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Registered number: 04834758 AFFCO EUROPE LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
AFFCO EUROPE LIMITED COMPANY INFORMATION
Directors | S Lewis
| R M Ogg
Registered number | 04834758
Registered office | Ridgeway House
| Beechwood Court
| Long Toll
| Woodcote
| Oxfordshire
| RG8 0RR
Independent auditor | Nortons Assurance Limited
| Statutory Auditor
| Second floor
| NOW Building
| Thames Valley Park
| Reading
| Berskshire
| RG6 1RB
AFFCO EUROPE LIMITED CONTENTS
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditor's Report | 5 - 8
Profit and Loss Account | 9
Balance Sheet | 10
Statement of Cash Flows | 11
Analysis of Net Debt | 12
Notes to the Financial Statements | 13 - 23
AFFCO EUROPE LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025
Introduction
The directors present their strategic report for the year ended 30 September 2025.
Business review
Affco Europe Limited turnover in 2024-25 FY doubled YOY from £41m to £80m due to a number of factors both in UK and globally. As part of the group strategy, AFFCO has focused on strengthening relationships with UK customers and developing further long-term partnerships with UK retail supermarkets. The significant investment in sourcing imported proteins by UK supermarkets over the past 18 months has been the main factor driving growth. Global protein prices have risen significantly across the globe due to combined factors of increased demand and lower production. Specifically in the UK we've seen a drastic reduction in availability of UK and Irish beef and lamb which has significantly driven the pricing up on both, driving the demand for imported. Pricing continues to drive high globally also - currently NZ Farmers are receiving record returns for their lambs never seen before. But having imported proteins in the mix still averages down the cost for retailers and food service operators. We are also seeing an impact of the post-Brexit UK-NZ Free Trade Agreement and the duty-free access to UK market NZ Beef now enjoys. With record domestic beef pricing driving demand here too, we've seen what was essentially a zero base 2 years ago rise rapidly in this period, and set to grow further into 2026 and beyond as the quota allocation increases YOY.
Financial key performance indicators
∙Rising global protein prices / demand from world markets ∙Record farmgate prices in New Zealand ∙Increase in level of stock holding allowing AEL to take advantage of rising market & spot demand with premium-priced pallet sales.
Other key performance indicators
∙Lack of domestic availability ∙Supermarket investment in lamb (driven by shopper data) ∙New Zealand's reputation as "best alternative" ∙UK leading global markets on price so driving more volume to this market (due to a number of factors but i.e., US tariffs on NZ imports displacing product usually sold there, slowdown of China market etc) ∙Closer alignment with UK customers (i.e. signing of MOU on supply with one of the major supermarkets) ∙New UK supermarkets turning to imported protein sourcing Page 1
AFFCO EUROPE LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025
Directors' statement of compliance with duty to promote the success of the Group
I confirm that I have acted in accordance with my duty under Section 172 of the Companies Act 2006 to promote the success of the Group for the benefit of its members as a whole. In making decisions, I have considered the following factors: 1. Long-Term Consequences: I have taken into account the long-term impacts of decisions on the Group’s sustainability and growth. 2. Employee Interests: I have considered the well-being and development of employees as a key driver of success. 3. Stakeholder Relationships: I have worked to maintain strong relationships with suppliers, customers, and other stakeholders to support business growth. 4. Social and Environmental Impact: I am committed to ensuring that the Group’s operations positively impact society and the environment. 5.High Standards of Conduct: I have ensured the Group operates with integrity and in accordance with ethical business standards. 6. Fairness Between Members: I have acted fairly between all stakeholders to maintain a balanced approach to decision-making. In fulfilling my duties, I am committed to creating long-term value for the Group and its stakeholders. This report was approved by the board and signed on its behalf.
................................................ S Lewis Director
Date: 14 January 2026
Page 2
AFFCO EUROPE LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025 The directors present their report and the financial statements for the year ended 30 September 2025.
Directors' responsibilities statement
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 judgments 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 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 to 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.
