CREATEC LTD


Directors	CLARK, David John
	MELLOR, Matthew Paul
	NEWSOM, William David
	STARKIE, Joanne


Registered Address	Unit 4 Derwent Mills Commercial Park
	Cockermouth
	CA13 0HT


Registered Number	07293648 (England and Wales)

Notes to the Financial Statements
for the year ended 31 October 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

	Functional and presentation currency
	The financial statements are presented in sterling, and this is the functional currency of the company.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Interest income
	Interest income is recognised using the effective interest rate method.

	Dividend income
	Dividend income is recognised when the right to receive payment is established.

	Operating leases
	Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease. Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

Operating leases

Where, substantially, all the risks and rewards of ownership of the asset do not transfer from the lessor to the company, the lease is treated as an operating lease. Rentals payable under operating leases are charged to the Income Statement on a straight-line basis over the period of the lease.

Where the company is a lessor, rental income from operating leases is credited to the Income Statement on a straight-line basis over the lease term.

	Defined contribution pension plan
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in other creditors in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in other creditors in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

	Amortisation
	Intangible assets are not permitted to have an indefinite life and must be amortised over their estimated useful life. The estimated useful life of patents has been set at 5 years and the asset will be amortised on a straight-line basis over that period. The estimated useful life of computer software has been set at 5 years and the asset will be amortised on a straight-line basis over that period.

Amortisation

Intangible assets are not permitted to have an indefinite life and must be amortised over their estimated useful life.  The estimated useful life of patents has been set at 5 years and the asset will be amortised on a straight-line basis over that period.  The estimated useful life of computer software has been set at 5 years and the asset will be amortised on a straight-line basis over that period.

	Research and development
	In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

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

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:


		Straight line (years)
	Land and buildings	6.67
	Plant and machinery	4
	Fixtures and fittings	5
	Vehicles	5
	Office Equipment	4

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the Income Statement.

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Stocks and work in progress

Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). 

At each date of Statement of Financial Position, stocks are assessed for impairment.  If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell.  The impairment loss is recognised immediately in the Income Statement.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

	Government grants or assistance
	Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

Government grants or assistance

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Income Statement at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. 

Grants of a revenue nature are recognised in the Income Statement in the same period as the related expenditure.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	64		56

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 01 November 24	248,838	248,838
At 31 October 25	248,838	248,838
Amortisation and impairment
At 01 November 24	6,114	6,114
Charge for year	49,368	49,368
At 31 October 25	55,482	55,482
Net book value
At 31 October 25	193,356	193,356
At 31 October 24	242,724	242,724

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Fixtures & fittings	Office Equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 01 November 24	83,774	1,456,999	51,412	258,652	322,228	2,173,065
Additions	-	205,405	-	9,539	24,162	239,106
Disposals	-	(21,811)	-	-	-	(21,811)
At 31 October 25	83,774	1,640,593	51,412	268,191	346,390	2,390,360
Depreciation and impairment
At 01 November 24	29,743	604,634	9,426	109,054	233,785	986,642
Charge for year	10,746	365,085	8,257	40,086	56,224	480,398
On disposals	-	(19,085)	-	-	-	(19,085)
At 31 October 25	40,489	950,634	17,683	149,140	290,009	1,447,955
Net book value
At 31 October 25	43,285	689,959	33,729	119,051	56,381	942,405
At 31 October 24	54,031	852,365	41,986	149,598	88,443	1,186,423

5.	Fixed asset investments

	Investments in groups¹	Total
	£	£
Cost or valuation
At 01 November 24	1,020	1,020
Disposals	(1,000)	(1,000)
At 31 October 25	20	20
Net book value
At 31 October 25	20	20
At 31 October 24	1,020	1,020

	Notes
	¹Investments in group undertakings and participating interests

6.	Stocks

	2025	2024
	£	£
Work in progress	167,598	315,239
Finished goods	103,817	126,861
Total	271,415	442,100

7.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	1,459,969	1,735,740
Amounts owed by associates and joint ventures / participating interests	41,980	41,980
Other debtors	485,426	295,760
Prepayments and accrued income	252,891	235,691
Total	2,240,266	2,309,171

8.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	413,787	771,534
Bank borrowings and overdrafts	14,768	10,140
Taxation and social security	188,658	296,807
Finance lease and HP contracts	108,375	123,087
Other creditors	58,200	44,098
Accrued liabilities and deferred income	407,971	225,050
Total	1,191,759	1,470,716

9.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	-	14,806
Other creditors	91,622	200,149
Total	91,622	214,955

10.	Secured creditors
	Hire Purchase creditors are secured by the asset to which they relate.

11.	Obligations under finance leases

		2025		2024
		£		£
	Finance lease and HP contracts	199,997		323,236

12.	Operating lease commitments
	At 31 October 2025, the company had future minimum lease payments under non-cancellable operating leases of £1,525,622 (2024 - £1,748,328).

13.

Related party transactions

During the year the company had a loan with one of its wholly owned subsidiaries, Createc East-Asia GK.  At the balance sheet date the company is owed £39,765 (2024 - £39,765).  This loan is unsecured, interest free and repayable upon demand.

During the year the company had a loan with one of its wholly owned subsidiaries, Createc Norway AS.  At the balance sheet date the company is owed £2,215 (2024 - £2,215).  This loan is unsecured, interest free and repayable upon demand.

14.	Parent-subsidiary relationships
	The company, and the group headed by it, qualify as a small group and as such the parent and the group are exempt from producing group accounts.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		193,356		242,724
Tangible assets	4		942,405		1,186,423
Investments	5		20		1,020
			1,135,781		1,430,167
Current assets
Stocks	6	271,415		442,100
Debtors	7	2,240,266		2,309,171
Cash at bank and on hand		823,566		1,057,294
		3,335,247		3,808,565
Creditors amounts falling due within one year	8	(1,191,759)		(1,470,716)
Net current assets (liabilities)			2,143,488		2,337,849
Total assets less current liabilities			3,279,269		3,768,016
Creditors amounts falling due after one year	9		(91,622)		(214,955)
Net assets			3,187,647		3,553,061
Capital and reserves
Called up share capital			343		343
Share premium			364,672		364,672
Other reserves			669		669
Profit and loss account			2,821,963		3,187,377
Shareholders' funds			3,187,647		3,553,061