Company registration number 15811618 (England and Wales)
GB FLOOR COVERINGS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
GB FLOOR COVERINGS GROUP LIMITED
COMPANY INFORMATION
Directors
C Gay
(Appointed 26 June 2025)
P Gustave Frohn
(Appointed 10 September 2024)
M Wood
(Appointed 10 September 2024)
D Thomas
(Appointed 3 March 2025)
Secretary
C Gay
Company number
15811618
Registered office
Wellington Mills
Huddersfield Road
Liversedge
England
WF15 7FH
Auditor
Sumer Auditco Limited
One Waterside Place
Basin Square
Brimington Road
Chesterfield
Derbyshire
S41 7FH
GB FLOOR COVERINGS GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 33
GB FLOOR COVERINGS GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

The principal activity of the group is the manufacture and supply of carpets and carpet tiles. The company was incorporated on 1 July 2024 and acquired National Floorcoverings Group Limited on 10 September 2024. Since the acquisition date, the company has acted as a holding company for the group.

 

Turnover for the period was £26,480,774. Gross profit was £9,815,854, representing a gross profit margin of approximately 37%. The group generated an operating profit of £538,274 (including exceptional items of £201,361). After interest and taxation, the group reported a profit for the financial period of £1,017,888. Note the fine included in exceptional costs relates to a health and safety incident in 2023 (pre Nimbus’ acquisition of the business).

 

The directors consider the underlying performance of the business demonstrates resilience in its core operations.

 

The group continues to benefit from a solid financial position, supported by the resources and expertise of its shareholders following the ownership transition.

Principal risks and uncertainties

The principal risks facing the group include fluctuations in raw material prices, competitive pressures in the floorcoverings market, and supply chain disruptions. The directors mitigate these through diversified supplier relationships, cost control measures, and continued investment in product innovation.

 

The group benefits from the operational expertise and financial resources of its owners, which help to reduce overall business risk.

Key performance indicators

The directors monitor the following key performance indicators (KPIs) to assess the group's performance:

KPI

 

2025

Turnover (£)

 

26,480,774

Gross profit margin (%)

 

37.1

Operating profit (£)

 

538,274

These KPIs reflect the post-acquisition period and the integration into the new group structure.

Future developments

Following the acquisition, the group is well positioned for growth. With new IT systems in place, the focus is now on strategic growth and expansion of market reach through new product initiatives and planning, whilst strengthening the balance sheet and investing in production enhancements to improve margins

The directors are confident that the group is on track to achieve sustainable long-term growth and improved profitability levels.

On behalf of the board

C Gay
Director
26 June 2026
GB FLOOR COVERINGS GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 2 -

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

Principal activities

The principal activity of the group is that of the manufacture and supply of carpets and allied products.

 

The company was incorporated on 1 July 2024 and acquired National Floorcoverings Group Limited on 10 September 2024. Since this date the principal activity is that of a holding company.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

C Gay
(Appointed 26 June 2025)
P Gustave Frohn
(Appointed 10 September 2024)
D Rhodes
(Appointed 10 September 2024 and resigned 20 March 2026)
D Keenan
(Appointed 1 July 2024 and resigned 31 January 2025)
M Wood
(Appointed 10 September 2024)
D Thomas
(Appointed 3 March 2025)
C Clegg
(Appointed 10 September 2024 and resigned 12 February 2025)
Auditor

Sumer Auditco Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

GB FLOOR COVERINGS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 3 -
Statement of disclosure to auditor

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

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
C Gay
Director
26 June 2026
GB FLOOR COVERINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GB FLOOR COVERINGS GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of GB Floor Coverings Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

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 group and parent 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 group's and parent 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:

GB FLOOR COVERINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GB FLOOR COVERINGS GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent 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 group or parent 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:Ÿ

 

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

GB FLOOR COVERINGS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GB FLOOR COVERINGS GROUP LIMITED
- 6 -

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

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:ŸŸŸŸ

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

 

