Linear Building Innovations Limited

Contents
	Page
Strategic Report	1—2
Directors' Report	3—4
Independent Auditor's Report	5—7
Profit and Loss Account	8
Statement of Comprehensive Income	9
Balance Sheet	10—11
Statement of Changes in Equity	12
Statement of Cash Flows	13
Notes to the Statement of Cash Flows	14
Notes to the Financial Statements	15—25

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

Review of the Business

Linnear Building Innovations Limited trades under the brand Selo and supplies a range of doorsets to the UK construction industry including mainly riser doors, sliding pocket doors, timber doorsets and temporary fire doors.

Whilst revenue increased in the year to £24,579,143, up 22.5% in comparison to the previous year, the gross profit percentage declined to 34.3% from 38.9% in 2024. The fall reflects the challenging economic environment affecting suppliers into the construction industry resulting in increased competition. Within the year there were exceptional costs of £177,253 (2024 £163,011) this was partly due to a redundancy expense and some one off fees for Modulo.

The results of the Company for the year, as set out on pages 9 and 10, show a loss on ordinary activities after tax of £678,374 (2024: £1,092,549).

Key performance indicators

2025 2024

Turnover £24,579,143 £20,058,151

Gross profit £8,381,957 £7,808,864

EBITDA £237,644 £1,745,654

At the end of 2025, the business was operating from three main sites in Milton Keynes, Atherstone and Yeovil. In order to improve efficiency and provide the capacity to meet the growth targets, the business was consolidated into one new site in Milton Keynes and a total of £1.6m invested in the production equipment and leasehold improvements. In addition, a further £0.5m has been invested in inventory mainly to provide customers with shortened lead times and also support the launch of new products.

This investment has resulted in the business being well placed to take advantage of growth opportunities which would not otherwise have been open to the Company. At the time of signing the accounts, the order book turnover was 16.7% ahead of the equivalent period in the previous year. In addition, the order book of unfulfilled orders 11.1% with the average time to fulfil orders also improving.

The investment in fixed assets and working capital has been financed by a combination of a new invoice discounting facility of £3.5m and equipment finance.

In undertaking this going concern assessment the Directors have given due consideration to the above investment, the company’s net current assets at the year end, banking facilities, historical and current trading, together with forward looking projections.

The directors have taken all of the above into consideration and have concluded that the Company will have sufficient financing for the next twelve months.

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Linear Building Innovations Limited

Strategic Report (continued)

For The Year Ended 31 December 2025

Principal Risks and Uncertainties

The main risks result from the economic uncertainty in the construction market and the impact this has on the competitive environment. The Company manages competitive risks through providing a responsive customer service and offering a diverse range of products to its customer base that aim to simplify bespoke and complex building methods.

In addition to the market risks, the financial risks faced by the business include credit, reliance on key suppliers and liquidity.

Credit Risk

The Company’s credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers, obtaining credit insurance and by monitoring payments against contractual agreements.

Suppliers

The company relies upon a number of key suppliers. Failure of one of these suppliers will adversely affect the company’s ability to deliver its products. Where practical the company avoids reliance upon a single supplier and closely monitors their performance.

Liquidity Risk

The Company monitors cash flow as part of its day to day control procedures. The Board considers cash flow projections on a regular basis and ensures that appropriate facilities are available to be drawn upon as necessary.

On behalf of the board

Mr Hans Purdom

Director

29/09/2026

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Linear Building Innovations Limited

Company No. 09247787

Directors' Report For The Year Ended 31 December 2025

Directors' Report

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

Principal Activity

The company's principal activity continues to be that of manufacturing and supplying door systems.

Dividends

The value of dividends paid amounted to £421,774 .

The directors recommended a final dividend of £421,774 .

