REGISTERED NUMBER: 06653237 (England and Wales)

Bee Health Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

8

Report of the Independent Auditors

14

Income Statement

18

Other Comprehensive Income

19

Balance Sheet

20

Statement of Changes in Equity

22

Cash Flow Statement

23

Notes to the Cash Flow Statement

24

Notes to the Financial Statements

25

DIRECTORS:

Mr A D Purvis

Ms J A Cheng

Mr F Iannielli

REGISTERED OFFICE:

Fieldfisher

Riverbank House

2 Swan Lane

London

EC4R 3TT

REGISTERED NUMBER:

06653237 (England and Wales)

AUDITORS:

SMH Jolliffe Cork Audit Ltd

Accountants & Statutory Auditors

33 George Street

Wakefield

West Yorkshire

WF1 1LX

BANKERS:

Lloyds TSB Bank Plc

9 Marina Court

Hull

HU1 1TJ

The directors present their strategic report for the year ended 31 December 2024.

Business Review and Results

We aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at year end. Our review is written in the context of the risks and uncertainties that we face.

The results of the company for the year are as follows:

31.12.2024

31.12.2023

31.12.2022

£m

£m

£m

Sales

43.45

41.88

35.81

EBITDA

5.30

4.51

2.97

EBITDA margin

12.20%

10.77%

8.29%

* EBITDA is calculated after discounting non-recurring costs.

The VMS sector like many other sectors continued to experience unprecedented macro-economic challenges during the year. The industry was impacted like many by rising inflation, affecting the price of goods, staffing costs, fuel & oil. The latter of which continued to be impacted by the Russian - Ukraine conflict. The impact of rising oil costs and supply chain delays had a significant impact on the company's material margin.

Despite these difficult trading conditions, the company continued its growth as predicted and reported it's second strongest annual results. According to market studies the global nutritional supplements market is expected to continue growing year on year, the global nutritional supplements market is expected to expand at a compound annual growth rate (CAGR) of 6.42% from 2025 to 2030 (Grand View Research published 2025) and the company is committed to growing sales & increasing profitability.

During 2021 the company was acquired by INW (Innovations in Nutrition and Wellness). INW is a US based leader in custom R&D, manufacturing, and marketing support solutions for global brands that serve the fast-growing nutrition and wellness industry

Business environment

The economic environment is faced with inflationary pressures caused by the increase in the prices of raw materials, costs relating to Brexit, fuel and gas prices and increasing pressure due to the cost of living on the national living wage.

As previously reported, the VMS and specialist health foods sector struggled to maintain the growth experienced in 2020 as a result of COVID-19 , however, the industry continues to show significant resilience to general retail market pressures; in particular, e-commerce retailers continue to challenge established market dynamics with the ability to react quickly in bringing innovative products to market.

The company is strategically positioned to benefit from these evolving changes by maintaining industry leading service levels and by providing a fully bespoke contract manufacturing offering which incorporates; new product development, short formulation and manufacturing lead times, national and international regulatory advice and having the ability to manufacture a wide range of high-quality product formats at competitive prices.

In order to maintain its point of differentiation the company seeks to operate with optimum operational flexibility and manufacturing capacity, thereby enabling it to respond promptly to fast changing consumer trends and customer demands.

Once again, the company wishes to place on record its sincere gratitude and appreciation to all of its employees for their dedication, commitment, and hard work, during such challenging times.

Corporate Strategy Business Outlook

After a return to growth in 2023 as predicted the company continued its growth in 2024, but uncertainties around economic and inflationary pressure and its impact on the wider economic environment and staffing remain challenging.

To address these challenges, the company continues to improve its grading structure and learning and development initiatives, to ensure it is able to maintain and enhance its career progression opportunities and become an employer of choice within the local community.

As the effects of Brexit start to settle the company also aims to grow export trade in the coming year by expansion into new export markets and to continue to develop its business in key regions with a continuing focus on the Middle East.

