Registration number:
for the Year Ended
Modular Safety Systems Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Modular Safety Systems Limited
Company Information
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Directors |
Mr D Smallridge Mr T Smallridge Mr C Herbert Mr L Smallridge Mr R Smallridge |
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Registered office |
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Auditors |
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Modular Safety Systems Limited
Strategic Report for the Year Ended 31 December 2025
The Directors present their strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the Company is the supply of handrail solutions
Fair review of the business
Turnover for the year was £11.06 million, broadly in line with the prior year (2024: £11.30 million), a decrease of 2.0%. However, profitability fell materially: gross profit reduced by 8.2% to £5.81 million as the gross margin narrowed from 56.1% to 52.6%, reflecting cost pressure in cost of sales, which grew 5.8% while turnover was flat to down.
Administrative expenses increased by 17.6% to £5.32 million (2024: £4.53 million), rising much faster than turnover. As a result, operating profit fell by 72.9% to £489,733 (2024: £1,806,552) and the operating margin declined from 16.0% to 4.4%. Profit before tax was £484,256 (2024: £1.87 million) and profit for the financial year was £339,249 (2024: £1.40 million), a reduction of 75.7%. The Directors consider that this reflects a year in which cost growth, particularly in overheads, was not matched by commensurate revenue growth, and this has been a specific focus of Board discussion during and since the year end.
Net assets at 31 December 2025 were £2.69 million (2024: £3.07 million), a decrease of 12.3%. This reduction reflects the lower retained profit for the year combined with a dividend of £717,420 (2024: £736,325) that exceeded the profit generated in the year, resulting in dividend cover of 0.47 times (2024: 1.90 times).
The Company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2025 |
2024 |
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Turnover |
£ |
11,064,179 |
11,295,602 |
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Gross profit |
£ |
5,814,982 |
6,333,275 |
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Gross profit Margin |
% |
52.6 |
56.1 |
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Net profit |
£ |
339,249 |
1,398,396 |
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Net profit margin |
% |
3.1 |
12.4 |
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Net assets |
£ |
2,693,600 |
3,071,771 |
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Cash and cash equivalents |
£ |
312,574 |
191,952 |
Modular Safety Systems Limited
Strategic Report for the Year Ended 31 December 2025
Principal risks and uncertainties
● Margin and overhead risk — administrative costs grew significantly faster than turnover during the year, compressing operating margin from 16.0% to 4.4%. The Board has commenced a structured programme to review overhead levels and cost allocation across sales channels to restore margin over the medium term.
● Customer and contract concentration — a material proportion of near-term growth opportunity is linked to a small number of large infrastructure programmes and key accounts. Delay, re-tendering or loss of any of these could affect the sales pipeline disproportionately.
● Working capital and credit risk — the Company extends credit to trade customers and holds stock to service orders; adverse movements in debtor recoverability, stock obsolescence or supplier terms could affect liquidity, although current liquidity ratios remain healthy.
● Input cost, supply chain and capacity risk — raw material and carriage costs, together with fabrication and production capacity, affect the Company's ability to meet lead times and maintain margin on larger or bespoke orders.
● Interest rate and foreign exchange risk — the Company holds bank deposits and has some exposure to foreign exchange movements on transactions and balances; net foreign exchange and interest movements affected the result for the year (see notes 6 and 7 to the financial statements).
● Financial planning and control — the Board has identified the need to further strengthen financial forecasting capability, including formalised cash flow forecasting and channel-level cost allocation, to support decision-making as the business grows.
● Key person and succession risk — as a family-owned business, the Company is reliant on a small number of senior individuals for leadership and continuity; the Board is actively considering management structure and succession planning.
The Directors continue to review and where possible mitigate these risks through Board oversight, regular management reporting, and periodic strategy sessions with external advisers.
Approved and authorised by the
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Modular Safety Systems Limited
Directors' Report for the Year Ended 31 December 2025
The Directors present their report and the financial statements for the year ended 31 December 2025.
Directors of the Company
The Directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Company's principal financial instruments comprise trade debtors, other debtors, cash at bank and in hand, trade creditors, other creditors and accruals, and balances arising on inter-company and directors' loan accounts. These instruments arise directly from the Company's trading operations and are used to finance its ongoing activities rather than for speculative purposes. The Company does not use derivative financial instruments and has no exposure to complex financial instruments.