Directors

The directors who held office during the year were as follows:

Mr Hans Purdom

Mr Andrew Purdom

Mr Harry Purdom

Statement of Directors' Responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Research and Development

The Group remains committed to driving-long term value through it's research and development programme. During the financial year our R&D focused primarily on innovative products unique to the market. These initiatives are desgined to improve operational efficiency and expand our market offering.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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Linear Building Innovations Limited

Directors' Report (continued)

For The Year Ended 31 December 2025

Independent Auditors

The auditors, Riverside Accountancy Lancaster Limited, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr Hans Purdom

Director

29/09/2026

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Independent Auditor's Report

to the Members of

Linear Building Innovations Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Linear Building Innovations Limited for the year ended 31 December 2025 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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/(loss) 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 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 entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

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Independent Auditor's Report (continued)

to the Members of

Linear Building Innovations Limited

Matters on Which We Are Required to Report by Exception

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 Directors' 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 or returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3—4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Review of directors’ minutes and review of nominal postings for legal and professional fees ensured we identified any regulatory compliance issues and laws that the company must follow in the year and to the date of signing the financial statements.

- The assessment of fraud was considered as low due to the segregation of duties seen, the low levels of cash handled and the regular reporting required of the company to its shareholders.

- A review of journal entries and consideration of their appropriateness was carried out through the audit.

- During the audit we speak to management, test the systems and speak to various members of the finance function to understand the entity its processes and the nature of trade to assist in determining if the financial statements are true and fair.

- Challenging assumptions made by management in making their significant accounting estimates.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website 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 that 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.

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Independent Auditor's Report (continued)

to the Members of

Linear Building Innovations Limited

Lyndsay Nicholson FCA (Senior Statutory Auditor)

for and on behalf of Riverside Accountancy Lancaster Limited , Statutory Auditor

29/09/2026

Riverside Accountancy Lancaster Limited

Suite 2, 2 Mannin Way

Lancaster Business Park

Caton Road

Lancaster

LA1 3SU

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Linear Building Innovations Limited

Profit and Loss Account

For The Year Ended 31 December 2025

Profit and Loss Account

		2025	2024 as restated
	Notes	£	£
TURNOVER	2	24,579,143	20,058,151
Cost of sales		(16,197,186 )	(12,249,287 )

GROSS PROFIT		8,381,957	7,808,864

Distribution costs		-	-
Administrative expenses		(8,471,704 )	(6,013,479 )

OPERATING (LOSS)/PROFIT	3	(89,747 )	1,795,385
Exceptional items		(177,253)	(163,011)
Loss on disposal of fixed assets		(7,698 )	(1,553 )
Other interest receivable and similar income	8	125,397	14,485
Interest payable and similar charges	9	(172,617 )	(1,674 )

(LOSS)/PROFIT BEFORE TAXATION		(321,918 )	1,643,632
Tax on (Loss)/profit	10	(356,455 )	(551,083 )

(LOSS)/PROFIT AFTER TAXATION BEING (LOSS)/PROFIT FOR THE FINANCIAL YEAR		(678,373 )	1,092,549

The notes on pages 14 to 25 form part of these financial statements.

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Linear Building Innovations Limited

Statement of Comprehensive Income

For The Year Ended 31 December 2025

Statement of Comprehensive Income

	2025	2024 as restated
	£	£
(Loss)/profit for the financial year	(678,373 )	1,092,549

Other comprehensive income for the year	-	-
Prior year adjustment	(15,000)	-

Total comprehensive income for the year	(693,373 )	1,092,549

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Linear Building Innovations Limited

Balance Sheet

As At 31 December 2025

Balance Sheet

Registered number: 09247787

		2025		2024 as restated
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	12		2,513,949		499,513
Tangible Assets	13		2,237,501		899,391

			4,751,450		1,398,904
CURRENT ASSETS
Stocks	14	2,611,313		1,986,054
Debtors	15	7,901,588		6,822,773
Cash at bank and in hand		419,004		1,690,176

		10,931,905		10,499,003
Creditors: Amounts Falling Due Within One Year	16	(8,009,347 )		(3,847,924 )

NET CURRENT ASSETS (LIABILITIES)			2,922,558		6,651,079

TOTAL ASSETS LESS CURRENT LIABILITIES			7,674,008		8,049,983

Creditors: Amounts Falling Due After More Than One Year	17		(494,959 )		(134,798 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	20		(577,439 )		(213,428 )

NET ASSETS			6,601,610		7,701,757

CAPITAL AND RESERVES
Called up share capital	22		1,105		1,105
Share premium account			949,889		949,889
Profit and Loss Account			5,650,616		6,750,763

SHAREHOLDERS' FUNDS			6,601,610		7,701,757

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Linear Building Innovations Limited

Balance Sheet (continued)

As At 31 December 2025

On behalf of the board

Mr Hans Purdom

Director

29/09/2026

The notes on pages 14 to 25 form part of these financial statements.