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Adrian Staniforth (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
One Waterside Place
Basin Square
Brimington Road
Chesterfield
Derbyshire
S41 7FH
26 June 2026
GB FLOOR COVERINGS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 7 -
Period
ended
31 December
2025
Notes
£
Turnover
3
26,480,774
Cost of sales
(16,664,920)
Gross profit
9,815,854
Distribution costs
(2,013,129)
Administrative expenses
(7,745,479)
Other operating income
279,667
Exceptional items
4
201,361
Operating profit
5
538,274
Interest receivable and similar income
9
39,237
Interest payable and similar expenses
10
(1,590,037)
Loss before taxation
(1,012,526)
Tax on loss
11
2,030,414
Profit for the financial period
1,017,888
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
GB FLOOR COVERINGS GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 8 -
2025
Notes
£
£
Fixed assets
Negative goodwill
12
(5,194,427)
Other intangible assets
12
2,664,179
Total intangible assets
(2,530,248)
Tangible assets
13
14,482,291
11,952,043
Current assets
Stocks
16
5,599,781
Debtors
17
3,664,677
Cash at bank and in hand
3,837,732
13,102,190
Creditors: amounts falling due within one year
18
(8,967,537)
Net current assets
4,134,653
Total assets less current liabilities
16,086,696
Creditors: amounts falling due after more than one year
19
(11,915,758)
Provisions for liabilities
Deferred tax liability
21
2,158,000
(2,158,000)
Net assets
2,012,938
Capital and reserves
Called up share capital
23
995,050
Profit and loss reserves
1,017,888
Total equity
2,012,938

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

The financial statements were approved by the board of directors and authorised for issue on 26 June 2026 and are signed on its behalf by:
26 June 2026
C Gay
Director
Company registration number 15811618 (England and Wales)
GB FLOOR COVERINGS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 9 -
2025
Notes
£
£
Fixed assets
Investments
14
28,653,556
Current assets
-
Creditors: amounts falling due within one year
18
(12,461,967)
Net current liabilities
(12,461,967)
Total assets less current liabilities
16,191,589
Creditors: amounts falling due after more than one year
19
(722,500)
Net assets
15,469,089
Capital and reserves
Called up share capital
23
995,050
Profit and loss reserves
14,474,039
Total equity
15,469,089

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £14,474,039.

The financial statements were approved by the board of directors and authorised for issue on 26 June 2026 and are signed on its behalf by:
26 June 2026
C Gay
Director
Company registration number 15811618 (England and Wales)
GB FLOOR COVERINGS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2024
-
-
-
Period ended 31 December 2025:
Profit and total comprehensive income
-
1,017,888
1,017,888
Issue of share capital
23
995,050
-
995,050
Balance at 31 December 2025
995,050
1,017,888
2,012,938
GB FLOOR COVERINGS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2024
-
-
-
Period ended 31 December 2025:
Profit and total comprehensive income
-
14,474,039
14,474,039
Issue of share capital
23
995,050
-
995,050
Balance at 31 December 2025
995,050
14,474,039
15,469,089
GB FLOOR COVERINGS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 12 -
2025
Notes
£
£
Cash flows from operating activities
Cash generated from operations
28
4,086,900
Interest paid
(1,590,037)
Income taxes refunded
280,936
Net cash inflow from operating activities
2,777,799
Investing activities
Purchase of business
(17,383,553)
Purchase of intangible assets
(141,883)
Purchase of tangible fixed assets
(40,486)
Proceeds from disposal of tangible fixed assets
3,471,456
Interest received
39,237
Net cash used in investing activities
(14,055,229)
Financing activities
Proceeds from issue of shares
995,050
Proceeds from issue of preference shares
722,500
Proceeds from borrowings
82,622,814
Repayment of borrowings
(69,225,202)
Net cash generated from financing activities
15,115,162
Net increase in cash and cash equivalents
3,837,732
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
3,837,732
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Company information

GB Floor Coverings Group Limited (“the company”) is a private company limited by shares and is domiciled and incorporated in England and Wales. The registered office is Wellington Mills, Huddersfield Road, Liversedge, England, WF15 7FH.

 

The group consists of GB Floor Coverings Group Limited and all of its subsidiaries.

