Company registration number 05157725 (England and Wales)
MAIL SOLUTIONS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
MAIL SOLUTIONS UK LIMITED
COMPANY INFORMATION
Directors
S Harrison
K Lee
A Griffiths
G Good
L Roberts
(Resigned 19 July 2024)
L Webster
J Higson
R Baker
Company number
05157725
Registered office
Halesfield 2
Telford
United Kingdom
TF7 4QH
Auditor
Azets Audit Services
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
MAIL SOLUTIONS UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
MAIL SOLUTIONS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -

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

The results for the year and financial position of the company are shown in the annexed financial statements.

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

Review of the business

The principal activity of the company continues to be the production of specialist envelopes and printed matter for a wide range of commercial and financial sector customers.

The turnover decreased by 2% to £29.1 m (2024: £29.9m) driven by the reduction in raw materials. Demand for the products increased overall due to business acquisitions, growth in diversified markets and new clients.

The gross profit increase d to 20.02% (2024: 19.53%) due to a change in the mix of products.

The EBITDA for the year was £1.1 m (2024: £1.2 m).

During the year the company has acquired certain assets from The European Envelopes Company Limited. The acquisition has solidified the company’s position in the market by growing turnover.

Key performance indicators

The key financial performance indicators for the company are turnover, gross profit, gross margin and operating profit before amortisation of goodwill. For the year ended 31 March 2025, the performance of the company was in line with expectations.

The board maintains a tight control on the administration expenses to ensure that gains made on gross profit improvements are not affected by increases in these expenses. The improvement in gross profit has been due to tighter management of the raw materials and ensuring that increases in the cost are passed on.

The company continues to re-invest in the equipment to ensure a high standard of quality and has plans to invest in new equipment to help it enter new markets and further develop existing ones.

Employees

The board recognises that the success of the company is dependent on attracting, retaining and engaging with employees, who are at the heart of the company’s ethos. The company invests money and effort into making Mail Solutions a better place to work. The company is an employee-owned business and has plans for employees to be represented on the ownership board.

Customers

The customer’s satisfaction is paramount to the continued success of the company which puts customers at the top of its priorities.

Principal risks and uncertainties

As for many companie s of our size, the business environment in which we operate continues to be challenging. The sector is highly competitive and margins continue to be under pressure. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control. However we are confident that management has the necessary skills and experience and the company has systems in place to monitor the business and the market in which it operates to enable the company to exploit opportunities that arise from changes in the market place.

MAIL SOLUTIONS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
Environment

The board takes the reduction in carbon from the company’s activities very seriously and invests in greener technologies and improvements in processes to ensure that it can continue the downward trajectory of carbon emissions. The company has recently published its carbon reduction strategy, and its near- and long-term science-based emissions reduction targets have been formally approved by the Science Based Targets initiative (SBTi). We also continue our membership of the Climate Change Agreement.

Carbon Reduction

Further building on our previous carbon reduction success, Mail Solutions UK Limited reduced our absolute carbon emissions by 876 tonnes CO2(e) to 13,421 in the 2024-2025 financial year. As our organisation has become more equipped to capture carbon data.

In terms of applying a normalising metric, the tonnes CO2(e) /​ tonnes paper consumed has been applied since completion of the baseline analysis. During the 2024-25 financial year, Mail Solutions UK Limited reduced CO2(e)/ per tonne of paper by 8.5% to the end of March 2025.

In total, Mail Solutions UK Limited has maintained paper usage whilst still reducing our absolute carbon emissions by 876 tonnes over the same period, which sees us on track to realising our Net Zero aspirations.

Sustainability

The company has engaged a Sustainability Professional who has carried out a Sustainability Maturity assessment on the business. Using the findings from this assessment, a carbon net zero plan has been developed, which is available at www.mailsolutions.com/cnz

Mail Solutions has invested in a Solar Panel array at the Halesfield site that will produce 500,000KW per year and during peak generation will produce 98% of the site energy requirements. The investment will reduce the CO2te by 126t per year.

On behalf of the board

J Higson
Director
30 September 2025
MAIL SOLUTIONS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2025.

Principal activities

The principal activity of the company continued to be that of the production of specialist envelopes and printed matter for a wide range of commercial and financial sector customers.

Results and dividends

The results for the year are set out on page 8.

Directors

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

S Harrison
K Lee
A Griffiths
G Good
L Roberts
(Resigned 19 July 2024)
L Webster
J Higson
R Baker
Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
J Higson
Director
30 September 2025
MAIL SOLUTIONS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2025
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

- select suitable accounting policies and then apply them consistently;

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

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MAIL SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MAIL SOLUTIONS UK LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

MAIL SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MAIL SOLUTIONS UK LIMITED
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

MAIL SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MAIL SOLUTIONS UK LIMITED
- 7 -

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

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

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

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

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

- Reviewing minutes of meetings of those charged with governance;

