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REGISTERED NUMBER: 15395974 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31st December 2025

for

CLIMATEC GROUP LIMITED

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Contents of the Consolidated Financial Statements

for the year ended 31st December 2025

Page |

Company Information | 1 |

Group Strategic Report | 2 |

Report of the Directors | 4 |

Report of the Independent Auditors | 6 |

Consolidated Profit and Loss Statement | 10 |

Consolidated Other Comprehensive Income | 11 |

Consolidated Balance Sheet | 12 |

Company Balance Sheet | 13 |

Consolidated Statement of Changes in Equity | 14 |

Company Statement of Changes in Equity | 15 |

Consolidated Cash Flow Statement | 16 |

Notes to the Consolidated Cash Flow Statement | 17 |

Notes to the Consolidated Financial Statements | 19 |

CLIMATEC GROUP LIMITED

Company Information

for the year ended 31st December 2025

| DIRECTORS: | Mr J P Bates

| Mr S P Muskett

| SECRETARY: | Mr S P Muskett

| REGISTERED OFFICE: | 11-14 Fletchers Square

| Temple Farm Industrial Estate

| Southend-On-Sea

| Essex

| SS2 5RN

| REGISTERED NUMBER: | 15395974 (England and Wales)

| AUDITORS: | Barrons Limited

| Chartered Accountants

| & Statutory Auditors

| Monometer House

| Rectory Grove

| Leigh on Sea

| Essex

| SS9 2HN

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Group Strategic Report

for the year ended 31st December 2025

The directors present their strategic report of the company and the group for the year ended 31st December 2025.

REVIEW OF BUSINESS

The financial year ended 31 December 2025 represents the Group's first full twelve-month reporting period. Comparative figures relate to the nine-month period from 1 April 2024 to 31 December 2024 and should therefore be considered in that context when comparing financial performance.

During the year the Group delivered another strong financial performance, generating turnover of £19.86 million, compared with £12.94 million for the previous nine-month period. Whilst the increase reflects the longer reporting period, the di rectors are pleased with the underlying level of trading and the continued growth achieved across both the PVCu and alumi nium divisions.

Operating profit increased to £986k (2024: £628k), reflecting continued improvements in manufacturing efficiency, cost control and operational performance. Profit after taxation increased to £666k, compared with £395k in the previous reporting period.

Despite continued inflationary pressures, higher employment costs and a competitive trading environment, the Group maintained healthy margins through disciplined purchasing, careful pricing and improvements in production efficiency. Investment in manufacturing equipment, operational systems and employee development has continued throughout the year, further strengthening the Group's ability to meet increasing customer demand whilst maintaining the high levels of quality and service upon which its reputation has been built.

The directors remain encouraged by the resilience of the business, the loyalty of its customer base and the dedication of its employees, all of which continue to provide a strong platform for sustainable long-term growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group continues to operate within a competitive marketplace influenced by wider economic conditions, interest rates and levels of activity within both the residential and commercial construction sectors.

The recruitment and retention of skilled employees remains one of the principal challenges facing the business. The Group continues to invest in employee training, development and welfare to ensure it maintains the skills necessary to support future growth.

The directors continue to monitor fluctuations in raw material costs, energy prices and legislative changes affecting employment and taxation. Strong supplier relationships, proactive purchasing and regular reviews of pricing strategies continue to mitigate many of these risks.

Cash flow, working capital and capital expenditure are reviewed regularly to ensure the business remains financially strong and well positioned to respond to changing market conditions.

KEY PERFORMANCE INDICATORS

KPI |  | 2025 |  | 2024* |  |

Turnover |  | £19.86m |  | £12.94m |  |

Operating Profit |  | £986k |  | £628k |  |

Profit After Tax |  | £666k |  | £395k |  |

*The comparative period covers 1 April 2024 to 31 December 2024 (9 months).

The directors are pleased with the continued improvement in financial performance during the year. Revenue growth, together with improved operational efficiency and disciplined cost management, has resulted in increased profitability whilst maintaining investment in the future development of the business.

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Group Strategic Report

for the year ended 31st December 2025

FUTURE OUTLOOK

The Group enters 2026 with a healthy order book, a strong balance sheet and confidence in its long-term prospects.