The Board is responsible for setting the Company's financial risk management objectives and policies. Day-to-day treasury and credit control activity is managed by the finance function, with oversight from the Board through regular management accounts, cash reporting and periodic strategic review. The overriding objective is to ensure the Company has sufficient funds available to meet its working capital and investment requirements as they fall due, while managing exposure to credit, liquidity, interest rate, foreign exchange and input price risk within levels acceptable to the Board.
Modular Safety Systems Limited
Directors' Report for the Year Ended 31 December 2025
Price risk, credit risk, liquidity risk and cash flow risk
Price risk: the Company is exposed to price risk principally through fluctuations in the cost of raw materials (including steel, GRP and aluminium components) and carriage costs used in the manufacture of its products. This risk is managed through a structured pricing matrix and standard costing model applied at the quotation stage, regular review of supplier pricing, and, where products fall outside the standard pricing matrix, a requirement for bespoke pricing to be approved by the Leadership Team before quotation. The Company does not hold other price-sensitive financial assets such as listed investments.
Credit risk: the Company's principal credit risk arises from trade debtors, which represented £1,461,270 at the year end (2024: £1,534,421), together with amounts owed by related parties and other debtors. Credit risk is managed through credit checks and agreed credit limits and terms for customers, active monitoring of debtor ageing, and follow-up procedures for overdue balances. Debtor days were within the Company's target range during the year and into the following period. The Directors consider the risk of significant credit loss to be low given the spread of the customer base across direct, distributor, installation and international channels, although the Company does have some exposure to concentration risk on individual large contracts and orders.
Liquidity risk: the Company manages liquidity risk by maintaining a level of cash and undrawn facilities considered appropriate to meet its obligations as they fall due, and by monitoring rolling cash flow forecasts. Cash generated from operations increased to £1,540,334 during the year (2024: £1,157,032) and cash at bank and in hand at the year end was £312,574 (2024: £191,952). The current ratio at the year end was 2.44 (2024: 2.35) and the quick (acid test) ratio was 1.57 (2024: 1.57), indicating that current assets are more than sufficient to cover current liabilities. The Company has no long-term borrowings. The Board has identified the further development of formalised, longer-range cash flow forecasting as a priority to support liquidity management as the business grows.
Cash flow risk: the Company's cash flows are subject to interest rate risk on its cash balances, which earned interest income of £44,302 during the year (2024: £55,448), and to foreign exchange risk where transactions and balances are denominated in currencies other than sterling, giving rise to a net foreign exchange movement of £13,582 recognised within interest payable and similar expenses for the year (see notes 6 and 7 to the financial statements). The Company does not hedge these exposures through derivative instruments but monitors them as part of its regular financial reporting, and manages foreign currency risk principally by seeking to match the currency of sales and purchases where practicable.
Future developments
The Board's ongoing priorities for the current financial year, as reflected in Board strategy sessions held since the year end, include: pursuing significant infrastructure tender opportunities (including a major rail infrastructure programme where the Company has supplied trial orders and is tendering for further volume); resolving the long-term structure and ownership of the Katt Safety relationship; right-sizing overheads relative to gross profit; strengthening sales management structure and accountability; and improving financial forecasting and cash flow visibility. The Directors will continue to monitor these matters closely and report further progress in next year's Strategic Report.
Modular Safety Systems Limited
Directors' Report for the Year Ended 31 December 2025
Going concern
The financial statements have been prepared on a going concern basis. The Directors have considered the Company's cash position, its operating cash generation during the year, available banking arrangements, and the trading and cash flow forecasts prepared for the group for the twelve months following the date of approval of these financial statements, and consider it appropriate to adopt the going concern basis of preparation.
Modular Safety Systems Limited
Directors' Report for the Year Ended 31 December 2025
Statement of Directors' Responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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.
Disclosure of information to the auditors
Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Modular Safety Systems Limited
Directors' Report for the Year Ended 31 December 2025
Approved by the
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Modular Safety Systems Limited
Independent Auditor's Report to the Members of Modular Safety Systems Limited
Qualified opinion
We have audited the financial statements of Modular Safety Systems Limited (the 'Company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion on financial statements
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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
The corresponding figures for the financial year ended 31 December 2024 are unaudited.
