ACCOUNTS - Final Accounts preparation

Operating profit/(loss)

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

Registered number: 12224864

ARKAY GROUP LONDON LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

ARKAY GROUP LONDON LIMITED

COMPANY INFORMATION

Director	R R Radia


Registered number	12224864


Registered office	36-38 Caxton Way
	Watford
	WD18 8QZ


Independent auditors	Adler Shine LLP
	Chartered Accountants & Statutory Auditor
	Aston House
	Cornwall Avenue
	London
	N3 1LF

ARKAY GROUP LONDON LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 2
Director's Report	3 - 4
Independent Auditors' Report	5 - 9
Consolidated Statement of Comprehensive Income	10
Consolidated Balance Sheet	11 - 12
Company Balance Sheet	13
Consolidated Statement of Changes in Equity	14
Company Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16 - 17
Consolidated Analysis of Net Debt	18
Notes to the Financial Statements	19 - 43

ARKAY GROUP LONDON LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

The Director presents the annual report and financial statements of Arkay Group London Limited. The principal activity of the Group is the manufacturing of windows and doors.

Business review

The Group delivered a strong improvement in financial performance during the year. Turnover grew by 11.9% to £26.2m (2024: £23.4m), while gross profit increased by 30.4% to £7.1m (2024: £5.5m). This translated into a gross profit margin of 27.2% (2024: 23.3%), reflecting the benefit of pricing actions taken to recover input cost inflation across both the aluminium and uPVC product ranges, alongside tighter control over production costs.
The Group returned to operating profit of £47,000 for the year, a turnaround of £0.9m from the operating loss of £(0.9)m reported in 2024. This was achieved despite a 13.2% increase in administrative expenses to £5.8m (2024: £5.1m), driven by wage inflation and higher employer social security costs, notwithstanding a reduction in average headcount from 170 to 139 as the Group continued to right-size its production workforce following the 2024 restructure.
The Group's cash position strengthened materially over the year. Net cash generated from operating activities was £2.0m, compared with cash outflow of £(1.5)m in 2024, a swing of £3.5m driven by the improved trading result and a £0.9m reduction in trade and other debtors.

Principal risks and uncertainties

Principal risks and uncertainties the business have are as follows:
The group's principal financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and hire purchase creditors. The main purpose of these instruments is to fund the ongoing group's working capital. Due to the nature of these instruments the group is not exposed to price risk. The group's approach to managing other risks applicable to these finance instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the funding requirements to support operational and other activities and the banking facilities available from the bank. The group's liquidity risk management includes short-term cash projections and considering the level of liquid assets in relation thereto, and monitoring balance sheet liquidity on a frequent basis.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by balancing purchases in line with sales and by ensuring sufficient funds are available to meet amounts due.

Financial key performance indicators

The Group's key performance indicators are:
2025 2024
Sales £26.2m £23.4m
Gross profit margin 27.2% 23.3%
Loss before tax £(0.3)m £(1.02)m

The Group uses no other key performance indicators.

Page 1

ARKAY GROUP LONDON LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

This report was approved by the board and signed on its behalf.

R R Radia

Director

Date: 1 September 2026

Page 2

ARKAY GROUP LONDON LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

The director presents his report and the financial statements for the year ended 31 December 2025.

Director's responsibilities statement

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Company and that of its wholly owned subsidiary, Arkay Group Limited, in the period under review was that of an investment holding company.
The principal activity of Arkay Windows Limited and Quantum Windows Limited, wholly owned subsidiaries of Arkay Group London Limited, in the period under review was that of manufacturing of windows and doors.

Results and dividends

The loss for the year, after taxation, amounted to £339,019 (2024 - loss £1,018,581).

During the year the company paid ordinary dividends of £Nil (2023: £Nil).
Preference dividends of £87,806 (2024: £87,806) were paid during the year and shown as an interest expense.

Director

The director who served during the year was:

R R Radia

Page 3

ARKAY GROUP LONDON LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:

∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, Adler Shine LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

R R Radia

Director

Date: 1 September 2026

Page 4

ARKAY GROUP LONDON LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY GROUP LONDON LIMITED

Opinion

We have audited the financial statements of Arkay Group London Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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's affairs as at 31 December 2025 and of the Group's 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.

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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or 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 director with respect to going concern are described in the relevant sections of this report.

