The directors present the strategic report for the year ended 28 February 2025.

The year to 28 February 2025 was a challenging year for the Group, with a continuation of the tough market conditions experienced in the second half of the prior year. Lower sales volumes and ongoing destocking across customers contributed to an overall reduction in sales of 12% from £41.5m (2024) to £36.7m (2025). However, no material customers were lost in the period, with the decline solely reflecting the lower sales volumes that the Group’s customers were experiencing themselves. The Group’s ability to service and retain the business of all its key customers remains an enduring strength, particularly in these difficult market conditions.

The impact of lower demand resulted in increased capacity in the market, leading to competitive pricing and pressure on margins. Consequently, each Group business has continued to focus on delivering efficiencies in order to protect margins where possible. These efficiencies reflect the Board’s view that market conditions may not improve in the short to medium term. Whilst the Group has experienced more difficult conditions, it has been encouraging to witness increasing activity at the new lithographic printing, finishing and carton manufacturing site in Livingston, where the Group is starting to see payback on its £13.5m investment.

Despite the challenging market conditions and a resulting decline in sales activity, the Group maintained EBITDA margin, which is its key profit metric when assessing financial performance. However, earnings still fell below a level the Board considers satisfactory, as the Group delivered EBITDA before exceptional costs of £3.9m (representing an 11% margin), down from £5.1m (12% margin) in the prior year. Notwithstanding this, the Board continues to take a long-term view and is confident in the Group’s resilience, with a continued focus on product quality, innovation and customer service positioning the Group favourably for a period of sustained growth in the future.

The Board’s long-term view has been further demonstrated as the Group embarked upon a number of structural changes which are aligned with its long-term strategy. In February 2025, a joint venture agreement was signed with VPK UK and Ireland, part of the privately owned Belgian VPK Group. A new company was established, McLaren Corrugate Limited, managed by McLaren and which accommodated the corrugate packaging facilities of VPK’s East Kilbride site and McLaren’s corrugate production facility in Port Glasgow. Additional investment in equipment at both sites has been made subsequently and leaves the joint venture well placed to capitalise on the reputation both businesses have secured in the corrugate packaging market over many years. The results of the joint venture in February 2025 have been consolidated in these accounts for McLaren Presentation Limited.

Subsequent to the year end, in September 2025, the Group undertook a corporate reconstruction. This involved the consolidation of a) the Group’s presentation packaging activities (tubes, cartons and rigid boxes) into a single company, McLaren Presentation Limited (previously named McLaren Packaging Limited), and b) consolidation of its divisions businesses into a single company, McLaren Divisions Limited. The Group therefore moves forward with three distinct and complimentary businesses; (i) McLaren Presentation Limited,(ii) McLaren Divisions Limited and (iii) McLaren Corrugate Limited. Whilst these structural changes have consumed senior management time and incurred significant implementation costs, the Board is confident that this investment will result in a clearer proposition for its customers and the opportunity to create both new revenue opportunities and cost synergies.

The financial position of the Group remains strong with net assets of £28.0m at 28 February 2025 (2024: £27.2m). The Group net cash position has improved from a net debt position of £3.9m (2024) to a net cash position of £1.2m (2025), reflecting the cash generative nature of the business. This does not include £3.8m of loan note liabilities attaching to the Corrugate joint venture. Notwithstanding the lower levels of profitability in year, with an improving financial position, the Board remains open to the possibility of further investment, either to increase capacity to prepare for a return to growth, or an acquisition which might provide complimentary packaging products and or geographic coverage.

Subsequent to the year end, the Board has been strengthened with the appointment of Stewart MacRae and Alasdair Miller as Non Executive Directors. Stewart’s most recent experience in a senior role within the Edrington Group leaves him well placed to advise on and support the development of the Group’s sales strategy. Alasdair moves on from his position as Finance Director and was succeeded by Andrew Rennie, who joined the business from Coretrax.