Investment will continue in manufacturing capability, automation, information systems and employee development to improve productivity, product quality and customer service. Opportunities to expand manufacturing capacity and further improve operational efficiency will continue to be evaluated where they support sustainable long-term growth.

Whilst recognising that inflation, labour availability and wider economic conditions remain areas of uncertainty, the directors believe that the Group's financial strength, experienced management team, modern manufacturing facilities and established customer relationships provide an excellent platform for continued profitable growth.

The directors remain committed to maintaining prudent financial management while continuing to invest in the people, facilities and technology required to support the future success of the Group.

ON BEHALF OF THE BOARD:

Mr S P Muskett - Director

30th July 2026

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Report of the Directors

for the year ended 31st December 2025

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a holding company.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £ 168,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2025 to the date of this report.

Mr J P Bates

Mr S P Muskett

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Annual Report 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 judgments and accounting estimates that are reasonable and prudent

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements

- 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 group'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 group's auditors are aware of that information.

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Report of the Directors

for the year ended 31st December 2025

AUDITORS

The auditors, Barrons Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S P Muskett - Director

30th July 2026

Report of the Independent Auditors to the Members of

Climatec Group Limited

Opinion

We have audited the financial statements of Climatec Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2025 which comprise the Consolidated Profit and Loss Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st December 2025 and of the group's 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 group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of

Climatec Group Limited

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- | the parent company 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 group's and the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of

Climatec Group Limited

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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation and distributable profits legislation.

- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of; inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence: testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Report of the Independent Auditors to the Members of

Climatec Group Limited

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.

Russell Tillbrook FCCA (Senior Statutory Auditor)

for and on behalf of Barrons Limited

Chartered Accountants

& Statutory Auditors

Monometer House

Rectory Grove

Leigh on Sea

Essex

SS9 2HN

30th July 2026

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Consolidated Profit and Loss Statement

for the year ended 31st December 2025

| Year ended | Period |

| 31.12.25 | 8.1.24 to 31.12.24 |

| Notes | £ | £ | £ | £ |

TURNOVER | 3 | 19,864,094 |  | 12,937,976 |  |

Cost of sales | 14,471,057 |  | 9,468,277 |  |

GROSS PROFIT | 5,393,037 |  | 3,469,699 |  |

Distribution costs | 925,759 |  | 551,025 |  |

Administrative expenses | 3,480,795 |  | 2,290,820 |  |

|  |  | 4,406,554 |  |  |  |  | 2,841,845 |  |

OPERATING PROFIT | 5 | 986,483 |  | 627,854 |  |

Interest receivable and similar income | 9,341 |  | 29 |  |

995,824 |  | 627,883 |  |

Interest payable and similar expenses | 6 | 56,171 |  | 36,571 |  |

PROFIT BEFORE TAXATION | 939,653 |  | 591,312 |  |

Tax on profit | 7 | 273,785 |  | 196,042 |  |

PROFIT FOR THE FINANCIAL YEAR | 665,868 |  | 395,270 |  |

Profit attributable to:

Owners of the parent | 665,868 |  | 395,270 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Consolidated Other Comprehensive Income

for the year ended 31st December 2025

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

| Notes | £ | £ |

PROFIT FOR THE YEAR | 665,868 |  | 395,270 |  |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 665,868 |  | 395,270 |  |

Total comprehensive income attributable to:

Owners of the parent | 665,868 |  | 395,270 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Consolidated Balance Sheet

31st December 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Intangible assets | 10 | 873,022 |  | 982,149 |  |

Tangible assets | 11 | 839,714 |  | 883,549 |  |

Investments | 12 | - |  | - |  |

1,712,736 |  | 1,865,698 |  |

CURRENT ASSETS

Stocks | 13 | 1,670,554 |  | 1,695,398 |  |

Debtors | 14 | 2,957,900 |  | 2,557,143 |  |

Cash at bank and in hand | 352,927 |  | 594,441 |  |

4,981,381 |  | 4,846,982 |  |

CREDITORS

Amounts falling due within one year | 15 | 2,822,757 |  | 3,014,432 |  |

NET CURRENT ASSETS | 2,158,624 |  | 1,832,550 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 3,871,360 |  | 3,698,248 |  |