Results and dividends
The profit for the year, after taxation, amounted to £1,126,244 (2024 - £369,677). A total dividend of £550,000 was approved and paid in the year (2024 - £550,000)
Directors
The directors who served during the year were:
S Lewis
R M Ogg
Engagement with suppliers, customers and others
AFFCO recognise the importance of closer relationships with strategic long term partners in well-established markets like the UK. In this period we have signed an MOU with one major retail partner guaranteeing both parties a minimum volume of supply in each of the next 3 years. There is also ongoing engagement on a technical level in efforts to improve product and reduce rejections, as well as discussions around sustainability and working together towards shared goals in this area. We continue to receive guidance and support from the parent company in New Zealand as we develop and work closely with partner customers in the UK. Page 3
AFFCO EUROPE LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Auditor
The auditor, Nortons Assurance Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
................................................ S Lewis Director
Date: 14 January 2026
Page 4
AFFCO EUROPE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFFCO EUROPE LIMITED
Opinion
We have audited the financial statements of Affco Europe Limited (the 'Company') for the year ended 30 September 2025, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 30 September 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 United Kingdom, including the Financial Reporting Council'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. Page 5
AFFCO EUROPE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFFCO EUROPE LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not 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.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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. Page 6
AFFCO EUROPE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFFCO EUROPE LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: ∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK. ∙We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. ∙We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by discussing with management. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error. ∙Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Financial Statements with the requirements of the relevant accounting standards and UK legislation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report. Page 7
AFFCO EUROPE LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AFFCO EUROPE LIMITED (CONTINUED)
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Anthony Campbell (Senior Statutory Auditor) for and on behalf of Nortons Assurance Limited Statutory Auditor Second floor NOW Building Thames Valley Park Reading Berskshire RG6 1RB 14 January 2026 Page 8
AFFCO EUROPE LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 79,995,823 | 40,978,056
Cost of sales |  | (78,030,718) | (40,099,586)
Gross profit |  | 1,965,105 | 878,470
Administrative expenses |  | (461,609) | (383,996)
Operating profit |  | 1,503,496 | 494,474
Tax on profit | 7 | (377,252) | (124,797)
Profit for the financial year |  | 1,126,244 | 369,677
There are no items of other comprehensive income for 2025 or 2024 other than the profit for the year. As a result, no separate Statement of Comprehensive Income has been presented.
The notes on pages 13 to 23 form part of these financial statements.
Page 9
AFFCO EUROPE LIMITED REGISTERED NUMBER: 04834758 BALANCE SHEET AS AT 30 SEPTEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 8 |  | - |  | 650
|  |  | - |  | 650
Current assets |  |  |  |  |
Stocks |  | 3,329,477 |  | 1,966,532 |
Debtors: amounts falling due within one year | 9 | 18,341,471 |  | 7,225,419 |
Cash at bank and in hand | 10 | 4,005,737 |  | 2,024,305 |
|  | 25,676,685 |  | 11,216,256 |
Creditors: amounts falling due within one year | 11 | (23,741,144) |  | (9,857,609) |
Net current assets |  |  | 1,935,541 |  | 1,358,647
Net assets |  |  | 1,935,541 |  | 1,359,297
Capital and reserves |  |  |  |  |
Called up share capital | 13 |  | 100 |  | 100
Profit and loss account | 14 |  | 1,935,441 |  | 1,359,197
|  |  | 1,935,541 |  | 1,359,297
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ S Lewis
Director
Date: 14 January 2026
Page 10
AFFCO EUROPE LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 1,126,244 | 369,677
Adjustments for: |  |
Depreciation of tangible assets | 650 | 2,379
Taxation charge | 377,252 | 124,797
(Increase) in stocks | (1,362,945) | (506,642)
(Increase) in debtors | (11,117,419) | (4,965,541)
Increase in creditors | 31,866 | -
Increase in amounts owed to groups | 13,400,791 | 6,772,051
Increase in provisions | 326,019 | 458,249
Corporation tax (paid) | (252,393) | (125,000)
(Increase) / decrease of other debtors | 742 | (103)
(Increase) / decrease of prepayments | 625 | (988)
Net cash generated from operating activities | 2,531,432 | 2,128,879
Cash flows from financing activities |  |
Dividends paid | (550,000) | (550,000)
Net cash used in financing activities | (550,000) | (550,000)
Net increase in cash and cash equivalents | 1,981,432 | 1,578,879
Cash and cash equivalents at beginning of year | 2,024,305 | 445,426
Cash and cash equivalents at the end of year | 4,005,737 | 2,024,305
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 4,005,737 | 2,024,305
| 4,005,737 | 2,024,305
The notes on pages 13 to 23 form part of these financial statements.
Page 11
AFFCO EUROPE LIMITED ANALYSIS OF NET DEBT FOR THE YEAR ENDED 30 SEPTEMBER 2025
| At 1 October 2024 | Cash flows | At 30 September 2025
| £ | £ | £
Cash at bank and in hand | 2,024,305 | 1,981,432 | 4,005,737
| 2,024,305 | 1,981,432 | 4,005,737
The notes on pages 13 to 23 form part of these financial statements.
