The directors present the strategic report for the Period ended 27 December 2024.

Our vision is to be the UK's first choice for affordable, high quality, artisan bread. Unbeatable for quality, service, innovation and value for money. We want to make proper bread more accessible to more people.

• We understand that to make great bread takes time and care. With this time comes deeper and bolder flavours, and more open textures.

• We specialise in Sourdough and long fermentation.

• We strive to use only the highest quality ingredients and source them from the UK where possible.

We make this quality affordable by combining traditional bakery skills with modern manufacturing methods. We focus on prospering in the space between small-scale quality artisan bakers and high scale plant bakers - by capturing the best of both worlds.

We value loyal customers and employees and want to be recognised as both a great supplier and a great place to work.

In 2024, our growth continued apace with sales increasing by £25.1m (37.5%) to £91.8m for the year. This has been driven by two main contributors:

• Our Jason's Sourdough brand has grown by £17.1m on the prior year. Our growth has accelerated to 122% from 115% in 2023. This is the result of some exciting product launches, making more consumers aware of our offering, and increasing our store distribution. All of which contributes to our overall goal, of making proper bread more accessible to more people. Jason’s Sourdough is now the market leading sourdough brand in the UK with continual increase in market penetration and frequency of purchases by its loyal customer base. It has become an established and trusted brand within the bakery industry. According to Kantar Worldpanel data, retail spend for the 52-week period to 29th Dec 2024 (pre-packed bread sales only) stood at £36.9m, up from £17.3m in the previous 12 months on Jason’s Sourdough.

• Sourdough as a category continues to expand. This reflects the growing consumer trends in moving away from more processed foods and into something simpler and amplified by their willingness to trade up for that something extra special. The result of which is that we have also grown significantly in the Sourdough category on our private label business.

Our gross margin has continued to improve, up to 32.0% in 2024. Throughout the 2nd half of the year, our bakeries were all very close to full production capacity meaning the relationship between productive and idle time has improved creating economies of scale. We also continue to benefit from the automation we invested in through 2023.

To maintain this momentum, our overhead base has grown by 47.1% as we continue to invest in having the right people in the right roles to keep pace with our growing business. We have also invested heavily in making more people aware of Jason’s Sourdough. As a result of the above, our operating profit grew by 73.1% to £15.5m.

The first half of 2025 has been challenging from a capacity perspective. While we continue to grow year on year, incremental sales week on week were significantly limited due to the overall lack of capacity within our existing factories. In May, we opened our new state of the art £36m bakery in Glenfield. Our first plant opened successfully in May 2025 and is performing in line with our expectations. This has meant that we can increase both supply to existing retailers whilst also onboarding new retailers and get back to our vision of making proper bread more accessible to more people The second plant comes online in September 2025.

The principal risks and uncertainties faced by the group are:

Firstly, having invested heavily in our new facility, it is imperative that we continue to deliver the same great quality products consistently as we move into a new era, whereby we are embracing technology and automation more than ever. While we are doing this though, we will never take shortcuts.

Secondly, our ability to pass on cost inflation in a timely manner. We continue to work hard to ensure we can mitigate this where appropriate and remain true to our core value which is being unbeatable for quality, service, and value for money.

The directors of the company monitor a range of key data ratios and numerical trends as an integral part of managing and understanding the business.

Period ended          Period ended     

27 December 2024 29 December 2023    

Financial:

Turnover              £91,837,691     £66,767,713

Gross Profit             £29,367,978         £18,381,382

Gross Profit Margin          31.98% 27.53%

Profit after tax              £11,785,252         £7,618,142

Non-Financial:

Employees                     546 399

Fairshare Donations         69 tonnes 68 tonnes

Each year the directors deliver a detailed plan prepared in accordance with the overarching long-term business strategy. The strategy is focused on delivering high quality, artisan bread products, at scale. We will invest in modern manufacturing methods where appropriate while not detracting from the artisanal nature of the product. We focus on prospering in the space between small-scale quality artisan bakers and high scale plant bakers.

The directors have prioritised the groups employee’s by acting in accordance with our core operating values:

Facilitating a quarterly “how are we doing?” forum where all departments are represented to feedback directly to directors on areas we could improve and taking appropriate actions.

To believe in the potential of everyone and provide an environment that supports personal development. Specifically, we invest in national vocational qualifications in baking for those individuals prospering and wanting to develop. We continue to run our apprenticeship scheme, with 12 apprentice bakers passing their end point assessment in 2025.

To offer a working environment and appropriate remuneration that allows the group to retain and develop our talent.

Investing in additional HR resources to strengthen the relationship between the business and its employees and ensure our employees receive the appropriate guidance and support in consistently applying our principles and policies.

Circulating regular employee surveys to aid understanding of employee satisfaction in the workplace and to make efforts to improve on any suggestions or recommendations.