During 2023 the company made significant investments in its packing hall, further automating its high-speed lines, and continued to further invest in its softgel capabilities during 2024 to increase its capacity by a further 60% and successfully launched a new Vegan soft capsule range.

The company continues to manage supply chain risks and rising inflation and prices through execution of carefully managed pricing initiatives alongside further investments in technology and equipment to ensure operational efficiencies and innovation are industry leading. The Directors and senior management continually review its cost structure and overhead expenses to improve profitability by promoting efficiency throughout the organisation. The company expects to benefit from scale efficiencies through its partnership with INW.

By combining with INW, the company will now be even better positioned to meet the industry's fast evolving needs. INW and Bee Health's highly complementary product capabilities and geographic scope will further enhance the services provided to customers. Additionally, the owner of INW, Cornell Capital, has significant expertise in the consumer and industrial sectors, further increasing our confidence that the company will further develop its range of formulations and product offerings. The expansion of the companies softgel capacity will also help explore adding sales to the US market through our group platform.

INW aims to be the premier solutions partner delivering best in class products across the spectrum of health and wellness, with unmatched product capabilities and industry leading quality & regulatory assistance, innovation on new product technologies and science backed ingredient led innovation. The company set out in 2024 to enhance its quality standards, by adding GMP (MHRA) certification to its existing BRC AA* accreditation. The company successfully acquired GMP accreditation in March 2025.

The companies continues to evolve it's strategy, vision and values with a clear focus on putting people at the heart of every strategic decision made.

KEY PERFORMANCE INDICATORS

The company operates a range of financial KPIs which it monitors daily/weekly at management level and monthly at Board level. The KPIs include, but are not limited to, the following:

KPI

31.12.2024

31.12.2023

31.12.2022

EBITDA as % of sales

12.20%

10.77%

8.29%

Gross profit as a % of sales

23.5%

21.5%

20.7%

Stock turn

5.95x

5.46x

6.03%

Overheads as a % of sales

11.34%

10.8%

12.5%

PRINCIPAL RISKS AND UNCERTAINTIES

The execution of the company's corporate strategy and the management of its annual business plan are subject to a number of risks and uncertainties which are routinely monitored and reviewed by the Board. Appropriate processes are implemented to manage and mitigate such risks and uncertainties.

The principal risks and uncertainties include the following;

Liquidity risk

The company operates both sterling and non-sterling bank accounts and has appropriate cash resources in place to support its budgeted working capital requirements.

The company continues to generate strong cash flow.

The company has rigorous business modelling and cash flow forecasting processes which can identify cash requirements significantly ahead of time.

Foreign exchange risk

The company sources raw materials from a number of non-UK countries. The overwhelming majority of those purchases are acquired in either United States Dollars or Euros. The company's exposure to currency fluctuations is therefore, in the main, limited to these two currencies.

Measures are in place to manage and mitigate such fluctuations by the operation of non-sterling bank accounts.

There are no financial instruments currently in place to hedge against overseas income and expenditure; however, the situation is kept under routine review.

Raw material price increases

The company is sensitive to fluctuations in raw material prices. Where possible the company mitigates against price fluctuations by forward contracting in line with foreseeable requirements.

The company prides itself on strong partnerships with its suppliers to stay close to emerging market issues.

Customer Base

The company remains conscious of the benefit of having a broad customer base and continues to routinely monitor its business mix. The company's approach to credit control ensures that there is a strong focus on reducing bad debt exposure.

Debt and cash

The company does not operate a bank overdraft facility. It has facilities to fund items of plant and equipment by way of asset finance arrangements, if needed, however the company maintains strong cash reserves and a healthy balance sheet position.

Changes in legislation

The company operates in a business sector that is sensitive to the impact of changes in food regulations, both in the UK and internationally.

European Developments

The company successfully put in place measures to mitigate the impact of the UK leaving the EU and continues to evaluate the ongoing difficulties around import and export with the EU region in order to minimise risks and take advantage of emerging opportunities.

