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REGISTERED NUMBER: 02480783 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Smithy Mushrooms Limited

| Smithy Mushrooms Limited (Registered number: 02480783) |

Contents of the Financial Statements

for the Year Ended 31 December 2025

Page |

| Company Information | 1 |

| Strategic Report | 2 |

| Report of the Directors | 4 |

| Report of the Independent Auditors | 6 |

| Income Statement | 10 |

| Other Comprehensive Income | 11 |

| Balance Sheet | 12 |

| Statement of Changes in Equity | 13 |

| Cash Flow Statement | 14 |

| Notes to the Cash Flow Statement | 15 |

| Notes to the Financial Statements | 16 |

| Smithy Mushrooms Limited |

Company Information

for the Year Ended 31 December 2025

| DIRECTORS: | MPMJ Paul Le Bris

| J Dorrian

| H J Park

| C K Kim

| T Jung

| C Park

| SECRETARY: | H J Park

| REGISTERED OFFICE: | 32 Derby Street

| Ormskirk

| Lancashire

| L39 2BY

| REGISTERED NUMBER: | 02480783 (England and Wales)

| SENIOR STATUTORY AUDITOR: | Nicola Price ACA FCCA

| AUDITORS: | Myersons

| Statutory Auditors

| Chartered Accountants

| 32 Derby Street

| Ormskirk

| Lancashire

| L39 2BY

| Smithy Mushrooms Limited (Registered number: 02480783) |

Strategic Report

for the Year Ended 31 December 2025

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

REVIEW OF BUSINESS

Smithy Mushrooms Limited is well-positioned to capitalise on the growing demand for high-quality gourmet mushrooms. By maintaining a clear strategic focus on production capability, product innovation, and operational sustainability, the Company aims to deliver continued growth and long-term value. With disciplined execution of its strategy, Smithy Mushrooms Limited is well placed to strengthen its competitive position within the mushroom industry.

The principal activities of the Company are the production and trading of mushrooms. As part of its strategy to strengthen the core business, the Company has continued to invest in expanding its in-house shiitake mushroom production capacity through the development of its UK-based shiitake log facility. This investment supports greater control over supply, improved cost efficiency, and enhanced product quality, while enabling a significant increase in overall shiitake mushroom output.

In addition to expanding core production, the Company has progressed the introduction of new exotic mushroom varieties, including the launch of lion's mane mushroom, as part of its product diversification strategy. This initiative is intended to support future sales growth by addressing increasing consumer demand for premium and functional mushroom products.

The business review of the directors contained in the financial statements of Smithy Mushrooms Limited is as follows:

We aim to present a fair review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and complexity of our business and is written in the context of the risks and uncertainties faced by the Company.

Despite continued challenges arising from geopolitical instability, inflationary pressures, and ongoing disruption to global supply chains, the Company has remained focused on strengthening its operational foundations. Cost pressures relating to labour, energy, fuel, and transportation continued to impact the business during the year; however, these challenges were managed through improved operational efficiency and the maintenance of strong customer relationships. As a result, the Company remains well positioned to improve performance as market conditions stabilise.

Smithy Mushrooms Limited turnover has increased slightly by 1.26% to £7.958 million compared with £7.858 million in 2024. The reduction in gross profit margin reflects the decision to show the depreciation of the new farm as a direct cost. The year resulted in an operating loss of £281k compared with a profit of £225k in 2024. This also is directly linked to the increase in the depreciation charged in the year.

The company balance sheet continues to present a very solid position, with net assets of £12.26 million compared with £13.12 million in 2024.

The directors would like to thank all employees for their commitment and hard work over the last 12 months.

PRINCIPAL RISKS AND UNCERTAINTIES

The business environment in which the Company operates remains challenging, with competitive pricing across the industry continuing to place pressure on margins. External factors, including geopolitical conflicts, inflationary trends, and volatility in energy and transportation costs, continue to create uncertainty for future trading conditions.

The Company continues to monitor these risks closely and seeks to mitigate their impact through a focus on production efficiency, product differentiation, and the expansion of higher value-added mushroom products. The Company's established reputation for delivering high-quality mushrooms and meeting customer requirements remains a key competitive strength in managing these uncertainties.

| Smithy Mushrooms Limited (Registered number: 02480783) |

Strategic Report

for the Year Ended 31 December 2025

FUTURE DEVELOPMENTS

The Company will continue to pursue opportunities to grow the business and expand its product range, while maintaining a prudent and disciplined approach to investment.

