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

The principal activity of the Group is the manufacture of perfume and flavour compounds. The Group is a UK based multinational fragrance and flavour manufacturer with operations across Europe, the Middle East, the Indian subcontinent and South East Asia.

Our presence around the world allows us to closely watch the global market and creatively respond to new trends.

In what was a volatile & challenging year for manufacturing businesses, the Group achieved significant turnover growth in Sterling terms, increasing circa 19% to £38.3m (2024: £32.2m).

The Group was able to maintain (and in some areas improve) gross margins throughout the year. With increasing costs of input experienced this year margin stability was achieved through a combination of the directors continued dedication of time & resource to margin management, & further high-value investments in systems to drive operating efficiency and effectiveness during the year, including higher levels of automation in both small & largescale manufacturing, and a focus on improved waste minimisation processes.

The Group continues to operate strong cost controls ensuring operational efficiency, whilst simultaneously investing where required in order to maintain customer service levels. Operating costs increased during this year in line with expectations. This was a major growth year for the Group and the planned investments in systems & people were structured across the Group to support the turnover growth drive.

The Group results further strengthened the balance sheet, with shareholders’ funds rising by £3.3m to £19.2m (2024: £15.9m). Group cash reserves increased at a lower rate than last year as investment in systems & people ramped up. An increase of reserves by almost 20%, to over £6.3m is a positive indicator that the Group remained well managed balancing it’s financial security & stability needs with investment targets.

The directors regularly review the financial requirements of the Group, and the risks associated therewith. The Group finances its activities through a combination of its own retained earnings, cash and short-term borrowings (including hire purchase), managing credit, interest rate and exchange rate risk, as appropriate and are the subject of regular reviews.

The directors continually monitor risks and threats to the continuity of the business, in particular this year, Geopolitical instability, taxation, inflation & Interest Rates.

Geopolitical Instability

The Board continue to pay particular consideration to the escalating conflicts in Ukraine & the Middle East, and the potential impact of this on both short & long-term. The risk profile of all existing business in these regions has changed, an analysis of the Groups income & debt exposure indicated well below 1% of Group income/debt could be impacted. These conflicts are deemed not to pose a material threat to the Group. The Group has no supply chain issues related to this conflict. However, indirect risks that could impact wider markets as seen with energy, commodity, and shipping prices do exist. The management will continue to monitor this situation and ensure appropriate consideration is given when setting strategies.

Taxation

The growing narrative around international taxation relating to trade tariffs is causing considerable uncertainty with the potential for deglobalisation & protectionism at a state level a real future possibility, and as a multinational manufacturer with a global supplier & customer base our UK & international directors continually monitor this situation. The UK national insurance increase for employers is a significant increase in taxation on all UK businesses, driving up labour costs. The directors incorporate all relevant taxation changes, both current & planned, into their operational business planning.

Inflation & Interest Rates

The directors continue to monitor the impact of interest rates & inflation on the business, incorporating these factors into decision making when appropriate. The BoE decreased the base cost of borrowing twice this year, and further low-level reductions are expected during 2025. Inflation remained stubbornly above the BoE target all year. Indicators are that this will remain persistent during 2025-26. The inflationary environment we’re experiencing in the UK is driving increasing labour costs, with the amplified impact on the business due to NI taxation increases. With low levels of borrowing there is no material risk to the Group from interest rates.

In running the Group the directors utilise various KPI’s to monitor performance, principal amongst which are: turnover growth, liquidity ratios and sales per employee.

Turnover increased by almost 19% to £38.3m (2024 £32.2m) after strong sales performances across the Group.

Our liquidity ratio has improved to 4.7 (2024 – 4.4) and our acid test to 3.6 (2024 – 3.3) by careful and continued management of stock, cash and debtors.

Our stock holding days have decreased by 6 days to 110 (2024 - 116 days). The strategic decision to increase stock holdings of several key stock lines remains unchanged.

Our average number of employees during 2025 has increased to 242 (2024 - 238). Turnover per employee has increased from £135k to £158k (2024 – decreased from £145k to £135k).

