REGISTERED NUMBER: 13198294 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

036 GROUP COMPANY LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J J Whiteley

J Oxley

Mrs V A Grant

D Doorbar

Ms L Foucher

S C Mclaren

REGISTERED OFFICE:

Unit 8

Capitol Industrial Estate

Fulmar Way

Wickford

Essex

SS11 8YW

REGISTERED NUMBER:

13198294 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

036 Group Company Limited is a leading group specialising in outdoor living and logistics, while also serving as a shared service center of excellence for its associated companies.

The Group is pleased to report another year of strong performance across its companies, with notable margin improvements and a solid EBITDA that reflects both operational discipline and strategic focus. Despite a challenging economic backdrop, our retail businesses delivered impressive results, underlining the strength of our product offering and the exceptional value we continue to provide to our customers. With a growing national presence through our UK showroom portfolio and the continued development of a robust e-commerce platform, the Group's companies are well-positioned to sustain its leadership in the market.

Our Wholesale divisions also performed strongly, highlighted by the successful relaunch of their brand and a clear long-term vision that builds on their strong market position. These achievements demonstrate the resilience and adaptability of our diversified business model, as well as the strategic clarity with which we are shaping the future of the Group.

At the foundation of this success lies the Group's best-in-class infrastructure, which underpins long-term growth, efficiency, and sustainability. We believe these strengths will continue to empower us to deliver outstanding value for customers, partners, and stakeholders, while ensuring the Group remains at the forefront of our industry for years to come.

Key Performance Indicators

The company manages the business by reference to key performance indicators. Competent management reporting tools are in place to provide essential current, timely reporting in a clear and precise manner.

Key Performance Indicators are year on year turnover growth, gross profit margin %, and EBITDA as set out below:

2024

2023

Growth/(decline) in group turnover (%)

(5.2%

)

n/a

Gross profit margin (%)

45%

41%

EBITDA (£,000)

1,567

1,931

PRINCIPAL RISKS AND UNCERTAINTIES

The management and execution of the company's strategy are influenced by several key risks. Principal risks and uncertainties include competition from both national and independent retailers, employee retention, product availability, and cost inflation.

Despite these challenges, the business is well-positioned to adapt and compete effectively. Our strong industry reputation, robust stock holding, and dynamic marketing and incentive strategies provide us with the flexibility to respond to adverse weather and competitive pricing pressures. Employee retention remains a critical focus, and the establishment of our People, Talent Acquisition, and Culture Department has been pivotal in fostering a supportive and engaging workplace environment.

Our exclusive supply chains with Far East factories and solid relationships within the freight industry ensure quick and reliable product availability at competitive prices.

With the Group having its own logistics division, this significantly reduces risks for the Group business by ensuring greater control and reliability over the entire supply chain process. By managing logistics in-house, we can mitigate risks associated with third-party providers, such as delays, mismanagement, or lack of accountability. This internal control allows for better handling of inventory, reducing the risk of stockouts or overstock situations that can impact sales and customer satisfaction. Moreover, owning our logistics division provides the flexibility to respond quickly to disruptions, such as transportation strikes, geopolitical issues, or natural disasters, ensuring continuity of operations. It also enhances our ability to safeguard sensitive data and proprietary information, reducing the risk of data breaches. Overall, having our own logistics division creates a more resilient and secure supply chain, protecting the business from external uncertainties and operational risks.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's operations expose it to various financial risks, including price risk, credit risk, liquidity risk, and interest rate cash flow risk. To mitigate the potentially adverse effects of these risks on the company's financial performance, the directors have established comprehensive policies and procedures.

Price Risk:

Operating within a competitive market, the company faces price risk from both suppliers and competitors. However, the company effectively manages this risk through strategic supplier agreements, leveraging its operational scale.

Credit Risk:

While most of the company's sales are not credit-based, appropriate credit checks are conducted for those that are. Each customer's credit exposure is subject to limits, and overall risk is managed through rigorous credit control procedures and a diverse customer base.

Liquidity Risk:

Liquidity risk, the risk of encountering difficulty in meeting financial obligations, is mitigated by the company's substantial cash resources and access to additional bank facilities.

Brexit:

The company continuously monitors the impact of Brexit. Despite no sales outside the UK, all employees and suppliers are UK-based or from Far East stock suppliers, ensuring minimal disruption.

Foreign Exchange Risk:

Purchasing in US dollars exposes the company to foreign currency risk. To mitigate this, the company utilises forward exchange contracts, ensuring predictable future cash flows.

