The directors present the strategic report for the year ended 31 December 2025.

The results for the year were considered satisfactory by the directors. Group turnover increased to £94.5m (2024: £92.9m), gross profit margin improved to 33.0% (2024: 31.4%), and operating profit increased to £10.6m (2024: £9.6m). The directors consider these results to be in line with the Group’s expectations, and the outlook for 2026 is considered positive.

All trading entities within the Group performed in line with the directors' expectations during the year. The Group's results continue to be principally influenced by the performance of Radmat Building Products Limited and Roofbase Limited, both of which traded stably during the year.

The Group's smaller trading entities each continued to contribute to Group profitability during the year:

• Roof Giant Limited moved into profit for the first time.

• Quantum Insulation Limited performed in line with expectation, with increased profitability year on year.

• Instar UK Limited turnover fell during the year, but profitability was maintained, with only a small decrease in net profit.

• Cooker Hire Limited performed in line with expectation, with increased profitability year on year.

Sales and gross profit

Turnover and gross profit for the year were in line with the directors' expectations for the Group's business plan, reflecting current market conditions within the roofing and construction products sector.

Cash at bank and in hand

The Group's cash position was considered satisfactory by the directors at the year end, with cash generated from operations used to support the continued growth of the business.

Principal risks and uncertainties

The principal risks and uncertainties facing the Group continue to arise from the wider economic and political environment in the UK, Europe and globally, including the level of activity in the construction sector, interest rates, and fluctuations in currency and financial markets.

The directors and senior management monitor developments in these areas on an ongoing basis, including significant planning applications and construction sector trends, allowing the Group to plan given the lead times inherent in the business.

The Group maintains adequate reserves and banking facilities to manage risks relating to debtor recoverability and cash flow.

The directors and senior management continue to review all aspects of the Group's operations with a view to maintaining and growing profitability while managing risk, with continued attention to cost control.

The Group continues to invest in its Enterprise Resource Planning and Business Management Systems to support oversight of business performance.

In 2020, the Group received a loan of £3,250,000 under the Coronavirus Business Interruption Loan Scheme to support cash flow during that period. The outstanding balance at 31 December 2025 was £325,000, and the loan was repaid in full during 2026.

There was no change in the Group's shareholding in Roofbase Group Limited and Roof Giant Limited during the year. Since the year end, the Group has acquired the remaining 32% and 45% non-controlling interest in Roofbase Group Limited and Roof Giant Limited respectively, resulting in both companies becoming wholly-owned subsidiaries of the Group.

The Group's unrealised loss on its long-term listed investment holdings reduced to £0.9m in the year (2024: £1.9m loss). This relates to two listed shareholdings held by Radmat Building Products Limited, the share prices of which fell during the year. Neither holding was sold during the year, and the directors have no intention of crystallising this loss in the foreseeable future.

The main KPIs used by the group are orientated around gross profit and turnover. These are summarised below:

        2025        2024        2023

Turnover:         £94.5m        £92.9m        £94.4m

Gross profit margin:    33.12%        31.40%        30.19%

Operating profit:        £10.55m     £9.55m        £10.1m

The directors and senior management monitor other statistical information on a regular basis to understand trends and influences on profitability, without relying on any particular Key Performance Indicator in isolation. This may include the monitoring of gross margins by product line, departmental turnover, debtor payment days and supplier turnover.

Since the year end, the Group has continued to operate at levels of profitability consistent with those achieved during the year under review, and the directors look forward to continued growth in profitability and turnover over the foreseeable future.

Section 172(1) statement

The directors consider that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, having regard (amongst other matters) to the following factors set out in section 172(1) of the Companies Act 2006 during the year.

(a) The likely consequences of any decision in the long term

The Group continued to invest in its Enterprise Resource Planning system during the year, including the integration of warehouse location management and a scanning project. The directors consider this investment will continue to improve the accuracy and efficiency of stock control and order fulfilment over the longer term, supporting the Group's continued growth.

(b) The interests of the Group's employees

Group headcount increased from 170 to 172 during the year. The directors introduced IT training days for relevant staff, and ran a successful trial employee volunteering day, which is expected to be extended further in 2026 and 2027. All staff complete a formal induction programme on joining the Group, and staff turnover remains very low, which the directors consider reflective of the Group's culture.

(c) The need to foster the Group's business relationships with suppliers, customers and others

There were no notable changes to the Group's approach to its business relationships during the year. The Group continues to engage with all of its stakeholders, and staff are encouraged to develop strong relationships with customers and suppliers, which the directors consider is reflected in the Group's consistently low staff turnover.

(d) The impact of the Group's operations on the community and the environment

During the year, the Group obtained ISO 14001 (Environmental Management) and ISO 9001 (Quality Management) certification, reflecting its continued investment in improving its environmental and quality management practices.

(e) The desirability of the Group maintaining a reputation for high standards of business conduct

All staff members complete a formal induction programme on joining the Group, and staff turnover remains very low, which the directors consider to be reflective of the Group's culture and standards of conduct.

(f) The need to act fairly as between members of the Group

Dividends paid by Roofbase Group Limited, to its shareholders Radmat Building Products Limited and its non-controlling interest shareholder, are decided in consultation with its Managing Director, to help ensure fairness between the Group's shareholders and minority interests in its subsidiaries.

Employees and health and safety

Group headcount increased from 170 to 172 during the year. All staff members complete a formal induction programme on joining the Group, and the Group's staff turnover remains very low. During the year, the directors introduced IT training days for relevant staff and ran a successful trial employee volunteering day, which the Group anticipates rolling out further in 2026 and 2027.