Key areas of focus include:

further strengthening in-house shiitake mushroom production capabilities, reducing reliance on external supply and enhancing cost control;

- the continued development and commercialisation of lion's mane mushroom and other exotic mushroom varieties to diversify revenue streams; and

- improving operational efficiency and adaptability to respond effectively to changing market conditions.

Through these initiatives, Smithy Mushrooms Limited aims to support future sales growth and enhance overall profitability, while maintaining a resilient and sustainable business model.

ON BEHALF OF THE BOARD:

C K Kim - Director

24 February 2026

| Smithy Mushrooms Limited (Registered number: 02480783) |

Report of the Directors

for the Year Ended 31 December 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of buying, growing and selling mushrooms.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

MPMJ Paul Le Bris

J Dorrian

H J Park

C K Kim

T Jung

C Park

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;

- | 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

| Smithy Mushrooms Limited (Registered number: 02480783) |

Report of the Directors

for the Year Ended 31 December 2025

AUDITORS

The auditors, Myersons, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C K Kim - Director

24 February 2026

Report of the Independent Auditors to the Members of

Smithy Mushrooms Limited

Opinion

We have audited the financial statements of Smithy Mushrooms Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- | give a true and fair view of the state of the company's affairs as at 31 December 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Report of the Independent Auditors to the Members of

Smithy Mushrooms Limited

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 Report of the Directors.

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 Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of

Smithy Mushrooms Limited

Auditors' 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 a Report of the Auditors 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 senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client and their industry sector;

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 the Companies Act 2006, taxation legislation and data protection, employment, and environmental and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions, assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing financial statement disclosures to underlying supporting documentation, enquiring of management as to actual and potential litigation and claims.

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 or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of

Smithy Mushrooms Limited

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 a Report of the Auditors 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.

Nicola Price ACA FCCA (Senior Statutory Auditor)

for and on behalf of Myersons

Statutory Auditors

Chartered Accountants

32 Derby Street

Ormskirk

Lancashire

L39 2BY

25 February 2026

| Smithy Mushrooms Limited (Registered number: 02480783) |

Income Statement

for the Year Ended 31 December 2025

| 31.12.25 |  | 31.12.24

| as restated |

| Notes | £ | £ |

TURNOVER | 3 | 7,958,279 |  | 7,858,961 |  |

Cost of sales | 8,239,251 |  | 7,634,093 |  |

GROSS (LOSS)/PROFIT | (280,972 | ) | 224,868 |  |

Administrative expenses | 703,026 |  | 709,583 |  |

(983,998 | ) | (484,715 | ) |

Other operating income | 206,859 |  | 219,071 |  |

OPERATING LOSS | 5 | (777,139 | ) | (265,644 | ) |

Interest payable and similar expenses | 6 | 32,207 |  | 29,112 |  |

LOSS BEFORE TAXATION | (809,346 | ) | (294,756 | ) |

Tax on loss | 7 | 51,715 |  | 50,816 |  |

LOSS FOR THE FINANCIAL YEAR | (861,061 | ) | (345,572 | ) |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Other Comprehensive Income

for the Year Ended 31 December 2025

| 31.12.25 |  | 31.12.24

| as restated |

| Notes | £ | £ |

LOSS FOR THE YEAR | (861,061 | ) | (345,572 | ) |

OTHER COMPREHENSIVE INCOME | - |  | - |  |

TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (861,061 | ) | (345,572 | ) |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Balance Sheet

31 December 2025

| 31.12.25 | 31.12.24 |

| as restated |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 9 | 12,485,133 |  | 13,299,423 |  |