Technological Change

The company's IT systems provide a real time view of the business enabling trading and operational decisions to be based on high quality management information. On-going investment is being made in IT systems to ensure that they are able to continue to respond to the needs of the business.

Recovery processes are in place to minimise the effects of damage or denial of access to the infrastructure or systems.

The company has software that provides a robust deterrence against emerging cyber threats alongside an actively managed internal security awareness program.

Employee Hiring and Retention

The company appreciates the need to attract and retain high calibre employees and seeks to do so through a combination of competitive basic salaries and targeted performance related bonuses. It also appreciates the need to provide employees with clear job progression opportunities and appropriate on-going training programmes.

As referenced in the corporate strategic outlook the company continues to invest significant resources and focus to its human capital expanding its Human Resources and Learning & Development team and has implemented various programmes with focus on staff engagement and communication.

Supply Chain Risk

On going consideration is given to how the conflict in the Ukraine continues to impact the supply chain risk during FY24; however, the company continued to take appropriate steps to implement mitigation policies, which limit any material impact.

Meanwhile, considerable effort is directed towards working with suppliers in order to manage the potential risk of interruptions and delays in supply that may adversely impact on trade.

In particular, the company continues to seek to maintain access to sufficient stocks of raw materials from a wide range of suppliers and destinations in order to deliver its business plan.

This involves forward contracting and maintaining stock levels in line with known and anticipated requirements.

Service levels and warehouse handling systems are continuously monitored to ensure appropriate stock control processes are in place and that goods are delivered in a timely manner. The company tracks OTIF as a key strategic KPI.

SECTION 172(1) STATEMENT

S172(1) (A) "The likely consequences of any decision in the long term"

The Directors understand the business and the evolving environment in which it operates, including the challenges of navigating through the conflict in the Ukraine and current economic and inflationary challenges. The strategy and business plan is set by the Leadership team and Directors and approved by the Board annually, and is intended to strengthen our position as a leading health and wellness company and our vision to become the global leading solutions partner to the sector, as set out in the Company's strategic review.

The Directors ensure that any decision is consistent with the groups developing ESG initiatives, safety and social responsibility is fundamental to our business approach.

The need to tackle climate change is high on our ESG agenda, this include ensuring our raw materials are sourced in a sustainable manner and our carbon footprint is continually monitored to mitigate the impact of the environment.

S172(1) (B) "The interests of the company's employees"

The Directors understand the importance of our employees to the long-term success of the business and the delivery of our strategic ambitions and as mentioned in the strategic review are at the core of our business. The Success of our business depends on attracting, retaining and motivating employees. The Directors consider the implications of decisions on employees to ensure that we remain a responsible employer, from pay and benefits to health and safety and the workplace environment.

The Directors have always recognised the importance of communicating and engaging with its workforce. This is performed through a range of formal and informal channels, including via emails from the Directors and other senior executives, internal team meetings and huddle's, town halls and through the Company's in house digital media system.

The company is committed to the development of it's workforce and as noted in the strategic review has invested in Human Resources and Learning & Development including; new e-learning platforms, enhanced in house training, senior leadership six sigma and lean manufacturing training, a revamped digital induction process, new staff handbook, various questionnaires to appraise the work environment, exit interviews.

In addition to formal training, an online compliance and training program to ensure the continued development of its staff alongside ensuring knowledge of important compliance areas such as anti-money laundering, IT security, UK bribery act to mention a few, the company in 2023 also launched an employee training and learning skills programme within its UK HR system. The learning module allows all employees to access their training records and always ensure they have full transparency of training actions to complete a move to the next skill grade to assist the company's vision of a higher paid, highly skilled and engaged workforce.

The company regularly undertakes employee engagement surveys, and whilst happy with the results, we continue to look at how we can improve in all areas.

The Directors consider effective engagement a key element of its understanding of the Company's ability to create value as it recognises that our employees are our greatest asset. Workforce views can also help inform the Board on matters related to operational effectiveness, culture, risk identification and strategy development and delivery. The Directors consider the current workforce engagement approach is working effectively.