The Group’s customer base and supply to the whisky and wider drinks sector means it is exposed to global factors affecting demand, with a downturn currently being experienced. There is also the ongoing risk of both price inflation (notwithstanding current inflation estimates) and particularly wage inflation driven by increases in the National Minimum and Real Living Wage, the combination of which can been reflected in higher raw material, employment and operating costs. The Group seeks to pass these costs on where it is reasonable and contractual arrangements permit. Wider global factors remain a risk and influence on prices which together with availability of raw material supply can result in more unpredictable patterns of demand than has been experienced historically. The Group is fortunate to have excellent long-term relationships with its key customers and suppliers forged through having a focus on quality and service, which has been important in trading through global and market instability.

The economic outlook and slowdown in GDP growth in the UK and in other key export markets for the Group’s customers, provides a degree of risk and uncertainty, and the markets to which the Group supplies are not insulated from this. To help mitigate the impact of reduced volumes and to protect margin, the Group continues to explore ways to improve manufacturing efficiency, invest in automation and innovation, and consider strategic investment opportunities to expand its product portfolio.

The Board is alert to the importance of accurate, timely and relevant management information, and automating its management and operating processes. During the year to February 2025, the Group embarked on a project to replace its ERP, accounting and HR and payroll systems.

The Board is also acutely aware of the risks caused by Cyber Crime, and having achieved Cyber Essentials certification during the year, is taking external and expert advice on its processes and controls to minimise and mitigate the risks as far as possible.

The Group’s capital and investment programme to date has been funded from a combination of internal cash resources and 3rd party debt, and the Group had debt obligations of £7.2m at the year, although overall in a net cash position. These debt obligations and associated financial covenants are monitored closely to ensure that the obligations can be serviced, even after allowing for downside sensitivities in trading. In addition, close control is maintained over credit exposure and actions are being taken to reduce stockholding levels and working capital, where possible and without any detriment to customers or suppliers.

The Group hedges an element of its 3rd party debt obligations in order to manage interest rate risk.

Performance of each company within the Group is monitored by a number of key performance indicators, including financial metrics on return on capital, gross and operating margins, working capital and liquidity together with operating metrics on quality, delivery, production efficiency and sustainability.

The Board of Directors believe that they have acted in the way they consider to be both in good faith and would be most likely to promote the success of the Group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 28 February 2023; and in so having regard, amongst other matters to;

1. the likely consequences of any decision in the long term,

2. the interests of the Group’s employees

3. the need to foster the Group's business relationships with suppliers, customers and others,

4. the impact of the Group's operations on the community and the environment,

5. the desirability of the Group maintaining a reputation for high standards of business conduct, and

6. the need to act fairly as between members of the Group.

The Board has a strategic plan which is based around achieving its long-term goal of being regarded as a leading manufacturer of paper-based packaging products for the food, drink and pharmaceutical sectors.

It also understands the importance of engaging with all its stakeholders and regularly discusses issues concerning employees, clients, suppliers, community and environment, regulators and shareholders which inform its decision-making processes. Inherently, there is an inter-dependency on the success of the company and the success of its stakeholders.

Employees

The safety and welfare of all Group employees is the Board’s highest priority. The business is fortunate to have a very skilled, resilient, adaptable and loyal workforce, but the growth of the business and a competitive labour pool has provided challenges in recruiting new employees. The Board remains committed to training and development with the objective of improving both productivity and the potential of its employees. In addition, it is committed to being a responsible employer in its approach to pay and benefits and encourages diversity and inclusion of employees of all backgrounds.

Improving communication and engagement with all Group employees is a key objective for the Board. During the year the Group rolled out ‘The McLaren Way’, a set of values which provide the guiding threads to create a strong and happy culture:

-Customer First

-We Care

-One Team

-Love Packaging

Customers

All Group companies continue to engage closely with their customers, with the aim of ensuring that customers’ needs are met, with a focus on the highest standards of quality and service, and a commitment to sustainability and product innovation.

Suppliers

The supplier base is valued as long-term partners with the aim of developing and entering into strong stable working relationships, and fairness and transparency in all dealings with them.

