REGISTERED NUMBER: 02733893 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

FOR

PRINCIPAL BUILDING PRODUCTS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

7

Other 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

14

DIRECTOR:

S A Riley

SECRETARY:

Mrs L Riley

REGISTERED OFFICE:

Barbot Hall Industrial Estate

Mangham Road

Greasborough

Rotherham

South Yorkshire

S61 4RJ

REGISTERED NUMBER:

02733893 (England and Wales)

AUDITORS:

Hollis and Co Limited

Chartered Accountants

Statutory Auditor

35 Wilkinson Street

Sheffield

South Yorkshire

S10 2GB

The director presents his strategic report for the year ended 30 September 2025.

The principal activity of the company is the supply of a wide range of construction products to Builder's Merchants and re-sellers across the UK and Ireland. The company operates from a 51,000 square foot warehouse and office unit in Rotherham and is ideally placed for national distribution. The company now also has an office and stockholding in Ireland to service customers there.

The range of product is very large, and the company's customers are able to buy regularly and in the quantities they need, thus aiding their cashflow. This has proved to be a successful strategy, particularly in recessionary times and at times of high interest rates.

REVIEW OF BUSINESS AND PERFORMANCE

The year ending in September 2025 was another strong year and showed a substantial increase in operating turnover from the previous year. This is a very encouraging result given that the industry is depressed on the whole, evidenced by the drastically reduced profitability of Builder's Merchants throughout the UK.

The company has now extended its activities into manufacturing and in 2026 has commenced the rollout of these products. It has also secured trading agreements with the three major Builder's Merchant buying groups for 2026/27.

The company has also invested substantially in attaining BBA certificates for key products and has an ongoing commitment to product development and technical specifications.

The company is now debt free and has excellent cashflow enabling it to import stock from all over the world.

PRINCIPAL RISKS AND UNCERTAINTIES

The company's supply chain is understandably extended due to the location of certain suppliers, and this can be problematic when demand suddenly increases and it is unable to respond quickly. The company has invested in software which can predict demand reasonably accurately but has also increased stock holding substantially so that customer service is unaffected.

Fluctuations in exchange rates can and do affect the imported cost of goods but the company costs goods on a worst-case scenario from this point of view.

FINANCIAL RISK MANAGEMENT

The company retains an invoice discounting facility with a built-in credit protection insurance policy, although there has been little or no borrowing on the facility. The company has retained the unused facility to give an immediate availability of cash should a suitable opportunity arise. Credit limits on customers are reviewed regularly, and the company's systems are robust and reliable.

KEY FINANCIAL PERFORMANCE RATIOS

The director considers the following to be the key financial performance ratios:-

2025

2024

Turnover Growth

9.7%

1.2%

Gross Profit Margin

31.3%

31.5%

Gearing

2.3%

5.3%

ON BEHALF OF THE BOARD:

S A Riley - Director

9 July 2026

The director presents his report with the financial statements of the company for the year ended 30 September 2025.

DIVIDENDS

An interim dividend of £124 per share was paid on 30 September 2025. The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 30 September 2025 will be £ 620,000 .

DIRECTOR

S A Riley held office during the whole of the period from 1 October 2024 to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Certain items required under Sch. 7 above to be disclosed in the directors' report are set out in the strategic report in accordance with s.414C(11) CA 2006.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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:

S A Riley - Director

9 July 2026

Opinion

We have audited the financial statements of Principal Building Products Limited (the 'company') for the year ended 30 September 2025 which comprise the Income Statement, Other 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 30 September 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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

It was deemed the susceptibility to material misstatement was low because of the nature of the business does not lend itself to fraud.

The procedures we carried out were:

- Enquiry of management, those charged with governance around actual and potential litigation and claims;

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

- Reviewing minutes of meetings of those charged with governance

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the further that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation

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.

Peter Hollis (Senior Statutory Auditor)

for and on behalf of Hollis and Co Limited

Chartered Accountants

Statutory Auditor

35 Wilkinson Street

Sheffield

South Yorkshire

S10 2GB

9 July 2026

TURNOVER

18,390,028

16,771,268

Cost of sales

12,628,839

11,488,264

GROSS PROFIT

5,761,189

5,283,004

Distribution costs

1,246,454

1,120,607

Administrative expenses

2,900,111

2,490,593

4,146,565

3,611,200

1,614,624

1,671,804

Other operating income

11,664

6,164

OPERATING PROFIT

4

1,626,288

1,677,968

Interest payable and similar expenses

5

24,124

35,088

PROFIT BEFORE TAXATION

1,602,164

1,642,880

Tax on profit

6

410,702

421,774

PROFIT FOR THE FINANCIAL YEAR

1,191,462

1,221,106

PROFIT FOR THE YEAR

1,191,462

1,221,106

OTHER COMPREHENSIVE INCOME

Revaluation of Freehold property

1,522,266

-

Income tax relating to other comprehensive income

(380,566

)

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,141,700

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,333,162

1,221,106

FIXED ASSETS

Tangible assets

8

3,435,540

1,913,969

CURRENT ASSETS

Stocks

9

2,019,045

1,853,011

Debtors

10

3,940,921

4,263,128

Cash at bank and in hand

692,201

844,396

6,652,167

6,960,535

CREDITORS

Amounts falling due within one year

11

2,543,002

3,335,649

NET CURRENT ASSETS

4,109,165

3,624,886

TOTAL ASSETS LESS CURRENT LIABILITIES

7,544,705

5,538,855

CREDITORS

Amounts falling due after more than one year

12

(141,800

)