S172 (1) (C) "The need to foster the company's business relationships with suppliers, customers and others"

The Directors are committed to ensuring efficacy of the supply chain, which is an important priority of the groups ESG initiatives. This is achieved through rigorous policies and procedures which are regularly reviewed to seek the promotion and application of key general principles with both existing and when entering new relationships.

The Directors and senior leadership are encouraged to communicate pro-actively to understand the issues and factors which are most important to all our stakeholders and integral to our success and continued innovation. The company uses tools such Mailchimp to regularly communicate to its customers and suppliers.

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, distributors, business partners, and regulators/governments (amongst others). We put the customers at the heart of what we do and pride ourselves with industry leading service levels and full-service offering.

The company successfully renewed its accreditation for ISO 9001. ISO 9001 is the international standard that specifies requirements for a quality management system (QMS).

We understand that suppliers are critical to the effective operation of our business through to supply of product to our customers. We understand the importance of creating a collaborative and trusting environment with our suppliers. We regularly engage with our suppliers to help them with regulatory issues.

We understand the need to be at the forefront in understanding regulatory changes, government policy and relevant laws and regulations, particularly the regulations around nutritional products and how they vary across consumer markets so that's we can continue to be at the forefront in being a premium brand partner by offering market leading NPD solutions to our customers.

S172 (1) (D) - "The impact of the company's operations on the community and the environment"

The Directors are committed to the groups ESG initiatives and operating in a way that our workforce can be proud of, by ensuring that the needs of society and the wellbeing of our environment and future of our planet is forefront with our ethical values, business strategy, and stakeholder engagement. We aim to minimise the environmental footprint of our products and processes and to constantly develop initiatives as part of the Company's 5-year Sustainability, Environmental & Energy plan which includes an initiative to work towards becoming Carbon neutral.

We have a packaging waste policy and work hard to reduce the impact our packaging has on the environment through an internal waste management process.

We look to innovate products that will make a positive impact on the lives and wellbeing of our customers through continued investment in R&D.

We support the local community through a range of initiatives including local donations to charities and community sponsorship.

The company was successful in keeping its ISO 45001 accreditation - ISO 45001 is the international standard for occupational Health & Safety management.

S172 (1) (E) - "The desirability of the company maintaining a reputation for high standards of business conduct"

The Directors take the reputation of the Group seriously; diversity and inclusion is a key part of Bee Health's culture. Employee safety and wellbeing is at the heart of the Company's 5-year Health & Safety strategy as are social, community and human rights issues.

We have a zero-tolerance approach to Modern Slavery, and we are committed to the prevention, deterrence, and detection of Modern Slavery within our business and within our supply chain. It is our policy to conduct all business activities with honesty, integrity and at the highest possible ethical standards. We are fully committed to implementing and enforcing effective systems and controls within our business and within our supply chain to continually challenge our ability to combat Modern Slavery.

We have built a risk framework with measures to assess and check our supplier's conduct in respect to Modern Slavery and taken steps to ensure our supply chain processes and policies include specific prohibitions against the use of Modern Slavery.

S172 (1) (F) - "The need to act fairly as between members of the company "

The Board is clear that good governance and effective communication are essential on a day-to-day basis to deliver our purpose and to protect the company's brand, reputation, and relationships with our stakeholder community including shareholders, customers, employees, suppliers, and the local communities in which we work.

Bee Health is proud to be a trusted ethical manufacturer and distributor of health and wellness products. We constantly innovate to meet our customers' needs.

Continued investment in our business, our people and our equipment and processes has enabled us to continue to deliver consistent financial growth and long-term value for our investors.

ON BEHALF OF THE BOARD:

Mr A D Purvis - Director

25 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the formulation, contract manufacture and packaging of a wide range of vitamins, minerals, supplements ("VMS") and health food products.

The company manufactures products in numerous formats including; tablets, capsules, soft gel capsules, liquids, serums, sprays, powders, gels and creams.

