The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Freedom Confectionery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Freedom Confectionery, Brunel House, 9 Penrod Way, Heysham, Lancashire, LA3 2UZ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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.

The company has no assets which are classified as other financial assets.

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, 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.

The company has no liabilities classified as other financial liabilities.

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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted to the extent that they are material to the financial statements. Details of the equity share-based payments are detailed in note 7.

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Current position, future prospects and ESG

2024 presented another year of change and adaptation as we continued to navigate challenging external factors, including global supply chain pressures and the ongoing impact of HFSS legislation on online advertising opportunities. Despite these headwinds, Freedom Confectionery has consolidated its position, invested in growth, and strengthened its reputation as a leading innovator in the free-from confectionery sector.

This year saw significant steps forward in our product development and market expansion:

• In July 2024, we launched our new plant-based gummy range to complement our core marshmallow portfolio, broadening our appeal with products that are less seasonal and more versatile. The range debuted in premium resealable gusset pouches with the strapline “Sharing is Caring”. This packaging not only elevates the look and feel of the brand but also supports a more premium price point at retail.

• Work also progressed during the year on developing our first seasonal ranges for Halloween and Christmas. Throughout 2024, we refined the product selection, brochure, and packaging, with the first launches scheduled for 2025 to capture seasonal sales opportunities.

• Considerable work was undertaken on our refreshed website, designed to move away from “MallowLand” and reposition as a more global platform as we expand beyond marshmallows into wider confectionery. The new site will also better serve the US market, with localisation of products (colours, weights, packaging, UPC codes), Americanised content, and improved shipping options. Launch is targeted for Q1 2025.

Freedom Confectionery strengthened its international presence, returning to ISM in Cologne and exhibiting for the third year at Sweets & Snacks, which in 2024 was held in Indianapolis for the first time after many years in Chicago. These events have continued to generate strong global interest, particularly in the US. The US market has been a considerable investment focus in 2024, as we believe it represents a major part of our future with its increasing shift towards clean-label “better for you” products and heightened awareness of allergens. To support this, we established a US LLC, entered into joint venture partnerships for warehousing and distribution, and set up full operations including banking and insurance.

Our R&D and new product development continues to set benchmarks in the free-from category. During 2024, we made significant progress on developing the world’s first plant-based twisted marshmallow (“Twistie”). We are aiming to launch this in 2025 once shelf life and product stability are fully validated.

2024 was also a year of focus on strengthening our governance and sustainability frameworks. We undertook the significant work required to progress towards B Corp certification, embedding its principles into our operations. This effort culminated in our successful accreditation in March 2025.

Our environmental initiatives remain central to the way we operate, with investments and practices that reduce our footprint and promote sustainable working, including:

• Solar Thermal Panels

• 15kW Wind Turbine

• LED Lighting with PIR & Lux Sensors

• EV Charging Points

• Bicycle Racks

• Fully Equipped Gymnasium to promote employee wellbeing

• Greenhouse and Veggie Patch for staff use

• Segregated Waste Station

• Procurement of energy from renewable sources

• AAA-rated energy efficient IT and electrical office equipment

Our ambition is to continue building a business that is inclusive, sustainable, and future-facing. Innovation remains at the heart of what we do: developing exciting new products that are accessible to all (plant-based, top-14 allergen free, halal certified, and kosher suitable) while reducing our environmental impact and supporting our people.

The average monthly number of persons (including directors) employed by the company during the year was:

The company established the Freedom Confectionery Limited EMI Share Option Plan during the year ending December 2019 for the grant of share options to eligible employees of the company as described below:

The options outstanding at 31 December 2024 had an exercise price of £0.07 and a remaining contractual life of up to ten years from the date of grant on 6 December 2019.

The Directors have concluded that any adjustments to the accounts arising from the existence of the plan would be immaterial from an internally generated valuation. Consequently, no adjustments have been made to the financial statements during the current period in respect of the plan.