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 Company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Modular Safety Systems Limited
Independent Auditor's Report to the Members of Modular Safety Systems Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities held at 31 December 2025. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.
Opinion on other matter prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Arising solely from the limitation on the scope of our work relating to inventory, referred to above:
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we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
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we were unable to determine whether adequate accounting records have been kept |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of Directors' remuneration specified by law are not made; or |
Responsibilities of Directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine 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 Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Modular Safety Systems Limited
Independent Auditor's Report to the Members of Modular Safety Systems Limited
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 auditor’s 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 financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
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● Obtain an understanding of internal control relevant to the audit of the Company in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. |
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● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. |
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● Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. |
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● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether they represent the underlying transactions and events in a manner that achieves fair presentation. |
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● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We remain solely responsible for our audit opinion. |
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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. |
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Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, was as follows: |
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● The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
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● We identified the laws and regulations applicable to the Company, through discussions with Directors and other management, and from our knowledge and experience of the sector; |
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● We focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, and data protection, anti-bribery, employment, environmental and health and safety legislation; |
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● We assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
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● Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance through the audit. |
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We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
Modular Safety Systems Limited
Independent Auditor's Report to the Members of Modular Safety Systems Limited
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● Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; |
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● Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
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● Understanding the design of the Company's remuneration policies. |
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To address the risk of fraud through management bias and override of controls, we: |
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● Performed analytical procedures to identify any unusual or unexpected relationships; |
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● Tested journal entries to identify unusual transactions; |
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● Assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and |
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● Investigated the rationale behind significant or unusual transactions — including, given the balances disclosed in note 22, the transactions on the Directors' loan accounts. |
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In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
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● Agreeing financial statement disclosures to underlying supporting documentation; |
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● Reading the minutes of meetings of those charged with governance; |
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● Enquiring of management as to actual and potential litigation and claims; and |
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● Reviewing correspondence with HMRC, relevant regulators and the Company's legal advisors. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 auditor’s 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.
For and on behalf of
South Road
Taunton
Somerset
TA1 3DU
Modular Safety Systems Limited
Profit and Loss Account for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Operating profit |
489,733 |
1,806,552 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
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3,749 |
61,724 |
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Profit before tax |
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Tax on profit |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The Company has no recognised gains or losses for the year other than the results above.
Modular Safety Systems Limited
Statement of Comprehensive Income for the Year Ended 31 December 2025
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2025 |
2024 |
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Profit for the year |
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Total comprehensive income for the year |
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Modular Safety Systems Limited
(Registration number: 07024876)
Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
|||
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Called up share capital |
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Retained earnings |
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Shareholders' funds |
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Approved and authorised by the
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Modular Safety Systems Limited
Statement of Changes in Equity for the Year Ended 31 December 2025
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Share capital |
Retained earnings |
Total |
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At 1 January 2025 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2025 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
200 |
3,071,571 |
3,071,771 |
Modular Safety Systems Limited
Statement of Cash Flows for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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(Profit)/loss on disposal of tangible assets |
( |
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Finance income |
( |
( |
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Finance costs |
|
- |
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Income tax expense |
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||
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Working capital adjustments |
|||
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Decrease/(increase) in stocks |
|
( |
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Decrease/(increase) in trade debtors |
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( |
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Increase/(decrease) in trade creditors |
|
( |
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(Decrease)/increase in deferred income, including government grants |
( |
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Cash generated from operations |
|
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
|
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Cash flows from investing activities |
|||
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Interest received |
|
|
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
|||
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Interest paid |
( |
- |
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Dividends paid |
( |
( |
|
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Net cash flows from financing activities |
( |
( |
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Net increase/(decrease) in cash and cash equivalents |
|
( |
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Cash and cash equivalents at 1 January |
|
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Cash and cash equivalents at 31 December |
312,574 |
191,952 |
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Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
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General information |
The Company is a private company limited by share capital, incorporated in England and Wales (registered number 07024876).
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable the future economic benefits will flow into the entity, and specific criteria have been met for each of the company activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Motor vehicles |
25% reducing balance |
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Plant and machinery |
25% reducing balance |
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Leasehold improvements |
20% straight line |
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Office equipment |
20% reducing balance |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Included within provisions is a dilapidation provision of £250,000 (2024 - £250,000) and a provision for deferred taxation of £88,024 (2024 - £85,206).
