Company Registration No. 11888188 (England and Wales)
SK SALES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2025
31 December 2025
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
SK SALES LIMITED
COMPANY INFORMATION
Directors
Mr L Dolbeau
Mr L Morgan
(Appointed 14 March 2025)
Company number
11888188
Registered office
SK Sales Limited
Unit 33 Stakehill Industrial Estate
Middleton
Manchester
M24 2RW
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
SK SALES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
SK SALES LIMITED
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 business

Sales declined in the year as the market compressed, competition increased, and the business strategy was refocused to a more profitable product mix. Market penetration of own-brand products remains a key cornerstone strategy to improve business profitability and sustainable growth. The business appointed a new sales team to support the new business focus, ensuring that the correct team were in place to take the business forward. Bad debts, aged inventory and operational costs all remained under control. These are the main drivers contributing to an improved operating position at the end of December 2025.

Key Performance Indicators
2025
2024
£
£
Turnover
12,825,399
13,645,137
Gross Profit
4,185,188
4,303,040
Gross Profit Percentage
33%
32%
Operating (loss) before tax & interest
(890,375)
(989,894)
Interest payable
(57,807)
(39,101)
Operating (loss) before tax
(948,182)
(1,028,995)
Principal risks and uncertainties

Construction market

Given the various risks in the economy, management continually monitor the state of the market. By reviewing internal and industry data supported by continual dialogue with our customers and suppliers, we are able to understand the direction of the market and make adjustments to our business accordingly.

Systems risk

IT is critical in delivering and enhancing our services to our customers. The threat of potential outages, virus and malicious attacks is ever present, and the company is vigilant in preventing such risks.

Increased global volatility

Since the turn of the decade, there have been a number of events which have had economic impact both domestically and internationally; Covid, the Wars in Ukraine and Gaza, changing Prime Ministers and policies, increased political tensions and uncertainties are just some of the major events that have happened. These events are having both direct and indirect consequences to our supply chain and trading environment. Management stay abreast of these situations and continually evaluate the options and responses.

Employee risk

The company is proud of its hard-working staff recognising that they are key assets in developing our relationships with customers and suppliers. Our staff are crucial to business performance and the ongoing threat to our talent pool means the company is fully aware of the need to reward, train, retain and develop key individuals. This is increasingly more important in a labour market that remains tight. Management regularly review remuneration and incentive schemes to ensure it is competitive against competitors and keeps employees engaged and motivated.

Financial instrument risk

The company uses various financial instruments, these include the use of an intercompany loan during 202 5, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations.

The existence of these financial instruments exposes the company to interest rate, liquidity and credit risk. The company is supported by the group’s treasury function, which helps manage interest rate risk. Regular cash forecasting and close contact with group helps mitigate liquidity risk, whilst credit risk is managed through regularly reviews of credit limits and system controls.

SK SALES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

On behalf of the board

Mr L Morgan
Director
19 March 2026
SK SALES LIMITED
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 continued to be that of the supply of air handling heating and ventilation equipment to the construction industry.

Results and dividends

The loss for the period, after taxation amounted to £948 k, (202 4 - £1,029 k). No dividends will be distributed for the year ended 31 December 202 5.

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:

Mr L Dolbeau
Mr L Morgan
(Appointed 14 March 2025)
Auditor

The auditors, PM+M Solutions for Business LLP, will be proposed for reappointment at the forthcoming Annual General Meeting.

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 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; 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.

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.

SK SALES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 4 -
On behalf of the board
Mr L Morgan
Director
19 March 2026
SK SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SK SALES LIMITED
- 5 -
Opinion

We have audited the financial statements of SK Sales Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the 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 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, as described in note 1.2 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.

SK SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SK SALES LIMITED (CONTINUED)
- 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 or the directors' r eport.

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.

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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

SK SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SK SALES LIMITED (CONTINUED)
- 7 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

- results of our enquiries of management about their own identification and assessment of the risks of irregularities;

- the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

- a ny matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

  - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

- enquiring of management concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

SK SALES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SK SALES LIMITED (CONTINUED)
- 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.

Chris Read FCCA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
21 March 2026
SK SALES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
12,825,399
13,645,137
Cost of sales
(8,640,211)
(9,342,097)
Gross profit
4,185,188
4,303,040
Distribution costs
(908,495)
(1,037,811)
Administrative expenses
(4,513,600)
(4,255,123)
Other operating income
346,532
-
0
Operating loss
4
(890,375)
(989,894)
Interest payable and similar expenses
7
(57,807)
(39,101)
Loss before taxation
(948,182)
(1,028,995)
Tax on loss
8
-
0
-
0
Loss for the financial year
(948,182)
(1,028,995)