Environment and community

The commitment to being Sustainable for Life, to deliver a sustainable business that has minimal impact on the environment, is embedded in all aspects of the business, and covered in more detail in the Energy and Carbon Report. The manufacturing facility refurbishment at Compack in Livingston in particular employs a range of innovative technology, delivering a building EPC rating of “A”, an excellent result for an older 1970’s property.

The Group is committed to its ESG strategy and is committed to donating a percentage of its profits to the Newark Trust, an Inverclyde charity established with objectives of alleviating child poverty, supporting young people with additional needs and advancing the needs of the community. During the year £100,000 was donated to The Newark Trust, from McLaren Presentation Limited, together £100,000 from its associated company, MacPro Group Limited.

The Group’s commitment to the charity is one of a number of initiatives which the Group is involved with, within the communities in which it operates.

Governance and regulation

The Board’s intention is to behave responsibly and to ensure that the management team operates the business in a responsible manner, acting with the high standards of business conduct and good governance expected of a business of its nature and size and in full alignment with the rules and regulations. In doing so, it believes that it will achieve its long-term business strategy and also further develop its reputation in the industry sector in which it operates. Peter Lederer continues to Chair the Board of McLaren Presentation Limited, with the more recent appointments of Stewart Macrae and Alasdair Miller an indication of the Group’s commitment to managing risk and improving governance for the benefit of all stakeholders in the business.

On behalf of the board

The directors present their annual report and financial statements for the year ended 28 February 2025.

The group manufactures and supplies paper-based packaging.

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

Post year end, as part of a wider group restructure project, the company changed its name from McLaren Packaging Limited to McLaren Presentation Limited.

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

The GHG Reporting Protocol – Corporate Standard and GHG Protocol Corporate Value Chain Standard have been followed together with the UK Government GHG Conversion factors. A full and detailed report is available on request setting out the approach, the source of data and a more detailed breakdown of emissions. This is summarised below, comparing the GHG emissions in the year to February 205 with the base year selected by the Group, being the earliest year for which reliable data is available.

The figures above include Scope 1 direct and Scope 2 indirect emissions for all production sites within the group. We also calculate Scope 3 emissions including the following categories: purchased goods and services; fuel and energy related activities; upstream transportation and distribution, waste and employee commuting. Due to material changes in scope due to business acquisitions we are not in a position to release meaningful and comparable Scope 3 emissions data at the time of publication of this report. We are in the process of recalculating Scope 3 emissions for prior years considering these changes and will release updated figures when complete.

The chosen intensity measurement ratio or total gross Scope 1 and 2 emissions in metric tonnes CO2e per £M of Group Turnover.

Scope 1 emissions reduced year on year and against the base year driven by upgraded heating controls in the Tubes factory and improved behaviours and discipline at 3 other factories. Electrification of hot water supply has taken place at all but 2 factories and electrification of the Fok Lift Fleet is complete at all but 1 factory. Electrification of company owned cars was completed in FY25. Going forward the following initiatives are aimed at reducing Scope 1 emissions further:

• Electrification of hot water supply at 2 remaining factories.

• Electrification of remaining Fork Lift Fleet.

• Upgrading of factory heating controls within the corrugate business in line with prior investments elsewhere in the business.

• Installation of fast acting doors to reduce heat loss.

Scope 2 emissions reduced year on year but are up against the base year. This reduction was driven by a reduction in overall manufacturing activity within the group. All grid electricity purhcases are covered by REGO meaning Scope 2 emissions are 0 using a market-based approach. Going forward the following activities are aimed at reducing grid electricity consumption:

• Installation of a further 2 x rooftop solar PV arrays within the group during FY26.

• Installation of energy efficient LED lighting and lighting controls at 2 factories under our operational control.

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 auditor of the company 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 auditor of the company is aware of that information.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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 UK 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of McLaren Presentation Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and 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 FRS 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 the parent company's affairs as at 28 February 2025 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial 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.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

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

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

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

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

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

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

• 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 entity through enquiry and inspection; 

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

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

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

Use of our report

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,213,541 (2024 - £4,627,169 profit).

