REGISTERED NUMBER: 02788430 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31st December 2025

for

CLIMATEC WINDOWS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Profit and Loss Account

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTORS:

Mr J P Bates

Mr S P Muskett

REGISTERED OFFICE:

Monometer House

Rectory Grove

Leigh-on-Sea

Essex

SS9 2HL

REGISTERED NUMBER:

02788430 (England and Wales)

AUDITORS:

Barrons Limited

Chartered Accountants

& Statutory Auditors

Monometer House

Rectory Grove

Leigh on Sea

Essex

SS9 2HN

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

REVIEW OF BUSINESS

The directors are pleased to report another successful year of trading for Climatec Windows Limited, despite continued economic uncertainty and challenging market conditions across the fenestration and construction sectors.

Turnover for the year increased to £14.98 million compared with £14.47 million in 2024, representing growth of approximately 3.5%. This increase reflects the company's continued focus on customer service, product quality and operational efficiency, together with the loyalty of its established customer base.

Gross profit increased from £3.49 million in 2024 to £3.92 million in 2025, an improvement of approximately 12.3%. The directors are particularly encouraged by this performance, which demonstrates the company's ability to manage costs effectively whilst maintaining competitive pricing in a demanding marketplace.

Profit after taxation increased to £628,000, compared with £550,000 in the previous year, representing an increase of approximately 14.2%. This reflects the company's continued emphasis on cost control, productivity improvements and efficient management of resources throughout the business.

The company has continued to invest in its manufacturing operations, equipment and workforce in order to maintain high standards of quality and service. Regular monitoring of performance against budgets and forecasts remains central to the company's management strategy, enabling the business to react quickly to changing market conditions and opportunities.

The directors believe that Climatec Windows Limited remains well positioned within its market sector and continues to benefit from a strong reputation for quality products, reliability and customer service.

PRINCIPAL RISKS AND UNCERTAINTIES

Recruitment and Retention

The recruitment and retention of skilled personnel continues to be one of the key challenges facing the manufacturing sector. The company remains committed to developing and retaining its workforce through competitive remuneration, training and career development opportunities.

Economic Conditions

Economic uncertainty remains a factor affecting both consumers and businesses. Interest rates, inflationary pressures, energy costs and wider economic conditions all have the potential to influence customer demand and business confidence.

Cost Inflation

Although inflationary pressures have eased compared with recent years, the company continues to experience increases in employment costs, utilities, transportation and raw materials. Management continues to review purchasing arrangements and operational efficiencies to mitigate these pressures wherever possible.

Legislative and Regulatory Changes

Changes to taxation, employment legislation, National Living Wage requirements and employer National Insurance contributions continue to increase operating costs for businesses. The directors monitor legislative developments closely to ensure compliance and minimise any adverse impact on the business.

KEY PERFORMANCE INDICATORS

The directors monitor a range of key performance indicators to assess the performance of the business.

KPI

2025

2024

Change

Turnover

£14.98m

£14.47m

+3.5%

Gross Profit

£3.92m

£3.49m

+12.3%

Profit After Tax

£628k

£550k

+14.2%

Gross Profit Margin

26.2%

24.1%

+2.1%

The improvement in both profitability and gross margin demonstrates the effectiveness of the company's focus on operational efficiency, cost management and pricing discipline.

FUTURE OUTLOOK

The directors remain cautiously optimistic regarding the future prospects of the company.

Climatec Windows Limited enters 2026 with a strong balance sheet, a healthy cash position and an established customer base. The company will continue to focus on maintaining high levels of customer service, investing in manufacturing capability and improving operational efficiency.

Whilst economic conditions remain uncertain, the directors believe that the business is well placed to continue generating profitable growth and to take advantage of opportunities within its markets.

The company's order book remains encouraging and management remains committed to supporting long-term sustainable growth while maintaining financial stability and strong customer relationships.

ON BEHALF OF THE BOARD:

Mr S P Muskett - Director

30th July 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture of doors and windows.

DIVIDENDS

The total distribution of dividends for the year ended 31st December 2025 will be £ 200,477 .

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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

Opinion

We have audited the financial statements of Climatec Windows Limited (the 'company') for the year ended 31st December 2025 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 31st December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 considerations 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, 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 unavoidable risk that material misstatements may not be detected, even tough 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.

