Company registration number 08899223 (England and Wales)
KRKA UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
KRKA UK LTD
COMPANY INFORMATION
Directors
Ms M Vidmar Berus
Mr J Arh
Mr V Kozjan
Company number
08899223
Registered office
Thames House
Waterside Drive
Langley
Berkshire
SL3 6EZ
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
United Kingdom
E1 8FA
Business address
Thames House
Waterside Drive
Langley
Berkshire
SL3 6EZ
KRKA UK LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
KRKA UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

In the current challenging business environment, the management has delivered positive result for the year. Turnover and profit both decreased compared with the previous period, reflecting softer demand in the local market and continued pricing pressure across key generic lines.

Despite these conditions, the company maintained operational stability and was able to take advantage of selective market opportunities. Certain areas of the portfolio experienced stronger demand, and a favourable sales composition supported overall profitability within the year.

The company has generated a turnover of £18,286,273 during the year (2024: £22,320,625).

The company has recorded a profit of £561,018 for the year (2024: £666,221).

Principal risks and uncertainties

The directors consider that the key business risks and uncertainties affecting the company relate to price and competition pressures in the pharmaceutical industry. The company seeks to mitigate these risks by expanding its products range, vertical integration and strong supply chain management.

The company acquires all of its products from parent company Krka d.d., Novo mesto. It holds regular meetings with parent company to ensure minimal risk and disruption to its supply chain.

Financial risk management

The company’s operations expose it to a variety of financials risk that include the effects of changes in interest rates, liquidity risk and credit risk.

Interest rate risk:

The company can borrow from the parent company on which interest is payable. However, there is not considered to be any material risk regarding interest rate.

Liquidity risk:

Liquidity risk is managed by maintaining a balance between the funding requirements to support operational and other activities and the bank balances available for these purposes. The company’s liquidity risk management includes planning of liquidity requirements, cash pooling, considering the level of liquid assets and monitoring balance sheet liquidity on a frequent basis.

Credit risk:

Customers mostly comprise large corporations with low credit risk. There are not any material risks relating to individual customers or business partners. The company’s credit risk management includes credit rating calculations, limiting maximum exposure to individual customers, active management of receivables, utilisation of instruments for insurance of payments and receivables with a credit insurance company.

Development and performance

The company expects to continue to build on its strong performance, with strategic focus on ensuring continues supply of medicines, expanding its product range, and maintaining key relationships.

Key performance indicators

The company’s key performance indicator is turnover, which for the current year was £18,286,273 (2024: £22,320,625).

KRKA UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
Other performance indicators

The Company does not currently have any non-financial KPIs that it uses to measure performance.

On behalf of the board

Ms M Vidmar Berus
Director
9 February 2026
KRKA UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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

Principal activities

The principal activity of the Company was that of the sale and distribution of both human and veterinary pharmaceuticals.

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

Ms M Vidmar Berus
Mr J Arh
Mr V Kozjan
Supplier payment policy

It is the policy of the Company that it should agree appropriate terms and conditions for its transactions with suppliers and that payment should be made in accordance with those terms and conditions. The average credit period taken for trade purchases is 30 days.

Financial instruments

Descriptions of the use of financial instruments and risk management objectives and policies are set out in the Principal risks and uncertainties section within the Strategic Report.

Post reporting date events

There have been no significant events affecting the Company since the year end.

Future developments

The Company will extend the AH and Rx products within its portfolio every year. KRKA UK LTD will also increase its headcount if necessary to support this product extension, and to support business growth. The Company will look to maintain a slim organisation, with strong HQ support whilst maintaining its existing business model. Other than this, there are no plans in respect of changes to the activities of the Company that require disclosure in the financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.

KRKA UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
Statement of directors' responsibilities

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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

- properly select and apply accounting policies;

- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

- provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

- make an assessment of the company's ability to continue as a going concern.