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

SK SALES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
9
106,256
1,517
Tangible assets
10
113,002
161,074
219,258
162,591
Current assets
Stocks
11
1,836,752
1,466,536
Debtors
12
3,381,068
2,865,635
Cash at bank and in hand
242,722
176,087
5,460,542
4,508,258
Creditors: amounts falling due within one year
13
(2,243,482)
(1,967,938)
Net current assets
3,217,060
2,540,320
Total assets less current liabilities
3,436,318
2,702,911
Creditors: amounts falling due after more than one year
14
(3,020,214)
(1,369,125)
Provisions for liabilities
Provisions
16
552,558
522,058
(552,558)
(522,058)
Net (liabilities)/assets
(136,454)
811,728
Capital and reserves
Called up share capital
18
12,501
12,501
Share premium account
1,237,500
1,237,500
Capital contribution
6,991,670
6,991,670
Profit and loss reserves
(8,378,125)
(7,429,943)
Total equity
(136,454)
811,728
The financial statements were approved by the board of directors and authorised for issue on 19 March 2026 and are signed on its behalf by:
Mr L Morgan
Director
Company Registration No. 11888188
SK SALES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Share premium account
Capital contribution
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2024
12,501
1,237,500
6,991,670
(6,400,948)
1,840,723
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
-
(1,028,995)
(1,028,995)
Balance at 31 December 2024
12,501
1,237,500
6,991,670
(7,429,943)
811,728
Year ended 31 December 2025:
Loss and total comprehensive income for the year
-
-
-
(948,182)
(948,182)
Balance at 31 December 2025
12,501
1,237,500
6,991,670
(8,378,125)
(136,454)
SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
1
Accounting policies
Company information

SK Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is SK Sales Limited, Unit 33 Stakehill Industrial Estate, Middleton, Manchester, M24 2RW.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

SK Sales Limited is a wholly owned subsidiary of France Air Corporate SAS and the results of SK Sales Limited are included in the consolidated financial statements of France Air Corporate which are available from the French equivalent of Companies House, Infogreffe.fr

1.2
Going concern

As highlighted in the directors report the company has sustained losses in the year. Given the group’s strong cash balance coupled with the commitment and support from the parent company, the director is confident the company has adequate resources to continue in operational existence for the foreseeable future and will return to profitability as part of its turnaround strategy agreed with its parent. The director therefore continues to adopt the going concern basis in preparing the financial statements.true

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts, customer rebates and value added taxes. Turnover is earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill

Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.

Purchased intangible assets relate primarily to software that is separable from any associated hardware where the value to the business extends beyond the end of the current financial period.

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

Software
3 - 5 years
1.5
Tangible fixed assets

Tangible fixed assets are measured at cost, 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:

Leasehold improvements
over 3 to 8 years
Plant and equipment
over 3 to 8 years

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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
Other financial assets

Other financial assets 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.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

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.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
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.

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.

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
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease s asset are consumed.

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.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.16

Debtors and creditors

Debtors

Short term debtors are measured at transaction price, less any impairment. The majority of the Company's revenue arises from contracts with customers for the sale of goods, with one performance obligation. Revenue is recognised at the point in time that control of the goods passes to the customer, usually on delivery to the customer.

Volume Rebates

The Company provides volume rebates to certain customers either on a tiered or retrospective flat rate basis. A provision has been included as a reduction to trade receivables to account for the volume rebates that is expected to be paid.

Creditors

Short term trade creditors representing obligations to pay suppliers for goods or services acquired during ordinary course of business are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Supplier rebates

The company earns rebates based on agreements that it held either directly with suppliers or indirectly as part of the France Air Group. For the agreements that the Company held directly with suppliers the amounts at the balance sheet date are included as reduction to trade creditors.

1.17

Property provisions

The Company makes provisions in respect of leasehold property contracts and leasehold dilapidation commitments where it is probable that a transfer of economic benefit will be required to settle a present obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Onerous leases

The company has recognised a provision for an onerous lease in respect of the ongoing commitments for the now closed Norwich site. The provision is made up of the costs of fulfilling the contract and any compensation. The provision is reviewed annually and updated as necessary to ensure compliance with current accounting standards and practices.

Dilapidations provision

T he c ompany has recognized a provision for dilapidations in respect of its leased properties. This provision is based on the estimated costs required to restore the properties to their original condition at the end of the lease term, as stipulated in the lease agreements. The estimation of these costs involves significant judgement, particularly in assessing the extent of repairs and maintenance required, the current condition of the properties, and the expected future costs of such works. The provision is reviewed annually and adjusted as necessary to reflect any changes in these estimates.

Stock provision

Provisions against stock have been made to ensure that stock is valued at the lower of cost and net realisable value taking into account the level of stock on hand, estimates of future demand for individual stock lines and factors affecting saleability of individual products.

3
Turnover

Turnover in the current and prior year is wholly derived from the company's principal activity in the United Kingdom.

