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

The results for the year are set out on page 11.

The trading performance of the Company during the year was satisfactory and reflects the continued investment in new production facilities in Cardiff, research and development and new product ranges. The directors express their appreciation to all staff members for their contribution during the year.

Increased Competition

Increased competition is always present in the industry and the Company continues to ensure that its product offering is maintained at the highest standard and has increased its selling and marketing activities to ensure that the Company's brands continue to perform well in their market segments. The objective to reduce manufacturing costs will provide additional challenges in ensuring that the production cost base is closely managed. The Company continues to invest in production facilities to reduce unit production costs. The Company recognises the risks associated with disruption of commercial agreements and the potential reduction in revenue which could result.

Economic Risks

As the Company embarks on a period of significant capital expenditure, emphasis on economic risks is heightened. Prudent financial management and strategic decision-making are imperative to navigate through this phase of substantial investment while ensuring the Company's long-term financial stability.

Economic uncertainties persist, driven by inflationary pressures arising from supply chain disruptions and heightened patient awareness. The Company faces risks associated with healthcare procurement cutbacks and a phase of significant capital investment. Mitigating these risks involves the development of innovative products and fostering strong relationships within both Public and Private healthcare systems. This ensures the Company's ability to meet patient needs while enhancing value within these systems.

People

The Company's performance is closely tied to its workforce, necessitating the retention of key personnel and attraction of individuals with relevant expertise. To address this, a robust Talent Management strategy is in place, including Talent Forums to assess skills and develop succession plans. Initiatives such as Leadership and Management programs aim to cultivate future leaders, while various training and development programs, alongside incentive schemes linked to Company performance, facilitate talent retention and provide appealing career pathways. Continuous efforts to refine recruitment and retention strategies are evident, exemplified by the recent achievement of a Great Place to Work Accreditation following a comprehensive survey.

The labour market remains a significant concern due to rising costs from Employers NIC, minimum wage and cost of living adjustments. Labour and skill shortages further exacerbate wage pressures increasing challenges in maintaining competitiveness.

IT Risks

The business faces a range of IT-related risks that could impact financial performance and operational continuity. These include potential cybersecurity threats such as data breaches or ransomware attacks, system downtime due to hardware or software failures, and risks associated with third-party service providers. Reliance on legacy systems may limit scalability and responsiveness to market changes. Additionally, emerging risks associated with artificial intelligence, and evolving regulatory requirements also present potential challenges. The company actively monitors these risks and invests in cybersecurity, compliance, disaster recovery planning, and ongoing technology upgrades to mitigate potential disruption or regulatory penalties.

The Company, engaged in the manufacture and sale of ostomy products, has performed satisfactorily over many years and it is expected that the Company will be successful against the backdrop of increased investment in marketing initiatives within a competitive market; together with increased activity by the Company in new product development and in its production facilities. The directors have determined that the following key performance indicators (KPIs) covering financial performance are the most effective measure of progress towards achieving the Company's objectives: revenue and revenue growth; operating profit and operating profit growth; and cash flow; including variance reporting against plan. Non financial KPIs are managed through management quality reviews which incorporate production, post production, employee, environmental and supplier standard reviews. The Company submits to regular external audits covering ISO 13485 (quality standard).

As the Company expands and develops there is reduced dependence on any one product category or any one market segment thereby realising a key objective of the Company. The directors believe that growth in turnover, profit, market share and expansion of product ranges and market segments can be achieved in the long term based on the business plan for the Company. A major focus will continue to be product development and new product innovation; and investment in automation to protect the Company from continuing competitive forces. The Company also plans to continue to invest in marketing activities. Success has been attributed to the combination of quality of products, customer service and our people. The Company will continue to value its employees and to build even stronger relationships with its customers.

Eakin Healthcare’s five-year sustainability strategy was launched in 2022 with the ambition to move from "protecting value" to delivering "purpose driven value creation" over time. This strategy was developed based on a materiality assessment completed in line with the requirements of the Global Reporting Initiative (GRI). Therefore, this strategy encompasses material topics spanning the complete Environmental, Social & Governance (ESG) spectrum with a pillared structure covering Planet, Product, People, and Integrity. This strategy is endorsed by Board, managed by senior leadership and delivered via a cross-functional Sustainability Lead Team.