STREAMLINED ENERGY AND CARBON REPORTING

2024

2023

UK energy use kWh

kWh's

kWh's

Electricity purchased - total kWh taken from electricity bills

1,354,631

1,150,354

Transport Fuel - a total estimated 38,623 litres

409,408

431,865

1,764,039

1,582,219

Associated Greenhouse gas emissions tC02e

tCO2e

tCO2e

Emissions from purchased electricity

304.8

258.8

Emissions from combustion of transport fuel

96.9

102.3

401.7

361.1

Intensity ratio

Sales revenue £1m

46.1

48.7

Tonnes CO2e Equivalent

401.7

361.1

Tonnes of CO2e per total £1m sales revenue

8.7

7.4

Approved conversion factors have been applied to calculate CO2 emissions from kWh usage.

FUTURE DEVELOPMENTS

The company remains committed to its strategic vision of becoming the UK's leading outdoor living Group, supported by its robust logistics division and exciting future developments in products, physical presence in the UK, and strategic investments to support this visionary growth.

ON BEHALF OF THE BOARD:

J J Whiteley - Director

29 September 2025

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

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of a holdings company.

DIVIDENDS

The dividends paid during the year were as follows:

£358.42 per Ordinary share totalling £400,000 and £358.42 per Ordinary 'A' share totalling £30,108.

DIRECTORS

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

J J Whiteley

J Oxley

Mrs V A Grant

Ms L Foucher

S C Mclaren

Other changes in directors holding office are as follows:

D Doorbar - appointed 4 March 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J J Whiteley - Director

29 September 2025

Opinion

We have audited the financial statements of 036 Group Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 five, 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 group's and the parent 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 group or the parent 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Audit procedures performed by the engagement team to detect irregularities, including fraud from instances of non-compliance with laws and regulations included:

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

- Reading key correspondence from regulatory bodies;

- Challenging assumptions and judgements made by management in it's significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.

- Consideration of recent correspondence with the companies legal advisors to ensure that it aligned with the conclusions drawn on obligations recognised in respect of uncertain legal matters;

- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or those posted by unexpected users; and

- Testing transactions entered into that are outside of the normal course of the Company's business

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

Statutory Auditor

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

29 September 2025

TURNOVER

46,126,853

48,694,573

Cost of sales

(25,340,370

)

(28,585,752

)

GROSS PROFIT

20,786,483

20,108,821

Distribution costs

(4,816,430

)

(4,812,120

)

Administrative expenses

(16,441,434

)

(14,553,192

)

(471,381

)

743,509

Other operating income

429,297

99,487

OPERATING (LOSS)/PROFIT

5

(42,084

)

842,996

Interest receivable and similar income

33,547

9,795

(8,537

)

852,791

Interest payable and similar expenses

7

(890,225

)

(247,318

)

(LOSS)/PROFIT BEFORE TAXATION

(898,762

)

605,473

Tax on (loss)/profit

8

(162,377

)

(139,123

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(1,061,139

)

466,350

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

1,958,200

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,958,200

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

897,061

466,350

(Loss)/profit attributable to:

Owners of the parent

(1,061,139

)

466,350

Total comprehensive income attributable to:

Owners of the parent

897,061

466,350

FIXED ASSETS

Intangible assets

11

2,139,953

673,562

Tangible assets

12

5,674,174

3,503,210

Investments

13

-

31,565

7,814,127

4,208,337

CURRENT ASSETS

Stocks

14

14,313,395

12,690,676

Debtors

15

5,018,451

4,906,956

Cash at bank and in hand

3,708,039

4,741,333

23,039,885

22,338,965

CREDITORS

Amounts falling due within one year

16

(13,263,982

)

(11,133,151

)

NET CURRENT ASSETS

9,775,903

11,205,814

TOTAL ASSETS LESS CURRENT LIABILITIES

17,590,030

15,414,151

CREDITORS

Amounts falling due after more than one year

17

(2,866,406

)

(1,452,946

)

PROVISIONS FOR LIABILITIES

20

(1,552,377

)

(1,256,911

)

NET ASSETS

13,171,247

12,704,294

CAPITAL AND RESERVES

Called up share capital

21

1,200

1,200

Revaluation reserve

22

1,468,650

-

Retained earnings

22

11,701,397

12,703,094

SHAREHOLDERS' FUNDS

13,171,247

12,704,294

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J J Whiteley - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

2,496,524

-

Investments

13

401,262

1,262

2,897,786

1,262

CURRENT ASSETS

Debtors

15

2,984,644

2,416,727

Cash at bank

81,977

761,486

3,066,621

3,178,213

CREDITORS

Amounts falling due within one year

16

(7,621,762

)