1.1
Reporting period

These financial statements cover the company’s first period of account from 1 July 2024 to 31 December 2025.

 

The period is longer than twelve months as it represents the company’s initial accounting period following incorporation.

 

As this is the first period for which the company has prepared financial statements, no comparative information is presented.

1.2
Basis of preparation

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 cover the first long period of account from 1 July 2024 to 31 December 2025.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company GB Floor Coverings Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.5
Going concern

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

1.6
Revenue

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates

The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows:

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.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.7
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
not depreciated yet - see below
Brand
10 - 20 years

Expenditure on intangible software is accounted for under FRS 102 Section 18, with research and evaluation costs expensed as incurred and directly attributable development costs capitalised as an intangible asset when the recognition criteria are met. Capitalised costs are presented as intangible software under development and are not amortised until the system is available for use. Once available for use, the asset is amortised on a straight‑line basis over its estimated useful economic life and reviewed annually for impairment.

1.10
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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:

Freehold land and buildings
2.5% straight line
Leasehold land and buildings
2.5% straight line
Plant and equipment
10% - 33.3% straight line

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 recognised in the profit and loss account.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.11
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.12
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.13
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its 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.

1.14
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.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.15
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 group 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 group after deducting all of its liabilities.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -
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 payments 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. Amounts 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.

A1 Ordinary shares are classified as financial liabilities in accordance with FRS 102. The shares give rise to a contractual obligation for the company to deliver cash on redemption and the company does not have an unconditional right to avoid settlement.

 

Financial liabilities are initially recognised at the fair value of the consideration received and are subsequently measured at amortised cost using the effective interest rate 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 subsequently 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 through 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group 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 group.

1.17
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 19 -
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 with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.18
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 employee’s 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.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases
As lessee

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 leased asset are consumed.

As lessor

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.21
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.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 20 -
1.22

Exceptional items

Exceptional items are those significant items which are separately disclosed by virtue of their size or incidence to enable a full understanding of the group's financial performance.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Stock provisions

Stocks are stated at the lower of cost and net realisable value. The management will assess the requirement for any provision for obsolete stock or value deterioration as based on historical transactions, stock utilisation patterns, regular inspection and counting of physical items

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values of all asset categories are reviewed on an annual basis to ensure appropriate changes are made for depreciations.

Useful economic lives and carrying values of intangible assets including goodwill

The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, and economic utilisation. Management assess goodwill for impairment when there are indicators of impairment and it is sensitive to the same estimates as noted above.

3
Turnover and other revenue
2025
£
Turnover analysed by class of business
Sale of carpets and allied products
26,480,774
2025
£
Other revenue
Interest income
39,237

Analysis of turnover by geographical markets has not been disclosed because the directors believe that to do so would seriously prejudice the interests of the group.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 21 -
4
Exceptional item
2025
£
Group restructuring costs
(255,959)
Profit on disposal of tangible fixed assets
94,199
Impairment of negative goodwill
(i)
729,733
Health & safety fine
(366,612)
201,361

(i) An impairment recognised to account for the proportion of negative goodwill arising on the acquisition of fixed assets that were disposed of post-acquisition in the year.

5
Operating profit
2025
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses
14,748
Research and development costs
84,853
Depreciation of tangible fixed assets
683,039
Profit on disposal of tangible fixed assets
(22,061)
Amortisation of intangible assets
(586,639)
Impairment of intangible assets
(729,733)
Operating lease charges
217,438
6
Auditor's remuneration
2025
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
7,525
Audit of the financial statements of the company's subsidiaries
30,450
37,975
For other services
All other non-audit services
13,555
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 22 -
7
Employees

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

Group
Company
2025
2025
Number
Number
Production
52
-
Selling and distribution
32
-
Management and administration
28
-
Directors
4
4
Total
116
4

Their aggregate remuneration comprised:

Group
Company
2025
2025
£
£
Wages and salaries
5,584,760
-
0
Social security costs
640,683
-
Pension costs
187,235
-
0
6,412,678
-
0
8
Directors' remuneration
2025
£
Remuneration for qualifying services
322,655
Company pension contributions to defined contribution schemes
27,859
350,514
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
£
Remuneration for qualifying services
224,513
Company pension contributions to defined contribution schemes
21,308