Page 5

ARKAY GROUP LONDON LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY GROUP LONDON LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Director's Report 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 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 Director's Report.

We have nothing to report in respect of the following matters in relation to which 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 director's remuneration specified by law are not made; or

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

Page 6

ARKAY GROUP LONDON LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY GROUP LONDON LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's Responsibilities Statement set out on page 3, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 7

ARKAY GROUP LONDON LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY GROUP LONDON LIMITED (CONTINUED)

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 an Auditors' Report 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 Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities;
• performed audit work over the risk of management override of controls, including testing of journal entries
  and other adjustments for appropriateness, and reviewing accounting estimates for bias;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances
  of non-compliance;
• discussed matters among the audit engagement team regarding how and where fraud might occur in the
   financial statements and potential indicators of fraud.
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 8

ARKAY GROUP LONDON LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ARKAY GROUP LONDON LIMITED (CONTINUED)

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 an Auditors' Report 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.

Engin Zekia BSc FCA (Senior Statutory Auditor)

for and on behalf of

Adler Shine LLP

Chartered Accountants

Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF

2 September 2026

Page 9

ARKAY GROUP LONDON LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover		26,178,479	23,401,025
Cost of sales		(19,065,829)	(17,944,955)
Gross profit		7,112,650	5,456,070
Administrative expenses		(5,788,493)	(5,113,043)
Amortisation and depreciation costs		(1,434,582)	(1,442,726)
Other operating income	4	139,700	183,977
Fair value movements		17,463	35,764
Operating profit/(loss)	5	46,738	(879,958)
Interest receivable and similar income	9	95,258	93,373
Interest payable and similar expenses	10	(243,610)	(236,300)
Loss before taxation		(101,614)	(1,022,885)
Tax on loss	11	(237,405)	4,304
Loss for the financial year		(339,019)	(1,018,581)

(Loss) for the year attributable to:
Owners of the parent Company	(339,019)	(1,018,581)
	(339,019)	(1,018,581)

Total comprehensive income for the year attributable to:
Owners of the parent Company	(339,019)	(1,018,581)
	(339,019)	(1,018,581)

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 19 to 43 form part of these financial statements.

Page 10

ARKAY GROUP LONDON LIMITED

REGISTERED NUMBER: 12224864

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	12		3,989,085		4,888,771
Tangible assets	13		3,168,219		3,305,276
Investments	14		718,766		208,448
			7,876,070		8,402,495
Current assets
Stocks	15	2,758,902		2,684,558
Debtors	16	5,554,456		6,617,339
Current asset investments	17	203,255		-
Cash at bank and in hand	18	1,291,339		954,421
		9,807,952		10,256,318
Creditors: amounts falling due within one year	19	(3,707,484)		(4,110,931)
Net current assets			6,100,468		6,145,387
Total assets less current liabilities			13,976,538		14,547,882
Creditors: amounts falling due after more than one year	20		(5,369,312)		(5,727,611)
Provisions for liabilities
Deferred taxation	24	(447,800)		(321,826)
			(447,800)		(321,826)
Net assets			8,159,426		8,498,445

Capital and reserves
Called up share capital	25	1,030	1,030
Share premium account	26	9,337,470	9,337,470
Profit and loss account	26	(1,179,074)	(840,055)
Equity attributable to owners of the parent Company		8,159,426	8,498,445

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

R R Radia

Director

Date: 1 September 2026

The notes on pages 19 to 43 form part of these financial statements.

Page 11

ARKAY GROUP LONDON LIMITED

REGISTERED NUMBER: 12224864

CONSOLIDATED BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2025

Page 12

ARKAY GROUP LONDON LIMITED

REGISTERED NUMBER: 12224864

COMPANY BALANCE SHEET

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Investments	14		19,022,009		19,022,009
			19,022,009		19,022,009
Current assets
Debtors	16	2,038,603		2,007,155
Cash at bank and in hand	18	22,622		7,004
		2,061,225		2,014,159
Creditors: amounts falling due within one year	19	(1,656,431)		(1,354,821)
Net current assets			404,794		659,338
Total assets less current liabilities			19,426,803		19,681,347

Creditors: amounts falling due after more than one year	20		(4,782,465)		(4,830,039)

Net assets excluding pension asset			14,644,338		14,851,308
Net assets			14,644,338		14,851,308

Capital and reserves
Called up share capital	25		1,030		1,030
Share premium account	26		9,337,470		9,337,470
Profit and loss account brought forward		5,512,808		5,345,825
Loss/(profit) for the year		(206,970)		166,983
Profit and loss account carried forward			5,305,838		5,512,808
			14,644,338		14,851,308

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

R R Radia

Director

Date: 1 September 2026

The notes on pages 19 to 43 form part of these financial statements.