CURRENT ASSETS

Stocks | 10 | 1,049,587 |  | 968,509 |  |

Debtors | 11 | 754,366 |  | 802,031 |  |

Cash at bank and in hand | 15,924 |  | 34,798 |  |

1,819,877 |  | 1,805,338 |  |

CREDITORS

Amounts falling due within one year | 12 | 1,210,627 |  | 1,980,629 |  |

NET CURRENT ASSETS/(LIABILITIES) | 609,250 |  | (175,291 | ) |

TOTAL ASSETS LESS CURRENT LIABILITIES | 13,094,383 |  | 13,124,132 |  |

CREDITORS

Amounts falling due after more than one year | 13 | 831,312 |  | - |  |

NET ASSETS | 12,263,071 |  | 13,124,132 |  |

CAPITAL AND RESERVES

Called up share capital | 16 | 3,688,416 |  | 3,688,416 |  |

Share premium | 17 | 8,383,571 |  | 8,383,571 |  |

Preference share redemption

reserve | 17 | 20,000 |  | 20,000 |  |

Retained earnings | 17 | 171,084 |  | 1,032,145 |  |

SHAREHOLDERS' FUNDS | 12,263,071 |  | 13,124,132 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2026 and were signed on its behalf by:

C K Kim - Director

| Smithy Mushrooms Limited (Registered number: 02480783) |

Statement of Changes in Equity

for the Year Ended 31 December 2025

| Preference |

| Called up |  | share |

| share |  | Retained |  | Share |  | redemption |  | Total

| capital |  | earnings |  | premium |  | reserve |  | equity

£ | £ | £ | £ | £ |

Balance at 1 January 2024 | 3,688,416 |  | 1,377,717 |  | 8,383,571 |  | 20,000 |  | 13,469,704 |  |

Changes in equity

Total comprehensive income | - |  | (345,572 | ) | - |  | - |  | (345,572 | ) |

Balance at 31 December 2024 | 3,688,416 |  | 1,032,145 |  | 8,383,571 |  | 20,000 |  | 13,124,132 |  |

Changes in equity

Total comprehensive income | - |  | (861,061 | ) | - |  | - |  | (861,061 | ) |

Balance at 31 December 2025 | 3,688,416 |  | 171,084 |  | 8,383,571 |  | 20,000 |  | 12,263,071 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Cash Flow Statement

for the Year Ended 31 December 2025

| 31.12.25 |  | 31.12.24

| as restated |

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | 37,501 |  | 56,041 |  |

Interest paid | (32,207 | ) | (29,112 | ) |

Tax paid | (51,715 | ) | (50,816 | ) |

Net cash from operating activities | (46,421 | ) | (23,887 | ) |

Cash flows from investing activities

Purchase of tangible fixed assets | (108,653 | ) | (814,976 | ) |

Sale of tangible fixed assets | 9,000 |  | 3,644 |  |

Net cash from investing activities | (99,653 | ) | (811,332 | ) |

Cash flows from financing activities

New loans in year | 127,200 |  | 729,111 |  |

Net cash from financing activities | 127,200 |  | 729,111 |  |

Decrease in cash and cash equivalents | (18,874 | ) | (106,108 | ) |

Cash and cash equivalents at beginning of year | 2 | 34,798 |  | 140,906 |  |

Cash and cash equivalents at end of year | 2 | 15,924 |  | 34,798 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Cash Flow Statement

for the Year Ended 31 December 2025

1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Loss before taxation | (809,346 | ) | (294,756 | ) |

| Depreciation charges | 918,940 |  | 909,869 |  |

| (Profit)/loss on disposal of fixed assets | (5,000 | ) | 5,567 |  |

| Finance costs | 32,207 |  | 29,112 |  |

136,801 |  | 649,792 |  |

| Increase in stocks | (81,078 | ) | (567,847 | ) |

| Decrease in trade and other debtors | 47,665 |  | 11,169 |  |

| Decrease in trade and other creditors | (65,887 | ) | (37,073 | ) |

| Cash generated from operations | 37,501 |  | 56,041 |  |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

| Year ended 31 December 2025

| 31.12.25 |  | 1.1.25

£ | £ |

| Cash and cash equivalents | 15,924 |  | 34,798 |  |

| Year ended 31 December 2024

| 31.12.24 |  | 1.1.24

| as restated |

£ | £ |

| Cash and cash equivalents | 34,798 |  | 140,906 |  |

3. | ANALYSIS OF CHANGES IN NET FUNDS

| At 1.1.25 | Cash flow | At 31.12.25

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 34,798 |  | (18,874 | ) | 15,924 |  |