The company also manufactures, retails and wholesales its own VMS and health food range of products under the FSC 'Food Supplement Company' and Bee Health Propolis brands.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

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

Mr A D Purvis

Ms J A Cheng

Other changes in directors holding office are as follows:

Mr R B Eby - resigned 26 January 2024

Mr P L Sturman - appointed 29 February 2024 - resigned 9 May 2024

Mr F Iannielli - appointed 9 May 2024

The company directors and INW corporate team have a regular opportunity to consider the company's strategy, policies, budgets, progress, and financial position in order to be able to arrive at a balanced assessment of the company's position and prospects.

The Directors operate within governance guidance provided by Cornell Capital and the directors and senior management team monitor the Company's performance through a number of KPI's on a continual basis.

Within this framework the Director's consider the interests of all key stakeholders.

GOING CONCERN

The Board is fully satisfied that, on the basis of the current financial year's performance to date, its strong cashflow and its robust financial projections, adequate finance is in place to ensure that the company is able to meet its financial obligations for a minimum of 12 months from the date of signing the financial statements.

The company's position is further strengthened by it's ownership structure as referenced on page 3, owing to the industry expertise of both the INW Manufacturing group and Cornell Capital.

EMPLOYEES

The company continues to develop programmes whereby employees are consulted and provided with feedback on both current activities and the general progress of the company.

The company supports the employment of disabled persons wherever possible through; recruitment, retention of those who may become disabled during the term of their employment and by career development generally having regard to particular aptitudes and abilities.

It is also the company's policy to provide equal opportunities regardless of gender, race, religion, sexual orientation, or disability.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

At the end of 2021 we commenced the development of a comprehensive 5-year strategy to reduce and offset our carbon footprint. We will help the environment, fight climate change, and help make possible the transition to a clean energy future. Our offset projects will be third-party validated and verified to the highest standards and comply with the UN Sustainable Development Goals.

We commenced several initiatives during the year as part of our 5-year sustainability strategy, which we will continue to progress during the coming year around how to further develop the initiatives listed below and reduce the offset requirements to meet our strategy of being carbon neutral within 5 years.

Current carbon Saving Initiatives include:

Staff Awareness Training

Staff awareness training will be implemented across Bee Health's two sites to promote energy saving practices among employees. The training will focus on educating staff about energy-efficient behaviours, such as turning off unused equipment, optimising lighting usage, and maintaining equipment for optimal energy performance. By engaging employees in energy-conscious practices, the company aims to reduce unnecessary energy consumption, particularly in areas such as lighting, heating, and the operation of equipment during the 24/7 production schedule and office hours.

This initiative is expected to generate cost savings, reduce energy consumption, and support the company's sustainability objectives. The training will be rolled out in phases starting in June 2025, beginning with key operational staff, and followed by periodic refresher sessions every six months.

This action was identified through the recent ESOS (Energy Savings Opportunity Scheme) audit, which highlighted the potential for reducing energy usage through improved staff awareness and behaviour changes.

Estimation of Savings

The estimated energy savings from the staff awareness training initiative are expected to result in a 2.5% reduction in total energy expenditure across Bee Health's two sites. This reduction is primarily attributed to improvements in lighting and office electricity usage, as employees are encouraged to adopt energy-efficient practices such as turning off lights and equipment when not in use, optimising heating and cooling, and implementing more energy-conscious work habits.

The savings estimate was derived from historical energy usage data and industry-standard efficiency improvement benchmarks. Carbon savings were calculated by applying the standard carbon emissions factor for electricity consumption in the UK (0.233 kg CO2/kWh, as per DEFRA's guidelines). While the estimate was informed by the ESOS audit, which identified potential energy savings through improved staff awareness, the 2.5% savings figure was independently calculated based on internal data and best practices, aligning with the company's sustainability goals.

Energy Monitoring and Targeting

Fiscal monitoring of gas and electricity meters will be implemented to enhance energy management practices at Bee Health. This remote energy monitoring system allows for regular tracking and analysis of energy use on site. in addition, remote energy monitoring provides accurate data on energy consumption, helping to identify inefficiencies, reduce waste, and lower costs. The system also simplifies compliance with energy regulations by providing automated reporting and detailed consumption records, improving operational efficiency and supporting sustainability goals.