CREDITORS

Amounts falling due after more than one year | 16 | (124,111 | ) | (443,035 | ) |

PROVISIONS FOR LIABILITIES | 20 | (191,371 | ) | (197,203 | ) |

NET ASSETS | 3,555,878 |  | 3,058,010 |  |

CAPITAL AND RESERVES

Called up share capital | 21 | 2,742,740 |  | 2,742,740 |  |

Retained earnings | 22 | 813,138 |  | 315,270 |  |

SHAREHOLDERS' FUNDS | 3,555,878 |  | 3,058,010 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 30th July 2026 and were signed on its behalf by:

Mr S P Muskett - Director

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Company Balance Sheet

31st December 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Intangible assets | 10 | - |  | - |  |

Tangible assets | 11 | - |  | - |  |

Investments | 12 | 3,958,296 |  | 3,958,296 |  |

3,958,296 |  | 3,958,296 |  |

CREDITORS

Amounts falling due within one year | 15 | 1,155,266 |  | 925,775 |  |

NET CURRENT LIABILITIES | (1,155,266 | ) | (925,775 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 2,803,030 |  | 3,032,521 |  |

CREDITORS

Amounts falling due after more than one year | 16 | 60,290 |  | 289,781 |  |

NET ASSETS | 2,742,740 |  | 2,742,740 |  |

CAPITAL AND RESERVES

Called up share capital | 21 | 2,742,740 |  | 2,742,740 |  |

SHAREHOLDERS' FUNDS | 2,742,740 |  | 2,742,740 |  |

Company's profit for the financial year | 168,000 |  | 80,000 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 30th July 2026 and were signed on its behalf by:

Mr S P Muskett - Director

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Consolidated Statement of Changes in Equity

for the year ended 31st December 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Changes in equity

Issue of share capital | 2,742,740 |  | - |  | 2,742,740 |  |

Dividends | - |  | (80,000 | ) | (80,000 | ) |

Total comprehensive income | - |  | 395,270 |  | 395,270 |  |

Balance at 31st December 2024 | 2,742,740 |  | 315,270 |  | 3,058,010 |  |

Changes in equity

Dividends | - |  | (168,000 | ) | (168,000 | ) |

Total comprehensive income | - |  | 665,868 |  | 665,868 |  |

Balance at 31st December 2025 | 2,742,740 |  | 813,138 |  | 3,555,878 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Company Statement of Changes in Equity

for the year ended 31st December 2025

| Called up |

| share |  | Retained |  | Total

| capital |  | earnings |  | equity

£ | £ | £ |

Changes in equity

Issue of share capital | 2,742,740 |  | - |  | 2,742,740 |  |

Dividends | - |  | (80,000 | ) | (80,000 | ) |

Total comprehensive income | - |  | 80,000 |  | 80,000 |  |

Balance at 31st December 2024 | 2,742,740 |  | - |  | 2,742,740 |  |

Changes in equity

Dividends | - |  | (168,000 | ) | (168,000 | ) |

Total comprehensive income | - |  | 168,000 |  | 168,000 |  |

Balance at 31st December 2025 | 2,742,740 |  | - |  | 2,742,740 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Consolidated Cash Flow Statement

for the year ended 31st December 2025

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | 675,540 |  | 1,037,681 |  |

Interest paid | (34,150 | ) | (29,165 | ) |

Interest element of hire purchase payments paid | (22,021 | ) | (7,406 | ) |

Tax paid | (271,462 | ) | (428,385 | ) |

Net cash from operating activities | 347,907 |  | 572,725 |  |

Cash flows from investing activities

Purchase of tangible fixed assets | (42,807 | ) | (63,280 | ) |

Sale of tangible fixed assets | 3,496 |  | 4,745 |  |

Net cash received on acquisition | - |  | 410,115 |  |

Deferred cash paid on investment | (211,904 | ) | (131,730 | ) |

Interest received | 9,341 |  | 29 |  |

Net cash from investing activities | (241,874 | ) | 219,879 |  |

Cash flows from financing activities

Loan repayments in year | (46,297 | ) | (37,037 | ) |

Capital repayments in year | (147,218 | ) | (81,126 | ) |

Equity dividends paid | (168,000 | ) | (80,000 | ) |

Net cash from financing activities | (361,515 | ) | (198,163 | ) |

(Decrease)/increase in cash and cash equivalents | (255,482 | ) | 594,441 |  |

Cash and cash equivalents at beginning of year | 2 | 594,441 |  | - |  |

Cash and cash equivalents at end of year | 2 | 338,959 |  | 594,441 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Cash Flow Statement

