1.
General Information
Modular Cubed Ltd
is a private company, limited by shares, incorporated in England & Wales. The company's registered number and registered office address can be found on the Company Information page.
The company's place of business is Unit 20 A30bc Higher Stockley Mead, Okehampton, Devon, EX20 1BG.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
2.2.
Going Concern Disclosure
The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
2.3.
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Plant & Machinery |
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| Vehicles |
|
Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.
Modular Cubed Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.5.
Leasing and Hire Purchase Contracts
The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
2.6.
Stocks and Work in Progress
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.
2.7.
Taxation
Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
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.
2.8.
Interest income
Interest income is recognised when it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
2.9.
Employee benefits
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.
Modular Cubed Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.10.
Finance costs
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so 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.
2.11. Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
Stock
At each reporting date, an assessment is made for impairment of stock. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.
2.12. Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.
2.13. Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
2.14. Ordinary share capital
The ordinary share capital of the Company is presented as equity.
2.15. Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 49 (2024: 39)
Modular Cubed Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
4.
Tangible assets
| Plant & Machinery | Vehicles | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2025 |
|
|
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| Additions |
|
|
|
| Disposals |
( |
( |
( |
| As at 31 December 2025 |
|
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| Depreciation | |||
| As at 1 January 2025 |
|
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|
| Provided during the period |
|
|
|
| Disposals |
( |
( |
( |
| As at 31 December 2025 |
|
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| Net Book Value | |||
| As at 31 December 2025 |
|
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|
| As at 1 January 2025 |
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|
|
5.
Stocks
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Stock |
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| Finished goods |
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||
There are no material differences between the replacement cost of stock and the Balance Sheet amounts.
6.
Debtors
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
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| Other debtors |
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| Prepayments and accrued income |
|
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| VAT recoverable |
|
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| Directors' loan accounts |
|
- | |
|
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||
Modular Cubed Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
7.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
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| Trade creditors |
|
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| Bank loans and overdrafts |
|
|
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| Corporation tax |
|
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| Other taxes and social security |
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| Other creditors |
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| Accruals |
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| Amounts owed to group undertakings |
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The obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured under fixed and floating charges over all assets held by the company.
8.
Creditors: Amounts Falling Due After More Than One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Bank loans | - |
|
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|
|
|
||
The obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured under fixed and floating charges over all assets held by the company.
Modular Cubed Ltd
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
10.
Other Commitments
Financial commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
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|
| Later than one year and not later than five years |
|
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| Later than five years |
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11.
Pension Commitments
The company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amount to £44,197 (2024: £120,731). Contributions totalling £6,580 (2024: £7,910) were outstanding at the year end within one year.
12.
Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
|
At start of period
|
Amounts advanced
|
Amounts repaid
|
Amounts written off
|
At end of period
|
|
|
£
|
£
|
£
|
£
|
£
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Director
|
-
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
15,094
|
-
|
-
|
15,094
|
Interest is charged on the loan to directors, when overdrawn, at HMRC approved rates of 2.25% and 3.75%. The above loan is unsecured and repayable on demand.
13.
Related Party Transactions
As the Company is a wholly owned subsidiary of Cavalier Holdings Limited, the company has taken advantage of the exemption contained in s. 1AC.35 of FRS102, and not disclosed transactions or balances with wholly owned subsidiaries which form part of the group.