REGISTERED NUMBER: 01665995 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

FOR

THERMAL ECONOMICS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

R Belanyi

H Brown

SECRETARY:

R Belanyi

REGISTERED OFFICE:

8 Cardiff Road

Luton

Bedfordshire

LU1 1PP

REGISTERED NUMBER:

01665995 (England and Wales)

AUDITORS:

FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

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

REVIEW OF BUSINESS

The company's principal activity is that of specialist suppliers of sound and thermal insulation technology products.

Turnover and net profit before tax have decreased this year by 16% and 10% respectively. Despite the difficult trading conditions in the housing market, the company's financial position has remained strong throughout the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's activities are entirely within the construction and civil engineering industry. The company's products are sold to a large number of customers through both direct and indirect channels. The loss of any major customer is seen as a potential risk but the directors are confident that, in the light of the company's continuing product development, any lost sales would soon be replaced.

Where it is practicable and cost-effective to do so, the company insures against normal commercial risks, notably in the areas of public liability and employer's liability.

The risks to which the company is exposed are continually monitored by the directors, and steps are taken to mitigate and manage those risks where it is considered reasonable and practicable to do so.

KEY PERFORMANCE INDICATORS

Period

Turnover

Profit Before Tax

31 October 2025

£9,902,412

£1,678,692

31 October 2024

£11,833,203

£1,874,095

ON BEHALF OF THE BOARD:

R Belanyi - Director

27 July 2026

The directors present their report with the financial statements of the company for the year ended 31 October 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of specialist suppliers of sound and thermal insulation technology products.

DIVIDENDS

Interim dividends per share were paid as follows:

150

- 5 November 2024

150

- 6 February 2025

150

- 10 March 2025

150

- 24 October 2025

1,200,000

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 October 2025 will be £ 1,200,000 .

RESEARCH AND DEVELOPMENT

The company will monitor any research and development opportunities as appropriate.

FUTURE DEVELOPMENTS

The company will continue to strive to improve its market share and profitability.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2024 to the date of this report.

R Belanyi

H Brown

FINANCIAL INSTRUMENTS

The Company's operations expose it to a variety of financial risks including credit risk and liquidity risk. The Directors are responsible for managing these risks to ensure the Company's ability to continue as a going concern. The Company does not use derivative financial instruments for hedging purposes, and therefore has no formal hedge accounting policy.

Credit Risk

The Company's principal financial assets are bank balances and trade debtors. Credit risk is primarily attributable to its trade debtors. The Company manages this risk by having bad debt protection cover through the factoring company and ensuring that credit limits are appropriate.

Liquidity Risk

The Company manages its liquidity risk to ensure it can meet its liabilities as they fall due. The Company monitors its cash flow forecasts to ensure adequate working capital is available.

Price Risk and Cash Flow Risk

The Company is not currently exposed to significant price risk or cash flow risk arising from market fluctuations in commodity prices or interest rates.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R Belanyi - Director

27 July 2026

Opinion

We have audited the financial statements of Thermal Economics Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

Owing to the inherent limitations of an audit, there is unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, omission or misrepresentation.

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

A part of the audit planning process was to look at each area of the financial statements and ascertain the level of risk for each applicable audit assertion. Where an increased risk was identified, specific audit work was designed to ensure those risks were at the forefront of the audit work carried out.

-

During the audit planning process, important laws and regulations applying to the company were identified by making enquiries of management in addition to our own checks of the laws and regulations applying to a business of this nature.

-

An audit team planning meeting was held which communicated areas of identified risks and considered possible opportunities for fraud within the company.

-

The engagement partner assessed the experience and abilities of the engagement team to ensure they were collectively competent to identify irregularities.

-

All risks identified at the planning stage and the related audit work were reviewed and results considered to confirm that no irregularities had been identified.

-

Our audit has included a review of the disclosures in the financial statements and comparison of those disclosures with the results of our audit work to identify any disparities.