(240,499

)

PROVISIONS FOR LIABILITIES

16

(579,251

)

(187,864

)

NET ASSETS

6,823,654

5,110,492

CAPITAL AND RESERVES

Called up share capital

17

5,000

5,000

Revaluation reserve

18

1,504,869

363,169

Retained earnings

18

5,313,785

4,742,323

SHAREHOLDERS' FUNDS

6,823,654

5,110,492

The financial statements were approved by the director and authorised for issue on 9 July 2026 and were signed by:

S A Riley - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

5,000

4,051,217

363,169

4,419,386

Changes in equity

Dividends

-

(530,000

)

-

(530,000

)

Total comprehensive income

-

1,221,106

-

1,221,106

Balance at 30 September 2024

5,000

4,742,323

363,169

5,110,492

Changes in equity

Dividends

-

(620,000

)

-

(620,000

)

Total comprehensive income

-

1,191,462

1,141,700

2,333,162

Balance at 30 September 2025

5,000

5,313,785

1,504,869

6,823,654

Cash flows from operating activities

Cash generated from operations

1

1,232,005

1,567,075

Interest paid

(18,650

)

(27,437

)

Interest element of hire purchase payments paid

(5,474

)

(7,651

)

Tax paid

(419,094

)

(280,118

)

Net cash from operating activities

788,787

1,251,869

Cash flows from investing activities

Purchase of tangible fixed assets

(97,114

)

(47,750

)

Net cash from investing activities

(97,114

)

(47,750

)

Cash flows from financing activities

Loan repayments in year

(69,612

)

(63,879

)

Capital repayments in year

(26,941

)

(49,197

)

Amount introduced by directors

620,000

93,487

Amount withdrawn by directors

(615,532

)

(96,000

)

Equity dividends paid

(620,000

)

(530,000

)

Net cash from financing activities

(712,085

)

(645,589

)

(Decrease)/increase in cash and cash equivalents

(20,412

)

558,530

Cash and cash equivalents at beginning of year

2

712,613

154,083

Cash and cash equivalents at end of year

2

692,201

712,613

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

2025

2024

£

£

Profit before taxation

1,602,164

1,642,880

Depreciation charges

97,809

94,796

Finance costs

24,124

35,088

1,724,097

1,772,764

(Increase)/decrease in stocks

(166,034

)

136,182

Decrease/(increase) in trade and other debtors

322,207

(861,509

)

(Decrease)/increase in trade and other creditors

(648,265

)

519,638

Cash generated from operations

1,232,005

1,567,075

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 30 September 2025

30/9/25

1/10/24

£

£

Cash and cash equivalents

692,201

844,396

Bank overdrafts

-

(131,783

)

692,201

712,613

Year ended 30 September 2024

30/9/24

1/10/23

£

£

Cash and cash equivalents

844,396

154,083

Bank overdrafts

(131,783

)

-

712,613

154,083

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/10/24

Cash flow

At 30/9/25

£

£

£

Net cash

Cash at bank and in hand

844,396

(152,195

)

692,201

Bank overdrafts

(131,783

)

131,783

-

712,613

(20,412

)

692,201

Debt

Finance leases

(76,094

)

26,941

(49,153

)

Debts falling due within 1 year

(69,033

)

(6,208

)

(75,241

)

Debts falling due after 1 year

(191,346

)

75,820

(115,526

)

(336,473

)

96,553

(239,920

)

Total

376,140

76,141

452,281

1.	STATUTORY INFORMATION

Principal Building Products 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 (£).

The amounts are rounded to the nearest £.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

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

Turnover is recognised when the goods are either collected by or delivered to the customer.

Tangible fixed assets

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

Freehold property

-

2% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

33% on cost

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

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

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

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

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,538,503

1,416,956

Social security costs

187,388

153,320

Other pension costs

153,099

135,086

1,878,990

1,705,362

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

2025

2024

Sales, warehousing and administration

33

33

Directors

1

1

34

34

2025

2024

£

£

Director's remuneration

8,239

10,667

Director's pension contributions to money purchase schemes

4,800

4,800

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

132,584

113,110

Depreciation - owned assets

74,634

63,475

Depreciation - assets on hire purchase contracts

23,175

31,321

Auditors' remuneration

15,000

15,000

Foreign exchange differences

(39,611

)

(49,018

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Factoring interest

1,593

3,436

Interest on overdue tax

527

-

Mortgage

16,530

23,256

Other interest

-

745

Hire purchase

5,474

7,651

24,124

35,088

6.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

399,881

424,588

Deferred tax

10,821

(2,814

)

Tax on profit

410,702

421,774

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

£

£

Profit before tax

1,602,164

1,642,880

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

400,541

410,720

Effects of:

Expenses not deductible for tax purposes

1,038

-

Capital allowances in excess of depreciation

(1,698

)

-

Depreciation in excess of capital allowances

-

9,890

Adjustments to tax charge in respect of previous periods

-

3,978

Deferred tax

10,821

(2,814

)

Total tax charge

410,702

421,774

Tax effects relating to effects of other comprehensive income

2025

Gross

Tax

Net

£

£

£

Revaluation of Freehold property

1,522,266

(380,566

)

1,141,700

7.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Interim

620,000

530,000