for the year ended 31st December 2025

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

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Profit before taxation | 939,653 |  | 591,312 |  |

| Depreciation charges | 250,534 |  | 203,715 |  |

| Profit on disposal of fixed assets | (3,496 | ) | (4,745 | ) |

| Finance costs | 56,171 |  | 36,571 |  |

| Finance income | (9,341 | ) | (29 | ) |

1,233,521 |  | 826,824 |  |

| Decrease/(increase) in stocks | 24,844 |  | (15,156 | ) |

| (Increase)/decrease in trade and other debtors | (400,757 | ) | 422,861 |  |

| Decrease in trade and other creditors | (182,068 | ) | (196,848 | ) |

| Cash generated from operations | 675,540 |  | 1,037,681 |  |

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 31st December 2025

| 31.12.25 |  | 1.1.25

£ | £ |

| Cash and cash equivalents | 352,927 |  | 594,441 |  |

| Bank overdrafts | (13,968 | ) | - |  |

338,959 |  | 594,441 |  |

| Period ended 31st December 2024

| 31.12.24 |  | 8.1.24

£ | £ |

| Cash and cash equivalents | 594,441 |  | - |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Cash Flow Statement

for the year ended 31st December 2025

3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

| Other |

| non-cash |

| At 1.1.25 | Cash flow | changes | At 31.12.25

£ | £ | £ | £ |

| Net cash |

| Cash at bank

| and in hand | 594,441 |  | (241,514 | ) | 352,927 |  |

| Bank overdrafts | - |  | (13,968 | ) | (13,968 | ) |

594,441 |  | (255,482 | ) | 338,959 |  |

| Debt

| Finance leases | (283,739 | ) | 147,218 |  | (54,764 | ) | (191,285 | ) |

| Debts falling due

| within 1 year | (46,296 | ) | 46,296 |  | - |  | - |  |

(330,035 | ) | 193,514 |  | (54,764 | ) | (191,285 | ) |

| Total | 264,406 |  | (61,968 | ) | (54,764 | ) | 147,674 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements

for the year ended 31st December 2025

1. | STATUTORY INFORMATION

| Climatec Group 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 General Information page.

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.

| Turnover

| The turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before the revenue is recognised:

| Sale of goods

| Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

| - |  | the Company has transferred the significant risks and rewards of ownership to the buyer; |  |

| - |  | the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |  |

| - |  | the amount of revenue can be measured reliably; |  |

| - |  | it is probable that the Company will receive the consideration due under the transaction; and |  |

| - |  | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |  |

| Rendering of services

| Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

| - |  | the amount of revenue can be measured reliably; |  |

| - |  | it is probable that the Company will receive the consideration due under the contract; |  |

| - |  | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |  |

| - |  | the costs incurred and the costs to complete the contract can be measured reliably. |  |

| Goodwill

| Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of ten years.

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

2. | ACCOUNTING POLICIES - continued

| Tangible fixed assets

| Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

| Depreciation is charged so as to allocate the cost of assets less residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

| Depreciation is provided on the following basis:

| Leasehold land and buildings |  | - 10% Straight Line |  |

| Plant and machinery |  | - 15% Reducing Balance |  |

| Fixtures and Fittings |  | - 10% Reducing Balance |  |

| Computers |  | - 33% Straight Line |  |

| Motor Vehicles |  | - 25% Reducing Balance |  |

| The asset's 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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

| Stocks

| 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 items.

| Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss 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.

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

2. | ACCOUNTING POLICIES - continued

| Financial instruments

| The Company only enters into basic financial instruments 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 non-puttable ordinary shares.

| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss.

| Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

| Debtors

| Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

| Creditors

| Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using effective interest method, less any impairment.

| Cash and cash equivalents

| Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amount of cash with insignificant risk of change in value.