The board consider continued overseas development, new and enhanced ways of delivering fragrance and flavour technology, enhanced IT infrastructure, and overall cost management to be the main areas that will impact future growth.

After a year of seismic sales growth, we anticipate more moderate growth, with stable margins, in 2025/26. A heavy investment year is planned as we roll out new systems across the Group in our drive for efficiency and scalability. Maintaining our new higher level of turnover should facilitate this & enable the Group to pave the way for further expansion in 26/27. Expected 2025/26 results, in terms of PBT forecasts are positive, however lower than this year as there are operating cost increases built in as a result of investment plans. This continued investment in areas such as IT infrastructure & people will increase in scope throughout 25/26 & future proof the Groups operating capabilities.

For short, medium, & long term our optimistic outlook remains firmly in place, due to our established, effective & resilient business model, and the adaptability of the Group and our global workforce to deal with a fast-changing marketplace.

The Directors are required to include a statement of how they have had regard to stakeholders to promote the success of the Group, in accordance with section 172 of the Companies Act 2006. Under s172, a director must act in the way he considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members, as a whole, and in doing so have regard to:

• The likely consequences of any decision in the long-term,

• The interests of the Group’s employees,

• The need to foster the Group's business relationships with suppliers, customers and others,

• The impact of the Group's operations on the community and the environment,

• The desirability of the Group maintaining a reputation for high standards of business conduct and

• The need to act fairly as between members of the Group.

The Groups long-term strategy focuses on achieving success through sustainable growth. Implementing this strategy, the board take into account the impact of relevant factors and major stakeholder interests on the Group’s performance. The directors promote a culture of upholding high standards of business conduct and communicate this throughout the Group via policy setting and operational procedures.

The board understand the importance of stakeholder engagement and consideration of their interests in the process for key strategic decision making. Issues concerning stakeholders including employees, clients, suppliers, local community, and shareholders are regularly discussed with direct stakeholder engagement sought when appropriate. Information about our stakeholders and how we have applied these duties with regard to key stakeholders are detailed below:

Employees

Our people remain the bedrock of the business and vital to our continuing success. The Group promotes a positive working environment for all employees with rigorous policies and procedures that protect, develop, and satisfy our existing and future employees. The Directors are committed to ensuring the highest standards of health and safety & strive to develop an inclusive culture where all staff feel valued.

Suppliers

We aim to work collaboratively with our suppliers to build long-term, mutually beneficial relationships with trading partners who share our corporate philosophy of honesty, integrity, and ethical business practices. The Group endeavours to enter into clear and fair contracts with all its suppliers.

Customers

We establish strong long-term relationships with our customers and have dedicated account management for all accounts. We strive to understand what products our customers require and how to continually improve our customer service.

Community & environment

The Directors are committed to minimising the impact of the Group’s operations on the environment and are focused on providing sustainable products where possible. As an international Group air travel between EFF sites is always considered carefully, with videoconferencing championed wherever practical now an integral part of operations made possible by continued investment in technology, specifically investment in upgraded IT infrastructure.

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 and group continued to be that of fragrance and flavour manufacturing.

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

The directors recommended the payment of a final dividend of 95p (2024 - 16p) per ordinary share.

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

In assessing the Group's going concern status, the directors have considered the trading results since the year and, the macro-economic events, the profit and loss and cashflow forecasts for the near and medium term, business strategies to manage debt maturity and the quantum of debt within the Group.

In addition to the terms monitored as noted in the Strategic Report, the Group's forecasts and projections, interest rates and inflation show that the Group would be able to adapt and have adequate resources to continue to in operational existence for at least 12 months from the date of signing these financial statements.

The Group is currently involved in research into new technology which will enable it to offer new products to the market to complement its existing activities.

The Company has insured its directors and officers against liability as permitted in the Companies Act 2006.

The directors have disclosed financial risk management objectives and policies, information on exposure to risk, along with an indication of future developments, within the Strategic Report.