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
3 Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those 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 if the revision affects that period, or in the period of revision and future periods if the revision affects both current and future periods. The critical judgements and key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Critical judgements
Depreciation rates and residual values
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing assets lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Sources of estimation uncertainty
Impairment of fixed assets
The company determines whether there are indicators of impairment of tangible asset. Factors taken into account consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Stock provision
The company determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, and market demand.
Bad debt provision
The company determines whether there are conditions that exist at the balance sheet date that indicates the recoverable value of debtors is less than the carrying value. Such indicators include post year end cash receipts, and customer sales activity.
Dilapidation provision
The company determines the level of provision required for dilapidations based on its assessment of the likely cost of reinstating leasehold premises to the condition required under the terms of the lease. This assessment takes into account the condition of the property, the specific requirements of the lease, and estimates of the cost of the works involved, which are inherently uncertain until a schedule of dilapidations is agreed with the landlord, typically at or near lease expiry.
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Turnover |
The analysis of the Company's Turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Rendering of services |
|
|
|
Rental income from investment property |
|
|
|
|
|
|
Other gains and losses |
The analysis of the Company's other gains and losses for the year is as follows:
|
2025 |
2024 |
|
|
Gain/(loss) on disposal of Tangible assets |
|
( |
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Research and development cost |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest expense on other finance liabilities |
|
- |
|
Foreign exchange gains/(losses) |
|
( |
|
|
( |
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Staff costs |
The aggregate payroll costs (including Directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, was 65 (2024 - 53).
|
Directors' remuneration |
The Directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
142,659 |
216,540 |
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
- |
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Total tax charge |
|
|
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2025 |
|
|
|
At 31 December 2025 |
|
|
|
Amortisation |
||
|
At 1 January 2025 |
|
|
|
At 31 December 2025 |
|
|
|
Carrying amount |
||
|
At 31 December 2025 |
- |
- |
|
Tangible assets |
|
Long leasehold land and buildings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2025 |
|
|
- |
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2025 |
|
|
- |
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2025 |
|
|
|
|
|
|
At 31 December 2024 |
|
|
- |
|
|
Included within the net book value of land and buildings above is £45,987 (2024 - £76,645) in respect of long leasehold land and buildings.
|
Stocks |
|
2025 |
2024 |
|
|
Stock |
|
|
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Debtors |
|
Current |
Note |
2025 |
2024 |
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
|
Accrued income |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
Income tax liability |
14,180 |
486,927 |
|
|
Deferred income |
- |
|
|
|
|
|
|
Provisions for liabilities |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 January 2025 |
|
|
|
|
Increase (decrease) in existing provisions |
|
- |
|
|
At 31 December 2025 |
|
|
|
|
|
|||
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
80 |
|
80 |
|
|
|
80 |
|
80 |
|
|
|
10 |
|
10 |
|
|
|
10 |
|
10 |
|
|
|
10 |
|
10 |
|
|
|
2 |
|
2 |
|
|
|
2 |
|
2 |
|
|
|
2 |
|
2 |
|
|
|
2 |
|
2 |
|
|
|
2 |
|
2 |
|
|
|
|
|
|
|
Dividends |
|
2025 |
2024 |
|||
|
£ |
£ |
|||
|
Final dividend of £ |
717,420 |
736,323 |
||
|
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
|
2025 |
2024 |
|
|
Under 1 year |
342,235 |
342,235 |
|
1 - 5 Years |
171,118 |
513,353 |
|
513,353 |
855,588 |
Modular Safety Systems Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Related party transactions |
|
Transactions with Directors |
|
2025 |
At 1 January 2025 |
Advances to Director |
Repayments by Director |
At 31 December 2025 |
|
Mrs L Smallridge |
||||
|
|
|
|
( |
|
|
Mr R Smallridge |
||||
|
|
|
|
( |
|
|
Mr L Smallridge |
||||
|
|
|
|
( |
( |
|
Mr C Herbert |
||||
|
|
|
|
( |
|
Overdrawn loan accounts have an interest rate of 3.75% and are repayable on demand.
|
Parent and ultimate parent undertaking |
The Company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is