-

Analytical review of the financial statements has been undertaken at both the planning and completion stages of the audit to identify risks of irregularities and the results of the audit work carried out on those areas of risks.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Karen Dyer FCCA (Senior Statutory Auditor)

for and on behalf of FKCA Limited

260 - 270 Butterfield

Great Marlings

Luton

Bedfordshire

LU2 8DL

30 July 2026

TURNOVER

4

9,902,412

11,833,203

Cost of sales

6,994,934

8,699,649

GROSS PROFIT

2,907,478

3,133,554

Distribution costs

118,226

122,224

Administrative expenses

1,268,554

1,258,159

1,386,780

1,380,383

1,520,698

1,753,171

Other operating income

77,032

52,605

OPERATING PROFIT

6

1,597,730

1,805,776

Interest receivable and similar income

82,673

68,343

1,680,403

1,874,119

Interest payable and similar expenses

7

1,711

24

PROFIT BEFORE TAXATION

1,678,692

1,874,095

Tax on profit

8

424,145

473,238

PROFIT FOR THE FINANCIAL YEAR

1,254,547

1,400,857

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,254,547

1,400,857

FIXED ASSETS

Tangible assets

11

417,517

422,128

CURRENT ASSETS

Stocks

12

319,887

341,893

Debtors

13

2,250,886

2,858,628

Cash at bank and in hand

1,981,205

1,522,008

4,551,978

4,722,529

CREDITORS

Amounts falling due within one year

14

1,138,700

1,368,764

NET CURRENT ASSETS

3,413,278

3,353,765

TOTAL ASSETS LESS CURRENT LIABILITIES

3,830,795

3,775,893

PROVISIONS FOR LIABILITIES

18

7,579

7,224

NET ASSETS

3,823,216

3,768,669

CAPITAL AND RESERVES

Called up share capital

19

2,000

2,000

Share premium

500

500

Retained earnings

3,820,716

3,766,169

SHAREHOLDERS' FUNDS

3,823,216

3,768,669

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2026 and were signed on its behalf by:

R Belanyi - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 November 2023

2,000

3,165,312

500

3,167,812

Changes in equity

Total comprehensive income

-

1,400,857

-

1,400,857

Dividends

-

(800,000

)

-

(800,000

)

Balance at 31 October 2024

2,000

3,766,169

500

3,768,669

Changes in equity

Total comprehensive income

-

1,254,547

-

1,254,547

Dividends

-

(1,200,000

)

-

(1,200,000

)

Balance at 31 October 2025

2,000

3,820,716

500

3,823,216

Cash flows from operating activities

Cash generated from operations

1

2,058,681

2,528,979

Interest paid

(1,711

)

(24

)

Tax paid

(470,296

)

(553,808

)

Net cash from operating activities

1,586,674

1,975,147

Cash flows from investing activities

Purchase of tangible fixed assets

(10,150

)

(22,545

)

Interest received

82,673

68,343

Net cash from investing activities

72,523

45,798

Cash flows from financing activities

Equity dividends paid

(1,200,000

)

(800,000

)

Net cash from financing activities

(1,200,000

)

(800,000

)

Increase in cash and cash equivalents

459,197

1,220,945

Cash and cash equivalents at beginning of year

2

1,522,008

301,063

Cash and cash equivalents at end of year

2

1,981,205

1,522,008

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

as restated

£

£

Profit before taxation

1,678,692

1,874,095

Depreciation charges

14,761

13,271

Finance costs

1,711

24

Finance income

(82,673

)

(68,343

)

1,612,491

1,819,047

Decrease in stocks

22,006

14,944

Decrease in trade and other debtors

607,742

1,004,247

Decrease in trade and other creditors

(183,558

)

(309,259

)

Cash generated from operations

2,058,681

2,528,979

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 October 2025

31.10.25

1.11.24

£

£

Cash and cash equivalents

1,981,205

1,522,008

Year ended 31 October 2024

31.10.24

1.11.23

as restated

£

£

Cash and cash equivalents

1,522,008

301,063

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.11.24

Cash flow

At 31.10.25

£

£

£

Net cash

Cash at bank and in hand

1,522,008

459,197

1,981,205

1,522,008

459,197

1,981,205

Total

1,522,008

459,197

1,981,205

1.	STATUTORY INFORMATION

Thermal Economics 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

The company's turnover represents the value, excluding value added tax, of goods and services supplied to customers during the year. Revenue is recognised at the point when the goods or services have been supplied to the customer and a right to consideration arises therefrom.

