REGISTERED NUMBER: 06338081 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2025

for

Arc Building Solutions Limited

Page

Company information

1

Strategic report

2

Report of the directors

3

to

4

Report of the independent auditors

5

to

8

Statement of comprehensive income

9

Statement of financial position

10

Statement of changes in equity

11

Statement of cash flows

12

Notes to the financial statements

13

to

22

Directors:

Mr P J Barrand

Mr N Weeks

Ms L Booth

Mr G Danzey-Smith

Mr Y P Bomken

Mr C J Manson

Mr R C Thompson

Registered office:

Unit J

Gildersome Spur

Gildersome

Leeds

LS27 7JZ

Registered number:

06338081 (England and Wales)

Auditors:

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

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

The directors are pleased to present another successful year's financial statements.

Review of business

Turnover for the period ended 31 March 2025 was £23.1m compared with £20.2m for the year ended 31 March 2024.

Gross profit has increased to 40.9% compared to 38.9% in 2024.

The company has continued to develop the trade throughout the year, operating in the construction industry, manufacturing cavity fire barriers and cavity closures for the UK.

With cash reserves of £4.4m and net assets of £16.6m at the balance sheet date, the company has a strong financial base to fund the anticipated future growth.

The directors believe the financial statements show a true and fair view of the company's position at the year end and adequately represent the business moving forward and look forward to reporting further success in the future.

Principal risks and uncertainties

Despite the challenges in some parts of the construction industry, the industry is still buoyant and we have seen no downturn in trade.

The Directors continuously assess the impact on the changing economic conditions and minimise the risks to the business to ensure business continuity. The company has remained fully operational throughout the recent pandemic and the demand for services remains high. As a result, the Directors conclude that the group remains a Going Concern.

On behalf of the board:

Director

10 October 2025

The directors present their report with the financial statements of the company for the year ended 31 March 2025.

Dividends

No dividends will be distributed for the year ended 31 March 2025.

Research and development

The company is continuously developing new fire resistant products and researching ways to improve machinery.

Future developments

The directors regularly review the current markets and the company's position within those markets looking for any changes in strategy either required or which would be beneficial to the company. Plans are revised as required at each review. The strategic planning will enable long term continuance of the company in terms of its reliability and results.

Directors

The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report.

Mr P J Barrand

Mr N Weeks

Ms L Booth

Mr G Danzey-Smith

Mr Y P Bomken

Mr C J Manson

Mr R C Thompson

Statement of directors' responsibilities

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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.

Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Moore Thompson, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr N Weeks - Director

10 October 2025

Opinion

We have audited the financial statements of Arc Building Solutions Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity, Statement of cash flows and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements.

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 Report of the directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of directors' responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

-

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client company's sector.

-

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company.

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journals entries to identify unusual transactions;

-

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance;

-

enquiring of management as to actual and potential litigation and claims;

-

reviewing correspondence with HMRC and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatement that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Because of 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 regulation. 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors 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.

Emma Wilson (Senior Statutory Auditor)

for and on behalf of Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

10 October 2025

Turnover

4

23,086,077

20,161,438

Cost of sales

13,628,884

12,312,275

Gross profit

9,457,193

7,849,163

Administrative expenses

4,531,848

3,681,371

Operating profit

7

4,925,345

4,167,792

Interest receivable and similar income

52,810

2,243

4,978,155

4,170,035

Interest payable and similar expenses

8

22,406

-

Profit before taxation

4,955,749

4,170,035

Tax on profit

9

1,270,064

1,037,253

Profit for the financial year

3,685,685

3,132,782

Other comprehensive income

-

-

Total comprehensive income for the year

3,685,685

3,132,782

Fixed assets

Intangible assets

10

134,119

23,917

Tangible assets

11

1,713,800

829,022

1,847,919

852,939

Current assets

Stock and work in progress

12

545,566

824,922

Debtors

13

14,677,925

12,434,158

Cash at bank and in hand

4,370,784

1,743,786

19,594,275

15,002,866

Creditors

Amounts falling due within one year

14

4,722,143

3,635,489

Net current assets

14,872,132

11,367,377

Total assets less current liabilities

16,720,051

12,220,316

Creditors

Amounts falling due after more than one year

15

(579,020

)

-

Provisions for liabilities

17

(399,194

)

(164,164

)

Net assets

15,741,837

12,056,152

Capital and reserves

Called up share capital

18

100

100

Capital redemption reserve

19

50

50

Retained earnings

19

15,741,687

12,056,002

Shareholders' funds

15,741,837

12,056,152

The financial statements were approved by the Board of Directors and authorised for issue on 10 October 2025 and were signed on its behalf by:

Mr N Weeks - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

100

8,923,220

50

8,923,370

Changes in equity

Total comprehensive income

-

3,132,782

-

3,132,782

Balance at 31 March 2024

100

12,056,002

50

12,056,152

Changes in equity

Total comprehensive income

-

3,685,685

-

3,685,685

Balance at 31 March 2025

100

15,741,687

50

15,741,837

Cash flows from operating activities

Cash generated from operations

22

5,178,106

4,143,686

Interest element of hire purchase payments paid

(22,406

)

-

Tax paid

(1,252,059

)

(1,033,487

)

Net cash from operating activities

3,903,641

3,110,199

Cash flows from investing activities

Purchase of intangible fixed assets

(117,797

)

(25,515

)

Purchase of tangible fixed assets

(1,076,106

)

(291,812

)

Sale of tangible fixed assets

21,243

-

Interest received

52,810

2,243

Net cash from investing activities

(1,119,850

)

(315,084

)

Cash flows from financing activities

Amounts withdrawn by group undertakings

(894,633

)

(1,986,643

)

Capital repayments in year

737,840

-

Net cash from financing activities

(156,793

)

(1,986,643

)

Increase in cash and cash equivalents

2,626,998

808,472

Cash and cash equivalents at beginning of year

23

1,743,786

935,314

Cash and cash equivalents at end of year

23

4,370,784

1,743,786

1.	Statutory information

Arc Building Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Statement of compliance

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

3.	Accounting policies

Basis of preparing the financial statements

The Financial Statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

Going concern

The Directors have reviewed whether the Company has adequate resources to continue in operational existence for the foreseeable future, which is considered to be at least 12 months from the date of approval of the financial statements.

In performing their review, the Directors have considered a range of factors including customer demand for their products, any impacts on future operations, mitigation available, if required and the overall financing and availability of funding to the Company. Additional information has also been included in the Directors report.

The Directors have concluded that the business has a Going Concern status. The Company has direct access to its own cash resources, which, together with the trading performance to date and forecast expectations, will allow the company to have sufficient financial resources to meet its obligations as they fall due for the next 12 months.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

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

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Equipment

-

15% on reducing balance

The carrying values of tangible fixed assets are reviewed for impairment annually by the directors without revaluing the assets. Where the aggregate value of those assets is less than the aggregate that they are stated in the company's accounts, a provision will be made for any material impairment.

Impairment of fixed assets

The carrying values of tangible fixed assets are reviewed for impairment annually by the directors without revaluing the assets. Where the aggregate value of those assets is less than the aggregate that they are stated in the company's accounts, a provision will be made for any material impairment.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities.

Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

23,086,077

20,161,438

23,086,077

20,161,438

5.	Employees and directors

2025

2024

£

£

Wages and salaries

4,723,930

4,010,786

Social security costs

424,365

367,475

Other pension costs

88,688

62,650

5,236,983

4,440,911

The average number of employees during the year was as follows:

2025

2024

Management

7

7

Administration

28

22

Production

80

92

115

121

6.	Directors' emoluments

2025

2024

£

£

Directors' remuneration

701,347

342,309

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

171,402

191,207

7.	Operating profit

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

2025

2024

£

£

Hire of plant and machinery

71,919

55,975

Other operating leases

227,838

228,579

Depreciation - owned assets

182,153

132,175

Profit on disposal of fixed assets

(12,068

)

-

Development costs amortisation

2,815

-

Computer software amortisation

4,780

5,972

Auditors remuneration

12,000

10,000

8.

Interest payable and similar expenses

2025

2024

£

£

Hire purchase

22,406

-

9.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

207,748

63,403

Under provision of tax

-

19,553

Group relief component of

current year tax expense

827,286

899,834

Total current tax

1,035,034

982,790

Deferred tax

235,030

54,463

Tax on profit

1,270,064

1,037,253

UK corporation tax was charged at 25%) in 2024.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

4,955,749

4,170,035

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

1,238,937

1,042,509

Effects of:

Expenses not deductible for tax purposes

27,853

4,703

Capital allowances in excess of depreciation

(231,756

)

(54,464

)

Adjustments to tax charge in respect of previous periods

-

19,553

Research and development net tax credit

-

(29,511

)

Deferred tax movement

235,030

54,463

Total tax charge

1,270,064

1,037,253

10.	Intangible fixed assets

Development

Computer

costs

software

Totals

£

£

£

Cost

At 1 April 2024

-

30,932

30,932

Additions

117,797

-

117,797

At 31 March 2025

117,797

30,932

148,729

Amortisation

At 1 April 2024

-

7,015

7,015

Amortisation for year

2,815

4,780

7,595

At 31 March 2025

2,815

11,795

14,610

Net book value

At 31 March 2025

114,982

19,137

134,119

At 31 March 2024

-

23,917

23,917