McLaren Presentation Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Gareloch Road Industrial Estate, Port Glasgow, Inverclyde, United Kingdom, PA14 5XH.

The group consists of McLaren Presentation Limited and all of its subsidiaries.

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

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

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

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company McLaren Presentation Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 28 February 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. 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.

Goodwill represents the excess of the cost of acquisition of a business 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 5 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.

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

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

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

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

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

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

At each reporting period end date, the group 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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

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

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

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

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

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

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

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

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

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

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

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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 group’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 if, and only if, there is 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.

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 leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

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.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. There are no estimates or judgements held at the year end which are deemed to be critical to the financial statements.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assessing whether the goup controls McLaren Corrugate requires judgement. The group holds 50% of the voting rights however through formal agreement they control he operating and financial policies of McLaren Corrugate Limited. The group considers that these powers demonstrate that the group controls this entity.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Both finished goods and work in progress are valued based on the expected margin to be received on sale of products. The estimation of the margin is susceptible to a degree of subjectivity. The expected margin is reviewed each year against known movements in cost to confirm reasonableness of the assumption.

All turnover is generated in the United Kingdom.

In the current year, these costs include legal and other professional fees in respect of group restructuring and investments which are non-recurring in nature.

In the prior year, a new factory was commissioned in Livingston, operated by Compack Limited. There were significant set up costs including employment, property and operating costs which were incurred in advance of production, which Management deemed to be non-recurring.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

The actual 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:

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

The group purchases Pending Issuance Units ("PIU") as part of its commitment to offset carbon emmissions through investment in woodland creation. PIUs will be converted into Woodland Carbon Units ("WCU") which is a tonne of CO2e and will be retired as offset.

Details of the company's subsidiaries at 28 February 2025 are as follows:

McLaren Corrugate Limited is considered to be subsidiary entity by virtue of its operational control.

1 - Gareloch Road, Port Glasgow, Inverclyde, PA14 5XH

Details of associates at 28 February 2025 are as follows:

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The bank overdraft and loans are secured by a bond and floating charge over the company's assets and by a standard security over the company's leasehold property.

Other loans include shareholder loan notes with our Joint Venture partner which were put in place for McLaren Corrugate to acquire the trade and assets of their Scottish Corrugate business. Amounts due withine one year is a non interest bearing loan due on demand. Amounts due after one year represent loan notes which amortise over 10 years with a capital repayment holiday in year 1. The loan notes accrue interest at bank of England base rate +1.9% margin.

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

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

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

Amounts contracted for but not provided in the financial statements:

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company consider key management personnel to be the directors. The total remuneration for key management personnel for the period is disclosed in the notes to the financial statements.

On 7 October 2024 a new 100% owned subsidiary was incorporated within the group, McLaren Corrugate Limited.

Subsequent to this, on 4 February 2025, the Group established a new joint venture arrangement with a third party. Although structured as a joint venture, the Group has operational control over the entity and, in accordance with FRS 102 section 9, has therefore accounted for it as a subsidiary within the consolidated financial statements.

As part of the formation of the joint venture arrangement, both parties transferred assets with a net book value equal to their fair value of £7.9m in exchange for 50% shares and long term loan notes. At this date, the business was valued at £9.4m, resulting in goodwill of £1.5m. Goodwill created in respect of the groups share of the joint venture has been eliminated on consolidation leaving a resultant goodwill balance in the financial statements of £0.6m. Goodwill is amortised over 10 years in line with the group's accounting policy.

Post year end, as part of a wider group restructure, the company has changed its name from McLaren Packaging Limited to McLaren Presentation Limited. A part of this restructure, on 2nd September 2025 the trade, assets and liabilities of various subsidiaries were hived to other group entities

The ultimate parent company is McLaren Packaging Limited, a company registered in Scotland, whose registered address is Gareloch Road, Port Glasgow, Inverclyde PA14 5XH.

The ultimate controlling parties are the directors in the parent company due to their majority shareholding.