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

The Company faced another challenging year, as the Governments pledge to build 300,000 new homes per year in in England (1.5 million over the five-year parliament) was once again, despite tumbling interest rates, woefully short of their ambitious target, with only approximately 120,000 new starts in the 12 months to December 2025 (compared to 112,000 in 2024).

Sales turnover of £8,593,487 fell by 7% on 2024. Sales volumes remained steady in line with prior year. Gross Profit fell by 7.7% to £1,245,736 as a result of a depressed market, putting pressure on prices and margins.

Administration costs increased by £93,000, the result of one major bad debt of a similar amount.

The annual loss was (£947,602).

After two years of absorbing loses in the hope of a dramatic increases in new house building, as lauded by the Government, the Company were faced with no alternative but to re-evaluate and re-structure its production capacities in its three factories at Featherstone, Grantham, and Cinderford.

The directors took the decision in late 2025 for the sale and leaseback of the Featherstone factory for a gross sales price of £3,000,000, this was completed post year end on 20th February 2026.

With this completed, the Directors implemented the next step in the Company’s restructuring strategy to meet present and future demands by announcing in April the closure of its Cinderford plant to be effective from 15th May 2026.

This is expected to generate annual savings of an estimated £750,000 in wages, salaries, and overheads, and the site itself has been put up for sale on the property market and is expected to generate a further substantial inflow of cash over the coming 12 months.

These Decisions were not taken lightly but were necessary to ensure the long-term future of the business by raising a substantial amount of cash, from the sale and leaseback of Featherstone, transforming its working capital, cash and liquidity position, followed by the permanent closure of Cinderford, reducing substantially the Company's labour and overhead costs.

The Directors are confident the Company will now return to profitability and still has the production capacity in Featherstone and Grantham to manufacture 1,700,000 linear meters per year, the equivalent of 20,000 new houses per annum.

Principal risks and uncertainties

The principal risks and uncertainties to the business is the level of the BOE minimum lending rate and its impact and implication on mortgage costs, buyer confidence, and the cost of living.

Customers and suppliers alike are all saying the same thing, it’s the worst they’ve ever known in the industry for decades, and worse than any previous slowdowns or recessions.

Consumer and buyer confidence is at an all-time low, and house building needs help in the way of 100% mortgages for first time buyers, the abolition of stamp duty, and continued reductions in the BOE lending rate, and therefore mortgage rates.

The Government seem oblivious to the current state of house building in particular new house starts, not conversions from existing commercial and retail buildings to flats.

More and more companies allied to the construction industry are closing and going out of business by the day, and the Government may want to blame events in Iran, the Gulf and Middle East, which is not helping, but the crux of the problem lies in the Government's economic, taxation and industrial policies, where a reset is urgently needed.

On behalf of the board

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Rackham Housefloors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mill Street East, Dewsbury, West Yorkshire, WF12 9TA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The directors must satisfy themselves that it is reasonable to conclude that the financial statements should be prepared on the going concern basis.true

In order to manage the operations of the company, the directors prepare regular forecasts covering sales, production, profitability, liquidity and capital expenditure. The outputs of these projections support the director's assertion that the company can continue to meet its liabilities as they fall due and therefore it remains appropriate to prepare the financial statements on the going concern basis and the directors are comfortable that no material uncertainties exist.

In addition, as disclosed in note 13, the company completed a sale and leaseback transaction on 20 February 2026 in respect of the property held at the Featherstone factory site. After costs, the net receipt from the transaction was £2,779,198. This additional cash influx further supports the ability of the company to continue operations for the foreseeable future.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Revenue from the sale of goods is recognised when 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.

Intangible fixed assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible fixed assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years.

Amortisation is provided on the following bases:

Tangible fixed assets under the cost model 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.

The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged tot he Statement of comprehensive income during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

Investments in subsidiaries are measured at cost less accumulated impairment.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.

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 the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would received for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

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

The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of comprehensive income over the remaining vesting period.

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

The average monthly number of persons (including directors) employed by the company during the year was:

Freehold land of £466,200 (2024: £466,200) is not depreciated.

The company has a 100% investment in Rackham Housefloors Manufacturing Limited, a dormant company which is registered in England and Wales. At 31 December 2025 the capital and reserves of Rackham Housefloors Manufacturing Limited were £1 (2024: £1).

Under the provision of section 405 (2) of the Companies Act 2006 the Company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity and not about its group.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Included in the above total is £nil (2024: £nil) in relation to land & buildings and £834,154 (2024: £1,030,062) in relation to plant and machinery.

In the prior year, operating lease commitments of £1,030,062 were not fully disclosed. This disclosure has been restated to include the correct comparative commitments. This restated disclosure has no impact on the financial statements.

Post year end, a sale and leaseback transaction was completed on 20 February 2026 in respect of the property held at the Featherstone factory site. The property was sold for £3,000,000. As part of the transaction a 10 year lease was signed in respect of the Featherstone property at a cost of £235,000 per annum. After costs, the net receipt from the transaction was £2,779,198.

The directors consider Paul Moore to be the Company's controlling related party by virtue of his beneficial majority interest in the issued share capital of the company. Dividends of £102,180 (2024: £102,180) have been declared on this shareholding during the year of which £72,180 (2024: £102,180) was paid during the year. £30,000 (2024: £nil) is included on the balance sheet as dividends payable at the year end. Dividends of £2,100 (2024: £2,100) were paid to R Varley during the year.