Bee Health also has the opportunity to install additional sub-meters on site, which could be investigated as part of this project. This would allow for in-depth analysis of asset-level energy consumption, which in turn could further energy savings through the identification of inefficiencies. Monitoring and targeting will be implemented in June 2025.

This action was identified as part of the ESOS audit, which highlighted the potential for significant energy savings through better monitoring and targeted interventions.

Estimation of Savings

The savings estimate was not directly calculated using the ESOS audit data, but it was informed by the audit's identification of opportunities for energy savings through better energy management practices. The 7.5% savings figure was independently calculated based on a detailed review of internal energy data, including historical consumption patterns, and aligned with industry best practices in energy management.

This estimate draws upon case studies and benchmarks from organisations that have implemented effective energy monitoring systems, which have demonstrated potential savings ranging from 5% to 15%, as highlighted by sources such as the Carbon Trust and the Energy Saving Trust. These organisations report that effective energy monitoring can lead to significant energy savings by providing visibility into energy consumption and enabling targeted interventions.

Carbon savings were also estimated using DEFRA emissions factors for electricity consumption, with reductions in energy consumption expected to lead to a corresponding reduction in carbon emissions. This method of calculation was chosen because it offers a clear, evidence-based approach to projecting savings, while reflecting the company's unique operational characteristics and energy use. These estimates are consistent with industry reports, such as those from the Carbon Trust, which indicate that energy management practices, including monitoring and targeting, have successfully delivered measurable reductions in both energy consumption and associated carbon emissions.

Variable Speed Drive Installation on Main Extractors

Bee Health plans to install a Variable Speed Drive (VSD) on the main extractor fans powered by a 45- kW inverter at its main site. This installation will allow for more precise control of fan speeds, enabling the extractor system to run at variable speeds based on demand rather than running continuously at full capacity. By adjusting the motor's speed to match operational needs, the VSD will reduce energy consumption and wear and tear on the equipment, enhancing its longevity and reliability. The primary benefit of this project is a significant reduction in energy usage, as the extraction system accounts for approximately 44% of our main site's overall electricity consumption.

This initiative will be implemented in December 2025 and was identified as part of the ESOS audit, which highlighted the inefficiency of operating extraction systems without demand-based control. The audit emphasised the potential for energy savings through the adoption of VSD technology, which has been proven in similar industrial applications to reduce energy consumption by up to 30%.

This action aligns with our ongoing efforts to optimise energy efficiency, reduce operational costs, and minimise its environmental footprint.

Estimation of Savings

The installation of a Variable Speed Drive (VSD) on the main extractor fan at our main site is projected to achieve a 30% reduction in energy consumption for the 45-kW motor. The projected savings were calculated using energy consumption data collected during the ESOS audit, which identified the extractor system's continuous operation at full capacity as a key area of inefficiency. The energy and carbon savings from the VSD installation are calculated based on an estimated 30% reduction in total annual energy consumption for the 45-kW motor. Using the operational parameters of 0.8 efficiency, 24-hour operation, and 365 days per year, the motor's current consumption is calculated at 315,360 kWh/year. With the VSD, a 30% reduction equates to annual energy savings of 94,608 kWh. These calculations adhere to the methodologies outlined in the ESOS Phase 3 energy audit, ensuring an accurate evaluation of the system's impact on energy efficiency.

Energy savings were estimated by considering the fan's current consumption patterns and applying the energy reduction potential associated with VSD technology, as reported by authoritative sources such as the Carbon Trust. These sources highlight that VSDs can reduce motor energy use up to 50% in applications where motor loads fluctuate, with the 30% estimate representing a conservative yet realistic target for this specific application.