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 23 -
9
Interest receivable and similar income
2025
£
Interest income
Interest on bank deposits
17,346
Other interest income
21,891
Total income
39,237
10
Interest payable and similar expenses
2025
£
Other interest on financial liabilities
1,590,037
11
Taxation
2025
£
Current tax
Adjustments in respect of prior periods
(69,244)
Deferred tax
Origination and reversal of timing differences
(1,961,170)
Total tax credit
(2,030,414)

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

2025
£
Loss before taxation
(1,012,526)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(253,132)
Tax effect of expenses that are not deductible in determining taxable profit
116,399
Tax effect of income not taxable in determining taxable profit
79,087
Adjustments in respect of prior years
(69,244)
Other permanent differences
(392,808)
Deferred tax not recognised
(33,205)
Other tax adjustments
219,559
Adjustments re fair value of fixed assets acquired on business combination
(1,697,070)
Taxation credit
(2,030,414)
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 24 -
12
Intangible fixed assets
Group
Negative goodwill
Development costs
Brand
Total
£
£
£
£
Cost
At 1 July 2024
-
0
-
0
-
0
-
0
Additions - separately acquired
-
0
141,883
-
0
141,883
Additions - business combinations
(6,723,303)
-
0
2,734,800
(3,988,503)
At 31 December 2025
(6,723,303)
141,883
2,734,800
(3,846,620)
Amortisation and impairment
At 1 July 2024
-
0
-
0
-
0
-
0
Amortisation charged for the period
(799,143)
-
0
212,504
(586,639)
Impairment losses
(729,733)
-
0
-
0
(729,733)
At 31 December 2025
(1,528,876)
-
0
212,504
(1,316,372)
Carrying amount
At 31 December 2025
(5,194,427)
141,883
2,522,296
(2,530,248)
The company had no intangible fixed assets at 31 December 2025.

The impairment in the period accounts for the proportion of bargain purchase goodwill arising on the acquisition of fixed assets that were disposed of post-acquisition in the year.

13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2024
-
0
-
0
-
0
-
0
-
0
Additions
-
0
-
0
40,486
-
0
40,486
Business combinations
16,335,000
-
0
2,042,322
196,917
18,574,239
Disposals
(3,275,000)
-
0
-
0
(196,917)
(3,471,917)
Transfers
(5,885,000)
5,885,000
-
0
-
0
-
0
At 31 December 2025
7,175,000
5,885,000
2,082,808
-
0
15,142,808
Depreciation and impairment
At 1 July 2024
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
179,375
147,125
334,017
22,522
683,039
Eliminated in respect of disposals
-
0
-
0
-
0
(22,522)
(22,522)
At 31 December 2025
179,375
147,125
334,017
-
0
660,517
Carrying amount
At 31 December 2025
6,995,625
5,737,875
1,748,791
-
0
14,482,291
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
13
Tangible fixed assets
(Continued)
- 25 -
The company had no tangible fixed assets at 31 December 2025.
14
Fixed asset investments
Group
Company
2025
2025
Notes
£
£
Investments in subsidiaries
15
-
0
28,653,556
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2024
-
Additions
28,653,556
At 31 December 2025
28,653,556
Carrying amount
At 31 December 2025
28,653,556
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 26 -
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
National Floorcoverings Group Limited
England & Wales
Holding company
Ordinary
100.00
-
National Floorcoverings Holdings Limited
England & Wales
Holding company
Ordinary
0
100.00
National Floorcoverings Limited
England & Wales
Manufacture and supply of carpets and allied products
Ordinary
0
100.00
Heckmondwike FB Limited
England & Wales
Holding company
Ordinary
0
100.00
Heckmondwike Group Limited
England & Wales
Holding company
Ordinary
0
100.00
Heckmondwike Carpets Limited
England & Wales
Non-trading
Ordinary
0
100.00
Heckmondwike Carpets (Exports) Limited
England & Wales
Non-trading
Ordinary
0
100.00
Rentacarpet Limited
England & Wales
Non-trading
Ordinary
0
100.00
Rentamat Limited
England & Wales
Non-trading
Ordinary
0
100.00
Paragon Carpets and Tiles Limited
England & Wales
Non-trading
Ordinary
0
100.00
Matting Systems Limited
England & Wales
Non-trading
Ordinary
0
100.00
Play-Rite Limited
England & Wales
Non-trading
Ordinary
0
100.00
16
Stocks
Group
Company
2025
2025
£
£
Raw materials and consumables
2,003,611
-
Work in progress
164,844
-
Finished goods and goods for resale
3,431,326
-
0
5,599,781
-
17
Debtors
Group
Company
2025
2025
Amounts falling due within one year:
£
£
Trade debtors
1,966,180
-
0
Other debtors
16,106
-
0
Prepayments and accrued income
1,682,391
-
0
3,664,677
-
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2025
Notes
£
£
Other borrowings
20
3,728,774
-
0
Trade creditors
708,937
-
0
Amounts owed to group undertakings
18,070
10,319,226
Other taxation and social security
1,363,492
-
0
Other creditors
2,162,697
2,142,741
Accruals and deferred income
985,567
-
0
8,967,537
12,461,967