(3,060,720

)

NET CURRENT (LIABILITIES)/ASSETS

(4,555,141

)

117,493

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,657,355

)

118,755

CREDITORS

Amounts falling due after more than one year

17

(308,908

)

-

PROVISIONS FOR LIABILITIES

20

(489,550

)

-

NET (LIABILITIES)/ASSETS

(2,455,813

)

118,755

CAPITAL AND RESERVES

Called up share capital

21

1,200

1,200

Revaluation reserve

22

1,468,650

-

Retained earnings

22

(3,925,663

)

117,555

SHAREHOLDERS' FUNDS

(2,455,813

)

118,755

Company's (loss)/profit for the financial year

(4,102,660

)

1,698,195

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

J J Whiteley - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

-

-

100

Changes in equity

Issue of share capital

1,100

-

-

1,100

Dividends

-

(1,580,640

)

-

(1,580,640

)

Total comprehensive income

-

466,350

-

466,350

Pre acquisition reserves

-

13,817,384

-

13,817,384

Balance at 31 December 2023

1,200

12,703,094

-

12,704,294

Changes in equity

Dividends

-

(430,108

)

-

(430,108

)

Total comprehensive income

-

(571,589

)

1,468,650

897,061

Balance at 31 December 2024

1,200

11,701,397

1,468,650

13,171,247

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

100

-

-

100

Changes in equity

Issue of share capital

1,100

-

-

1,100

Dividends

-

(1,580,640

)

-

(1,580,640

)

Total comprehensive income

-

1,698,195

-

1,698,195

Balance at 31 December 2023

1,200

117,555

-

118,755

Changes in equity

Dividends

-

(430,108

)

-

(430,108

)

Total comprehensive loss

-

(3,613,110

)

1,468,650

(2,144,460

)

Balance at 31 December 2024

1,200

(3,925,663

)

1,468,650

(2,455,813

)

Cash flows from operating activities

Cash generated from operations

1

915,548

4,757,502

Interest paid

(890,225

)

(247,318

)

Tax paid

(61,694

)

(725,243

)

Movement in other provisions

56,288

46,448

Net cash from operating activities

19,917

3,831,389

Cash flows from investing activities

Purchase of intangible fixed assets

(1,507,096

)

(790,331

)

Purchase of tangible fixed assets

(845,413

)

(507,271

)

Purchase of fixed asset investments

(575,912

)

(184,265

)

Sale of intangible fixed assets

1,718,232

647,334

Sale of tangible fixed assets

40,000

5,500

Sale of fixed asset investments

36,058

183,189

Cash on acquisition

-

6,065,254

Interest received

33,547

9,795

Net cash from investing activities

(1,100,584

)

5,429,205

Cash flows from financing activities

Net advance/repayments on trade finance

741,372

210,233

Loan repayments in year

(354,818

)

(2,352,454

)

New loans drawn

731,800

-

Capital repayments in year

(536,352

)

(533,859

)

Amount introduced by directors

210,532

608,723

Amount withdrawn by directors

(315,053

)

(871,264

)

Equity dividends paid

(430,108

)

(1,580,640

)

Net cash from financing activities

47,373

(4,519,261

)

(Decrease)/increase in cash and cash equivalents

(1,033,294

)

4,741,333

Cash and cash equivalents at beginning of year

2

4,741,333

-

Cash and cash equivalents at end of year

2

3,708,039

4,741,333

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(898,762

)

605,473

Depreciation charges

1,584,987

1,000,731

Profit on disposal of fixed assets

(245,377

)

(135,180

)

Finance costs

890,225

247,318

Finance income

(33,547

)

(9,795

)

1,297,526

1,708,547

(Increase)/decrease in stocks

(1,507,215

)

4,443,526

Decrease in trade and other debtors

58,845

1,139,599

Increase/(decrease) in trade and other creditors

1,066,392

(2,534,170

)

Cash generated from operations

915,548

4,757,502

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,708,039

4,741,333

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

4,741,333

-

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

4,741,333

(1,033,294

)

3,708,039

4,741,333

(1,033,294

)

3,708,039

Debt

Finance leases

(1,863,953

)

536,352

(1,327,601

)

Debts falling due within 1 year

(2,319,911

)

(1,208,009

)

(3,527,920

)

Debts falling due after 1 year

(30,556

)

(1,730,345

)

(1,760,901

)

(4,214,420

)

(2,402,002

)

(6,616,422

)

Total

526,913

(3,435,296

)

(2,908,383

)