Carbon savings were calculated using DEFRA's standard carbon emissions factor for electricity consumption in the UK (0.233 kg CO2/kWh). By reducing the motor's energy consumption by 30%, we will not only lower our operational costs but also contribute to our carbon reduction goals.

Compressed Air Leak Detection

Bee Health will implement a comprehensive compressed air leak detection and repair program across both Bee Health 1 and Bee Health 2 sites to improve the efficiency of its compressed air systems. This initiative involves using specialised ultrasonic equipment to identify leaks in the compressed air networks at both sites and promptly repairing them to minimise energy waste. Compressed air systems are often one of the largest energy consumers in industrial facilities, with leaks accounting for up to 30% of total compressed air usage. By addressing leaks, the systems will operate more efficiently, reducing the demand on compressors and thereby lowering energy consumption and operational costs. The compressed air leak detection program will be implemented in July 2025 across both sites.

This action was identified through the ESOS audit, which highlighted inefficiencies in the compressed air systems as a key area for improvement.

Estimation of Savings

The estimated energy savings from the compressed air leak detection and repair initiative are projected to result in a 10% reduction in total energy consumption for compressed air systems across both our sites. This estimate is derived from the Total Energy Consumption (TEC) pie chart data, which highlights compressed air as a significant energy consumer at both sites. At Bee Health 1 (BH1), the total energy consumption for compressed air is 261,783.66 kWh, with an estimated savings of 26,178.37 kWh

(10%). For Bee Health 2 (BH2), the total energy consumption for compressed air is 116,668.39 kWh, and the estimated savings is 11,666.84 kWh (10%). Combined, the total estimated savings from this action amount to 37,845.21 kWh across both sites.

This savings estimate is supported by industry benchmarks, which suggest that addressing compressed air leaks can typically result in energy savings between 10% and 20%. The calculation was informed by the TEC pie chart data and reflects the common occurrence of leaks in compressed air systems. The potential for savings was further highlighted in the ESOS audit, which identified compressed air systems as an area with substantial energy-saving potential.

In addition to energy savings, carbon savings have been estimated based on the standard DEFRA emissions factor for electricity consumption of 0.233 kg CO?/kWh. This yields an estimated reduction of 8.82 metric tons of CO? across both sites. The savings estimate was tailored to our specific operational data, ensuring that it provides a realistic and achievable target while aligning with best practices in compressed air management.

Renewable energy

In October 24 we switched to a renewable electricity supply. This has resulted in an associated reduction of 129.87 tons of kg CO2e. In 2025 there will be no associated greenhouse gas emissions from consumption of electricity.

Automatic lighting

The automatic lighting controllers in both warehouse stores save energy by ensuring that lights are only in use when required.

LED lighting

We aim to replace all lighting with LED delivering a 50% reduction in our emissions from lighting. This is an ongoing replacement project.

Electric and hybrid vehicles

We continue to explore advances in technology to support the use of electric and hybrid vehicles to replace our current flatbed truck and van. We replaced our LPG forklift truck fleet and switched to electric in May and June of 2025.

GHG emissions and energy usage data

Year ended

Year ended

31.12.2024

31.12.2023

Electricity (kWh)

2,492,878

2,219,651

Associated GHG emissions from electricity - tCO2e

386.33

429.23

Calor Gas (litres)

319,734

335,252

Associated GHG emissions from calor gas - tCO2e

492.39

522.99

Kerosene (litres)

17,137

8,003

Associated GHG emissions from Kerosene - tCO2e

58.77

20.32

Red Diesel (litres) (Gas Oil)

5.539

3,190

Associated GHG emissions from Red Diesel - tCO2e

15.28

8.79

Diesel Company Vehicles (litres)

1,832

1,891

Associated GHG emissions from Diesel Company Vehicles - tCO2e

4.76

5.10

F Gas emissions R404a and R410a(Kilos)

16.47

8.33

Associated Greenhouse gas emissions from F Gas emissions R404a and R410a - tCO2e

26.46

21.06

Total GHG emissions - tCO2e

983.99

1,007.49

Carbon intensity ratio (CO2e of CO2 per tonne)

0.347

0.335

GHG emissions and energy usage data has been calculated in accordance with the GHG reporting protocols and government emission conversion factors. For the carbon intensity ratio, we have used CO2e of CO2 per tonne as this is a common business metric for our industry sector, this is the total GHG emissions per tonne of material used in production.