The Healthcare Group's performance is intricately linked to its workforce. Our People Strategy’s aim is to create a Great Place to Work which has a focus on 4 main areas: strategic people planning, developing our people, engaging our people and reward and recognition. Within these areas we have a robust Talent Management strategy which includes Talent Forums to assess talent and skills and develop appropriate development and succession plans as a result. We continue to develop initiatives such as Executive Leadership and 360 reviews, Early Talent programs for employees under the age of 30 and Women’s leadership development. We have introduced a number of skills based progression skills, career pathways and an ‘I Can Be’ program for early talent. We have recently become accredited with Diversity Mark and have a number of actions underway that focus on both gender diversity and neurodiversity the workplace. We were delighted to become accredited for a second year as a Great Place to Work in a recent survey.

The directors of Pelican Healthcare Limited seek to promote the longterm success of the Company for the benefit of stakeholders as a whole. In doing so, the directors have regard to:

(a) The likely consequences of any decision in the long term

(b) The interests of the company’s employees

(c) The need to foster the company’s business relationship with customers, suppliers and others

(d) The impact of the company’s operations on the community and the environment

(e) the desirability of the company maintaining a reputation for high standards of business conduct

(f) the need to act fairly as between members of the company

The directors regularly review the performance of the Company and the impact on the Company’s longer-term strategy. The Company prepares an annual budget, which is approved by the Board in the context of the Company’s longer-term strategy.

The directors aim to engage with employees and ensure a meaningful two way dialogue that influences the policies, procedures and decision making of the Company. For more information, please see the Employee Engagement Statement in the Directors’ Report. The directors also aim to engage with customers and suppliers on a regular basis to foster the Company’s business relationships. For more information, please see the Business Relationships Statement in the Directors’ Report.

Corporate social responsibility (CSR) groups are in place across the Company which, among other things, encourage employees to participate in fundraising and volunteering efforts. There have also been charity matching initiatives supported by the Board. Environment initiatives have been noted in the Environment strategy section of the Strategic Report.

On behalf of the board

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

The principal activity of the company continued to be that of the manufacture and supply of disposable medical devices for ostomy care.

The results for the year are set out on page 11.

Dividends paid in the year amounted to £4,000,000 (2024 ‑ £Nil).

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

The Company's Articles of Association provide for the indemnification of its directors and the Company Secretary to the extent permitted by the Companies Act 2006 and other applicable legislation, out of the assets of the Company, in the event that they incur certain expenses in connection with the execution of their duties. In addition, and in common with many other companies, the Company has directors' and officers' liability insurance, in respect of certain losses or liabilities to which officers of the Company may be exposed in the discharge of their duties.

Articles of Association

The Company's Articles of Association may be amended by a special resolution of the Company's shareholders. The current Articles were adopted by shareholders on 23 March 2007.

Business performance risk is the risk that the Company may not perform as expected due to a combination of internal and external factors, including disruption to the business, or due to competitive pressures in the markets in which the Company operates. This risk is managed through a number of measures which include regular meetings with the Board of Directors; ensuring that the appropriate senior management team is in place; approval of the annual business plan and financial budget; monthly reporting against plan and prior year; effective documented financial controls; business continuity, disruption and response planning; measurement and reporting of financial and non financial key performance indicators; and regular sales and business forecasting.

The Company's liquidity risk is managed by the directors through daily assessment of required cash balances and resultant utilisation of various available facilities including overdrafts (where necessary), letters of credit and guarantees. Cash flow risk is managed through regular and timely internal reports covering sales, production and finance.

The risks arising from changes in interest rates are kept under review by the directors in accordance with Healthcare Group Treasury Policy.

The Company purchases some raw materials and goods for resale in euros and other currencies. Risk on foreign currencies is minimised by using an internal foreign exchange market and forward exchange contracts if considered appropriate. This has been a successful policy in the management of currency risk. The Company complies with the Healthcare Group Treasury Policy which is reviewed annually by the Board.