Page 13

ARKAY GROUP LONDON LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£	£
At 1 January 2024	1,030	9,337,470	178,526	9,517,026	9,517,026
Comprehensive income for the year
Loss for the year	-	-	(1,018,581)	(1,018,581)	(1,018,581)

At 1 January 2025	1,030	9,337,470	(840,055)	8,498,445	8,498,445
Comprehensive income for the year
Loss for the year	-	-	(339,019)	(339,019)	(339,019)
At 31 December 2025	1,030	9,337,470	(1,179,074)	8,159,426	8,159,426

The notes on pages 19 to 43 form part of these financial statements.

Page 14

ARKAY GROUP LONDON LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	1,030	9,337,470	5,345,825	14,684,325
Comprehensive income for the year
Profit for the year - As restated	-	-	166,983	166,983

At 1 January 2025	1,030	9,337,470	5,512,808	14,851,308
Comprehensive income for the year
Loss for the year	-	-	(206,970)	(206,970)
At 31 December 2025	1,030	9,337,470	5,305,838	14,644,338

The notes on pages 19 to 43 form part of these financial statements.

Page 15

ARKAY GROUP LONDON LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

			2025	2024
			£	£

Cash flows from operating activities
Loss for the financial year	(339,019)	(1,018,581)
Adjustments for:
Amortisation of intangible assets	899,686	943,534
Depreciation of tangible assets	534,896	499,192
Loss on disposal of tangible assets	(42,344)	2,340
Interest paid	243,620	236,299
Interest received	(95,258)	(93,373)
Taxation charge	237,405	(4,304)
(Increase)/decrease in stocks	(74,344)	378,192
Decrease/(increase) in debtors	910,978	(823,402)
(Decrease) in creditors	(451,272)	(1,395,230)
Net fair value (gains) recognised in P&L	(17,463)	(35,764)
Corporation tax received/(paid)	139,065	(195,787)
Foreign exchange	23,700	2,189
Net cash generated from operating activities	1,969,650	(1,504,695)

Cash flows from investing activities
Purchase of intangible fixed assets	-	(565,458)
Sale of intangible assets	-	4,001
Purchase of tangible fixed assets	(279,683)	-
Sale of tangible fixed assets	71,429	-
Purchase of short-term government gilts	(203,255)	-
Purchase of government gilts	(507,300)	-
Interest received	19,856	26,573
HP interest paid	(81,618)	(37,886)
Net cash from investing activities	(980,571)	(572,770)
Cash flows from financing activities
New secured loans	-	1,000,000
Repayment of loans	(40,611)	(26,115)
Repayment of/new finance leases	(437,886)	(25,300)
Interest paid	(74,196)	(198,413)
Net cash used in financing activities	(552,693)	750,172

Page 16

ARKAY GROUP LONDON LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

		2025	2024
		£	£


Net increase/(decrease) in cash and cash equivalents	436,386	(1,327,293)
Cash and cash equivalents at beginning of year	660,433	1,987,727
Cash and cash equivalents at the end of year	1,096,819	660,434

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	1,291,339	954,421
Bank overdrafts	(194,520)	(293,987)
	1,096,819	660,434

The notes on pages 19 to 43 form part of these financial statements.

Page 17

ARKAY GROUP LONDON LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2025


At 1 January 2025	Cash flows	New finance leases	At 31 December 2025
£	£	£	£

Cash at bank and in hand	954,421	336,918	-	1,291,339
Bank overdrafts	(293,987)	99,467	-	(194,520)
Debt due after 1 year	(4,830,039)	47,574	-	(4,782,465)
Debt due within 1 year	(46,346)	(6,963)	-	(53,309)
Finance leases	(1,159,644)	437,886	(147,241)	(868,999)
	-	-	-	-
	(5,375,595)	914,882	(147,241)	(4,607,954)

The notes on pages 19 to 43 form part of these financial statements.

