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

Radmat Building Products Limited is an independent company, split into two businesses: a business supplying waterproofing systems to approved roofing subcontractors in the commercial roofing market, and a business supplying building materials to high street and online retailers and building merchants, trading as Radmat Building Materials. The company operates across the United Kingdom and Europe.

The results for the period and the financial position at the year-end were considered satisfactory by the director. Turnover and margins were in line with forecasts and the outlook for 2026 appears to be strong.

During the year, the company continued to invest in its building materials retail business, increasing staff numbers and expanding its product range to support continued growth in this part of the business.

The company has experienced a number of headwinds over the last few years (including a high-interest rate environment, increased taxes and a general slow-down in the construction industry) but has managed to navigate these with some success, increasing gross profits year on year. As it stands, some uncertainties remain, but going concern risks remain low for the foreseeable future.

The recoverability and cash flow risks associated with trade debtors are managed by the credit and terms offered to customers as well as regular monitoring and follow up of the amounts outstanding.

The liquidity risk associated with trade creditors is managed by ensuring there is sufficient cash availability to meet all liabilities as they fall due.

The company is currently in a growth phase and therefore is presented with additional risk factors to manage including increased external competition, additional sensitivity to the UK's macro-economic environment, and incremental investment decisions including committing the company to longer term liabilities.

The function of risk management is undertaken by the director and senior management who have full control over stock management, debtor profiles, and the company's investment decisions. It should be noted that the company has an invoice finance facility that is not fully utilised and this provides the company with the ability to bridge any funding gaps that may appear from time to time in respect of working capital and investment projects.

The increase in turnover (9.6%) is principally attributable to the timing of large-scale construction projects for which the company has been chosen as supplier. The view of management is that analysing the turnover over a short time period will give rise to these normal fluctuations. On account of the increase in turnover, the profitability of the company at gross margin level has increased by 16.5%.

The company has experienced a £862k unrealised loss on its investment portfolio, which has had the most significant impact on net profitability year on year.

The company has continued to invest in its building materials business, increasing staff numbers, expanding its product range and acquiring additional plant, machinery and motor vehicles. It is anticipated that this investment will enable the building materials business to continue to increase its stock profile, cement existing customer and supplier relationships and acquire new customers. The company views this business as part of its long-term investment strategy to increase turnover, profitability and diversification of income streams.

During the year the company invested in its warehouse IT infrastructure, implementing full location management and barcode scanning functionality across all warehouses. This investment is expected to improve stock accuracy and operational efficiency going forward.

The principal KPIs used by the company are summarised as below:

The sales pipeline remains strong post the balance sheet date, and the 2026 like-for-like sales volumes are forecasted to be in excess of 2025.

The gross profit margin increased from 34% to 36% which was as a result of changes to the sales mix.

The director and senior management monitor considerable statistical information on a continuous basis to ensure that they are aware of trends and influences on profitability, without relying on particular Key Performance Indicators but which may include the monitoring of gross margins (by product line), departmental turnover, debtor payment days and staffing levels.

The company has invested considerable resources in its ESG programme, hiring dedicated staff as well as external consultants to continue to improve internal processes and engagement with third parties. During the year the company obtained Cyber Essentials certification, and achieved ISO 9001 (Quality Management) and ISO 14001 (Environmental Management) accreditation. This includes awareness training for all relevant members of staff, obtaining best practice certifications and improving its carbon emissions footprint.

The company actively promotes learning and development of its staff throughout the course of their employment. This includes regular and formal internal training programmes and the promotion and sponsorship of external professional qualifications.

Health and Safety

The protection of staff and other stakeholders is a leading priority for the director and senior management who seek to mitigate the risk of accidents and incidents as far as possible.

The company has outsourced the Health and Safety function to a leading UK consultancy who provide detailed and continuous oversight and guidance over the operations to ensure full compliance with new and existing legislation and to maintain codes of best practice.

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

With all aspects of the business are continually monitored, the director looks forward to achieving continued growth in profitability over the foreseeable future.

On behalf of the board

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

The principal activity of the company continued to be the sale, marketing and distribution of building products.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £6,000,000. The director does not recommend payment of a final dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

In accordance with the company's articles, a resolution proposing that Richard Anthony be reappointed as auditor of the company will be put at a General Meeting.

Radmat Building Products Limited is of a size, based on its turnover and revenue, that requires compliance with the Streamlined Energy and Carbon Reporting (SECR) requirements. The energy consumption and associated greenhouse gas emissions disclosed in this report relate solely to UK energy usage within the operational boundary of Radmat Building Products Limited for the reporting period from 1 January 2025 to 31 December 2025.