Company policy is aimed at minimising such risk and requires that credit and other terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Individual exposures are monitored with customers subject to credit terms to ensure that the Company's exposure to bad debts is managed.

The main regulatory risks faced by the Company relate to restrictions imposed by the Medical Devices Agency in the UK and the relevant regulatory and reimbursement authorities in export markets.

Health & safety risk

The Company is committed to ensuring a safe working environment. The health and safety risks are closely managed by the Company through the strong promotion of a health and safety culture and defined health and safety policies incorporated within ISO procedures.

Inflation Risk

The Company manages inflationary risk by entering into long term contracts with suppliers and bulk purchasing. Stock levels and raw materials are regularly monitored by the directors.

Research and development is concentrated in ostomy care products. Our research and development activities consist of endeavouring to achieve scientific and technological advances in our chosen areas.

Ownership

The Company is a wholly owned subsidiary of Eakin Healthcare Group Limited; incorporated in Northern Ireland. The ultimate parent company is Dunrogan Limited; incorporated in the Isle of Man.

There have been no significant events affecting the Company since the year end that have not been disclosed in the financial statements

The directors aim to address management objectives, execute business strategies and adopt effective policies which will promote the future growth and development of the Company.

Statement of compliance with the Modern Slavery Act 2015

A Statement of Compliance with the Modern Slavery Act 2015 is available on the Company website.

Health and Safety

We prioritise the health and safety of our employees, customers, and communities. We have a full time, group wide team, that are responsible for this function. Here is an overview of our commitment.

Health and Safety Management System:

• Comprehensive policies and procedures;

• Regular risk assessments and controls;

• Ongoing training and awareness.

Occupational Health:

• Wellness programs and support services;

• Ergonomic considerations for workstations.

Contractor and Supplier Engagement:

• Expectation of compliance with high standards

Performance Monitoring and Continuous Improvement:

• Regular Monitoring and KPIs for progress;

• Focus on Continuous Improvement.

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements 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; and

• 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.

This Report is set out on pages 1 to 3 and sets out information in respect of the results for the year; business review, including development, performance and key performance indicators; the key risks and uncertainties affecting the business; environmental strategy; and employment strategy.

Each of the person who is a director at the date of approval of this report confirms that:

• So far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and

• Each director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

We have audited the financial statements of Pelican Healthcare 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, the statement of cash flows 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' 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 company and its 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, 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.

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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulation in the United Kingdom;

• understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas;

• assessed the vulnerability of the Company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue recognition to be a fraud risk; and

• based on this understanding our audit procedures were designed to identify non-compliance with such laws and regulations.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

• Identification of related parties;

• Making enquiries of management regarding where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• Considering the internal controls in place within the company to mitigate the risk of fraud and non-compliance with laws and regulations;

To address the risk of fraud, override of controls and non-compliance with laws and regulations, we performed analytical procedures to identify any unusual or unexpected related party relationships, tested journal entries to identity unusual transactions, investigated any significant or unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were suggestive of potential bias.

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.

The purpose of our audit work and to whom we owe our responsibilities

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.

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

The notes on page 14 to 28 form part of these financial statements.

The notes on page 14 to 28 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The notes on page 14 to 28 form part of these financial statements.

The notes on page 14 to 28 form part of these financial statements.

Pelican Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is Greypoint Cardiff Business Park, Llanishen, Cardiff, CF14 5WF.

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.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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 comprises revenue recognised by the Company when the goods are dispatched and to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, exclusive of value added tax, rebates and trade discounts. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

• the Company has transferred the significant risks and rewards of ownership to the buyer;

• the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the Company will receive the consideration due under the transaction; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the Company will receive the consideration due under the contract;

• the stage of completion of the contract at the end of the reporting period can be measured reliably; and

• the costs incurred and the costs to complete the contract can be measured reliably

Interest income is recognised in the Profit and Loss Account using the effective interest method.