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Linear Building Innovations Limited

Statement of Changes in Equity

For The Year Ended 31 December 2025

Statement of Changes in Equity

	Share Capital	Share Premium	Profit and Loss Account	Total
	£	£	£	£
As at 1 January 2024	1,105	-	5,929,988	5,931,093
Profit for the year and total comprehensive income	-	-	1,092,549	1,092,549

Dividends paid	-	-	(271,774)	(271,774)
Arising on shares issued during the period	-	949,889	-	949,889

As at 31 December 2024	1,105	949,889	6,750,763	7,701,757


As at 1 January 2025 as previously stated	1,105	949,889	6,765,763	7,716,757
Prior year adjustment	-	-	(15,000 )	(15,000 )

As at 1 January 2025 as restated	1,105	949,889	6,750,763	7,701,757
6,750,763

Loss for the year and total comprehensive income	-	-	(678,373 )	(678,373)

Dividends paid	-	-	(421,774)	(421,774)

As at 31 December 2025	1,105	949,889	5,650,616	6,601,610

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Linear Building Innovations Limited

Statement of Cash Flows

For The Year Ended 31 December 2025

Statement of Cash Flows

		2025	2024 as restated
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	2,672,030	509,019
Interest paid		(172,617 )	(1,672 )
Tax paid		(72,279 )	(271,851 )

Net cash generated from operating activities		2,427,134	235,496

Cash flows from investing activities
Purchase of intangible assets		(2,120,959 )	(399,720 )
Proceeds from disposal of intangible assets		-	34,114
Purchase of tangible assets		(1,745,929 )	(879,378 )
Proceeds from disposal of tangible assets		2,000	4,676
Interest received		125,397	14,485

Net cash used in investing activities		(3,739,491 )	(1,225,823 )

Cash flows from financing activities
Proceeds from issue of share capital		-	949,998
Equity dividends paid		(421,774 )	(271,774 )
Repayment of finance leases		(90,900 )	-
Proceeds from finance leases		553,859	165,205

Net cash generated from financing activities		41,185	843,429



Decrease in cash and cash equivalents		(1,271,172 )	(146,898 )
Cash and cash equivalents at beginning of year	2	1,690,176	1,837,074

Cash and cash equivalents at end of year	2	419,004	1,690,176

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Linear Building Innovations Limited

Notes to the Statement of Cash Flows

For The Year Ended 31 December 2025

Notes to the Statement of Cash Flows

1. Reconciliation of (loss)/profit for the financial year to cash generated from operations

	2025	2024 as restated
	£	£
(Loss)/profit for the financial year	(678,373 )	1,092,549
Adjustments for:
Tax on (loss)/profit	356,455	551,083
Interest expense	172,617	1,674
Interest income	(125,397 )	(14,485 )
Amortisation of intangible assets	106,524	50,438
Depreciation of tangible assets	398,121	62,392
Impairment of tangible assets	-	337,849
Profit on disposal of intangible assets	-	(15,315)
Loss on disposal of tangible assets	7,698	16,868
Movements in working capital:
Increase in stocks	(625,259 )	(1,238,984 )
Increase in trade and other debtors	(1,078,815 )	(2,460,029 )
Increase in trade and other creditors	4,138,459	2,124,979

Net cash generated from operations	2,672,030	509,019

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2025	2024 as restated
	£	£
Cash at bank and in hand	419,004	1,690,176

3. Analysis of changes in net funds/(debt)

	As at 1 January 2025	Cash flows	As at 31 December 2025
	£	£	£
Cash at bank and in hand	1,690,176	(1,271,172)	419,004
Finance leases	(165,205)	(462,959)	(628,164)

	1,524,971	(1,734,131)	(209,160)

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Linear Building Innovations Limited

Notes to the Financial Statements

For The Year Ended 31 December 2025

Notes to the Financial Statements

1. Accounting Policies

1.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

These financial statements are presented in Sterling (£), which is the Company’s functional and presentation currency.

