29,315,581
27,136,281
Cost of sales
(20,833,025)
(19,592,814)
Gross profit
8,482,556
7,543,467
Distribution costs
(3,344,081)
(3,173,515)
Administrative expenses
(4,524,298)
(4,410,092)
Other operating income
101,229
96,958
Operating profit
4
715,406
56,818
Interest receivable and similar income
7
17,999
27,815
Interest payable and similar expenses
8
(22,740)
(112,739)
Profit/(loss) before taxation
710,665
(28,106)
Tax on profit/(loss)
9
(178,000)
1,856
Profit/(loss) for the financial year
532,665
(26,250)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CLAYGATE DISTRIBUTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
Year
Year
ended
ended
31 December
31 December
2025
2024
£
£
Profit/(loss) for the year
532,665
(26,250)
Other comprehensive income
-
-
Total comprehensive income for the year
532,665
(26,250)
CLAYGATE DISTRIBUTION LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,063,058
995,373
Current assets
Stocks
12
6,196,076
6,077,023
Debtors
13
4,454,769
4,712,028
Cash at bank and in hand
886,739
689,478
11,537,584
11,478,529
Creditors: amounts falling due within one year
14
(9,806,730)
(10,050,271)
Net current assets
1,730,854
1,428,258
Total assets less current liabilities
2,793,912
2,423,631
Creditors: amounts falling due after more than one year
15
(232,607)
(154,991)
Provisions for liabilities
Deferred tax liability
19
162,671
162,671
(162,671)
(162,671)
Net assets
2,398,634
2,105,969
Capital and reserves
Called up share capital
20
100
100
Share premium account
84,966
84,966
Profit and loss reserves
2,313,568
2,020,903
Total equity
2,398,634
2,105,969

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 May 2026 and are signed on its behalf by:
S J Walton
Director
Company registration number 01371982 (England and Wales)
CLAYGATE DISTRIBUTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2024
100
84,966
8,797,851
8,882,917
Period ended 31 December 2024:
Loss and total comprehensive income for the period
-
-
(26,250)
(26,250)
Dividends
10
-
-
(6,750,698)
(6,750,698)
Balance at 31 December 2024
100
84,966
2,020,903
2,105,969
Period ended 31 December 2025:
Profit and total comprehensive income for the period
-
-
532,665
532,665
Dividends
10
-
-
(240,000)
(240,000)
Balance at 31 December 2025
100
84,966
2,313,568
2,398,634
CLAYGATE DISTRIBUTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
521,973
670,003
Interest paid
(22,740)
(112,739)
Income taxes refunded/(paid)
114,605
(185,892)
Net cash inflow from operating activities
613,838
371,372
Investing activities
Purchase of tangible fixed assets
(398,565)
(447,837)
Proceeds from disposal of tangible fixed assets
22,651
24,500
Interest received
17,999
27,815
Net cash used in investing activities
(357,915)
(395,522)
Financing activities
Repayment of borrowings
-
0
5,907,864
Payment of finance leases obligations
181,338
234,139
Dividends paid
(240,000)
(6,750,698)
Net cash used in financing activities
(58,662)
(608,695)
Net increase/(decrease) in cash and cash equivalents
197,261
(632,845)
Cash and cash equivalents at beginning of year
689,478
1,322,323
Cash and cash equivalents at end of year
886,739
689,478
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Accounting policies
Company information

Claygate Distribution Limited is a private company limited by shares incorporated in England and Wales. The registered office is Claygate Distribution Limited, Pattenden Lane, Marden, Tonbridge, Kent, United Kingdom, TN12 9QJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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

1.4
Tangible fixed assets

Fixed assets are initially measured at cost and subsequently measured at cost or at valuation for freehold land and buildings, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
25% reducing balance and 33% straight line
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over their estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt within equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employees' services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Tangible fixed assets

Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Stock valuation

Stocks of finished goods are valued at the lower of cost and the estimated selling price less costs to sell. In assessing the value of the company's stock, consideration is given to any impairment in its value as a result of any stock which is likely to have become obsolete or which has an estimated selling price less than its cost price.

Provisions in this respect are calculated based on varying percentages applied to cost depending on the level of sales activity during the preceding 6 and 12 months. Such provisions are reviewed by management on an annual basis.

Bad and doubtful debts

Trade receivables are recognised to the extent they are judged to be fully recoverable. Following management review, provisions in respect of specific bad and doubtful debts are included in the financial statements where considered to be irrecoverable. The recoverability of trade debtors is assessed by taking into account invoices overdue for payment, knowledge of the customer and changes to the customer's circumstances, customer payment terms and the current economic climate.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Wholesale of bathroom and plumbing materials
29,315,581
27,136,281
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Turnover and other revenue
(Continued)
- 18 -
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
29,315,581
27,136,281
2025
2024
£
£
Other revenue
Interest income
17,999
27,815
4
Operating profit
2025
2024
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(258)
3,631
Fees payable to the company's auditor for the audit of the company's financial statements
44,300
36,750
Depreciation of owned tangible fixed assets
198,068
247,056
Depreciation of tangible fixed assets held under finance leases
96,507
50,999
Loss on disposal of tangible fixed assets
13,654
9,203
Operating lease charges
1,171,535
1,192,706
5
Employees

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

2025
2024
Number
Number
Management
11
12
Sales and administration
28
30
Operational
65
63
Total
104
105

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,456,590
3,317,432
Social security costs
431,785
344,288
Pension costs
94,375
85,647
3,982,750
3,747,367
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
425,284
432,280
Company pension contributions to defined contribution schemes
30,264
23,557
455,548
455,837