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

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 European Flavours & Fragrances Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, 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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's 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 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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including, but not limited to, fraud and non-compliance with laws and regulations was as follows:

• The engagement director ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the industry in which it operates;

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation, employment and health and safety legislation;

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

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

• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships;

• Tested a sample of journal entries throughout the year to identify unusual transactions;

• Reviewed the internal controls in place, specifically around payroll and bank transactions; and

• Assessed whether judgements and assumptions made in determining the accounting estimates around stock, deferred income and depreciation were indicative of potential bias.

• Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims;

• reading the minutes of meeting of those charged with governance; and

• enquiring about correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

As permitted by section 408 of the 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 £2,527,984 (2024 - £1,992,618 profit).

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

European Flavours & Fragrances Plc is a private company limited by shares incorporated in England and Wales under the Companies Act 2006. The registered office is 9 Peerglow Estate, Marsh lane, Ware, Hertfordshire, SG12 9QL.

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 parent company of the group. Other functional currencies include the local currencies in the subsidiaries' country of incorporation, thus resulting in a translation reserve disclosed. 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 preparing the separate financial statements of the Parent Company, advantage has been taken of the following disclosure exemptions available in FRS 102:

• Only one reconciliation of the number of shares outstanding at the beginning and end of the year has been presented as the reconciliations for the Group and the Parent Company would be identical;

• No cash flow statement has been presented for the Parent Company;

• Disclosures in respect of the Parent Company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole; and

• No disclosure has been given for the aggregate remuneration of the key management personnel of the Parent Company as their remuneration is included in the totals for the Group as a whole.

The consolidated financial statements present the results of the Company and its subsidiaries ("the Group") as if they formed a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In assessing the Group's going concern status, the directors have considered the trading results since the year end, the macro-economic events, the profit or loss and cash flow forecasts for the near and medium term, business strategies to manage debt maturity and the quantum of debt within the Group.

In addition to items monitored as noted in the Strategic Report, the Group's forecasts and projections, interest rates and inflation show that the Group would be able to adapt and have adequate resources to continue to in operational existence for at least 12 months from the date of signing these financial statements.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

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

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

• the Group 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 Group 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.

For UK sales revenue recognition has been determined to be upon delivery to the buyer. For foreign sales this is determined based on shipping terms and whether the Group retains the risk during the shipping process.

Goodwill represents the excess of the cost of a business combination over the fair value of the Group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in 'intangible assets'. Gains and losses on the disposal of any entity include the carrying amount of goodwill relating to the entity sold. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 10 years. Goodwill is being amortised to 'administrative expenses' within the Statement of Comprehensive Income, over 10 years.

Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. Other intangible assets are being amortised to 'administrative expenses'

The expected useful economic life of other intangibles is based on the period over which they are expected to generate revenue.

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 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.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when the cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the profit or loss during the period in which they are incurred.

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:

Assets in the course of construction are not depreciated. At the time they become operationally available they are transferred to the respective class of asset and depreciation commences from that date.

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 theStatement of Comprehensive Income.

Investments in subsidiaries are measured at cost less accumulated impairment.

Associates

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.

In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investor's share of the profit or loss, other comprehensive income and equity of the associate. The statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. Any share of losses are only recognised to the extent that they do not reduce the investment balance below zero as the Group has no obligations to make payments on behalf of the associate, and any share of subsequent profits shall be accounted for once the unrecognised profits are equal to the unrecognised losses. In the Statement of Financial Position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any unrealised profits and losses from transactions between the Group and the associate are eliminated to the extent of the Group's interest in the associate or joint venture.

Assets that are subject to depreciation or amortisation are assessed at each reporting 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 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 (CGU's). Non-financial assets that have been previously impaired are reviewed at each reporting 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 reporting date, stocks are assessed for impairment. 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 Statement of Comprehensive Income.

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 Consolidated 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 group's cash management.

The Group only enters into basic financial instrument 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 and investments in 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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

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 Group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position where 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.

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income 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 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 reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position, 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;

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

• Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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 reporting date.

Defined contribution pension plan

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

The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments over the term of the lease. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the Statement of Comprehensive Income over the shorter of estimated useful economic life and the term of the lease.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the Statement of Comprehensive Income over the term of the lease and is calculated so that it represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. The annual rentals are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Operating lease commitments at the year end can be seen within note 27.