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

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Mr Paul Tyler
Senior Statutory Auditor
For and on behalf of Azets Audit Services
9 October 2025
Chartered Accountants
Statutory Auditor
Thorpe House
93 Headlands
Kettering
Northamptonshire
United Kingdom
NN15 6BL
MAIL SOLUTIONS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 8 -
2025
2024
Notes
£'000
£'000
Turnover
2
29,064
29,887
Cost of sales
(23,246)
(24,051)
Gross profit
5,818
5,836
Administrative expenses
(5,052)
(4,955)
Other operating income
30
75
Operating profit
3
796
956
Interest payable and similar expenses
6
(232)
(211)
Profit before taxation
564
745
Tax on profit
7
58
(66)
Profit for the financial year
622
679

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

MAIL SOLUTIONS UK LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 9 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Fixed assets
Goodwill
8
345
30
Tangible assets
9
1,122
1,313
1,467
1,343
Current assets
Stocks
10
2,850
2,956
Debtors
11
13,562
12,543
Cash at bank and in hand
36
25
16,448
15,524
Creditors: amounts falling due within one year
12
(8,380)
(7,886)
Net current assets
8,068
7,638
Total assets less current liabilities
9,535
8,981
Creditors: amounts falling due after more than one year
13
(328)
(351)
Provisions for liabilities
Deferred tax liability
16
249
294
(249)
(294)
Net assets
8,958
8,336
Capital and reserves
Called up share capital
18
-
0
-
0
Profit and loss reserves
19
8,958
8,336
Total equity
8,958
8,336
The financial statements were approved by the board of directors and authorised for issue on 30 September 2025 and are signed on its behalf by:
J Higson
Director
Company Registration No. 05157725
MAIL SOLUTIONS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
Share capital
Profit and loss reserves
Total
£'000
£'000
£'000
Balance at 1 April 2023
-
0
7,657
7,657
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
679
679
Balance at 31 March 2024
-
0
8,336
8,336
Year ended 31 March 2025:
Profit and total comprehensive income for the year
-
622
622
Balance at 31 March 2025
-
0
8,958
8,958
MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 11 -
1
Accounting policies
Company information

Mail Solutions UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Halesfield 2, Telford, United Kingdom, TF7 4QH and its registered number is 05157725.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

- Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash f low and related notes and disclosures;

- Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Mail Solutions Group Limited. These consolidated financial statements are available from its registered office, Halesfield 2, Telford, Shropshire, TF7 4QH.

Mail Solutions UK Limited is a wholly owned subsidiary of Mail Solutions Group Limited and the results of Mail Solutions UK Limited are included in the consolidated financial statements of Mail Solutions Group Limited which are available from Halesfield 2, Telford, Shropshire, TF7 4QH.

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

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

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

Leasehold land and buildings
Equal instalments over the lease term
Plant and equipment
4 - 10 years on cost
Fixtures and fittings
12% on cost
Computers
25% on cost
Motor vehicles
15 - 25% on cost

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated 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.

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks

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.

Cost is calculated using the first-in, first-out method.

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.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

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

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

Other financial assets

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

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts 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. A m ounts 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.

Other financial liabilities

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

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

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.10
Equity instruments

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.

1.11
Taxation

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

Current 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

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.

1.12
Employee benefits

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.

1.13
Retirement benefits

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

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 16 -
1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
2
Turnover and other revenue
2025
2024
£'000
£'000
Turnover analysed by geographical market
United Kingdom
28,029
29,243
Europe
735
515
Rest of World
300
128
29,064
29,886
3
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Fees payable to the company's auditor for the audit of the company's financial statements
20
16
Depreciation of owned tangible fixed assets
248
226
Profit on disposal of tangible fixed assets
-
(59)
Amortisation of intangible assets
28
-
Operating lease charges
826
612
4
Employees

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

2025
2024
Number
Number
Production
154
155
Sales and administration
52
47
Total
206
202

Their aggregate remuneration comprised:

2025
2024
£'000
£'000
Wages and salaries
6,749
6,267
Social security costs
607
567
Pension costs
199
170
7,555
7,004
MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 18 -
5
Directors' remuneration
2025
2024
£'000
£'000
Remuneration for qualifying services
347
370
Company pension contributions to defined contribution schemes
94
101
441
471

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2024 - 8).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£'000
£'000
Remuneration for qualifying services
63
73
Company pension contributions to defined contribution schemes
21
4
6
Interest payable and similar expenses
2025
2024
£'000
£'000
Interest on bank overdrafts and loans
232
211
7
Taxation
2025
2024
£'000
£'000
Current tax
Other taxes
(13)
-
0
Deferred tax
Origination and reversal of timing differences
(45)
66
Total tax (credit)/charge
(58)
66
MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
7
Taxation
(Continued)
- 19 -

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£'000
£'000
Profit before taxation
564
745
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
141
186
Tax effect of expenses that are not deductible in determining taxable profit
3
3
Group relief
(189)
(123)
Research and development tax credit
(13)
-
0
Taxation (credit)/charge for the year
(58)
66
8
Intangible fixed assets
Goodwill
£'000
Cost
At 1 April 2024
43
Additions - business combinations
343
At 31 March 2025
386
Amortisation and impairment
At 1 April 2024
13
Amortisation charged for the year
28
At 31 March 2025
41
Carrying amount
At 31 March 2025
345
At 31 March 2024
30

The goodwill is attributable to the company acquiring the trade and assets of The European Envelope Company Limited during the year. In the previous year, the company acquired the trade and assets of Kalamazoo. A business that was owned and operated by Adare SEC Limited.