The directors have worked in partnership with the group’s suppliers by:

• Keeping price negotiation simple and reliable; and

• Working on end-to-end value chain initiatives whereby opportunities are identified to improve the supply chain for the benefit of all parties.

The directors have promoted positive relations with the group’s customers by:

• Closely collaborating with customers on developing new and innovative products to fill specific range gaps they require.

• To work on efficiency initiatives (which can be economical or environmental) whereby savings are shared equally between partners involved.

The directors have promoted and acted in accordance with the group’s core values on community and environment by:

• Eliminating all non-recyclable packaging from our products.

• Working with the UK’s largest and longest-running food distribution charity, Fare Share, we donated 69 tonnes of product in 2024.

• Giving back to the local community by continuing our sponsorship arrangement with local Junior football team “Glenfield United”.

On behalf of the board

The directors present their annual report and financial statements for the Period ended 27 December 2024.

The principal activity of the company continued to be that of bakers.

The results for the Period are set out on page 11.

Ordinary dividends were paid in the year amounting to £8,405,154. The directors do not recommend payment of a further dividend.

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

The director's continue to invest time and money into research and development of the company's baked goods to continue to provide quality products to its customers.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The auditor, Azets, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The company has taken the exemption available under S20A of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 not to produce an Energy and Carbon Report on the grounds that is a wholly owned subsidiary that is incorporated into the consolidated financial statements of it's immediate parent undertaking Geary's Bakeries Holdings Limited, which produces a consolidated Energy and Carbon Report for the group as a whole.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of research and development.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the 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 company’s auditor is aware of that information.

The directors are responsible for preparing the annual 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 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 these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• 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.

We have audited the financial statements of Geary's Bakeries Limited (the 'company') for the Period ended 27 December 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 27 December 2024 and of its profit for the Period 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 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 Period 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 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 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.

As explained more fully in the directors' responsibilities statement, 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.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

There was no other comprehensive income or expense for 2024 (2023 - £Nil).

Geary's Bakeries Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 25, Hayhill Industrial Estate, Loughborough, Leicestershire, LE12 8LD.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Geary's Bakeries Holdings Limited. These consolidated financial statements are available from its registered office, Unit 25, Hayhill Industrial Estate, Loughborough, Leicestershire, LE12 8LD.

These financial statements are for the 52 weeks ended 27 December 2024. The comparative accounting period are for the 52 weeks ended 29 December 2023.

At the time of approving the financial statements, the directors have reviewed ongoing profitability and cash generation of the entity extensively. The directors have produced forecasts demonstrating a reasonable expectation 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. Turnover is recognised on the date of despatch as this is the point that all risk and rewards are deemed to be transferred.

Research and development expenditure is expensed to the profit and loss account in the year in which it is incurred.

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

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

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

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

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

Assets under construction are not subject to depreciation. Depreciation is initiated once the asset is ready and available for its intended use.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated and compared to the carrying amount in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, and impairment loss is recognised in the profit and lsos account unless the asset is ccarreid at a revalued amout where the impairment loss is a revaluation decrease.

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.

Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

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

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

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

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

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

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

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

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

The tax currently payable is based on taxable profit for the year. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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

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

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

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

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 leases asset are consumed.

In the application of the company’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 average monthly number of persons (including directors) employed by the company during the Period was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2023 - 7).

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

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Assets held under hire purchase contracts are secured against the assets to which they relate.

Amounts owed by group undertakings are unsecured, repayable on demand and bear no interest.

The balance relates to loan arrangements entered into to facilitate factory expansion. The loans are repayable on the 30th June 2025 and 30th December 2025 and carry an interest rate of SONIA + 2.5%.

Finance lease payments represent rentals payable by the company 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 1.5 years. All leases are on a fixed repayment.

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

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

All shares rank pari passu.

The reserve is a non-distributable reserve and represents the nominal value of shares purchased and cancelled.

The profit and loss reserve comprises retained profits and losses for the current and prior periods.

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

At the reporting date, the company had entered into capital commitments of £27,532,302 (2023: £nil) with amounts unpaid at the year end amounting to £27,532,302. The capital commitments relate to the construction of a new manufacturing facility. This amount relates to contracts signed for building works and the purchase of key production equipment and machinery. The facility has completed in the first half of 2025 and will support the company’s ongoing expansion.

During the period the company entered into the following transactions with related parties:

Rental charges of £400,000 (2023: £400,000) were paid to entities under the control of key management personnel.

A balance of £3,416 (2023: £nil) is due to key management personnel at the period end.

The ultimate parent company at the year end was Geary's Bakeries Holdings Limited. The registered office of Geary's Holdings Limited is the same as the company's registered office address as given in the company information page of these financial statements.

The company's results will be included in the consolidated financial statements of Geary's Bakeries Holdings

Limited forming the smallest and largest level of consolidation for the company's results.There is no ultimate controlling party.