During the year, the Group appointed Opus Safety as its health and safety consultants and appointed competent person. Opus Safety conducted their first inspections of all Radmat Group sites during 2025, completing site-specific inspection reports and recommendations for improvement to ensure the Group complies with codes of best practice. There were no RIDDOR-reportable incidents during the year.

Going concern

At the time of approving the group financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The directors continue to adopt the going concern basis of accounting in preparing the financial statements of the Group.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the group continued to be that of sales and distribution of building products.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £6,000,000. The directors do not recommend payment of a further dividend.

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

Subsequent to 31 December 2025, the group acquired the remaining non-controlling interests in Roofbase Group Limited and Roof Giant Limited. The group acquired the remaining 32% shareholding in Roofbase Group Limited and the remaining 45% shareholding in Roof Giant Limited, resulting in both entities becoming wholly-owned subsidiaries of the group.

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

As the group has consumed more than 3,630,175 kWh of energy in this reporting period, it does not qualify as a low energy user under these regulations and therefore reports on its emissions, energy consumption and energy efficiency activities as follows.

Radmat Limited has 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, emissions intensity increased to 11.62 tCO₂e per £ million of revenue, compared with 10.30 tCO₂e in 2024. This represents an increase of approximately 12.8% year on year, primarily due to increased emissions from Group-owned transport.

Despite the increase during 2025, emissions intensity remained below the 2023 level of 12.43 tCO₂e per £ million of revenue.

• 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 directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable United Kingdom 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 group and parent company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent 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 auditor of the company is unaware. Additionally, the directors individually have 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 auditor of the company is aware of that information.

We have audited the financial statements of Radmat Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group's and the parent company's affairs as at 31 December 2025 and of the group's 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 group and parent 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 directors are 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' 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 control;

• Revenue recognition and the related estimation;

• Identification and disclosure of related party transactions;

• Valuation of stock;

• Recoverability of trade debtors;

• Sale and Purchase cut-off.

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;

• Stock valuation was 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;

• 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 group 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 group 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 and identified the greatest potential existed within the recording and recognition of revenue

Our procedures in this respect 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. We consider that the work we undertook in this regard was considered capable of detecting irregularities and fraud within the sales cycle.

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The non-controlling interest share of losses have not been reflected on the basis that they are unlikely to contribute to such losses.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £14,360,090 (2024 - £0 profit).

Radmat Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ground Floor Cooper House, 316 Regents Park Road, London N3 2JX.

The group comprises Radmat Limited and its subsidiary undertakings. The consolidated financial statements include the results and financial position of the company and all of its subsidiaries as at 31 December 2025.

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.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Radmat Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

All the subsidiaries have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of all the subsidiaries for the period from its acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Goodwill on acquisition is determined when the costs of acquisition are greater than the sum of the assets and liabilities purchased. Should the costs be less than that of the combined assets and liabilities purchased, this will give rise to a negative goodwill value.

The amount attributable to non-controlling interests will only be reflected in the group statement of comprehensive income once that subsidiary has generated accumulated positive reserves. Until that point in time, the accumulated losses are shown as being attributable to the group.

As at the balance sheet date, the group reported net assets of £28,156,293 (2024: £27,637,499) and maintained a positive cash balance. The group remained profitable, reporting a profit before tax of £9,632,680 (2024: £7,499,142) at the year end.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue 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.

Revenue from services provided in relation to the short term hire of equipment (Agitating Hot Melt Cookers) is recognised at the fair value of the consideration received or receivable in the normal course of business, and is shown net of VAT.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

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 recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group 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. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

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 group 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 group 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 group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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 group’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 if, and only if, there is 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 group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 group’s accounting policies, the directors are 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 provision for the dilapidations at the year end was £ 595,319

The group 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.

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

Their aggregate remuneration comprised:

The remuneration of the highest paid directors include an accrued bonus of £102,635 and benefit-in-kind value of £260,616 as at the year end date. Bonuses were subsequently paid in post year end.

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:

Negative goodwill of arose on the historic acquisition of a subsidiary, reflecting the excess of the fair value of the identifiable net assets acquired over the consideration paid. The balance has been fully amortised in accordance with FRS 102 and therefore has a nil net book value at 31 December 2025.

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

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 Radmat Building Products Limited, its subsidiaries and by a guarantee from the group company, Radmat Limited.

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 interest rate on bank loan 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.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

The following are the major deferred tax liabilities and assets recognised by the group and company:

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

There are guarantees in place regarding suppliers of Roof Giant Limited for a total of £437,500 (2024: £597,500), and for suppliers of Quantum Insulation Limited of £725,000 (2024: £725,000), at the year end. There are 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. The guarantor company being Radmat Building Products Limited is a fellow group undertaking.

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

At the reporting date, Radmat Building Products Limited had contracted future minimum sublease income of £590,727 receivable under non-cancellable sublease arrangements.

Subsequent to the year end, the group acquired the remaining non-controlling interests in Roofbase Group Limited and Roof Giant Limited, representing 32% and 45% of the issued share capital, respectively. As a result, both entities became wholly-owned subsidiaries of the group.

As at 31 December 2025, an amount of £248,964 (2024: £248,523) was due from S Lloyd, a director of the subsidiary undertakings of the group, Roofbase Limited and Roof Giant Limited. The balance is unsecured, interest-free and repayable on demand.

Dividends totalling £6,000,000 (2024 - £0) were paid in the year in respect of shares held by R Speroni as the company director.

As at 31 December 2025, an amount of £4,452,383 (2024: £6,649,052) was outstanding from R Speroni, a director of the group. The balance is unsecured, interest-free and repayable on demand.

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