The amounts owed to group undertakings are unsecured, interest free, have no fixed repayment date and are repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2025
2025
Notes
£
£
Other borrowings
20
11,915,758
722,500
20
Loans and overdrafts
Group
Company
2025
2025
£
£
Preference shares
722,500
722,500
Other loans
14,922,032
-
0
15,644,532
722,500
Payable within one year
3,728,774
-
0
Payable after one year
11,915,758
722,500
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
20
Loans and overdrafts
(Continued)
- 28 -

Bank loans and overdrafts include balances as follows.

 

An invoice discounting facility of £544,849 (2024: 955,166) secured over relevant trade receivables balances. An inventory facility of £2,021,950 (2024: £2,839,349) secured over inventory held by the company. A plant and machinery facility of £733,33 (2024: £933,333) secured over plant and machinery held by the company. A bank loan of £5,233,104 (2024: £2,250,000) which accrues interest at a rate of  base rate plus 4% and is secured by a fixed legal charge over the freehold property of the company and floating charges over the company's assets. The loan is repayable over 180 months.

 

On 2 December 2025, the group signed a sale and leaseback agreement on one of its freehold properties. Under the terms the agreement, the transaction has not been recognised as a sale based on the substance over form principle, given that this was fundamentally a financing transaction. Since the significant risks and rewards of ownership remain with the group, the transaction has been accounted for as a finance liability rather than a sale and proceeds from the transaction are recorded as a liability on the balance sheet. The financing arrangement accrues interest at a rate of base rate plus 4% in line with other borrowings of the company. Rental payments are classified as financial expenses representing interest on the finance liability. At the end of each year the principal is increased by accrued but unpaid interest. Finance is repayable over 20 years.

 

Additional security is provided by an unlimited guarantee and debenture between: GB Floor Coverings Group Ltd, National Floorcoverings Group Limited, National Floorcoverings Holdings Limited and National Floorcoverings Limited.

 

A1 Ordinary shares are redeemable at amounts equal to their issue price. Redemption may occur at dates determined by the Board, subject to investor consent, and will occur in full on a sale or listing of the company. No premium is payable on redemption.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2025
Group
£
Accelerated capital allowances
418,000
Tax losses
(143,000)
Fair value of assets acquired on business combination
1,886,000
Short term timing differences
(3,000)
2,158,000
The company has no deferred tax assets or liabilities.
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2025
2025
Movements in the period:
£
£
Asset at 1 July 2024
-
-
Credit to profit or loss
(1,716,070)
-
Charge to equity
3,874,070
-
Liability at 31 December 2025
2,158,000
-

A deferred tax liability has been recognised in respect of the fair value of assets acquired on business combination which is expected to reverse over the useful life of the assets acquired.

 

In addition, part of the deferred tax liability relates to timing differences arising from fixed assets arising from differences between accounting depreciation and capital allowances.