3. | TURNOVER

| The turnover and profit before taxation are attributable to the one principal activity of the group.

| An analysis of turnover by geographical market is given below:

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| United Kingdom | 19,864,094 |  | 12,937,976 |  |

19,864,094 |  | 12,937,976 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

4. | EMPLOYEES AND DIRECTORS

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Wages and salaries | 6,368,436 |  | 4,047,016 |  |

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

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

| Directors | 2 |  | 2 |  |

| Manufacturing | 121 |  | 130 |  |

| Engineering | 1 |  | 4 |  |

| Admin | 28 |  | 13 |  |

| Transport | 10 |  | 9 |  |

| Sales | 3 |  | - |  |

165 |  | 158 |  |

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Directors' remuneration | 175,301 |  | 114,966 |  |

5. | OPERATING PROFIT

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

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Depreciation - owned assets | 141,406 |  | 94,586 |  |

| Profit on disposal of fixed assets | (3,496 | ) | (4,745 | ) |

| Goodwill amortisation | 109,127 |  | 109,128 |  |

| Auditors' remuneration | 25,533 |  | 23,345 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

6. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Bank interest | 1,560 |  | (3,317 | ) |

| Interest on overdue taxation | 113 |  | 1,732 |  |

| Other interest payable | 32,477 |  | 30,750 |  |

| Hire purchase | 22,021 |  | 7,406 |  |

56,171 |  | 36,571 |  |

7. | TAXATION

| Analysis of the tax charge

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

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Current tax:

| UK corporation tax | 279,617 |  | 174,213 |  |

| Deferred tax | (5,832 | ) | 21,829 |  |

| Tax on profit | 273,785 |  | 196,042 |  |

| 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:

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Profit before tax | 939,653 |  | 591,312 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2024 - 25 %) | 234,913 |  | 147,828 |  |

| Effects of:

| Expenses not deductible for tax purposes | 9,334 |  | 9,336 |  |

| Depreciation in excess of capital allowances | 35,722 |  | 7,383 |  |

| Deferred tax | (5,832 | ) | 21,829 |  |

| Marginal relief | (352 | ) | (410 | ) |

| Pre acquisition tax effects | - |  | 10,076 |  |

| Total tax charge | 273,785 |  | 196,042 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

8. | INDIVIDUAL PROFIT AND LOSS STATEMENT

| As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.

9. | DIVIDENDS

| Period

| 8.1.24

| Year ended |  | to

| 31.12.25 |  | 31.12.24

£ | £ |

| Ordinary A shares of £1 each |

| Interim | 168,000 |  | 80,000 |  |

10. | INTANGIBLE FIXED ASSETS

| Group

| Goodwill

£ |

| COST

| At 1st January 2025

| and 31st December 2025 | 1,091,277 |  |

| AMORTISATION

| At 1st January 2025 | 109,128 |  |

| Amortisation for year | 109,127 |  |

| At 31st December 2025 | 218,255 |  |

| NET BOOK VALUE

| At 31st December 2025 | 873,022 |  |

| At 31st December 2024 | 982,149 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