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2024 - 6).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
94,701
89,772
Company pension contributions to defined contribution schemes
8,030
6,279
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
17,999
22,606
Other interest income
-
0
5,209
Total income
17,999
27,815
2025
2024
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
17,999
22,606
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
105,160
Other finance costs:
Interest on finance leases and hire purchase contracts
22,740
6,352
Other interest
-
0
1,227
22,740
112,739
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
178,000
(48,293)
Adjustments in respect of prior periods
-
0
11
Total current tax
178,000
(48,282)
Deferred tax
Origination and reversal of timing differences
-
0
46,426
Total tax charge/(credit)
178,000
(1,856)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit/(loss) before taxation
710,665
(28,106)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
177,666
(7,027)
Tax effect of expenses that are not deductible in determining taxable profit
2,999
5,042
Tax effect of utilisation of tax losses not previously recognised
-
0
(1,690)
Adjustments in respect of prior years
-
0
11
Permanent capital allowances in excess of depreciation
(29,797)
(119,132)
Depreciation on assets not qualifying for tax allowances
-
0
74,514
Other non-reversing timing differences
27,132
46,426
Taxation charge/(credit) for the period
178,000
(1,856)
10
Dividends
2025
2024
£
£
Final paid
240,000
6,750,698
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2025
1,186,451
201,309
2,075,122
3,462,882
Additions
49,018
7,209
342,338
398,565
Disposals
(141,528)
(24,659)
(316,449)
(482,636)
At 31 December 2025
1,093,941
183,859
2,101,011
3,378,811
Depreciation and impairment
At 1 January 2025
987,257
182,853
1,297,399
2,467,509
Depreciation charged in the year
59,544
5,858
229,173
294,575
Eliminated in respect of disposals
(139,588)
(24,233)
(282,510)
(446,331)
At 31 December 2025
907,213
164,478
1,244,062
2,315,753
Carrying amount
At 31 December 2025
186,728
19,381
856,949
1,063,058
At 31 December 2024
199,194
18,456
777,723
995,373

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Motor vehicles
472,495
238,679
12
Stocks
2025
2024
£
£
Finished goods and goods for resale
6,196,076
6,077,023
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
3,830,797
3,915,721
Corporation tax recoverable
-
0
107,174
Other debtors
19,774
31,161
Prepayments and accrued income
604,198
657,972
4,454,769
4,712,028
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
17
182,870
79,148
Other borrowings
16
5,907,864
5,907,864
Trade creditors
2,750,428
3,399,137
Corporation tax
185,431
-
0
Other taxation and social security
536,947
508,750
Other creditors
-
0
24,000
Accruals and deferred income
243,190
131,372
9,806,730
10,050,271

Obligations under finance leases are secured on the underlying assets.

15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
17
232,607
154,991

Obligations under finance leases are secured on the underlying assets.

16
Loans and overdrafts
2025
2024
£
£
Other loans
5,907,864
5,907,864
Payable within one year
5,907,864
5,907,864

The company has provided a fixed and floating charge on all company assets relating to the deferred consideration element of the transactions in respect of the Claygate Employee Ownership Trust.

The loan incurred interest at 2.5% to 31 December 2024 and is interest free thereafter. There is no specific repayment terms.

CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
17
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
207,760
96,123
In two to five years
244,745
162,763
452,505
258,886
Less: future finance charges
(37,028)
(24,747)
415,477
234,139

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
94,375
85,647

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
162,671
162,671
There were no deferred tax movements in the year.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
21
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
1,069,638
952,067
Years 2-5
3,735,670
3,758,410
After 5 years
5,839,167
6,749,167
10,644,475
11,459,644
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2025
2024
£
£
Aggregate compensation
480,249
455,837
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2025
2024
2025
2024
£
£
£
£
Entities under common control
274,133
299,155
-
-
Other related parties
-
0
-
0
390
187

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due to related parties
£
£
Entities under common control
-
24,000

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Entities under common control
10,276
28,291
Other information
CLAYGATE DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
22
Related party transactions
(Continued)
- 25 -

During the previous year the children of M Streek, a director of the company, and A Streek, a Tustee of the EOT, made a loan to the company. See Note 16 for details

23
Ultimate controlling party

The ultimate controlling party consists of the beneficiaries of the Claygate Employee Ownership Trust, being all qualifying employees of Claygate Distribution Limited and is governed by the trustees via a corporate trustee company Claygate Trustees Limited.

Claygate Distribution Holdings Limited, a company registered in England and Wales, is the parent company of Claygate Distribution Limited and prepares group financial statements into which the accounts of Claygate Distribution Limited are consolidated. Copies of the consolidated accounts can be obtained from the registered office of Claygate Distribution Limited.

24
Cash generated from operations
2025
2024
£
£
Profit/(loss) after taxation
532,665
(26,250)
Adjustments for:
Taxation charged/(credited)
178,000
(1,856)
Finance costs
22,740
112,739
Investment income
(17,999)
(27,815)
Loss on disposal of tangible fixed assets
13,654
9,203
Depreciation and impairment of tangible fixed assets
294,575
298,055
Movements in working capital:
Increase in stocks
(119,053)
(231,822)
Decrease/(increase) in debtors
150,085
(126,422)
(Decrease)/increase in creditors
(532,694)
664,171
Cash generated from operations
521,973
670,003
25
Analysis of changes in net debt
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
689,478
197,261
886,739
Borrowings excluding overdrafts
(5,907,864)
-
(5,907,864)
Lease liabilities
(234,139)
(181,338)
(415,477)
(5,452,525)
15,923
(5,436,602)
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