The Group has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard (1 April 2014) to continue to be charged over the shorter period to first market rent review rather than the term of the lease.

Where the Group has a legal obligation, a dilapidations provision is created on inception of a lease. These provisions are a best estimate of the cost required to return leasehold properties to their original condition upon termination of the lease. Where the obligation arises from 'wear and tear', the provision is accrued as the 'wear and tear' occurs.

Foreign currency translation

Functional and presentational currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the parent company operates ("the functional currency"). The functional currencies of the subsidiaries are the local currencies of the respective country of incorporation. The consolidated financial statements are presented in 'sterling', which is the Company's functional and the Group's presentational currency.

On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date, including any goodwill in relation to that entity. Exchange differences arising on translating the opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Transactions and balances

Foreign currency transactions ae translated into the functional currency using the spot exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income with 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'administrative expenses'.

Dividends

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.

Research and development

Expenditure on pure and applied research is charged to the Statement of Comprehensive Income in the year in which it is incurred.

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

In preparing these financial statements, the directors have made the following judgements:

• Determining when the significant risks and rewards have transferred to the customer and a sale is recognised. For UK sales this has been determined to be upon delivery to the buyer. For foreign sales this is determined based on shipping terms and whether the Group retains the risk during the shipping process.

• Determine whether leases entered into by the Group as a lessee are operating 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.

• Determine whether there are indicators of impairment of the Group's tangible and intangible assets, including goodwill. Factors are 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.

• Recoverability of financial assets (see note 19)

Determine whether debtors are recoverable. Consideration is made of any objective evidence of impairment of any financial assets that are measured at cost or amortised cost, including observable data that come to the attention of the Company or other factors which may also be evidence of impairment, including significant changes with an adverse effect that have taken place in the technological, market, economic or legal environment in respect of that financial asset.

• Determine whether there are indicators of over-valuing cost of stock versus the net realisable value, management have determined that a stock provision isn't required. Factors are taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the stock and where it is a raw material the cost of the raw material being able to be resold at market value.

Other key sources of estimation uncertainty:

• Tangible fixed assets (see note 13)

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.

• Investments (see note 14)

The most critical estimates, assumptions and judgements relate to the determination of carrying value of unlisted investments at fair value through profit and loss. In determining this amount, the Company applies the overriding concept that fair value is the amount for which as asset can be exchanged between knowledgeable willing parties in an arms length transaction. The nature, facts and circumstance of the investment drives the valuation methodology.

The whole of the turnover is attributable to the principal activity of the Group.

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

Their aggregate remuneration comprised:

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.

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

At the year end the Group has taxable losses carried forward of £3,454,150 (2024 - £3,495,418) and unabsorbed capital losses of £35,154 (2024 - £34,984). A deferred tax asset of £34,786 has been recognised in respect of these losses (2024 - £24,590). An unrecognised deferred tax asset of £728,026 (2024 - £739,463) represents the uncertainty around available future taxable profits.

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

Details of the company's subsidiaries at 31 March 2025 are as follows:

Registered office addresses:

Details of associates at 31 March 2025 are as follows:

All financial assets and liabilities are measured at amortised cost.

Information regarding the Group's exposure to and management of credit risk, liquidity risk, market risk, cash flow interest rate risk and foreign exchange risk is included in the Group Strategic report.

The difference between purchase price or production cost of stocks and their replacement cost is not material.

The impairment charge recognised in the Group Statement of Comprehensive Income for the year in respect of bad and doubtful trade debtors was £27,100 (2024 - £27,669). The impairment credit recognised in the Company Statement of Comprehensive Income for the year in respect of bad and doubtful trade and inter-company debts was £(1,445,656) (2024 - £531,543). Impairment charges and credits are included within 'administrative expenses' within the Statement of Comprehensive Income.

Hire purchase contracts are secured on the assets to which they relate.

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

The net reversal of deferred tax assets and deferred tax liabilities expected to occur in the next 12 months is £34,786 and relates to tax losses carried forward in both the company and group.

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £261,869 (2024 - 230,465). There were no outstanding or prepaid contributions at either the beginning or end of the financial year.

