REGISTERED NUMBER: 02830877 (England and Wales)

RECO SURFACES LTD

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 DECEMBER 2025

Page

Company Information

1

Report of the Directors

2

Balance Sheet

4

Notes to the Financial Statements

5

DIRECTORS:

C R W Fleet

Mrs M R Fleet

C J R Fleet

E J R Lee

C R Kirkland

P H W Fleet

REGISTERED OFFICE:

Unit R1Havenside

Fishtoft Road

Boston

Lincolnshire

PE21 0AH

REGISTERED NUMBER:

02830877 (England and Wales)

AUDITORS:

Dexter & Sharpe Audit Services Ltd

(Statutory Auditor)

Rollestone House

Bridge Street

Horncastle

Lincolnshire

LN9 5HZ

The directors present their report with the financial statements of the company for the year ended 30 December 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of manufacturing of wall and ceiling panels, plastic recycling and research and development.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 December 2024 to the date of this report.

C R W Fleet

Mrs M R Fleet

C J R Fleet

E J R Lee

C R Kirkland

P H W Fleet

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

C J R Fleet - Director

18 September 2026

FIXED ASSETS

Intangible assets

3

90,883

105,174

Tangible assets

4

954,481

960,486

1,045,364

1,065,660

CURRENT ASSETS

Stocks

529,514

360,262

Debtors

5

1,536,879

1,083,467

Cash at bank and in hand

82,661

55,568

2,149,054

1,499,297

CREDITORS

Amounts falling due within one year

6

1,680,077

667,398

NET CURRENT ASSETS

468,977

831,899

TOTAL ASSETS LESS CURRENT LIABILITIES

1,514,341

1,897,559

CREDITORS

Amounts falling due after more than one year

7

(50,000

)

(733,038

)

ACCRUALS AND DEFERRED INCOME

(19,391

)

(22,813

)

NET ASSETS

1,444,950

1,141,708

CAPITAL AND RESERVES

Called up share capital

10

3,357,888

3,357,888

Share premium

908,579

908,579

Retained earnings

(2,821,517

)

(3,124,759

)

SHAREHOLDERS' FUNDS

1,444,950

1,141,708

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

C J R Fleet - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

In the current year, the directors have opted to show a deferred tax asset. This is because the company has secured a large contract which will take the company into profit in the coming year and generate growing profits over the succeeding years.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 24 (2024 - 19 ) .

3.	INTANGIBLE FIXED ASSETS

Patents

and

Computer

licences

software

Totals

£

£

£

COST

At 31 December 2024

121,304

69,006

190,310

Additions

4,320

-

4,320

At 30 December 2025

125,624

69,006

194,630

AMORTISATION

At 31 December 2024

75,285

9,851

85,136

Amortisation for year

12,293

6,318

18,611

At 30 December 2025

87,578

16,169

103,747

NET BOOK VALUE

At 30 December 2025

38,046

52,837

90,883

At 30 December 2024

46,019

59,155

105,174

4.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

property

machinery

Totals

£

£

£

COST

At 31 December 2024

181,035

1,419,875

1,600,910

Additions

45,492

78,637

124,129

At 30 December 2025

226,527

1,498,512

1,725,039

DEPRECIATION

At 31 December 2024

-

640,424

640,424

Charge for year

-

130,134

130,134

At 30 December 2025

-

770,558

770,558

NET BOOK VALUE

At 30 December 2025

226,527

727,954

954,481

At 30 December 2024

181,035

779,451

960,486

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

360,166

182,307

Other debtors

1,176,713

901,160

1,536,879

1,083,467

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Hire purchase contracts (see note 8)

140,328

140,214

Trade creditors

543,401

243,160

Taxation and social security

232,994

85,273

Other creditors

763,354

198,751

1,680,077

667,398

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Hire purchase contracts (see note 8)

-

140,358

Other creditors

50,000

592,680

50,000

733,038

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

£

Net obligations repayable:

Within one year

140,328

140,214

Between one and five years

-

140,358

140,328

280,572

Non-cancellable

operating leases

2025

2024

£

£

Within one year

115,624

117,217

Between one and five years

353,501

350,467

469,125

467,684

9.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

140,328

280,572

Loans included in 'Other Creditors' totalling £633,268 are secured via a fixed and floating charge over the company's assets.

Hire purchase creditors are secured over the assets financed.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

3,213,290

Ordinary

£1

3,213,290

3,213,290

Allotted and issued:

Number:

Class:

Nominal

2025

2024

value:

£

£

144,598

VN shares

1

144,598

144,598

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Mrs Nicola Michelle Lenton F.C.C.A. (Senior Statutory Auditor)

for and on behalf of Dexter & Sharpe Audit Services Ltd

12.	CAPITAL COMMITMENTS

2025

2024

£

£

Contracted but not provided for in the

financial statements

93,600

126,867

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 December 2025 and 30 December 2024:

2025

2024

£

£

C J R Fleet

Balance outstanding at start of year

10,348

10,604

Amounts advanced

21,417

20,645

Amounts repaid

-

(20,901

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

31,765

10,348

14.	RELATED PARTY DISCLOSURES

The loan of £50,000 (2024: £50,000) has had no date set for repayment and no interest is being charged. This amount is presented within creditors: amounts falling due after more than one year.

15.	ULTIMATE CONTROLLING PARTY

The company is controlled by the M R Fleet settlement.