All financial information presented in Sterling has been rounded to the nearest pound (£), except where otherwise indicated. Minor discrepancies in totals may exist due to rounding.

1.2. Exemption From Preparing Consolidated Financial Statements

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.

The results of the company are included in the consolidated financial statements of Selo Holdings Limited, which are available from Companies House under company number 12516490.

1.3. Significant judgements and estimations

The following judgements and estimations have been made in the process of applying the company's accounting polices that have had the most significant effect on amounts recognised in the financial statements.

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 it affects only that period or in both current and future periods.

Useful economic lives of tangible fixed assets

The annual deprecation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. These are assessed by the directors on an annual basis.

Stock provisions

The ongoing stock value is reviewed for impairment based on orders in place and also stock holding days. These are assessed by the directors on an annual basis.

1.4. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

1.5. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of 5 years.

1.6. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets is software and product development. They are amortised to the profit and loss account over their estimated economic life of 6 years.

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

1.7. Research and Development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised to the profit and loss account on a straight line basis over their expected useful economic life of 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.

1.8. Intangible Fixed Assets and Amortisation - Intellectual Property

Intellectual property assets are trade marks and patents. It is amortised to the profit and loss account over its estimated economic life of 6 years

1.9. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	20% straight line
Plant & Machinery	20% straight line
Motor Vehicles	20% straight line
Fixtures & Fittings	20% straight line
Computer Equipment	20% straight line

1.10. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

1.11. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

1.12. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

1.13. Financial Instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised

1.14. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

1.15. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

1.16. 1.16 Capitalisation Policy for R&D

If the activity or output contributes to a current or future core product, it should be

capitalised. If it relates only to a one-off or non-repeatable item, it should be expensed.

This policy applies to: physical testing, test reports, classification reports, EXAP reports, and

Field of Application Assessments. The same capitalisation rules apply equally to both testing

and documentation outputs.

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2. Turnover by Geographic Analysis

Analysis of turnover by geographical market is as follows:

	2025	2024 as restated
	£	£
United Kingdom	24,579,143	20,058,151

	24,579,143	20,058,151

3. Operating (Loss)/profit

The operating (loss)/profit is stated after charging:

	2025	2024 as restated
	£	£
Bad debts	4,471	26,651
Research and Development Costs	836,470	763,071
Depreciation of tangible fixed assets	398,121	62,392
Amortisation of intangible fixed assets	106,523	50,438
Impairment losses - intangible fixed assets	-	337,849

4. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2025	2024 as restated
	£	£
Audit Services
Audit of the company's financial statements	14,125	8,000

5. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2025	2024 as restated
	£	£
Wages and salaries	3,103,968	2,442,045
Social security costs	462,450	265,309
Other pension costs	73,775	54,267

	3,640,193	2,761,621

6. Average Number of Employees

Average number of employees, including directors, during the year was as follows: 79 (2024: 61)

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

7. Directors' remuneration

	2025	2024 as restated
	£	£
Emoluments	25,622	18,000

	25,622	18,000

8. Interest Receivable and Similar Income

	2025	2024 as restated
	£	£
Bank interest receivable	1,879	14,485
Other interest receivable	123,518	-

	125,397	14,485

9. Interest Payable

	2025	2024 as restated
	£	£
Bank loans and overdrafts	2,227	-
Finance charges payable under finance leases and hire purchase contracts	29,545	1,674
Other finance charges	140,845	-