Radmat Limited appointed SRD Technical, an independent net-zero consultancy, to compile the SECR report.

The report was prepared using the Greenhouse Gas Protocol and the UK Government GHG Conversion Factors for Company Reporting 2025, published by the Department for Energy Security and Net Zero on 10 June 2025.

Emissions have been reported on a gross basis. Where detailed vehicle information was unavailable, reasonable assumptions were applied using average vehicle classifications and fuel types.

• In 2025 the total tCO2e (for scope 1, 2 and 3) per £ million turnover was determined as: 6.56 tCO2e per £ million turnover.

• In 2025 (for scope 1, 2 and 3) the intensity ratio was determined as: 3.94 tCO2e per employee.

• Implemented an Energy Reduction Policy to formalise the organisation’s approach to improving energy efficiency and reducing emissions across its operations.

• Began a more detailed assessment of Scope 3 greenhouse gas emissions to improve the accuracy and completeness of the carbon footprint, identify key emissions sources and support future reduction initiatives.

• Developed a Carbon Reduction Plan setting out the organisation’s commitment to reducing greenhouse gas emissions and establishing a framework for achieving long-term emissions-reduction targets.

The director is responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period.

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

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Radmat Building Products Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 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 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's 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 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the 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 strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the 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 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, 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 director's remuneration specified by law are not made; or

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

As explained more fully in the director's responsibilities statement, 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 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 company or to cease operations, or has no realistic alternative but to do so.

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.

Risk identified:

The following risks were identified during the course of audit:

• Management override of controls;

• Revenue recognition and the related estimates;

• Identification and disclosure of related party transactions;

• Valuation of stock;

• Recoverability of trade debtors.

Audit response:

We focused on those areas that could give rise to a material misstatement in the company financial statements. Our procedures included but were not limited to:

• Engaged in discussions with management and those charged with governance regarding actual and potential litigation, claims, instances of non-compliance with laws and regulations, and any suspected fraud;

• Reviewed minutes of meetings held with those charged with governance, where available;

• Examined legal expenditure incurred during the year to identify indicators of inaccuracies or non-compliance;

• Assessed the reasonableness and completeness of notes and disclosures within the financial statements;

• Made enquiries of management and considered correspondence and documentation available in relation to compliance with laws and regulations.

• Performed audit procedures to detect potential management override of controls, including testing the appropriateness of journal entries and other adjustments;

• Reviewed transactions to evaluate their completeness and occurrence, ensuring they are accurately recorded and appropriately presented in the financial statements.

• Valuation of stocks were tested by assessing whether stocks were stated at the lower of cost and net realisable value and by evaluating the adequacy of provisions for slow-moving and obsolete stocks.

• Obtained evidence of subsequent cash receipts for trade debtors outstanding at the reporting date by agreeing receipts to bank records, and assessed the recoverability of long-outstanding balances, including consideration of any impairment required.

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.

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

• The Companies Act 2006

• Financial Reporting Standard 102

• UK tax legislation

• UK employment legislation

• UK health and safety legislation

• General Data Protection Regulations

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with these laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

• Identifying and assessing the measures management has in place to prevent and detect fraud,

• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,

• Challenging assumptions and judgements made by management in its significant estimates, and

• Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In accordance with ISA (UK) 240, the audit team considered the presumed risk of fraud in revenue recognition and designed audit procedures responsive to that risk and the controls exercised over the maintenance of the stock levels.

Our procedures in these respects were focused on the origination of revenue and directed towards ensuring the accuracy and completeness of the same by undertaking testing on a sample basis of the revenue items to ensure that sales had been recorded correctly and in the appropriate accounting period. The stock was tested, again on a sample basis, to ensure that it existed and it was disclosed at the appropriate value. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales and purchase/stock cycles respectively.

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 regulations. 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. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. The risk is also greater regarding irregularities occurring to fraud other than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Radmat Building Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor Cooper House, 316 Regents Park Road, London, United Kingdom, N3 2JX

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Radmat Building Products Limited is a wholly owned subsidiary of Radmat Limited; being the ultimate parent undertaking. The results of Radmat Building Products Limited are included in the consolidated financial statements of Radmat Limited which are available from the website of Companies House.

As at the balance sheet date, the company reported net assets of £true19,088,713 (2024: £20,222,808) and maintained a positive cash balance. The company remained profitable, reporting a profit before tax of £6,813,439 (2024: £4,305,781) at the year end.

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. 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.