11. | TANGIBLE FIXED ASSETS

| Group

| Improvements |

| Long |  | to |  | Plant and

| leasehold |  | property |  | machinery

£ | £ | £ |

| COST

| At 1st January 2025 | 49,620 |  | 54,087 |  | 707,021 |  |

| Additions | - |  | 1,493 |  | 69,600 |  |

| At 31st December 2025 | 49,620 |  | 55,580 |  | 776,621 |  |

| DEPRECIATION

| At 1st January 2025 | 6,617 |  | 6,122 |  | 64,671 |  |

| Charge for year | 9,069 |  | 9,356 |  | 99,538 |  |

| At 31st December 2025 | 15,686 |  | 15,478 |  | 164,209 |  |

| NET BOOK VALUE

| At 31st December 2025 | 33,934 |  | 40,102 |  | 612,412 |  |

| At 31st December 2024 | 43,003 |  | 47,965 |  | 642,350 |  |

| Fixtures |

| and |  | Motor |  | Computer |

| fittings |  | vehicles |  | equipment |  | Totals

£ | £ | £ | £ |

| COST

| At 1st January 2025 | 136,236 |  | 13,873 |  | 17,298 |  | 978,135 |  |

| Additions | 24,301 |  | - |  | 2,177 |  | 97,571 |  |

| At 31st December 2025 | 160,537 |  | 13,873 |  | 19,475 |  | 1,075,706 |  |

| DEPRECIATION

| At 1st January 2025 | 7,583 |  | 2,150 |  | 7,443 |  | 94,586 |  |

| Charge for year | 12,617 |  | 2,617 |  | 8,209 |  | 141,406 |  |

| At 31st December 2025 | 20,200 |  | 4,767 |  | 15,652 |  | 235,992 |  |

| NET BOOK VALUE

| At 31st December 2025 | 140,337 |  | 9,106 |  | 3,823 |  | 839,714 |  |

| At 31st December 2024 | 128,653 |  | 11,723 |  | 9,855 |  | 883,549 |  |

| Included above are assets held under hire purchase contracts and finance leases with a total net book value of £416,062 (2024: £422,128) and a total depreciation charge in the year of £66,341 (2024: £58,253).

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

12. | FIXED ASSET INVESTMENTS

| Company

| Shares in

| group

| undertakings

£ |

| COST

| At 1st January 2025

| and 31st December 2025 | 3,958,296 |  |

| NET BOOK VALUE

| At 31st December 2025 | 3,958,296 |  |

| At 31st December 2024 | 3,958,296 |  |

| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

| Subsidiaries

| Alu-Tec (UK) Ltd

| Registered office: United Kingdom

| Nature of business: Manufacture of Doors & Windows

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 2,659,415 |  | 2,524,737 |  |

| Profit for the year/period | 134,678 |  | 189,566 |  |

| Climatec Windows Limited

| Registered office: United Kingdom

| Nature of business: Manufacture of Doors & Windows

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 3,853,879 |  | 3,426,744 |  |

| Profit for the year/period | 627,612 |  | 549,986 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

12. | FIXED ASSET INVESTMENTS - continued

| Climatec Home Improvements Limited

| Registered office: United Kingdom

| Nature of business: Supply and fitting of Doors & Windows

| %

| Class of shares: | holding |

| Ordinary | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 285,118 |  | 239,935 |  |

| Profit for the year/period | 45,183 |  | 42,378 |  |

| Climatec Group Holdings Limited

| Registered office: United Kingdom

| Nature of business: Holding company

| %

| Class of shares: | holding |

| Ordinary A | 100.00 |

| Ordinary B | 100.00 |

2025 | 2024 |

£ | £ |

| Aggregate capital and reserves | 100,000 |  | 100,000 |  |

| Profit for the year/period | 200,477 |  | 157,549 |  |

13. | STOCKS

| Group |

2025 | 2024 |

£ | £ |

| Raw materials | 1,449,383 |  | 1,473,820 |  |

| Work-in-progress | 221,171 |  | 221,578 |  |

1,670,554 |  | 1,695,398 |  |

14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| Group |

2025 | 2024 |

£ | £ |

| Trade debtors | 2,518,460 |  | 2,159,150 |  |

| Other debtors | 82,676 |  | 48,615 |  |

| Prepayments and accrued income | 356,764 |  | 349,378 |  |

2,957,900 |  | 2,557,143 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Bank loans and overdrafts (see note 17) | 13,968 |  | 46,296 |  | - |  | - |  |

| Hire purchase contracts (see note 18) | 127,464 |  | 130,485 |  | - |  | - |  |

| Trade creditors | 1,746,640 |  | 1,975,286 |  | - |  | - |  |

| Amounts owed to group undertakings | - |  | - |  | 925,774 |  | 713,870 |  |

| Tax | 116,407 |  | 108,252 |  | - |  | - |  |

| Social security and other taxes | 165,332 |  | 140,738 |  | - |  | - |  |

| VAT | 230,388 |  | 200,176 |  | - |  | - |  |

| Other creditors | 367,503 |  | 357,175 |  | 229,492 |  | 211,905 |  |

| Accruals and deferred income | 55,055 |  | 56,024 |  | - |  | - |  |

2,822,757 |  | 3,014,432 |  | 1,155,266 |  | 925,775 |  |

16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

| Group |  | Company |

2025 | 2024 | 2025 | 2024 |

£ | £ | £ | £ |

| Hire purchase contracts (see note 18) | 63,821 |  | 153,254 |  | - |  | - |  |

| Other creditors | 60,290 |  | 289,781 |  | 60,290 |  | 289,781 |  |

124,111 |  | 443,035 |  | 60,290 |  | 289,781 |  |

17. | LOANS

| An analysis of the maturity of loans is given below:

| Group |

2025 | 2024 |

£ | £ |

| Amounts falling due within one year or on | demand: |

| Bank overdrafts | 13,968 |  | - |  |

| Bank loans | - |  | 46,296 |  |

13,968 |  | 46,296 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

18. | LEASING AGREEMENTS

| Minimum lease payments fall due as follows:

| Group

| Hire purchase |

| contracts |

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 127,464 |  | 130,485 |  |

| Between one and five years | 63,821 |  | 153,254 |  |

191,285 |  | 283,739 |  |

| Group

| Non-cancellable |

| operating leases |

2025 | 2024 |

£ | £ |

| Within one year | 224,067 |  | 192,991 |  |

| Between one and five years | 605,514 |  | 412,307 |  |

| In more than five years | 17,303 |  | 59,217 |  |

846,884 |  | 664,515 |  |

19. | SECURED DEBTS

| The following secured debts are included within creditors:

| Group |

2025 | 2024 |

£ | £ |

| Bank overdraft | 13,968 |  | - |  |

| Bank loans | - |  | 46,296 |  |

| Hire purchase contracts | 191,285 |  | 283,739 |  |

205,253 |  | 330,035 |  |

| Hire purchase contracts are secured against the assets to which they relate.

| Invoice discounting and overdraft facilities are secured by way of both fixed and floating charges over the assets of the group.

| There is a cross guarantee in place between Climatec Group Limited and it's subsidiary undertakings on all borrowings outstanding within the group at the balance sheet date.

| The long term loan obtained in 2020 is supported by the Coronavirus Business Interruption Loan Scheme (CBILS) provided by the government.

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

20. | PROVISIONS FOR LIABILITIES

| Group |

2025 | 2024 |

£ | £ |

| Deferred tax | 191,371 |  | 197,203 |  |

| Group

| Deferred |

| tax |

£ |

| Balance at 1st January 2025 | 197,203 |  |

| Provided during year | (5,832 | ) |

| Balance at 31st December 2025 | 191,371 |  |

21. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 1,000 | Ordinary A | £1 | 1,000 |  | 1,000 |  |

| 2,741,740 | Ordinary M | £1 | 2,741,740 |  | 2,741,740 |  |

2,742,740 |  | 2,742,740 |  |

| Ordinary A Shares have attached to them full voting and dividend rights but they do not confer any right of redemption. Capital distribution (including on winding up) rights;

| The holders of Ordinary A shares shall rank behind the holders of Ordinary M shares in respect of the capital distribution of the first £2,700,000.

| Ordinary M Shares have attached to them no voting and dividend rights and they do not confer any right of redemption.

| The holders of Ordinary M shares shall have priority over the holders of Ordinary M shares in respect of the capital distribution of the first £2,700,000.

22. | RESERVES

| Group

| Retained

| earnings

£ |

| At 1st January 2025 | 315,270 |  |

| Profit for the year | 665,868 |  |

| Dividends | (168,000 | ) |

| At 31st December 2025 | 813,138 |  |

CLIMATEC GROUP LIMITED (REGISTERED NUMBER: 15395974)

Notes to the Consolidated Financial Statements - continued

for the year ended 31st December 2025

22. | RESERVES - continued

| Company

| Retained

| earnings

£ |

| Profit for the year | 168,000 |  |

| Dividends | (168,000 | ) |

| At 31st December 2025 | - |  |

23. | CAPITAL COMMITMENTS

2025 | 2024 |

£ | £ |

| Contracted but not provided for in the

| financial statements | - |  | 54,865 |  |

24. | ULTIMATE CONTROLLING PARTY

| There is no ultimate controlling party as none of the individual members hold a majority shareholding.