22
Retirement benefit schemes
2025
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
187,235

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2025
2025
Ordinary share capital
Number
£
Issued and fully paid
A Ordinary shares of £1 each
877,500
877,500
B Ordinary shares of £1 each
95,000
95,000
C Ordinary shares of £1 each
22,550
22,550
995,050
995,050
2025
2025
Preference share capital
Number
£
Issued and fully paid
A1 Preference shares of £1 each
722,500
722,500
Preference shares classified as liabilities
722,500
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
23
Share capital
(Continued)
- 30 -

877,500 A Ordinary shares were issued for a consideration of £1 per share on 1 July 2024.

722,500 A1 Ordinary shares were issued for a consideration of £1 per share on 1 July 2024.

95,000 B Ordinary shares were issued for a consideration of £1 per share on 1 July 2024.

22,550 C Ordinary shares were issued for a consideration of £1 per share on 1 July 2024.

 

A, B and C Ordinary shares each carry the right to receive notice of, attend, speak and vote at general meetings. In respect of capital distributions, including on a winding up, A1 shares rank first for return of issue price, followed by A shares, with B and C shares ranking thereafter; any surplus assets are distributed between A, B and C shareholders pro rata. Dividends are distributed by allocating a nominal preference to A1 shares, with the balance shared between A, B and C shareholders on a pari passu basis. These shares are not redeemable.

 

A1 Ordinary shares do not carry voting rights but have a preferential entitlement to a nominal proportion of any dividend and priority for return of issue price on a winding up ahead of all other classes. These shares are redeemable.

24
Acquisition of a business

On 1 September 2024 the group acquired 100 percent of the issued capital of National Floorcoverings Group Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
2,734,800
2,734,800
Property, plant and equipment
6,976,761
11,597,478
18,574,239
Inventories
7,725,226
-
7,725,226
Trade and other receivables
5,767,397
-
5,767,397
Cash and cash equivalents
7,997,754
-
7,997,754
Trade and other payables
(3,515,079)
-
(3,515,079)
Tax liabilities
211,692
-
211,692
Deferred tax
(536,100)
(3,583,070)
(4,119,170)
Total identifiable net assets
24,627,651
10,749,208
35,376,859
Goodwill
(6,723,303)
Total consideration
28,653,556
The consideration was satisfied by:
£
Cash
25,381,307
Deferred consideration
3,272,249
28,653,556
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
24
Acquisition of a business
(Continued)
- 31 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
26,480,774
Profit after tax
75,127
GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 32 -
25
Operating lease commitments
As lessee

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

Group
Company
2025
2025
£
£
Within 1 year
293,665
-
Years 2-5
369,142
-
662,807
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2025
2025
£
£
Acquisition of intangible assets
90,000
-
27
Related party transactions

The company has taken advantage of the exemption in FRS 102 from disclosing transactions with other members of the group headed by GB Floor Coverings Group Limited.

 

A management charge of £121,175 was paid to, and a balance of £18,070 was owed to NCM Investments XIV B.V., a group company outside of the GB Floor Coverings Group Limited consolidation.

GB FLOOR COVERINGS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 33 -
28
Cash generated from group operations
2025
£
Profit after taxation
1,017,888
Adjustments for:
Taxation credited
(2,030,414)
Finance costs
1,590,037
Investment income
(39,237)
Gain on disposal of tangible fixed assets
(22,061)
Amortisation and impairment of intangible assets
(1,316,372)
Depreciation and impairment of tangible fixed assets
683,039
Movements in working capital:
Decrease in stocks
2,125,445
Decrease in debtors
3,627,140
Decrease in creditors
(1,548,565)
Cash generated from operations
4,086,900
29
Analysis of changes in net debt - group
1 July 2024
Cash flows
Other non-cash changes
31 December 2025
£
£
£
£
Cash at bank and in hand
-
3,837,732
-
3,837,732
Borrowings excluding overdrafts
-
(17,168,952)
1,524,420
(15,644,532)
-
(13,331,220)
1,524,420
(11,806,800)
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