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

Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms 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 he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Ms M Vidmar Berus
Director
9 February 2026
KRKA UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF KRKA UK LTD
- 5 -
Opinion

We have audited the financial statements of KRKA UK LTD (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

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

- have been properly prepared in accordance with UK adopted international accounting standards; and

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in Directors' R eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

KRKA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KRKA UK LTD
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the Strategic Report and Directors' Report.

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

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

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

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

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

Responsibilities of directors

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

KRKA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KRKA UK LTD
- 7 -
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.

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

- the senior statutory auditor ensured 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the industry.

- 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 company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, health and safety legislation, and anti-money laundering regulations.

- 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;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- understanding the design of the company’s remuneration policies.

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 journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- 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;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC, relevant regulators including the Veterinary Medicines Directorate and the company’s legal advisors.

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 the 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 by for example forgery, or intentional misrepresentation or through collusion.

Our audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

KRKA UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF KRKA UK LTD
- 8 -

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

Paul Woosey FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
9 February 2026
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
United Kingdom
E1 8FA
KRKA UK LTD
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Revenue
3
18,286,273
22,320,625
Cost of sales
(16,387,900)
(20,413,665)
Gross profit
1,898,373
1,906,960
Other operating income
1,297,079
1,113,241
Administrative expenses
(2,494,846)
(2,188,376)
Operating profit
4
700,606
831,825
Investment revenues
6
53,126
68,764
Finance costs
7
(598)
(1,417)
Profit before taxation
753,134
899,172
Income tax expense
8
(192,116)
(232,951)
Profit and total comprehensive income for the year
561,018
666,221

The income statement has been prepared on the basis that all operations are continuing operations.

KRKA UK LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
Non-current assets
Property, plant and equipment
9
31,258
58,862
Current assets
Inventories
10
5,549,843
6,055,760
Trade and other receivables
11
7,758,601
7,791,243
Current tax recoverable
42,788
2,049
Cash and cash equivalents
556,780
1,155,276
13,908,012
15,004,328
Current liabilities
Trade and other payables
13
11,536,326
13,200,354
Lease liabilities
14
3,569
20,910
11,539,895
13,221,264
Net current assets
2,368,117
1,783,064
Non-current liabilities
Lease liabilities
14
-
0
3,569
Net assets
2,399,375
1,838,357
Equity
Called up share capital
16
1,000
1,000
Retained earnings
2,398,375
1,837,357
Total equity
2,399,375
1,838,357

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

The financial statements were approved by the board of directors and authorised for issue on 9 February 2026 and are signed on its behalf by:
Ms M Vidmar Berus
Director
Company registration number 08899223 (England and Wales)
KRKA UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2024
1,000
1,171,136
1,172,136
Year ended 31 December 2024:
Profit and total comprehensive income
-
666,221
666,221
Balance at 31 December 2024
1,000
1,837,357
1,838,357
Year ended 31 December 2025:
Profit and total comprehensive income
-
561,018
561,018
Balance at 31 December 2025
1,000
2,398,375
2,399,375
KRKA UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(392,724)
(9,850)
Income taxes paid
(232,855)
(344,692)
Net cash outflow from operating activities
(625,579)
(354,542)
Investing activities
Purchase of property, plant and equipment
(4,535)
(6,178)
Interest received
53,126
68,764
Net cash generated from investing activities
48,591
62,586
Financing activities
Payment of lease liabilities
(21,508)
(21,508)
Net cash used in financing activities
(21,508)
(21,508)
Net decrease in cash and cash equivalents
(598,496)
(313,464)
Cash and cash equivalents at beginning of year
1,155,276
1,468,740
Cash and cash equivalents at end of year
556,780
1,155,276
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Company information

KRKA UK LTD is a private company limited by shares incorporated in England and Wales. The registered office is Thames House, Waterside Drive, Langley, Berkshire, SL3 6EZ. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

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

New standards and interpretations not yet adopted:

- Amendments to IFRS 18 'Presentation and Disclosure in Financial Satements' (effective for annual periods beginning on or after 1 January 2027).