Page 12
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
1. | General information
Affco Europe Limited (the Company) is a company incorporated on 16 July 2003 in the United Kingdom under the Companies Act. The Company is a private company limited by shares and is registered in England and Wales. The address of the Company's registered office is shown on the company information page. The principal activity of the Company in the year under review was that of the supply of chilled and frozen meat. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Going concern
The directors have received a guarantee of continued financial support from its parent Company, Affco New Zealand Limited. The directors believe that such financial support will continue to be available for the foreseeable future. The directors of Affco Europe Limited have a reasonable expectation that the group has adequate resources to continue in operational existence based on forecasts and receiving future funding.
| 2.3 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is GBP, rounded to the nearest whole £1. Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Page 13
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 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.
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.6 | Pensions
Defined contribution pension plan 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. Page 14
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.7 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss 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.
| 2.8 | Tangible fixed assets
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. 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. The estimated useful lives range as follows:
|  |  |  | Motor vehicles | - | 4 |  |  | Years
|  |  |  | Office equipment | - | 3 | - | 5 | Years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Page 15
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.9 | Stocks
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. 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 profit or loss.
| 2.10 | 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.
| 2.11 | Cash and cash equivalents
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.
| 2.12 | 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.
| 2.13 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss. Page 16
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025 2.Accounting policies (continued)
| 2.14 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Basic financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Page 17
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
Estimates and 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. The Company makes estimates and assumptions concering the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are no estimates and assumptions that are deemed to have signifcant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| External sales | 77,709,711 | 39,889,527
| Intercompany sales | 2,286,112 | 1,088,529
|  | 79,995,823 | 40,978,056
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 77,709,711 | 39,889,527
| Rest of the world | 2,286,112 | 1,088,529
|  | 79,995,823 | 40,978,056
5. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor and its associates:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements | 13,000 | 12,100
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AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
6. | Employees
| Staff costs were as follows:
| The average monthly number of employees, including directors, during the year was 5 (2024 - 6).
7. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 377,252 | 124,797
| Total current tax | 377,252 | 124,797
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,503,496 | 494,474
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 375,874 | 123,619
| Effects of: |  |
| Capital allowances for year in excess of depreciation | (199) | 210
| Permanent timing differences | 1,577 | 968
| Total tax charge for the year | 377,252 | 124,797
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 19
AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
8. | Tangible fixed assets
|  | Motor vehicles | Office equipment | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 October 2024 | 26,247 | 27,537 | 53,784
| At 30 September 2025 | 26,247 | 27,537 | 53,784
| Depreciation |  |  |
| At 1 October 2024 | 26,247 | 26,887 | 53,134
| Charge for the year on owned assets | - | 650 | 650
| At 30 September 2025 | 26,247 | 27,537 | 53,784
| Net book value |  |  |
| At 30 September 2025 | - | - | -
| At 30 September 2024 | - | 650 | 650
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AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
9. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 18,325,538 | 7,208,119
| Other debtors | 2,557 | 3,299
| Prepayments and accrued income | 6,993 | 7,618
| Deferred taxation | 6,383 | 6,383
|  | 18,341,471 | 7,225,419
10. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 4,005,737 | 2,024,305
11. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 31,866 | -
| Amounts owed to group undertakings | 22,735,256 | 9,334,465
| Corporation tax | 127,814 | 2,955
| Other creditors | 846,208 | 520,189
|  | 23,741,144 | 9,857,609
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AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
12. | Deferred taxation
|  | 2025 | 2024
|  | £ | £
| At beginning of year | 6,383 | 6,383
| At end of year | 6,383 | 6,383
| The deferred tax asset is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | 6,383 | 6,383
|  | 6,383 | 6,383
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AFFCO EUROPE LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025
13. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2024 - 100) Ordinary shares of £1.00 each | 100 | 100
14. | Reserves
Profit and loss account The profit and loss account includes all current and prior period retained profits and losses.
15. | Pension commitments
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £6,346 (2024: £6,131). Contributions totaling £1,510 (2024: £nil) were payable to the fund at the balance sheet date.
16. | Commitments under operating leases
| At 30 September 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 14,309 | 14,309
|  | 14,309 | 14,309
17. | Controlling party
The immediate parent company is Affco Holdings Limited. The controlling party is Talleys Group Limited. The directors do not consider any one individual to have ultimate control. Talleys Group Limited is the largest and smallest group for which consolidated financial statements are drawn up.
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