Company registration number SC170245 (Scotland)
FLEXCON EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
FLEXCON EUROPE LIMITED
COMPANY INFORMATION
Directors
M Foley
N M Tucci
(Appointed 31 October 2025)
Secretary
Addleshaw Goddard (Scotland) Secretarial Limited
Company number
SC170245
Registered office
Whitworth Road
Southfield Industrial Estate
Glenrothes
Fife
United Kingdom
KY6 2TF
Auditor
Azets Audit Services
Quay 2
139 Fountainbridge
Edinburgh
EH3 9QG
Bankers
Bank of America N.A
2 King Edward St
London
EC1A 1HQ
Solicitors
Addleshaw Goddard LLP
Exchange Tower
19 Canning Street
Edinburgh
United Kingdom
EH3 8EH
FLEXCON EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
FLEXCON EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 1 -

The directors present the strategic report for the year ended 30 September 2025.

Flexcon engineers and manufactures high-quality pressure-sensitive labels, tapes, and functional materials that drive product performance and sustainability. Through a purpose-led, collaborative approach, our solutions are designed to bond, protect, label, and enable the world’s most critical innovations. Flexcon continuously looks at how to enhance processes and material inputs to support a circular economy enabling businesses to bring their technologies to market with eco-friendly products. In this manner, Flexcon can earn our customer’s trust and forge a strong, enduring business partnership. A family-owned business for nearly 70 years, Flexcon develops and manufactures high-quality products on world class assets with precision and efficiency for markets such as healthcare, sustainable packaging, transportation, consumer durables, electronics, industrial, retail & advertising and construction & energy with a goal of advancing bonds, innovation, and our world. Our core values are the foundation of our culture and include Integrity, Collaboration, Entrepreneurship & Respect and Inclusion.

Flexcon Europe has 13 2 dedicated employees. Our footprint includes a manufacturing plant and office located in Scotland, and a warehouse, slitting and distribution plant located in The Netherlands. With people as our most valued asset, we actively develop, mentor and promote our teams to enable success. We also offer i ndustry leading terms and conditions of employment to retain a committed workforce, and we are a real living wage employer.

At Flexcon, we place high value on doing the right thing. That’s why for nearly 70 years, we’ve been conducting business with integrity as one of our core values. In addition to complying with all laws and regulations, a major part of this commitment has been incorporating sustainable business practices in all we do wherever we can. As a global manufacturer of pressure-sensitive films and adhesives, we recogni s e the potential impact on the environment from our manufacturing processes and our products. It’s our policy to minimize environmentally adverse operations by striking a balance between environmental factors and our manufacturing processes. In addition to our many sustainable manufacturing initiatives, this is evidenced by the numerous memberships in which we are actively involved which include: CELAB, FINAT and EcoVadis. We believe being a good steward of our environmental resources and collaborating with our value chain partners will make us a stronger, more competitive company with the capabilities to better support and satisfy our broad customer base while continuing to be stewards of our employees, our neighbours and the environment.

Fair review of the business

The loss for the year 2025, after taxation, amounted to £957,650 (2024: £2,257,173).

- The company delivered a year of core business improvement with improved sales and a reduced loss through operational progress, cost discipline and efficiencies.

- The main reason for the loss is a result of business interruption with the main Coater, which limited production and revenue generation by shutting down one of our main coating lines for 2 months.

- The Leadership team are pleased to report significant cash investment of £3.7m for the new Oxidizer which was installed in November 2025, of which £2.6m was incurred by the year end. This provides business continuity protection and more efficient process capability. The company is also committed to further investment to improve reliability and efficiency and to secure the long-term growth projections.

With the strategic plan in place with appropriate focus on a balance of both new and existing market opportunities, the Leadership Team are confident that Flexcon Europe can reach its FY26 targets.

FLEXCON EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 2 -
Principal risks and uncertainties

There are several potential risks and uncertainties which could have an impact on the c ompany’s performance. The c ompany closely monitors industry trends, legislation, the global geo-political environment and other strategic areas for risks and assesses potential impacts to its business in both the short and long term.