- Amendments to IFRS 19 'Subsidiaries without Public Accountability: Disclosures' (effective for annual periods beginning on of after 1 January 2027).

1.2
Going concern

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

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product to a customer.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Right of use assets
Straight-line over the length of the lease
Fixtures, fittings & equipment
10-20% straight-line
Computer equipment
20-50% straight-line
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -

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

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Inventories

Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprise all costs of purchase, costs of conversion, and other costs incurred in bringing the inventories to their present location and condition.

1.7
Cash and cash equivalents

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

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets held at amortised cost
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recogni s es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, t rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Leases
As lessee

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property. IFRS 16 was adopted on 1 January 2019 without restatement of comparative figures on the cumulative effect basis; the following policies apply subsequent to the date of initial application, 1 January 2019.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is re assessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Critical accounting estimates and judgements

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

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The areas for which estimation has been applied are considered to be in bad and doubtful debt provisions and inventory provisions.

Although each of these areas are subject to judgement, they are not considered to be subject to significant estimation.

3
Revenue

An analysis of the company's revenue is as follows:

2025
2024
£
£
Revenue analysed by class of business
Veterinary Products
9,521,757
9,373,333
Human Products (Rx)
8,764,516
12,947,292
18,286,273
22,320,625

All turnover is generated through sales domestically in the United Kingdom.

4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
82
(477)
Research and development costs
68,341
87,750
Fees payable to the company's auditor for the audit of the company's financial statements
20,200
19,250
Depreciation of property, plant and equipment
32,128
38,872
Loss on disposal of property, plant and equipment
11
220
Cost of inventories recognised as an expense
16,387,900
20,413,665
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 18 -
5
Employees

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

2025
2024
Number
Number
Sales
10
9
Promotion
2
2
Administration
5
4
Total
17
15

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,186,233
987,253
Social security costs
167,941
126,542
Pension costs
82,425
69,224
1,436,599
1,183,019
6
Investment income
2025
2024
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
53,126
68,764
Income above relates to assets held at amortised cost, unless stated otherwise.
7
Finance costs
2025
2024
£
£
Other interest payable
598
1,417
8
Income tax expense
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
192,116
232,951
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
8
Income tax expense
(Continued)
- 19 -

The charge for the year can be reconciled to the profit per the income statement as follows:

2025
2024
£
£
Profit before taxation
753,134
899,172
Expected tax charge based on a corporation tax rate of 25.00% (2024: 25.00%)
188,284
224,793
Effect of expenses not deductible in determining taxable profit
4,966
9,702
Capital allowances
(1,134)
(1,544)
Taxation charge for the year
192,116
232,951

Factors that may affect future tax charges

At 31 December 20 25 there was an unprovided for deferred tax liability of £7,815 (2024: £8,834). This relates to accelerated capital allowances. It has not been provided for because it is deemed to be trivial.

9
Property, plant and equipment
Right of use assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2024
100,479
43,428
89,272
233,179
Additions
-
0
-
0
6,178
6,178
Disposals
-
0
-
0
(5,174)
(5,174)
At 31 December 2024
100,479
43,428
90,276
234,183
Additions
-
0
458
4,077
4,535
Disposals
-
0
(543)
(645)
(1,188)
At 31 December 2025
100,479
43,343
93,708
237,530
Accumulated depreciation and impairment
At 1 January 2024
56,790
32,172
52,442
141,404
Charge for the year
20,163
7,395
11,314
38,872
Eliminated on disposal
-
0
-
0
(4,955)
(4,955)
At 31 December 2024
76,953
39,567
58,801
175,321
Charge for the year
20,166
835
11,127
32,128
Eliminated on disposal
-
0
(532)
(645)
(1,177)
At 31 December 2025
97,119
39,870
69,283
206,272
KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Property, plant and equipment
Right of use assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
(Continued)
- 20 -
Carrying amount
At 31 December 2025
3,360
3,473
24,425
31,258
At 31 December 2024
23,526
3,861
31,475
58,862

