REGISTERED NUMBER: 02057541 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

L.C.M. SYSTEMS LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

9

DIRECTORS:

Mrs C A Caris

Mrs S L Cowan

J L Williams

SECRETARY:

J W Fairfield

REGISTERED OFFICE:

Unit 15

Newport Business Park

Barry Way

Newport

Isle of Wight

PO30 5GY

REGISTERED NUMBER:

02057541 (England and Wales)

AUDITORS:

Bright Brown Limited

Chartered Accountants

Statutory Auditor

Exchange House

St. Cross Lane

Newport

Isle of Wight

PO30 5BZ

FIXED ASSETS

Intangible assets

4

24,166

29,001

Tangible assets

5

575,352

633,247

599,518

662,248

CURRENT ASSETS

Stocks

499,302

377,178

Debtors

6

1,820,802

1,488,958

Cash at bank

11,605

25,605

2,331,709

1,891,741

CREDITORS

Amounts falling due within one year

7

948,000

712,717

NET CURRENT ASSETS

1,383,709

1,179,024

TOTAL ASSETS LESS CURRENT LIABILITIES

1,983,227

1,841,272

CREDITORS

Amounts falling due after more than one year

8

(167,930

)

(234,929

)

PROVISIONS FOR LIABILITIES

(63,362

)

(73,423

)

NET ASSETS

1,751,935

1,532,920

CAPITAL AND RESERVES

Called up share capital

10,000

10,000

Share premium

23,002

23,002

Retained earnings

1,718,933

1,499,918

1,751,935

1,532,920

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2026 and were signed on its behalf by:

J L Williams - Director

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

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

Turnover

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

Sale of goods

The sale of goods is recognised when the following conditions are satisfied:

- the company has transferred the significant risks and rewards of ownership to the buyer;

- the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of turnover can be measured reliably;

- it is probable that the company will receive the consideration due under the transaction; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings

-

15% on reducing balance and 4% on reducing balance

Plant and machinery etc

-

33% on reducing balance and 15% on reducing balance

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, stocks are assessed for impairment. If stock is 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Going concern

The financial statements have been prepared on a going concern basis.

The directors have made an assessment in preparing these financial statements as to whether the company is a going concern and have concluded that there are no material uncertainties that may cast doubt on the company's ability to continue as a going concern.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2024 - 29 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 January 2025

3,500

49,025

52,525

Disposals

-

(300

)

(300

)

At 31 December 2025

3,500

48,725

52,225

AMORTISATION

At 1 January 2025

3,500

20,024

23,524

Charge for year

-

4,588

4,588

Eliminated on disposal

-

(53

)

(53

)

At 31 December 2025

3,500

24,559

28,059

NET BOOK VALUE

At 31 December 2025

-

24,166

24,166

At 31 December 2024

-

29,001

29,001

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 January 2025

877,656

532,608

1,410,264

Additions

-

4,956

4,956

Disposals

-

(17,220

)

(17,220

)

At 31 December 2025

877,656

520,344

1,398,000

DEPRECIATION

At 1 January 2025

413,369

363,648

777,017

Charge for year

27,154

35,306

62,460

Eliminated on disposal

-

(16,829

)

(16,829

)

At 31 December 2025

440,523

382,125

822,648

NET BOOK VALUE

At 31 December 2025

437,133

138,219

575,352

At 31 December 2024

464,287

168,960

633,247

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Land and

buildings

£

COST

At 1 January 2025

and 31 December 2025

72,590

DEPRECIATION

At 1 January 2025

3,630

Charge for year

10,344

At 31 December 2025

13,974

NET BOOK VALUE

At 31 December 2025

58,616

At 31 December 2024

68,960

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

292,442

439,988

Amounts owed by group undertakings

1,427,017

954,154

Other debtors

101,343

94,816

1,820,802

1,488,958

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts

155,821

42,297

Hire purchase contracts (see note 9)

19,318

29,153

Trade creditors

387,874

363,911

Taxation and social security

131,896

91,551

Other creditors

253,091

185,805

948,000

712,717

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Bank loans

116,086

163,767

Hire purchase contracts (see note 9)

51,844

71,162

167,930

234,929

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

19,318

29,153

Between one and five years

51,844

71,162

71,162

100,315

Non-cancellable

operating leases

2025

2024

£

£

Within one year

48,641

41,584

Between one and five years

100,504

90,720

In more than five years

78,239

99,023

227,384

231,327

10.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Bank overdraft

106,651

-

Bank loans

165,256

206,064

271,907

206,064

The bank overdraft and loan are secured by a fixed and floating charge over all of the company's assets.

Interest on the loan is charged at the rate of 2.89% above Bank of England base rate per annum. Total interest charge in the year on the loan was £13,561 (2024 - £18,266). The loan is due for repayment by June 2029.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Gavin Kelly ACA FCCA (Senior Statutory Auditor)

for and on behalf of Bright Brown Limited

12.	CAPITAL COMMITMENTS

2025

2024

£

£

Contracted but not provided for in the

financial statements

65,458

-

13.	ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is LCM (Holdings) Limited, a company registered in England and Wales.

The ultimate parent undertaking is Interface Inc, a company registered in the United States of America.

The directors do not consider there to be an ultimate controlling party.