Facility Shut Down

As experienced in the year, a loss of machinery could impact manufacturing operations and impede meeting customer needs. This risk is mitigated with appropriate business interruption insurance and is now further mitigated with the development of a comprehensive business continuity plan to utilise capacity of other Flexcon sites to provide needed production capacity wherever possible.

Raw material Supply & Price Fluctuation

In the event of a supply disruption, sourcing adequate quantities of raw materials at the required quality and cost may be challenging, potentially impacting manufacturing operations and the ability to meet customer demand. To mitigate this risk, the company maintains global contracts to ensure continuity of supply and has cultivated strong, strategic relationships with its suppliers with a goal of having more than one qualified supplier participant for all key raw material inputs.

Product not meeting increasing sustainability requirements

The c ompany continues to proactively monitor current and potential future sustainability requirements. Future changes, principally driven by a combination of customer and legislative initiatives, requires the c ompany to be vigilant and agile to the adoption of alternative production processes and/or the development of more sustainable products. These risks are being mitigated by the established Global Sustainability Team carrying out regular sustainability reviews supporting robust projects linked to a strategic plan, aligned to identified customer/legislative requirements.

Statement in compliance with section 172 of the Companies Act 2006

The Leadership team are aware of the requirement under Section 172 the Companies Act 2006 to act in good faith to promote the overall strategy and success of the company. In doing so, the Leadership Team consider the ethos and culture of the company and act in good faith to promote the success and maintain high standards of ethical business conduct. They consider the key stakeholders which are impacted by the company including customers, employees, suppliers and the community.

Customers

Fostering and investment in long term customer relationships is our primary focus and overall business strategy. The sales team are committed to regular review meetings with customers at all organisational levels, to ensure high levels of engagement and the agility to respond quickly to customer requirements.

Employees

The company is committed to ensuring equality of opportunity for all employees. We are committed to having a working environment which is free from any form of discrimination, harassment, or bullying. The company recognises that appropriate employee engagement is critical to the long-term success of the company. We engage with employees through regular departmental meetings and company updates. We conduct an annual engagement survey to provide employees with an opportunity to share their feedback and perspectives. Our aim is to provide training and support to all our employees to help them achieve their full potential.

Suppliers

Flexcon’s sustained success relies on cultivating strong, long-term relationships with our partners and suppliers at both global and local levels. We prioritize foundational principles such as timely payments, honouring commitments, building trust, and fostering transparency. Additionally, we collaborate closely with our partners and suppliers to identify opportunities for strengthening these relationships, ensuring alignment with our shared long-term strategic objectives to not only enable our success, but the success of the entire value chain and industries we serve.

Community

The local community is an important cornerstone of Flexcon Europe. As a local employer, we endeavour to support the local economy with the engagement and/or sponsorship of local companies. As a responsible neighbour, we understand our responsibilities to the environment and proactively manage this through our Sustainability Committee initiatives supported by SEPA (Scottish Environmental Protection Agency).

FLEXCON EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 3 -

On behalf of the board

N M Tucci
Director
10 February 2026
FLEXCON EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2025.

Principal activities

The principal activity of the company continued to be that of a manufacturer and supplier of pressure sensitive films and adhesives.

Results and dividends

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

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:

S P McDonough
(Resigned 31 October 2025)
M Foley
A S Peacock
(Appointed 1 December 2024 and resigned 31 October 2025)
N M Tucci
(Appointed 31 October 2025)
Auditor

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

Energy and carbon report

The company is focused on ensuring it is as energy efficient as possible as the cost of energy is a significant cost to the company.

2025
2024
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
20,885,680
17,247,311
- Electricity purchased
4,431,884
3,780,678
25,317,564
21,027,989
FLEXCON EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 5 -
2025
2024
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
3,821.24
3,014.00
3,821.24
3,014.00
Scope 2 - indirect emissions
- Electricity purchased
784.44
783.00
Total gross emissions
4,605.68
3,797.00
Intensity ratio
Tonnes CO2e per £m Turnover
123
103
Quantification and reporting methodology

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m Turnover, the recommended ratio for the sector.

