Company No: 12341283 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Intangible assets	3	209,769		222,879
Tangible assets	4	60,149		70,026
		269,918		292,905
Current assets
Stocks		30,010		74,279
Debtors	5	144,315		32,076
Cash at bank and in hand		55,795		12,878
		230,120		119,233
Creditors: amounts falling due within one year	6	( 192,108)		( 103,824)
Net current assets		38,012		15,409
Total assets less current liabilities		307,930		308,314
Creditors: amounts falling due after more than one year	7	( 1,469,250)		( 1,343,009)
Net liabilities		( 1,161,320)		( 1,034,695)
Capital and reserves
Called-up share capital		1,718		1,718
Other reserves		120,000		120,000
Profit and loss account		( 1,283,038 )		( 1,156,413 )
Total shareholders' deficit		( 1,161,320)		( 1,034,695)

For the financial year ending 30 November 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Natural Building Systems Limited (registered number: 12341283) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

Miss C Donovan Director

Mr D Nicholson Director

27 August 2026

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Natural Building Systems Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Unit 4, White House Farm Business Units,, Walpole Road, Halesworth, IP19 0PH, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net liabilities of £1,161,320. The Company is supported through loans from the directors. The directors have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Development costs	17 years straight line
Trademarks, patents and licences	17 years straight line

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Fixtures and fittings

20 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Borrowing costs

Borrowing costs that are directly attributable to acquisition, construction or production of qualifying assets, are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	18		14

3. Intangible assets

	Development costs		Trademarks, patents and licences		Total
	£		£		£
Cost
At 01 December 2024	202,590		41,459		244,049
At 30 November 2025	202,590		41,459		244,049
Accumulated amortisation
At 01 December 2024	12,698		8,472		21,170
Charge for the financial year	11,170		1,940		13,110
At 30 November 2025	23,868		10,412		34,280
Net book value
At 30 November 2025	178,722		31,047		209,769
At 30 November 2024	189,892		32,987		222,879

4. Tangible assets

	Fixtures and fittings		Total
	£		£
Cost
At 01 December 2024	160,681		160,681
Additions	4,529		4,529
Disposals	( 162)		( 162)
At 30 November 2025	165,048		165,048
Accumulated depreciation
At 01 December 2024	90,655		90,655
Charge for the financial year	14,346		14,346
Disposals	( 102)		( 102)
At 30 November 2025	104,899		104,899
Net book value
At 30 November 2025	60,149		60,149
At 30 November 2024	70,026		70,026

5. Debtors

	2025		2024
	£		£
Trade debtors	2,665		4,379
Corporation tax	71,130		0
Other debtors	70,520		27,697
	144,315		32,076

6. Creditors: amounts falling due within one year

	2025		2024
	£		£
Trade creditors	63,478		42,140
Amounts owed to associates	18,117		23,214
Other taxation and social security	8,335		732
Obligations under finance leases and hire purchase contracts	6,605		4,924
Other creditors	95,573		32,814
	192,108		103,824

The liabilities relating to the hire purchase contracts above are secured on the assets to which they relate.

7. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Other loans	1,461,803		1,325,803
Accruals	1,500		1,500
Obligations under finance leases and hire purchase contracts	5,947		15,706
	1,469,250		1,343,009

The liabilities relating to the hire purchase contracts above are secured on the assets to which they relate.

8. Financial commitments

Commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

	2025		2024
	£		£
Within one year	13,750		13,750

9. Related party transactions

As at 30 November 2025, £120,000 is currently recognised as an other equity instrument. This is in respect of an investment by Carbon13. The investment will be converted to share capital on the closure of the next investment round.