Page 18

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

Arkay Group London 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

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

In March 2024, the Financial Reporting Council (FRC) issued amendments to FRS 102 following its Periodic Review. These amendments are effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted. The most significant changes affecting the Company are:
• FRS 102 – Section 20 (Leases): The model aligns with IFRS 16 by removing the distinction between operating and finance leases for lessees. The revised lease accounting requirements are expected to result in the recognition of right-of-use assets and corresponding lease liabilities in respect of most leases currently classified as operating leases.
• FRS102 – Section 23 (Revenue): The model aligns with IFRS15 by introducing a five-step revenue recognition model based on the transfer of control of goods and/or services.
The Company has not early adopted these amendments and the Director is currently assessing the impact of these amendments on the Company's financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

Sale of goods

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

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group 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 Group 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.

Page 20

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

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

2.9

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible 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 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 ten years.

Page 22

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.12

Tangible fixed assets

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.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Freehold buildings	-	2%	on cost
Short-term leasehold property	-	2%	on cost
Plant and machinery	-	15%	on a reducng balance basis
Motor vehicles	-	25%	on a reduing balance basis
Fixtures and fittings	-	20%	and 15% on a reducing balance basis
Computer equipment	-	25%	on cost

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 profit or loss.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.14

Stocks

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 a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

Page 23

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.15

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.

2.16

Cash and cash equivalents

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 Consolidated 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 Group's cash management.

2.17

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.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement

Page 24

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Page 25

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

2.20

Dividends

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Page 26

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.
Depreciation
There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.
Deferred Taxation
There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.
Bad debt provision
There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.
Work in progresss
There is estimation uncertainity in calculating how complete various partially constructed windows and doors are at the year end. Whist every effort is made to calculate this as accurately as possible there remains a risk that the work in progress may be over or understated.

4.	Other operating income
		2025	2024
		£	£

Other operating income	103,700	147,977
Net rents receivable	36,000	36,000
	139,700	183,977

Page 27

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Exchange differences	23,697	2,185
Other operating lease rentals	598,902	441,445
Depreciation-owned assets	511,986	314,773
Depreciation - assets on hire purchase contracts	22,910	184,420
Goodwill amortisation	899,686	943,534

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

53,500

48,500

Page 28

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

7.	Employees
	Staff costs, including director's remuneration, were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	5,062,918	5,098,849
Social security costs	602,514	484,442
Cost of defined contribution scheme	113,268	104,353
	5,778,700	5,687,644

The average monthly number of employees, including the director, during the year was as follows:

	2025	2024
	No.	No.

Sales	2	2
Production	102	131
Administrative	35	37

	139	170

8.	Director's remuneration
		2025	2024
		£	£

Director's emoluments	51,500	44,000
Group contributions to defined contribution pension schemes	1,302	1,133
	52,802	45,133

During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	95,258	93,373
		95,258	93,373

Page 29

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

10.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	74,077	66,215
Other loan interest payable	-	44,083
Preference share dividends	87,806	87,806
Finance leases and hire purchase contracts	81,618	37,887
Other interest payable	109	309
	243,610	236,300

Corporation tax
Current tax on profits for the year	111,431	-
	111,431	-

Total current tax	111,431	-

Deferred tax
Origination and reversal of timing differences	125,974	(4,304)
Total deferred tax	125,974	(4,304)


	Tax on loss	237,405	(4,304)

Page 30

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.Taxation (continued)

Loss on ordinary activities before tax

(101,614)

(1,022,884)

Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	(25,404)	(255,721)
Effects of:
Non-tax deductible amortisation of goodwill and impairment	224,922	224,921
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	34,490	27,589
Depreciation in excess of capital allowances/(Capital allowances for year in excess of depreciation)	85,780	(182,328)
Utilisation of tax losses	(194,089)	-
Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax	684	(194)
Deferred tax provision	125,974	(4,304)
Non-taxable income	(4,366)	(8,941)
Loss on disposal of fixed assets	-	585
Profit on disposal of assets	(10,586)	-
Unrelieved tax losses carried forward	-	194,089
Total tax charge for the year	237,405	(4,304)

Page 31

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12.	Intangible assets
	Group

		Goodwill
		£
	Cost
	At 1 January 2025	9,152,713
	Disposals	(877,000)
	At 31 December 2025	8,275,713
	Amortisation
	At 1 January 2025	4,263,942
	Charge for the year on owned assets	899,686
	On disposals	(877,000)
	At 31 December 2025	4,286,628
	Net book value
	At 31 December 2025	3,989,085
	At 31 December 2024	4,888,771