Statement of disclosure to auditor

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 company’s auditor 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 company’s auditor is aware of that information.

Going Concern

The UK Companies Act requires the Board to consider whether it remains appropriate to adopt the going concern basis of accounting in preparing these financial statements, and to identify any material uncertainties to the company’s ability to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements. In making that assessment, the directors considered the wider group’s business activities, together with factors likely to affect its future development, its performance and principal risks and uncertainties. The directors are satisfied the group can provide support to the company, if required.

On behalf of the board
N M Tucci
Director
10 February 2026
FLEXCON EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 6 -

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 (applicable law and United Kingdom Accounting Standards). 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 and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

FLEXCON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEXCON EUROPE LIMITED
- 7 -
Opinion

We have audited the financial statements of Flexcon Europe Limited (the 'company') for the year ended 30 September 2025 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 September 2025 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

FLEXCON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEXCON EUROPE LIMITED (CONTINUED)
- 8 -
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' 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.

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.

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.

FLEXCON EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLEXCON EUROPE LIMITED (CONTINUED)
- 9 -

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

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

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

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

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

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

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

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

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

Use of our report

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

James McBride (Senior Statutory Auditor)
For and on behalf of Azets Audit Services, Statutory Auditor
Chartered Accountants
Quay 2
139 Fountainbridge
Edinburgh
EH3 9QG
10 February 2026
FLEXCON EUROPE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
37,321,733
36,849,633
Cost of sales
(26,043,331)
(26,251,531)
Gross profit
11,278,402
10,598,102
Administrative expenses
(11,993,910)
(12,511,954)
Operating loss
4
(715,508)
(1,913,852)
Interest payable and similar expenses
7
(216,378)
(262,448)
Loss before taxation
(931,886)
(2,176,300)
Tax on loss
8
(25,764)
(80,873)
Loss for the financial year
(957,650)
(2,257,173)
Retained earnings brought forward
(733,941)
1,523,232
Retained earnings carried forward
(1,691,591)
(733,941)

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

There are no recognised gains and losses other than those passing through the profit and loss account.

The notes on pages 13 to 24 form part of these financial statements.

FLEXCON EUROPE LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2025
30 September 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,735,766
4,190,352
Current assets
Stocks
10
7,265,160
8,240,965
Debtors
12
7,136,917
4,688,539
Cash at bank and in hand
1,261,110
2,102,379
15,663,187
15,031,883
Creditors: amounts falling due within one year
13
(7,270,133)
(4,135,765)
Net current assets
8,393,054
10,896,118
Total assets less current liabilities
14,128,820
15,086,470
Creditors: amounts falling due after more than one year
14
(5,351,603)
(5,351,603)
Net assets
8,777,217
9,734,867
Capital and reserves
Called up share capital
17
10,466,843
10,466,843
Share premium account
1,965
1,965
Profit and loss reserves
(1,691,591)
(733,941)
Total equity
8,777,217
9,734,867

The notes on pages 13 to 24 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 10 February 2026 and are signed on its behalf by:
N M Tucci
Director
Company registration number SC170245 (Scotland)
FLEXCON EUROPE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,950,292
1,233,167
Interest paid
(216,378)
(262,448)
Income taxes (paid)/refunded
(36,872)
649,339
Net cash inflow from operating activities
1,697,042
1,620,058
Investing activities
Purchase of tangible fixed assets
(2,540,722)
(730,100)
Proceeds from disposal of tangible fixed assets
2,411
-
0
Net cash used in investing activities
(2,538,311)
(730,100)
Financing activities
Repayment of borrowings
-
0
(100,000)
Net cash used in financing activities
-
(100,000)
Net (decrease)/increase in cash and cash equivalents
(841,269)
789,958
Cash and cash equivalents at beginning of year
2,102,379
1,312,421
Cash and cash equivalents at end of year
1,261,110
2,102,379

The notes on pages 13 to 24 form part of these financial statements.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 13 -
1
Accounting policies
Company information

Flexcon Europe Limited is a private company limited by shares incorporated in Scotland. The registered office is Whitworth Road, Southfield Industrial Estate, Glenrothes, Fife, United Kingdom, KY6 2TF.