	172,617	1,674

10. Tax on Profit

	Tax Rate		2025	2024 as restated
	2025	2024	£	£
UK Corporation Tax	25.0%	25.0%	-	562,588
Prior period adjustment			(7,555 )	(202,904 )

Total Current Tax Charge			(7,555 )	359,684
Deferred taxation RT			364,010	191,399

Total tax charge for the period			356,455	551,083


			2025	2024
			£	£
Profit before tax			(321,918)	1,643,632

Breakdown of tax charge is:
Tax on profit at 25% (UK standard rate)			(80,479 )	410,908
Goodwill/depreciation not allowed for tax			108,646	20,193
Expenses not deductible for tax purposes			54,966	2,769
Capital allowances			(267,181 )	(212,209 )
Short term timing differences			364,010	191,399

...CONTINUED

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

Prior period adjustment	(7,555 )	(202,904 )
Difference in tax rates	-	340,927
Tax losses unutilised carried forward	184,048	-

Total tax charge for the period	356,455	551,083

11. Prior Period Adjustment

During the current financial year, it was determined that certain funds advanced to directors and employees prior to the period ended 31 December 2024 were incorrectly recognised as Wages and Salaries expenses within the Profit and Loss Account. These payments represented loans and advances rather than remuneration, and should have been recognized as financial assets due from related parties and employees.

Consequently, a prior period adjustment has been made to restate the comparative figures to correct this error. The impact of this restatement is a reduction in Wages and Salaries expense within the Profit and Loss Account having a net affect of £1,471,043, and a corresponding increase in Debtors on the Balance Sheet.

12. Intangible Assets

	Goodwill	Other	Development Costs	Intellectual Property	Total
	£	£	£	£	£
Cost
As at 1 January 2025	182,318	306,827	337,849	140,835	967,829
Additions	-	613,376	-	1,507,583	2,120,959

As at 31 December 2025	182,318	920,203	337,849	1,648,418	3,088,788

Amortisation
As at 1 January 2025	18,382	27,971	337,849	84,114	468,316
Provided during the period	36,464	46,240	-	23,819	106,523

As at 31 December 2025	54,846	74,211	337,849	107,933	574,839

Net Book Value
As at 31 December 2025	127,472	845,992	-	1,540,485	2,513,949

As at 1 January 2025	163,936	278,856	-	56,721	499,513

13. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 January 2025	15,878	860,393	70,861	70,409
Additions	1,418,220	252,360	8,180	32,454
Disposals	(10,979 )	-	-	-

As at 31 December 2025	1,423,119	1,112,753	79,041	102,863

...CONTINUED

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

Depreciation
As at 1 January 2025	1,852	100,360	40,694	44,721
Provided during the period	169,577	181,030	7,533	11,648
Disposals	(1,281 )	-	-	-

As at 31 December 2025	170,148	281,390	48,227	56,369

Net Book Value
As at 31 December 2025	1,252,971	831,363	30,814	46,494

As at 1 January 2025	14,026	760,033	30,167	25,688


	Computer Equipment	Total
	£	£
Cost
As at 1 January 2025	262,806	1,280,347
Additions	34,715	1,745,929
Disposals	-	(10,979 )

As at 31 December 2025	297,521	3,015,297

Depreciation
As at 1 January 2025	193,329	380,956
Provided during the period	28,333	398,121
Disposals	-	(1,281 )

As at 31 December 2025	221,662	777,796

Net Book Value
As at 31 December 2025	75,859	2,237,501

As at 1 January 2025	69,477	899,391

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2025	2024 as restated
	£	£
Plant & Machinery	655,410	-

	655,410	-

14. Stocks

	2025	2024 as restated
	£	£
Stock	2,321,668	1,745,587
Work in progress	289,645	240,467

	2,611,313	1,986,054

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

15. Debtors

	2025	2024 as restated
	£	£
Due within one year
Trade debtors	4,342,495	2,750,489
Prepayments and accrued income	294,423	134,189
Other debtors	1,786,151	1,549,834
Amounts owed by group undertakings	1,291,396	2,388,261