The shares have no restrictions on the distribution of dividends or repayment of capital.

Called up share capital represents the nominal value of the shares issued.

Share premium account

This share premium account includes the premium on issue of equity shares, net of issue costs.

Profit and loss reserves

This profit and loss account represents the cumulative profits or losses net of dividends paid and other adjustments.

Currency translation reserves

The currency translation reserve comprises differences arising on the translation of the financial statements of foreign subsidiaries into the Group's presentation currency. These differences are recognised in other comprehensive income and accumulated in this reserve.

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:

At 31 March 2025 the Group had no capital commitments (2024: £600,000) in relation to contracts to purchase new machinery as well as the development of new IT systems.

During the year the Company paid rent of £72,968 (2024 - £72,968) in respect of its leasehold premises. Mr S A Kersey, a director, has a 33.3% interest in the freehold of this property. No amounts remain unpaid in respect of the rent at the year end.

MISPNA Properties Limited and European Flavours & Fragrances Plc have owners and directors in common. On 4 February 2021 the Company entered a contract to loan MISPNA Properties Limited the deposit to purchase the freehold property from which European Flavours & Fragrances Plc trades. Repayments of £32,680 (2024 - £29,193) were made during the year, leaving a balance due to European Flavours & Fragrances Plc at the year end of £343,224 (2024 - 346,802), included within other debtors. Interest received on the loan amounted to £29,102 (2024 - £24,279). The mortgage by MISPNA Properties Limited on the property was also guaranteed by European Flavours & Fragrances Plc on 30 March 2021 as detailed in note 25. During the year the Company made rental payments of £92,400 (2024 - £79,200) in respect of the property.

During the year the company entered a contract to loan MISPNA Properties Limited the deposit to purchase an additional freehold property where European Flavours & Fragrances Plc trades. Repayments of £701 were made during the year, leaving a balance due to European Flavours & Fragrances Plc at the year end of £322,299, included within other debtors. Interest received on the loan amounted to £1,140. During the year the Company made rental payments of £5,750 in respect of the property.

During the year the Company made rental payments of £159,156 (2024 - £159,156) in respect of its leasehold premises to the EFF Directors’ Pension Scheme. Mr C E Kersey is a trustee of the scheme.

At the year end, an amount of £163,056 (2024 - Company was owed £88,944) was owed to Mr C E Kersey, a director of the Company. Amounts advanced during the year totalled £88,944 and the amount repaid during the year was £88,944. The maximum amount owing on the current account during the year was £88,944 (2024 - £148,240). No interest was charged on this balance.

Dividends were paid to Mr C E Kersey proportionate to his shareholding.

During the year European Flavours & Fragrances Plc undertook a number of transactions in the ordinary course of business with its 99% owned subsidiary, European Flavours & Fragrances (PVT) Ltd. Sales of £55,371 (2024 - £38,626) were made to European Flavours & Fragrances (PVT) Ltd, along with royalty fees of £233,539 (2024 - £207,602) which resulted in a debtor balance of £11,678 (2024 - £9,208). In the year dividends were also received from European Flavours & Fragrances Pvt Ltd of £617,844 (2024 - £370,218).

Key management personnel include all directors and a number of senior managers across the Group who together have authority and responsibility for planning, directing and controlling the activities of the Group. The total compensation paid to key management personnel for services provided to the Group was £966,111 (2024 - £1,314,688).

Mr C E Kersey is the ultimate controlling party by virtue of his shareholding in the company.

The bank overdrafts are secured by a fixed and floating charge over the assets of the Group in addition to personal guarantees provided by C E Kersey.

C E Kersey has provided personal guarantees in respect of the loan and overdraft facility to the sum of £200,000 and a fixed charge over certain commercial property. The life assurance policy for C E Kersey as held by European Flavours & Fragrances Plc has been assigned to the lender, but limited to £504,000, as part of the overdraft guarantee.

Company

The Company has undertaken to provide financial support to a number of its subsidiaries in the event they are unable to meet their liabilities as they fall due. At the year end, known liabilities owed to third parties covered by this support totalled £905,190 (2024 - £732,583).