1.1
Accounting convention

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.

These financial statements are presented in Pound Sterling (GBP). The company's functional currency is Euro (EUR). The company is registered in the UK and have always used Pound Sterling (GBP) as their presentational currency therefore, to ensure consistency in reporting this has continued.

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

1.2
Going concern

A true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future on the basis of continued support from 44 Maple Group as required for at least the 12 months from the signing date of these financial statements. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on receipt 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
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Tangible fixed assets

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

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

Long term leasehold property
Over the period of the lease
Plant and equipment
12.5% - 50% Straight line

Assets in the course of construction are not depreciated. On completion they are transferred to the relevant asset category at cost.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 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 credited or charged to profit or loss.

The assets have a de minimis for each asset category, assets costing under $5,000 for plant and machinery will not be capitalised. Long term leasehold property does not have a de minimus.

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.

1.6
Impairment of fixed assets

At each reporting period 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Other financial assets

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

Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

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

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

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

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 17 -
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 stock or fixed assets.

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

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

1.13
Retirement benefits

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

1.14
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.

The company's functional currency is Euros (EUR). This differs from the presentational currency which is Pound Sterling (GBP). The reason for the difference is that the company is registered in the UK and have always used GBP as their presentational currency therefore, to ensure consistency in reporting this has continued.

2
Judgements and key sources of estimation uncertainty

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

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

Key sources of estimation uncertainty

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

The stock provision is reviewed annually and the provision is based on management's best estimate and knowledge of the business in identifying slow moving and obsolete stock.

The provision for bad and doubtful debts is based on management's review of the debtors ledger for overdue balances. The provision is made against balances which present a credit risk to the company.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 18 -
3
Turnover
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
5,405,505
4,881,587
Rest of Europe
28,752,053
30,140,660
Rest of the World
3,164,175
1,827,386
37,321,733
36,849,633
4
Operating loss
2025
2024
Operating loss for the year is stated after charging:
£
£
Exchange losses
30,058
138,209
Research and development costs
30,788
-
Depreciation of owned tangible fixed assets
992,897
1,021,651
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
40,800
38,850
For other services
Taxation compliance services
4,270
4,800
All other non-audit services
59,540
57,221
63,810
62,021
6
Employees

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

2025
2024
Number
Number
Selling and administration
56
46
Production
76
87
Total
132
133

Included in the above totals is 1 (2024: 6) temporary employees.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
7,805,374
7,519,827
Social security costs
972,788
845,267
Pension costs
332,530
344,907
9,110,692
8,710,001
The total remuneration paid to the key management personnel was £977k (2024: £1m). The directors received no remuneration in the year (2024: £nil).
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
216,378
262,448
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
25,764
-
0
Adjustments in respect of prior periods
-
0
80,873
Total current tax
25,764
80,873
FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
8
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Loss before taxation
(931,886)
(2,176,300)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(232,972)
(544,075)
Tax effect of expenses that are not deductible in determining taxable profit
1,943
978
Adjustments in respect of prior years
25,764
80,873
Fixed asset differences
218
2,379
Other movement in deferred tax
230,811
540,718
Taxation charge for the year
25,764
80,873
9
Tangible fixed assets
Long term leasehold property
Assets under construction
Plant and equipment
Total
£
£
£
£
Cost
At 1 October 2024
708,567
151,022
19,719,579
20,579,168
Additions
6,762
2,401,794
132,166
2,540,722
Disposals
(36,907)
-
0
(323,312)
(360,219)
At 30 September 2025
678,422
2,552,816
19,528,433
22,759,671
Depreciation and impairment
At 1 October 2024
634,627
-
0
15,754,189
16,388,816
Depreciation charged in the year
22,119
-
0
970,778
992,897
Eliminated in respect of disposals
(36,573)
-
0
(321,235)
(357,808)
At 30 September 2025
620,173
-
0
16,403,732
17,023,905
Carrying amount
At 30 September 2025
58,249
2,552,816
3,124,701
5,735,766
At 30 September 2024
73,940
151,022
3,965,390
4,190,352
FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 21 -
10
Stocks
2025
2024
£
£
Raw materials and consumables
3,567,236
4,145,588
Work in progress
2,629,603
1,975,973
Finished goods and goods for resale
1,068,321
2,119,404
7,265,160
8,240,965
11
Financial instruments
2025
2024
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
5,810,464
6,195,655
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Non-derivatives that are not part of a trading portfolio
12,475,845
9,285,906
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
4,479,204
3,960,613
Corporation tax recoverable
62,857
51,749
Amounts owed by group undertakings
1,399,508
269,348
Other debtors
978,785
270,557
Prepayments and accrued income
216,563
136,272
7,136,917
4,688,539
13
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
2,603,916
1,089,334
Amounts owed to group undertakings
3,603,629
1,588,842
Taxation and social security
212,669
201,461
Other creditors
104,580
127,265
Accruals and deferred income
745,339
1,128,863
7,270,133
4,135,765
FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 22 -
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Amounts owed to group undertakings
15
5,351,603
5,351,603
15
Loans and overdrafts
2025
2024
£
£
Loans from group undertakings
5,351,603
5,351,603
Payable after one year
5,351,603
5,351,603