34,798 |  | (18,874 | ) | 15,924 |  |

| Total | 34,798 |  | (18,874 | ) | 15,924 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements

for the Year Ended 31 December 2025

1. | STATUTORY INFORMATION

| Smithy Mushrooms Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| Turnover

| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

| Freehold property | - | at varying rates on cost

| Improvements to property | - | 5% on cost

| Plant and machinery | - | at varying rates on cost

| Motor vehicles | - | 20% on cost

| Government grants

| The company applies the 'Performance Model' in respect of grant income. An entity applying the performance model shall recognise grants as follows:

| (a) A grant that does not impose specified future performance-related conditions on the recipient is recognised in income when the grant proceeds are received or receivable.

| (b) A grant that imposes specified future performance-related conditions on the recipient is recognised in income only when the performance-related conditions are satisfied.

| (c) Grants received before the performance-related conditions are satisfied are recognised as a liability.

| Stocks

| Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

| Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

| Stocks that are produced at the new farm site include a proportion of depreciation which is deemed to be a direct cost of the growing stock.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

2. | ACCOUNTING POLICIES - continued

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

| Research and development

| Expenditure on research and development is written off in the year in which it is incurred.

| Research and Development Expenditure Credit (RDEC) claims are a form of government grant under the accounting standard applicable to this company. The receipt of RDEC claims are therefore recognised in accordance with the accounting policy disclosed on government grants. In addition, as RDEC requires above the line treatment, the gross credit is recognised in other income in the profit and loss account before tax and tax credit element of the claim is included in taxation.

| Foreign currencies

| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

| Hire purchase and leasing commitments

| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

| Pension costs and other post-retirement benefits

| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. | TURNOVER

| The turnover and loss before taxation are attributable to the one principal activity of the company.

| An analysis of turnover by class of business is given below:

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Sale of mushrooms | 7,958,279 |  | 7,858,961 |  |

7,958,279 |  | 7,858,961 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

4. | EMPLOYEES AND DIRECTORS

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Wages and salaries | 1,934,374 |  | 1,819,185 |  |

| Social security costs | 224,004 |  | 166,980 |  |

| Other pension costs | 62,256 |  | 42,825 |  |

2,220,634 |  | 2,028,990 |  |

| The average number of employees during the year was as follows:

| 31.12.25 |  | 31.12.24

| as restated |

| Staff & directors | 71 |  | 67 |  |

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Directors' remuneration | 128,524 |  | 154,038 |  |

| Directors' pension contributions to money purchase schemes | 17,540 |  | 3,623 |  |

5. | OPERATING LOSS

| The operating loss is stated after charging/(crediting):

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Other operating leases | 21,341 |  | 11,712 |  |

| Depreciation - owned assets | 918,943 |  | 909,868 |  |

| (Profit)/loss on disposal of fixed assets | (5,000 | ) | 5,567 |  |

| Auditors' remuneration | 14,948 |  | 20,273 |  |

6. | INTEREST PAYABLE AND SIMILAR EXPENSES |

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Loan interest | 32,207 |  | 29,112 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

7. | TAXATION

| Analysis of the tax charge

| The tax charge on the loss for the year was as follows:

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Current tax:

| R&D tax credits prior year | 51,715 |  | 50,816 |  |

| Tax on loss | 51,715 |  | 50,816 |  |

8. | PRIOR YEAR ADJUSTMENT

| A prior year adjustment restating the comparatives has taken place in these financial statements. The adjustment effected the Profit and Loss account only and the net effect on this on reported profit was and reserves was £NIL. The adjustment moved an RDEC tax credit received in 2024 from 'Taxation' within the statutory profit and loss account to 'Other operating income' in the statutory profit and loss account. The accounting treatment is in accordance with the relevant accounting standard and in agreement to the treatment in the current year.

9. | TANGIBLE FIXED ASSETS

| Improvements |

| Freehold |  | to |  | Plant and |  | Motor |

| property |  | property |  | machinery |  | vehicles |  | Totals

£ | £ | £ | £ | £ |

| COST

| At 1 January 2025 | 9,945,873 |  | 59,646 |  | 5,269,112 |  | 84,100 |  | 15,358,731 |  |

| Additions | 81,633 |  | - |  | 27,020 |  | - |  | 108,653 |  |

| Disposals | - |  | - |  | (16,000 | ) | - |  | (16,000 | ) |

| At 31 December 2025 | 10,027,506 |  | 59,646 |  | 5,280,132 |  | 84,100 |  | 15,451,384 |  |