Page 32

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Tangible fixed assets
	Group

	Freehold property	Short-term leasehold property	Plant and machinery	Motor vehicles	Computer equipment
	£	£	£	£	£
Cost or valuation
At 1 January 2025	1,002,520	90,912	3,521,170	701,367	726,535
Additions	-	-	51,285	186,547	189,092
Disposals	-	-	-	(149,511)	-
At 31 December 2025	1,002,520	90,912	3,572,455	738,403	915,627
Depreciation
At 1 January 2025	67,250	69,125	1,827,674	316,452	456,727
Charge for the year on owned assets	13,550	6,536	116,080	29,243	115,901
Charge for the year on financed assets	-	-	164,436	89,150	-
Disposals	-	-	-	(120,426)	-
At 31 December 2025	80,800	75,661	2,108,190	314,419	572,628
Net book value
At 31 December 2025	921,720	15,251	1,464,265	423,984	342,999
At 31 December 2024	935,270	21,787	1,693,496	384,915	269,808

Page 33

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.Tangible fixed assets (continued)

		Total
		£
	Cost or valuation
	At 1 January 2025	6,042,504
	Additions	426,924
	Disposals	(149,511)
	At 31 December 2025	6,319,917
	Depreciation
	At 1 January 2025	2,737,228
	Charge for the year on owned assets	281,310
	Charge for the year on financed assets	253,586
	Disposals	(120,426)
	At 31 December 2025	3,151,698
	Net book value
	At 31 December 2025	3,168,219
	At 31 December 2024	3,305,276

Page 34

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.Tangible fixed assets (continued)

The net book value of land and buildings may be further analysed as follows:
	2025	2024
	£	£

Freehold	921,720	935,270
Short leasehold	15,251	21,787
	936,971	957,057

14.	Fixed asset investments
	Group

	Investments in subsidiary companies	Listed investments	Total
	£	£	£
Cost or valuation
At 1 January 2025	-	208,448	208,448
Additions	507,300	-	507,300
Foreign exchange movement	-	(23,697)	(23,697)
Revaluations	-	17,463	17,463
Capitalised interest	-	9,252	9,252
At 31 December 2025	507,300	211,466	718,766

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	19,022,009
	At 31 December 2025	19,022,009

Page 35

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding

Arkay Group Limited	Ordinary	100%
Arkay Windows Limited	Ordinary	100%
Quantum Windows Limited	Ordinary	100%

15.	Stocks
		Group	Group
		2025	2024
		£	£

Raw materials and consumables	2,330,349	2,326,651
Work in progress (goods to be sold)	158,012	119,779
Finished goods and goods for resale	270,541	238,128
	2,758,902	2,684,558

The difference between purchase price or production cost of stocks and their replacement cost is not material.

16.

Debtors

Group	Group As restated	Company	Company As restated
2025	2024	2025	2024
£	£	£	£



Trade debtors	1,728,145	2,363,926	-	-
Amounts owed by group undertakings	-	-	227,187	227,286
Other debtors	3,238,921	3,452,526	1,811,416	1,734,629
Prepayments and accrued income	587,390	800,887	-	-
Deferred taxation	-	-	-	45,240
	5,554,456	6,617,339	2,038,603	2,007,155

Page 36

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17.	Current asset investments
		Group	Group
		2025	2024
		£	£

Listed investments	203,255	-
	203,255	-

18.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	1,291,339	954,421	22,622	7,004
Less: bank overdrafts	(194,520)	(293,987)	-	-
	1,096,819	660,434	22,622	7,004

19.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank overdrafts	194,520	293,987	-	-
Bank loans	53,309	46,346	53,309	46,346
Trade creditors	1,900,459	2,444,818	-	-
Amounts owed to group undertakings	-	-	1,528,060	1,287,191
Corporation tax	186,698	21,586	75,062	21,284
Other taxation and social security	646,049	453,972	-	-
Obligations under finance lease and hire purchase contracts	282,152	381,104	-	-
Other creditors	122,581	89,564	-	-
Accruals and deferred income	321,716	379,554	-	-
	3,707,484	4,110,931	1,656,431	1,354,821

Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.