The long-term loans are unsecured. Interest is charged which is based on US Applicable Federal Rates.

There are no fixed terms of repayment however the letter of support provided by the group undertaking states the loans are repayable in 1 year and 1 day, thus the loan balance is included in creditors due after one year.

16
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
332,530
344,907

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.

Included within other creditors are outstanding pension contributions of £38,683 (20 24: £64,511).

17
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
10,466,843
10,466,843
10,466,843
10,466,843
FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 23 -
18
Operating lease commitments

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

2025
2024
£
£
Within one year
657,483
666,468
Between two and five years
1,014,854
1,690,569
1,672,337
2,357,037
19
Capital commitments

Amounts contracted for but not provided in the financial statements:

2025
2024
£
£
Acquisition of tangible fixed assets
1,340,121
2,363,347
20
Reserves

Share premium account

The share premium reserve represents the consideration paid for shares above the nominal value

Profit and loss reserves

The profit and loss reserves includes all current and prior year retained profit and losses.

21
Related party transactions
Transactions with related parties

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

44 Maple Group holds 100% of the issued share capital of Flex con Worldwide LLC. The

company is therefore ultimately controlled by the trustees of 44 Maple Group.

Neil McDonough, a former director, is also a director of NMCD Realty Limited and owns 100% of its issued share capital. NMCD Realty Limited charged rent of £400,000 (20 24: £400,000) to Flex con Europe Limited fo r use of land and buildings. There were no outstanding amounts at the year end (20 24: £nil).

The company has taken advantage of the exemption permitted by Financial Reporting Standard 102 Section 33 "Related Parties", not to disclose transactions or balances with group companies. There are no other transactions with related parties that require disclosure.

22
Ultimate controlling party

The immediate parent company was Flex con Holdings (Europe) LLC throughout the year.

The ultimate parent company was 44 Maple Group throughout the year.

FLEXCON EUROPE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 24 -
23
Cash generated from operations
2025
2024
£
£
Loss after taxation
(957,650)
(2,257,173)
Adjustments for:
Taxation charged
25,764
80,873
Finance costs
216,378
262,448
Depreciation and impairment of tangible fixed assets
992,897
1,021,651
Movements in working capital:
Decrease in stocks
975,805
2,156,605
Increase in debtors
(2,437,270)
(1,041,402)
Increase in creditors
3,134,368
1,010,165
Cash generated from operations
1,950,292
1,233,167
24
Analysis of changes in net debt
1 October 2024
Cash flows
30 September 2025
£
£
£
Cash at bank and in hand
2,102,379
(841,269)
1,261,110
Borrowings excluding overdrafts
(5,351,603)
-
(5,351,603)
(3,249,224)
(841,269)
(4,090,493)
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