4
Operating loss
2025
2024
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
148,087
(27,328)
Fees payable to the company's auditor for the audit of the company's financial statements
22,360
21,500
Depreciation of tangible fixed assets
62,429
63,892
Profit on disposal of tangible fixed assets
(200)
-
0
Amortisation of intangible assets
2,141
57,387
Operating lease charges
488,346
536,968
SK SALES LIMITED
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
Store and Distribution
41
44
Support and Admin
9
8
Management
2
4
Total
52
56

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
2,365,090
2,391,470
Social security costs
268,789
233,466
Pension costs
101,669
113,537
2,735,548
2,738,473
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
154,296
-
0
7
Interest payable and similar expenses
2025
2024
£
£
Other interest on financial liabilities
57,807
39,101
SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
8
Taxation

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
(948,182)
(1,028,995)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(237,046)
(257,249)
Tax effect of expenses that are not deductible in determining taxable profit
7,947
2,435
Tax effect of utilisation of tax losses not previously recognised
199,270
276,392
Permanent capital allowances in excess of depreciation
29,829
(21,578)
Taxation charge for the year
-
-
9
Intangible fixed assets
Software
£
Cost
At 1 January 2025
289,957
Additions - internally developed
106,880
At 31 December 2025
396,837
Amortisation and impairment
At 1 January 2025
288,440
Amortisation charged for the year
2,141
At 31 December 2025
290,581
Carrying amount
At 31 December 2025
106,256
At 31 December 2024
1,517
SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 1 January 2025
109,008
350,348
459,356
Additions
3,330
11,027
14,357
Transfers
26,436
(26,436)
-
0
At 31 December 2025
138,774
334,939
473,713
Depreciation and impairment
At 1 January 2025
29,902
268,380
298,282
Depreciation charged in the year
12,083
50,346
62,429
Transfers
57,906
(57,906)
-
0
At 31 December 2025
99,891
260,820
360,711
Carrying amount
At 31 December 2025
38,883
74,119
113,002
At 31 December 2024
79,106
81,968
161,074
11
Stocks
2025
2024
£
£
Raw materials and consumables
1,836,752
1,466,536
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,103,643
2,307,203
Amounts owed by group undertakings
9,577
36,508
Other debtors
378,867
-
0
Prepayments and accrued income
888,981
521,924
3,381,068
2,865,635

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Other borrowings
15
56,242
39,016
Trade creditors
1,585,685
1,369,447
Amounts owed to group undertakings
3,743
1,503
Taxation and social security
176,473
227,775
Other creditors
2,425
6,128
Accruals and deferred income
418,914
324,069
2,243,482
1,967,938

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Other borrowings
15
3,020,214
1,369,125
15
Loans and overdrafts
2025
2024
£
£
Loans from group undertakings
3,076,456
1,408,141
Payable within one year
56,242
39,016
Payable after one year
3,020,214
1,369,125

At 31 December 202 5, the company owed £3,076,456 (202 4 - £1,408,141) to Airvance Group. Interest is charged at Euribor interest rate plus 0.5%. There is no fixed repayment date.

16
Provisions for liabilities
2025
2024
£
£
Onerous lease provision
234,935
231,435
Dilapidations provision
317,623
290,623
552,558
522,058
SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
16
Provisions for liabilities
(Continued)
- 22 -
Movements on provisions:
Onerous lease provision
Dilapidations provision
Total
£
£
£
At 1 January 2025
231,435
290,623
522,058
Additional provisions in the year
3,500
27,000
30,500
At 31 December 2025
234,935
317,623
552,558

The provision arises from obligations under property leases, principally relating to dilapidations on properties currently in use and onerous rental terms on a property no longer in use.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,669
113,537

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.

The balance outstanding at the year end amounted to £1 6,697 (20 24 - £1 3,635).

18
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
1,250,100
1,250,100
12,501
12,501
19
Operating lease commitments
As lessee

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 1 year
565,998
589,320
Years 2-5
1,530,175
1,703,470
After 5 years
139,964
428,430
2,236,137
2,721,220
SK SALES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
20
Events after the reporting date

Subsequent to the reporting date, the company reached an out-of-court settlement with a competitor, resulting in income of £330,000. The settlement relates to circumstances that existed at the reporting date and therefore represents an adjusting event. The financial statements have been adjusted to reflect this income.

21
Ultimate controlling party

The immediate parent undertaking is AirVance Group SAS, a company registered in France. The ultimate parent undertaking and controlling party of the largest and smallest group that includes the company and for which group financial statements are prepared is France Air Corporate SAS, a company registered in France, which manages the investment in AirVance Group SAS and all subsidiary undertakings. Consolidated financial statements of the group can be requested from the registered office, 383 rue des Barronnieres, 01700, Beynost, France.

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