Research and development expenditure is written off to the Profit and Loss Account in the year in which it is incurred. Costs associated with development activities are capitalised as an intangible

asset if, and only if, the company can demonstrate the following criteria:

(a) The technical feasibility of completing the intangible asset so that it will be available for use

or sale.

(b) The company has the intention to complete the intangible asset and use or sell it.

(c) The ability of the company to use or sell the intangible asset.

(d) How the intangible asset will generate probable future economic benefits for the company.

Among other things, the company should have the ability to demonstrate the existence of a

market for the output of the intangible asset or the intangible asset itself or, if it is to be used

internally, the usefulness of the intangible asset.

(e) The company has adequate technical, financial and other resources to complete the

development and to use or sell the intangible asset.

(f) The company’s ability to measure reliably to expenditure attributable to the intangible asset

during its development.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.

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

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

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash generating unit (CGU) to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work-in-progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment, where appropriate. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Profit and Loss Account.

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 is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

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 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.

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 subsequently 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 through 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.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Foreign currency transactions are translated into the functional currency using the month exchange rates at month end preceding the date of the transaction.

At each period end foreign currency monetary items are translated using the closing rate. Nonmonetary items measured at historical cost are translated using the exchange rate at the date of the transaction and nonmonetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account.

Debtors

Short‑term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short‑term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

In the application of the company’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.

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

Determine whether there are indicators of impairment of the Company’s tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash generating unit, the viability and expected future performance of that unit. Judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Determine whether leases entered into by the Company either as a lessor or a lessee are operating lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

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.

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Taxation: The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amounts of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

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

Their aggregate remuneration comprised:

All statutory directors are paid through the parent company, Eakin Healthcare Group Limited. The appropriate portion of the directors remuneration is recharged back through the management charge.

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:

Factors that may affect future tax charges

Deferred tax has been recognised at 25%, in line with the increase in the main rate of corporation tax announced in Finance Bill 2021. The main UK corporation tax rate of 25% came into effect on 1 April 2023.

The carrying value of land and buildings comprises:

Included in land and buildings is freehold land at valuation of £900,000 (2024 - £900,000), which is not depreciated. The buildings at valuation of £800,000 (2024 - £800,000) have been depreciated. The freehold property was independently valued in January 1998 by Cooke & Arkwright, Chartered Surveyors at £1,700,000. This value had been incorporated in the accounts. The historical cost of the property prior to the revaluation was £1,607,242. The net book value prior to revaluation was £1,470,215.

Up to 31 December 1999 it was the company policy to revalue freehold property. In the year ended 31 December 2000 the company adopted the transitional provisions of FRS15 Tangible Fixed Assets. From 1 January 2001 it is company policy not to revalue fixed assets. The last valuation was in January 1998. On transition to FRS 102, the company has retained the policy not to revalue fixed assets.

Financial assets that are debt instruments are measured at amortised cost comprise trade debtors, other debtors and amounts owed by other Group companies.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals and amounts owed to other Group companies.

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

The deferred tax liability set out above is expected to reverse within the short to medium term and relates to accelerated capital allowances that are expected to mature within the same period.

The Company operates a defined contribution pension scheme in respect of some employees. The scheme and its assets are held by independent managers.

This includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from the share premium.

Includes revaluation of property in January 1998. The Company adopted the transitional provisions of FRS15 Tangible Fixed Assets in 2000 and it has been Company policy not to revalue fixed assets.

Includes all current and prior period retained profits and losses net of dividends and other adjustments.

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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:

Amounts contracted for but not provided in the financial statements:

The Company has taken advantage of the exemption provided by FRS 102 not to disclose transactions with other wholly owned Group companies.

The Company's ultimate parent undertaking is Dunrogan Limited, a company incorporated in the Isle of Man. Dunrogan Limited is controlled by the trustees of The Eakin Family Trust.

The parent company, Eakin Healthcare Group Limited, has prepared consolidated accounts. The registered address of the parent company is 15 Ballystockart Road, Comber, Co Down, BT23 5QY.