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.

Freehold property - 2% on cost

Fixtures and fittings - 25% on reducing balance

No depreciation is provided on freehold land.

Stocks

Stocks are valued at the lower of cost and net realisable value, on a FIFO basis, after making due allowance for obsolete and slow moving items.

Financial instruments

The company has chosen to adopt Section 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets and liabilities, including trade and other debtors, bank balances, trade and other creditors are recognised at cost.

The company utilises a debt factoring facility without recourse. Trade debtors are derecognised from the balance sheet upon formal assignment to the factoring providers, as substantially all the risks and rewards of ownership have been transferred. Cash collected by the factor provider but not drawn down from the provider is treated as cash or cash equivalent.There were no liabilities to the factor provider at the year end.

Derivatives, including time option forward foreign currency 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 through profit and loss.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. it is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

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

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. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company, being the sale of goods, and operates within a single geographical market, being the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2025

2024

as restated

£

£

Wages and salaries

789,230

801,376

Social security costs

95,817

89,066

Other pension costs

13,137

13,487

898,184

903,929

The average number of employees during the year was as follows:

2025

2024

as restated

Directors

2

2

Sales

7

7

Admin

3

3

Technical

4

4

16

16

2025

2024

as restated

£

£

Directors' remuneration

69,013

75,507

6.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

as restated

£

£

Hire of plant and machinery

6,964

5,833

Depreciation - owned assets

14,761

13,272

Auditors' remuneration

16,850

10,000

Auditors' remuneration for non audit work

5,090

5,212

Rent

22,526

18,928

Other operating leases

44,288

39,981

Research and development expenditure

50,555

85,725

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

as restated

£

£

Bank interest

1,711

24

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

as restated

£

£

Current tax:

UK corporation tax

423,790

469,382

Deferred tax

355

3,856

Tax on profit

424,145

473,238

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

as restated

£

£

Profit before tax

1,678,692

1,874,095

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

419,673

468,524

Effects of:

Expenses not deductible for tax purposes

4,472

4,714

Total tax charge

424,145

473,238

9.

DIVIDENDS

2025

2024

as restated

£

£

Ordinary shares of £1 each

Interim

1,200,000

800,000

10.	PRIOR YEAR ADJUSTMENT

During the year, management identified that a balance of £1,225,809 relating to the prior year had been incorrectly classified within other debtors rather than cash at bank.

This error has been corrected by reducing other debtors and increasing cash at bank by £1,225,809. This change represents a reclassification between balance sheet asset lines only; it has no impact on the reported profit, net assets or tax position for the prior year.

Impact on statement of cash flows: The restatement increases the reported closing balance of cash and cash equivalents and cash generated from operations for the comparative year by £1,225,809. There is no net impact on the total investing or financing cash flows previously reported.

11.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

fittings

Totals

£

£

£

COST

At 1 November 2024

495,355

138,799

634,154

Additions

-

10,150

10,150

At 31 October 2025

495,355

148,949

644,304

DEPRECIATION

At 1 November 2024

102,920

109,106

212,026

Charge for year

5,887

8,874

14,761

At 31 October 2025

108,807

117,980

226,787

NET BOOK VALUE

At 31 October 2025

386,548

30,969

417,517

At 31 October 2024

392,435

29,693

422,128

Included in the cost of freehold property is freehold land of £146,189 (2024 - £146,189) which is not

depreciated.

12.

STOCKS

2025

2024

as restated

£

£

Stocks

319,887

341,893

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

£

Trade debtors (amounts owed by factoring provider)

2,161,155

2,713,868

Other debtors

30,162

97,712

Prepayments and accrued income

59,569

47,048

2,250,886

2,858,628

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

as restated

£

£

Trade creditors

602,146

769,396

Corporation tax

177,876

224,382

Taxation and social security

20,685

19,562

VAT

257,024

258,190

Other creditors

21,428

23,497

Director's current account

1,763

1,763

Accruals and deferred income

57,778

71,974

1,138,700

1,368,764