Future aspirations

Our scope of works for 2025 includes the following:

-

Carbon Footprint Assessment

-

Collation of data covering full Scope 1 to 3, within a set boundary of 2024

-

Evaluation of emissions to produce an emissions baseline.

-

Emissions hotspot analysis and competitor analysis.

-

Within the CFA Net Zero report, provide recommendations for data streamlining improvements for future reporting years.

-

Net Zero Strategy

-

Emissions hotspot identification.

-

Development of short/medium/long term reduction actions, considering both "corporate" and "external" reductions.

-

Production of carbon reduction trajectories and accompanying detail on each action, included within the CFA Net Zero report.

-

Creation of internal policies such as procurement, sustainability, and travel.

-

We are reviewing our site waste management process with a view to increasing recycling, and we are engaging with our suppliers to ensure continued progressions towards achievement of our targets.

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). 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;

-	state whether applicable accounting standards 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.

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, SMH Jolliffe Cork Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A D Purvis - Director

25 September 2025

Opinion

We have audited the financial statements of Bee Health Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 December 2024 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 thirteen, 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 misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement principal 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 the Directors and other informed management which we considered may have a direct material effect on the financial statements or the operations of the company and thereafter, the audit 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 and;

- 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 journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 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;

- enquiring of management as to actual and potential litigation and claims and 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 misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Claire Lawton FCA DChA (Senior Statutory Auditor)

for and on behalf of SMH Jolliffe Cork Audit Ltd

Accountants & Statutory Auditors

33 George Street

Wakefield

West Yorkshire

WF1 1LX

26 September 2025

TURNOVER

3

43,453,283

41,875,423

Cost of sales

33,276,517

32,926,131

GROSS PROFIT

10,176,766

8,949,292

Administrative expenses

5,941,584

5,344,259

4,235,182

3,605,033

Other operating income

13,922

15,957

OPERATING PROFIT

5

4,249,104

3,620,990

Interest receivable and similar income

26,107

802

4,275,211

3,621,792

Interest payable and similar expenses

7

-

10

PROFIT BEFORE TAXATION

4,275,211

3,621,782

Tax on profit

8

836,553

619,305

PROFIT FOR THE FINANCIAL YEAR

3,438,658

3,002,477

PROFIT FOR THE YEAR

3,438,658

3,002,477

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,438,658

3,002,477

FIXED ASSETS

Intangible assets

9

11,857

4,156

Tangible assets

10

7,310,910

6,269,980

7,322,767

6,274,136

CURRENT ASSETS

Stocks

11

3,548,621

4,422,011

Debtors

12

14,213,464

16,170,807

Cash at bank and in hand

4,769,538

2,715,792

22,531,623

23,308,610

CREDITORS

Amounts falling due within one year

13

6,781,624

10,185,412

NET CURRENT ASSETS

15,749,999

13,123,198

TOTAL ASSETS LESS CURRENT LIABILITIES

23,072,766

19,397,334

PROVISIONS FOR LIABILITIES

15

1,082,777

846,003

NET ASSETS

21,989,989

18,551,331

CAPITAL AND RESERVES

Called up share capital

16

1,000

1,000

Retained earnings

17

21,988,989

18,550,331

SHAREHOLDERS' FUNDS

21,989,989

18,551,331

The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2025 and were signed on its behalf by:

Mr A D Purvis - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1,000

15,547,854

15,548,854

Changes in equity

Total comprehensive income

-

3,002,477

3,002,477

Balance at 31 December 2023

1,000

18,550,331

18,551,331

Changes in equity

Total comprehensive income

-

3,438,658

3,438,658

Balance at 31 December 2024

1,000

21,988,989

21,989,989