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

TURNOVER

3

14,977,832

14,468,568

Cost of sales

11,059,258

11,020,013

GROSS PROFIT

3,918,574

3,448,555

Distribution costs

604,461

469,459

Administrative expenses

2,461,781

2,215,358

3,066,242

2,684,817

OPERATING PROFIT

5

852,332

763,738

Interest receivable and similar income

9,341

1

861,673

763,739

Interest payable and similar expenses

6

20,289

26,368

PROFIT BEFORE TAXATION

841,384

737,371

Tax on profit

7

213,772

187,385

PROFIT FOR THE FINANCIAL YEAR

627,612

549,986

PROFIT FOR THE YEAR

627,612

549,986

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

627,612

549,986

FIXED ASSETS

Tangible assets

9

663,810

687,140

CURRENT ASSETS

Stocks

10

1,054,555

1,141,566

Debtors

11

4,815,865

4,259,819

Cash at bank and in hand

334,457

361,164

6,204,877

5,762,549

CREDITORS

Amounts falling due within one year

12

2,815,855

2,758,896

NET CURRENT ASSETS

3,389,022

3,003,653

TOTAL ASSETS LESS CURRENT LIABILITIES

4,052,832

3,690,793

CREDITORS

Amounts falling due after more than one year

13

(48,008

)

(111,846

)

PROVISIONS FOR LIABILITIES

17

(150,945

)

(152,203

)

NET ASSETS

3,853,879

3,426,744

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

3,853,779

3,426,644

SHAREHOLDERS' FUNDS

3,853,879

3,426,744

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

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2024

100

3,034,208

3,034,308

Changes in equity

Dividends

-

(157,550

)

(157,550

)

Total comprehensive income

-

549,986

549,986

Balance at 31st December 2024

100

3,426,644

3,426,744

Changes in equity

Dividends

-

(200,477

)

(200,477

)

Total comprehensive income

-

627,612

627,612

Balance at 31st December 2025

100

3,853,779

3,853,879

1.	STATUTORY INFORMATION

Climatec Windows 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.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

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.

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 estimated selling price, 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 Profit and Loss Account, 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.

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 company.

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

14,977,832

14,468,568

14,977,832

14,468,568

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,692,834

4,250,264

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

2025

2024

Directors

2

2

Manufacturing

121

101

Engineering

1

1

Admin

28

13

Transport

10

9

Sales

3

-

165

126

2025

2024

£

£

Directors' remuneration

133,229

83,050

5.	OPERATING PROFIT

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

2025

2024

£

£

Depreciation - owned assets

113,424

116,299

Profit on disposal of fixed assets

(3,496

)

(9,745

)

Auditors' remuneration

15,575

14,954

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

1,560

10,308

Interest on overdue taxation

113

-

Hire purchase

18,616

16,060

20,289

26,368

7.

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

215,031

186,345

Deferred tax

(1,259

)

1,040

Tax on profit

213,772

187,385

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

841,384

737,371

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

210,346

184,343

Effects of:

Expenses not deductible for tax purposes

2,052

475

Depreciation in excess of capital allowances

3,525

353

Effects of movements in pension liability

(892

)

1,174

Origination and reversal of timing differences

(1,259

)

1,040

Total tax charge

213,772

187,385

8.

DIVIDENDS

2025

2024

£

£

Interim

200,477

157,550

9.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1st January 2025

100,309

1,241,812

112,978

Additions

-

69,600

18,966

At 31st December 2025

100,309

1,311,412

131,944

DEPRECIATION

At 1st January 2025

57,306

705,985

25,551

Charge for year

9,069

84,613

9,194

At 31st December 2025

66,375

790,598

34,745

NET BOOK VALUE

At 31st December 2025

33,934

520,814

97,199

At 31st December 2024

43,003

535,827

87,427

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1st January 2025

25,032

37,111

1,517,242

Additions

-

1,528

90,094

At 31st December 2025

25,032

38,639

1,607,336

DEPRECIATION

At 1st January 2025

13,310

27,950

830,102

Charge for year

2,617

7,931

113,424

At 31st December 2025

15,927

35,881

943,526

NET BOOK VALUE

At 31st December 2025

9,105

2,758

663,810

At 31st December 2024

11,722

9,161

687,140

Included above are assets held under hire purchase contracts and finance leases with a total net book value of £344,329 (2024: £339,488) and a total depreciation charge in the year of £55,434 (2024: £52,701).