KRKA UK LTD adopted IFRS 16 on 1 January 2019. In 2021 the company moved premises, and entered into a new lease contract. This lease was immediately capitalised as a right of use asset at the present value of future cash flows. An interest charge of £598 (2024: £1,417) on the lease is included within the income statement. The depreciation charged on the right of use asset was £20,166 (2024: £20,163) and is included in both the income statement and statement of financial position. The amount in respect of the lease presented in the statement of cash flows is £21,508 (2024: £21,508) being the capital repayment.

10
Inventories
2025
2024
£
£
Finished goods
5,549,843
6,055,760

Inventories are stated after provisions for slow moving and obsolete stock of £488,389 (2024: £139,610).

11
Trade and other receivables
2025
2024
£
£
Trade receivables
7,515,117
7,525,108
Amounts owed by fellow group undertakings
133,353
147,575
Other receivables
11,377
11,379
Prepayments
98,754
107,181
7,758,601
7,791,243

Trade and other receivables (except for prepayments), disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

12
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

Trade receivables are stated net of a provision for impairment of £13,357 (2024: £20,056).

KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
13
Trade and other payables
2025
2024
£
£
Trade payables
1,058,976
515,590
Amounts owed to fellow group undertakings
6,693,513
9,611,086
Accruals
2,936,106
2,444,428
Social security and other taxation
729,528
584,700
Other payables
118,203
44,550
11,536,326
13,200,354

Trade payables and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit period taken for trade purchases is 30 days. The company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

The directors consider that the carrying amount of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

14
Lease liabilities
2025
2024
Net amounts due
£
£
Within one year
3,569
20,910
After more than one year
-
0
3,569
3,569
24,479
2025
2024
Maturity analysis of future lease payments
£
£
Within one year
3,569
21,508
In two to five years
-
3,586
Total undiscounted liabilities
3,569
25,094
Future finance charges and other adjustments
-
(615)
Lease liabilities in the financial statements
3,569
24,479
15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,425
69,224

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

KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,000
1,000
1,000
1,000
17
Related party transactions

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

Sale of goods
Purchase of goods
2025
2024
2025
2024
£
£
£
£
Parent company
-
0
-
0
14,945,268
19,613,818
Income from marketing services
Income from regulatory services
2025
2024
2025
2024
£
£
£
£
Parent company
1,135,022
998,800
130,613
114,161

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due to related parties
£
£
Parent company
6,693,513
9,611,086

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Parent company
133,353
147,575
18
Capital risk management

The company is not subject to any externally imposed capital requirements.

19
Events after the reporting date

There are no events post period end date to report.

KRKA UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
20
Controlling party

The parent company of KRKA UK LTD is KRKA d.d., Novo mesto, a company listed on the Ljubljana Stock Exchange (LJSE) and resident in Slovenia, whose registered office is Šmarješka cesta 6, 8501 Novo mesto, Slovenia and which heads the largest and smallest group for which consolidated accounts are prepared. The consolidated accounts are available to the public and may be obtained from www.krka.biz/investors/financial-reports/. There is no ultimate controlling party.

21
Cash absorbed by operations
2025
2024
£
£
Profit for the year before taxation
753,134
899,172
Adjustments for:
Finance costs
598
1,417
Investment income
(53,126)
(68,764)
Loss on disposal of property, plant and equipment
11
220
Depreciation and impairment of property, plant and equipment
32,128
38,872
Movements in working capital:
Decrease/(increase) in inventories
505,917
(425,565)
Decrease in trade and other receivables
32,642
484,437
Decrease in trade and other payables
(1,664,028)
(939,639)
Cash absorbed by operations
(392,724)
(9,850)
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