| DEPRECIATION

| At 1 January 2025 | 454,066 |  | 14,953 |  | 1,544,474 |  | 45,815 |  | 2,059,308 |  |

| Charge for year | 468,527 |  | 2,795 |  | 438,446 |  | 9,175 |  | 918,943 |  |

| Eliminated on disposal | - |  | - |  | (12,000 | ) | - |  | (12,000 | ) |

| At 31 December 2025 | 922,593 |  | 17,748 |  | 1,970,920 |  | 54,990 |  | 2,966,251 |  |

| NET BOOK VALUE

| At 31 December 2025 | 9,104,913 |  | 41,898 |  | 3,309,212 |  | 29,110 |  | 12,485,133 |  |

| At 31 December 2024 | 9,491,807 |  | 44,693 |  | 3,724,638 |  | 38,285 |  | 13,299,423 |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

10. | STOCKS

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Stock packaging, oil, sundry | 172,565 |  | 165,186 |  |

| WIP material & labour reserves | 828,957 |  | 745,254 |  |

| Stock mushrooms non grown | 48,065 |  | 58,069 |  |

1,049,587 |  | 968,509 |  |

11. | DEBTORS

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Amounts falling due within one year:

| Trade debtors | 563,177 |  | 649,146 |  |

| VAT | 43,546 |  | 60,460 |  |

| Prepayments and accrued income | 87,643 |  | 32,425 |  |

694,366 |  | 742,031 |  |

| Amounts falling due after more than one year:

| Deferred tax asset | 60,000 |  | 60,000 |  |

| Aggregate amounts | 754,366 |  | 802,031 |  |

12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Trade creditors | 1,016,229 |  | 1,032,336 |  |

| Amounts owed to group undertakings | 25,000 |  | - |  |

| Amounts owed to associates | 57,960 |  | 787,072 |  |

| Social security and other taxes | 43,127 |  | 43,911 |  |

| Other creditors | 3,554 |  | 67,793 |  |

| Accrued expenses | 64,757 |  | 49,517 |  |

1,210,627 |  | 1,980,629 |  |

13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Amounts owed to group undertakings | 70,000 |  | - |  |

| Amounts owed to associates | 761,312 |  | - |  |

831,312 |  | - |  |

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

14. | LEASING AGREEMENTS

| Minimum lease payments under non-cancellable operating leases fall due as follows:

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Within one year | 81,056 |  | 80,283 |  |

| Between one and five years | 234,276 |  | 283,503 |  |

| In more than five years | - |  | 14,173 |  |

315,332 |  | 377,959 |  |

15. | DEFERRED TAX

£ |

| Balance at 1 January 2025 | (60,000 | ) |

| Balance at 31 December 2025 | (60,000 | ) |

16. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 31.12.25 |  | 31.12.24

| value: |  | as restated |

£ | £ |

| 3,688,416 | Ordinary | £1 | 3,688,416 |  | 3,688,416 |  |

17. | RESERVES

| Preference |

| share |

| Retained |  | Share |  | redemption |

| earnings |  | premium |  | reserve |  | Totals

£ | £ | £ | £ |

| At 1 January 2025 | 1,032,145 |  | 8,383,571 |  | 20,000 |  | 9,435,716 |  |

| Deficit for the year | (861,061 | ) | (861,061 | ) |

| At 31 December 2025 | 171,084 |  | 8,383,571 |  | 20,000 |  | 8,574,655 |  |

18. | ULTIMATE PARENT COMPANY

| Hyundai Corporation Holdings (incorporated in South Korea ) is regarded by the directors as being the company's ultimate parent company.

| Smithy Mushrooms Limited (Registered number: 02480783) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

19. | RELATED PARTY DISCLOSURES

| Entities with control, joint control or significant influence over the entity

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Sales | - |  | 595 |  |

| Purchases | 959,315 |  | 1,384,162 |  |

| Amount due from related party | - |  | 7 |  |

| Amount due to related party | 927,535 |  | 884,352 |  |

| Other related parties

| 31.12.25 |  | 31.12.24

| as restated |

£ | £ |

| Amount due to related party | 57,960 |  | 57,960 |  |

20. | ULTIMATE CONTROLLING PARTY

| The controlling party is Smithy Mushrooms Holdings Ltd.

| The ultimate controlling party is Hyundai Corporation Holdings incorporated in South Korea.