	7,714,465	6,822,773
Due after more than one year
Other debtors	187,123	-

	187,123	-

	7,901,588	6,822,773

16. Creditors: Amounts Falling Due Within One Year

	2025	2024 as restated
	£	£
Net obligations under finance lease and hire purchase contracts	133,205	30,407
Trade creditors	3,126,246	2,752,233
Other creditors	3,350,252	141,639
Corporation tax	477,756	557,590
Taxation and social security	424,124	109,559
Accruals and deferred income	497,764	256,496

	8,009,347	3,847,924

17. Creditors: Amounts Falling Due After More Than One Year

	2025	2024 as restated
	£	£
Net obligations under finance lease and hire purchase contracts	494,959	134,798

	494,959	134,798

18. Charges

The company's borrowings are secured against their assets by a charge registered at Companies House in favour of HSBC INVOICE FINANCE (UK) LTD dated 24th March 2025.

There is an additional charge registered at Companies House in favour of HSBC INVOICE FINANCE (UK) LTD dated 30th June 2026

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

19. Obligations Under Finance Leases and Hire Purchase

	2025	2024 as restated
	£	£
The maturity of these amounts is as follows:
Within one year	133,205	30,407
Between one and five years	494,959	134,798

	628,164	165,205

	628,164	165,205

Loans are secured by a fixed and floating charge over the assets and undertakings of the company.

20. Deferred Taxation

The provision for deferred tax is made up as follows:

	2025	2024 as restated
	£	£
Deferred Tax	577,439	213,428

21. Provisions for Liabilities

	Deferred Tax
	£
As at 1 January 2025	213,428
Additions	364,011

Balance at 31 December 2025	577,439

22. Share Capital

	2025	2024 as restated
Allotted, called up but not fully paid	£	£
1,105 Ordinary Shares of £ 1.00 each	1,105	1,105

The Ordinary Shares of £621 each entitle the holders to receive notice of, attend, and vote at all general meetings of the Company. All shareholders are able to receive dividends subject to the rights and restrictions in the companies articles of association.

23. Financial Instruments

The company holds certain financial instruments which are measured at fair value through the profit or loss in accordance with FRS 102. Changes in fair value are recognised in the profit and loss account as they arise.

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

24. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	Land and buildings
	2025	2024
	£	£
Within 1 year	897,775	856,851
Between 1 and 5 years	5,021,292	6,130,957

	5,919,067	6,987,808

25. Pension Commitments

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

During the year the charge to the profit and loss account in respect of defined contribution schemes was £73,775 (2024: £54,267).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

26. Dividends

	2025	2024 as restated
	£	£
On equity shares:
Final dividend paid	421,774	271,774

	421,774	271,774

There were post year end dividends declared of £313,017

27. Reserves

Called up share capital represents the nominal value of shares that have been issued and are fully paid.

Share premium account represents the excess received over the nominal value of shares issued, less any costs directly attributable to the issue of the shares.

Profit and loss account represents cumulative profits and losses retained by the company, net of dividends paid.

28. Related Party Disclosures

At the year ended 31 December 2025 there were loans made to the parent company Selo Holdings Ltd of £1,108,315, Selo Construction Ltd of £69,696 and Selo Innovations Inc of £103,385 within the group.

The outstanding balances are unsecured interest free and repayable on demand.

During the period, the Group acquired the ownership rights to the Intellectual Property directly from the founding directors. The intellectual property has been independently valued and this forms the basis for the initial recognition of the asset in the financial statements. The balance was subsequently transferred and credited to the respective Directors' Loan Accounts within Selo Holdings Limited, representing the final consideration due to the founders.

Key Management Personnel


Gross Remuneration	£111,357.27

Key management personnel (including directors) received compensation of £NIL

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Linear Building Innovations Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

29. Controlling Parties

The company's ultimate controlling party is Selo Holdings Ltd by virtue of their interest in the share capital of the company.

30. General Information

Linear Building Innovations Limited is a private company, limited by shares, incorporated in England & Wales, registered number 09247787 . The registered office is Selo House, 3b Michigan Drive, Tongwell, Milton Keynes, MK15 8HQ.

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