Watersedge Blue Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Watersedge Blue Limited is a private company, limited by shares, incorporated in England & Wales, registered number 07374680 . The registered office is Blakes House, Halse, Taunton, Somerset, TA4 3QU.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents gross dental fees.

Revenue recognition

Income received in respect of under-delivered UDA/UOA activity of 4% or less is carried forward to the year in which it is delivered. NHS contract income subject to future financial recovery is treated as a liability to the NHS.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to profit and loss account over its estimated economic life of twenty years.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

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.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	2% on cost
Plant & Machinery	20% reducing balance
Motor Vehicles	25% reducing balance
Fixtures & Fittings	20% reducing balance
Computer Equipment	33% reducing balance

2.6. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.7. Stocks and Work in Progress

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

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Watersedge Blue Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2025

2.8. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions to the company's pension scheme are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 36 (2024: 39)

4. Intangible Assets

	Goodwill
	£
Cost
As at 1 October 2024	1,650,000

As at 30 September 2025	1,650,000

Amortisation
As at 1 October 2024	948,738
Provided during the period	82,500

As at 30 September 2025	1,031,238

Net Book Value
As at 30 September 2025	618,762

As at 1 October 2024	701,262

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Watersedge Blue Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2025

5. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 October 2024	522,773	806,408	400,487	73,637	1,803,305
Additions	-	66,680	5,503	1,676	73,859

As at 30 September 2025	522,773	873,088	405,990	75,313	1,877,164

Depreciation
As at 1 October 2024	55,240	570,598	267,727	64,455	958,020
Provided during the period	10,455	60,869	27,653	3,583	102,560

As at 30 September 2025	65,695	631,467	295,380	68,038	1,060,580

Net Book Value
As at 30 September 2025	457,078	241,621	110,610	7,275	816,584

As at 1 October 2024	467,533	235,810	132,760	9,182	845,285

6. Stocks

	2025	2024
	£	£
Stock	4,285	2,210

7. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	46,798	38,219
Prepayments and accrued income	16,169	10,770
Corporation tax recoverable assets	-	13,107
Directors' loan accounts	190,760	119,200

	253,727	181,296
Due after more than one year
Corporation tax recoverable assets	87,301	38,098

	341,028	219,394

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Watersedge Blue Limited

Notes to the Financial Statements (continued)

For The Year Ended 30 September 2025

8. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	-	12,778
Trade creditors	30,338	35,782
Bank loans and overdrafts	233,140	277,415
Corporation tax	295,294	88,345
Other taxes and social security	12,989	7,839
Other creditors	819,181	667,428
Holiday pay accrual	4,900	5,383
Accruals and deferred income	151,847	99,806
Directors' loan accounts	42,353	-

	1,590,042	1,194,776

9. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	-	(9,917 )

10. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	-	12,778
Later than one year and not later than five years	-	(9,917 )

	-	2,861
Less: Finance charges allocated to future periods	-	-

	-	2,861

11. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	300	300

12. Related Party Transactions

During the year the following transactions took place:

Total dividends of £461,965 (2024 £232,760) were paid to the directors.

The company paid commercial rents of:

(i) £ 30,000 (2024: £30,000) for use of freehold property owned by the directors and

(ii) £119,000 (2024: £108,000) under formal lease agreements to an associated company.

Purchases totalling £100,957 (2024: £86,243) on behalf of the company with a personal credit card were reimbursed as they arose.

Payments totalling £26,492 (2024: £34,021 ) were made to three family members for administrative support.

Directors' loans outstanding at the year end are included in Other creditors and are interest free and repayable on demand. The directors intend to withdraw the loans as and when the company has sufficient funds to repay them without affecting cash flow.

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		618,762		701,262
Tangible Assets	5		816,584		845,285

			1,435,346		1,546,547
CURRENT ASSETS
Stocks	6	4,285		2,210
Debtors	7	341,028		219,394
Cash at bank and in hand		857,895		516,377

		1,203,208		737,981
Creditors: Amounts Falling Due Within One Year	8	(1,590,042 )		(1,194,776 )

NET CURRENT ASSETS (LIABILITIES)			(386,834 )		(456,795 )

TOTAL ASSETS LESS CURRENT LIABILITIES			1,048,512		1,089,752

Creditors: Amounts Falling Due After More Than One Year	9		-		9,917

PROVISIONS FOR LIABILITIES
Deferred Taxation			(87,700 )		(91,916 )

NET ASSETS			960,812		1,007,753

CAPITAL AND RESERVES
Called up share capital	11		300		300
Profit and Loss Account			960,512		1,007,453

SHAREHOLDERS' FUNDS			960,812		1,007,753