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£'000
£'000
£'000
£'000
£'000
£'000
Cost
At 1 April 2024
873
12,610
86
48
20
13,637
Additions
-
0
93
-
0
-
0
-
0
93
Transfers
-
0
(36)
-
0
-
0
-
0
(36)
At 31 March 2025
873
12,667
86
48
20
13,694
Depreciation and impairment
At 1 April 2024
872
11,309
76
47
20
12,324
Depreciation charged in the year
1
245
2
-
0
-
0
248
At 31 March 2025
873
11,554
78
47
20
12,572
Carrying amount
At 31 March 2025
-
1,113
8
1
-
0
1,122
At 31 March 2024
1
1,301
10
1
-
0
1,313

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

2025
2024
£'000
£'000
Plant and equipment
233
289
10
Stocks
2025
2024
£'000
£'000
Raw materials and consumables
2,237
2,161
Work in progress
55
73
Finished goods and goods for resale
558
722
2,850
2,956
MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
11
Debtors
2025
2024
Amounts falling due within one year:
£'000
£'000
Trade debtors
6,604
6,228
Amounts owed by group undertakings
6,472
5,553
Prepayments and accrued income
486
762
13,562
12,543

At 31st March 2025 trade debtors include £6,046,916 (2024: £6,734,214) subject to a sales ledger financing agreement. The trade debtor balances have been transferred to the counterparty, though the transaction does not qualify for derecognition on the basis that the risk/reward is retained by the company. The associated liability recognised in creditors amounts to £3,250,326 (2024: £1,785,944).

12
Creditors: amounts falling due within one year
2025
2024
Notes
£'000
£'000
Bank loans and overdrafts
14
3,621
1,913
Obligations under finance leases
15
133
133
Trade creditors
2,557
2,943
Amounts owed to group undertakings
155
227
Corporation tax
(21)
(58)
Other taxation and social security
542
568
Other creditors
147
32
Accruals and deferred income
1,246
2,128
8,380
7,886
13
Creditors: amounts falling due after more than one year
2025
2024
Notes
£'000
£'000
Obligations under finance leases
15
218
351
Other creditors
110
-
0
328
351
14
Loans and overdrafts
2025
2024
£'000
£'000
Bank overdrafts
3,621
1,913
Payable within one year
3,621
1,913
MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
14
Loans and overdrafts
(Continued)
- 22 -

Bank borrowings are secured by a debenture, dated 17 January 2012 over all of the assets of the company.

Hire purchase and finance lease obligations are secured under normal commercial terms.

15
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£'000
£'000
Within one year
133
133
In two to five years
218
351
351
484

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£'000
£'000
Accelerated capital allowances
249
294
2025
Movements in the year:
£'000
Liability at 1 April 2024
294
Credit to profit or loss
(45)
Liability at 31 March 2025
249
17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
199
170

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

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 23 -
18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Authorised
Issued and fully paid
Ordinary shares of £1 each
100
100
1
1
19
Profit and loss reserves
2025
2024
£'000
£'000
At the beginning of the year
8,336
7,657
Profit for the year
622
679
At the end of the year
8,958
8,336

The retained earnings reserve represents cumulative profits and losses, net of dividends and other adjustments, for the current and all prior periods.

20
Acquisition

On 13 December 2024 the company acquired the trade and assets of The European Envelope Company Limited.

Fair Value
£'000
Goodwill
343
Total consideration
343
Satisfied by:
£'000
Cash
123
Deferred consideration
220
343
21
Financial commitments, guarantees and contingent liabilities

The company is party to a Cross Corporate Guarantee with its ultimate parent undertaking and fellow subsidiary undertakings. At 31st March 2025 such borrowings amounted to £3,250,326 (2024: £2,452,611).

MAIL SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 24 -
22
Operating lease commitments
Lessee

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

2025
2024
£'000
£'000
Within one year
924
939
Between two and five years
3,150
3,598
In over five years
1,944
2,444
6,018
6,981
Lessor

The operating leases represent leases of office spaces to third parties. The leases are negotiated over terms of 9 months to 3 years and rentals are fixed for the term of the lease. There are no options in place for either party to extend the lease terms.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2025
2024
£'000
£'000
Within one year
89
114
23
Related party transactions

The company's factory premises in Telford is owned by pension fund arrangements of the shareholders and directors and let to the company under an arms length lease agreement. An annual rent of £500,000 is payable under this lease.

24
Ultimate controlling party

The company's ultimate parent company is Mail Solutions Group Limited, a company registered in England and Wales. The ultimate parent company's registered office is Halesfield 2, Telford, Shropshire, TF7 4QH and its registered number is 06125081.

The company's ultimate controlling party is Mail Solutions Trustees Limited as trustee for The Mail Solutions Employee Ownership Trust.

The largest and smallest group financial statements that consolidate this company are prepared by Mail Solutions Group Limited, a company registered in England and Wales.

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