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 current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

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

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation 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.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

A provision for dilapidations has been recognised in accordance with the requirements of FRS 102 Section 21, which requires a provision to be made when:

• The company has a present legal or constructive obligation as a result of a past event;

• It is probable that an outflow of economic benefits will be required to settle the obligation; and

• A reliable estimate can be made of the amount of the obligation.

The provision represents management’s best estimate of the costs expected to be incurred to restore leased properties to their original condition at the end of the lease term, where such an obligation exists. The estimate is based on current knowledge and historical experience. The carrying value of the dilapidation provision for year end was £ 400,990.

The company reviews stocks at each reporting date to assess whether any items are carried in excess of their net realisable value. This assessment requires management to make estimates regarding future selling prices, expected demand, stock turnover rates and costs to complete and sell inventory.

Particular judgement is applied in identifying slow-moving, obsolete or discontinued stock lines. Changes in market conditions, customer demand or expected selling prices may result in revisions to these estimates and could give rise to adjustments to the carrying value of inventory in future periods. There were no material stock provisions applicable during the year.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The remuneration of the highest-paid director included a benefit-in-kind of £251,241 and defined pension contributions of £10,253 during the year.

Interest receivable from group companies comprises interest charged on unsecured balances due from fellow group undertakings. During the year, interest was charged on amounts owed by Roofbase Limited at rates ranging from 2% to 3% above the Bank of England base rate. The balances are repayable on demand. Interest income recognised during the year amounted to £437,594 (2024: £472,761).

Dividend income of £717,675 (2024: £580,251) represents dividends receivable from subsidiary undertakings.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

During the year, the company disposed of its entire shareholdings in Esha UK Limited. No gain or loss arose on disposal as the consideration equalled the carrying value of the investments of £50,000 at the date of disposal.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Included within other debtors is an amount of £4,452,383 (2024: £6,649,051) due from R Speroni, a director of the company. The balance is unsecured, interest-free and repayable on demand.

The bank loan of £3,250,000 received on 17 June 2020 was under the Coronavirus Business Interruption Loan Scheme. This is secured by a floating charge over all assets of the company and its subsidiaries and by a guarantee from Roofbase Limited. The interest rate is fixed at 2.51% per annum. The loan is being repaid by monthly instalments of £54,166.66 with the final repayment of £54,167.06 being due by 17 June 2026. However, the company may make additional repayments, as is permitted, at any time.

The amount stated under bank overdrafts represents the amounts due to RBS Invoice Finance Limited. The facility is secured by floating and fixed charges over the assets of the company.

The provision as at 31 December 2025 has been calculated on the basis as set out in note 2 to these financial statements.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature together with tax that will be due in relation to gains made on fixed assets investments.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company provides guarantees to various suppliers of Roof Giant Limited, a fellow group undertaking and these are reviewed on an annual basis. The guarantees in place as at 31 December 2025 amounted to £437,500 (2024 - £597,500).

Additionally, the company provides guarantees regarding the RBS Invoice Finance facility in favour of Roofbase Limited of £3,400,000 and Instar UK Limited of £100,000, both group undertakings.

Furthermore, supplier guarantees in favour of Quantum Insulation Limited, a fellow group undertaking, amounts to £725,000 (2024 - £725,000) at the year end.

The company's borrowings are secured by fixed and floating charges over its assets, together with additional charges in favour of National Westminster Bank plc, including a charge of deposit and a charge registered in May 2020.

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

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £590,727.

As at the balance sheet date, the following amounts were owed by group undertakings:

As at the balance sheet date, the following balances were owed to group undertakings:

Included in other debtors is an amount of £4,452,383 (2024 - £6,649,052) owed by R Speroni, director of the company. The balance is unsecured, interest-free and repayable on demand.

On the unsecured amount owed by Roofbase Limited, during the year, the company charged interest varying between 2% and 3% above base rate, the balance being repayable on demand. The interest receivable for the year was £437,594 (2024 - £472,761).

The remaining amounts owed by and to the other group undertakings are repayable on demand, unsecured and interest free.

During the year, the company made the following sales to group undertakings:

During the year, the company made the following purchases from group undertakings:

Radmat Limited is the ultimate parent undertaking. The registered office of parent undertakings is at Ground Floor, Cooper House, 316 Regents Park Road, London N3 2JX.

The consolidated results for the year in respect of Radmat Limited and its subsidiary companies are presented in consolidated financial statements and copies may be obtained from the Companies House website.

R Speroni is the ultimate controlling party by virtue of his directorship and majority shareholding in Radmat Limited.