Page 37

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	879,965	927,539	879,965	927,539
Net obligations under finance leases and hire purchase contracts	586,847	778,539	-	-
Other creditors	-	119,033	-	-
Share capital treated as debt	3,902,500	3,902,500	3,902,500	3,902,500
	5,369,312	5,727,611	4,782,465	4,830,039

Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.

The following liabilities were secured:
	Group	Group	Company	Company
	2025	2024	2025	2024
	£	£	£	£


Bank Loans	933,274	973,882	933,274	973,882
	933,274	973,882	933,274	973,882

Details of security provided:

The Company's bank loan is secured by a legal charge over the groups freehold property.

Page 38

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Amounts falling due within one year
Bank loans	53,309	46,346	53,309	46,346
	53,309	46,346	53,309	46,346
Amounts falling due 1-2 years
Bank loans	56,851	49,786	56,851	49,786
	56,851	49,786	56,851	49,786
Amounts falling due 2-5 years
Bank loans	823,114	110,762	823,114	110,762
	823,114	110,762	823,114	110,762
Amounts falling due after more than 5 years
Bank loans	-	766,991	-	766,991
	-	766,991	-	766,991
	933,274	973,885	933,274	973,885

22.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2025	2024
		£	£

Within one year	282,152	381,104
Between 1-5 years	586,847	778,539
	868,999	1,159,643

Page 39

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

23.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	1,706,060	1,162,869	-	7,004

Financial assets measured at fair value through profit or loss comprise cash at bank and in hand and listed invetsments.

24.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(321,826)
	Charged to profit or loss	(125,974)
	At end of year	(447,800)

Company

		2025
		£

	At beginning of year	45,240
	Charged to profit or loss	(45,240)
	At end of year	-

The provision for deferred taxation is made up as follows:
	Group	Group	Company	Company
	2025	2024	2025	2024
	£	£	£	£

Accelerated capital allowances	(447,800)	(367,066)	-	-
Tax losses carried forward	-	45,240	-	45,240
	(447,800)	(321,826)	-	45,240

Page 40

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Allotted, called up and fully paid

1,030 (2024 - 1,030) Ordinary shares of £1.00 each	1,030	1,030

	2025	2024
	£	£
Shares classified as debt

Allotted, called up and fully paid

3,902,500 (2024 - 3,902,500) Preference shares of £1.00 each	3,902,500	3,902,500

26.

Reserves

Share premium account

Share premium represents the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issue.

Preference shares - shares classified as debt

Preference shares are non-voting and carry a preferential right to an annual 2.25% dividend (cumulative). These shares have a preferential right to be repaid at par on winding up, but do not have any further rights to participate in profits and capital gains.
These shares are redeemable at the Company's or the holder's option.

Profit and loss account

Profit and loss account represents retained profits and losses.

Page 41

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

27.	Contingent liabilities

As at 31 December 2025, the Company is a party to a cross guarantee arrangement with other members of the Arkay Group London Limited Group.
This arrangement supports a group banking facility, under which total borrowings amounted to £933,274 at the reporting date.
Entities party to the cross guarantee include:
Arkay Group London Limited
Arkay Group Limited
Arkay Windows Limited
Quantum Windows Limited

28.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £113,268 (2024 - £104,354). Contributions totalling £15,914 (2024 - £9,534) were payable to the fund at the balance sheet date and are included in creditors.

29.	Commitments under operating leases
	At 31 December 2025 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

Not later than 1 year	800,721	638,219
Later than 1 year and not later than 5 years	2,783,473	1,526,525
Later than 5 years	2,638,904	1,463,000
	6,223,098	3,627,744

30.	Transactions with directors

Included in other debtors are amounts due from a director of £486,976 (2024: £272,094). The amounts outstanding is interest free and repayable on demand.

Page 42

ARKAY GROUP LONDON LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

31.	Related party transactions
	The company has taken advantage of an exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. The director holds listed investments and cash with the investment brokers on behalf of the Company. The company undertook the following transactions with companies with common director and shareholder.

		2025	2024
		£	£

Sales	564,720	680,449
Bad debtos	(218,867)	-
Recharged expenses	85,409	76,496
Rent charged	36,000	36,000
Net trade balance due from related party at balance sheet date	2,242,203	2,430,776
Net loan balance due from related party at balance sheet date	(1,835)	(52,695)

Page 43