ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: 06825328

POLYBLEND UK LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

POLYBLEND UK LIMITED

COMPANY INFORMATION

Directors	D S Hall
	J Moreton
	S O E Reid
	S E Schmidt-Chiari


Company secretary	D S Hall


Registered number	06825328


Registered office	3 Everite Road
	Widnes
	Cheshire
	WA8 8PT


Independent auditor	Langtons Professional Services Limited
	Chartered Accountants & Statutory Auditor
	The Plaza
	100 Old Hall Street
	Liverpool
	L3 9QJ

POLYBLEND UK LIMITED

CONTENTS

	Page
Strategic report	1
Directors' report	2 - 3
Independent auditor's report	4 - 7
Statement of comprehensive income	8
Statement of financial position	9
Statement of changes in equity	10
Notes to the financial statements	11 - 28

POLYBLEND UK LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

Introduction

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

Business review

Polyblends core Manufacturing business demonstrated resilience in 2025.

Our diversification offer of Toll manufacturing, Liquid Colour Masterbatch and Polyblends Antimony Free Flame Retardant Polaris all developed new customers which expanded our revenue.

The reported decline in overall revenue is a result of our Distribution performance.

Distribution sales declined through the year, 50% of this decline was at a Key customer who switched to an alternative product.

Additional investment was made in sophisticated Laboratory equipment in 2025 to enhance our formulation capabilities.

A Liquid Colour and Additive Specialist was appointed to strengthen our technical offer in this product space.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks affecting the company are considered to relate to competitors within the sector, exchange rate movements, and the quality and availability of raw materials.

Financial key performance indicators

Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

This report was approved by the board on 5 May 2026 and signed on its behalf.

S O E Reid

Director

Page 1

POLYBLEND UK LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

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

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

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

Principal activity

The principal activity of the company is the manufacture and distribution of liquid polymers, polymer additives and resins.

Results and dividends

The profit for the year, after taxation, amounted to £680,972 (2024 - £1,022,504).

The directors recommended and paid dividends of £575,000 during the year (2024 - £775,000).

Directors

The directors who served during the year were:

D L Barrow (resigned 28 November 2025)

D S Hall

J Moreton

S O E Reid

S E Schmidt-Chiari

Matters covered in the Strategic Report

The strategic report covers the business review, key performance indicators and principal risk and uncertainties.

Page 2

POLYBLEND UK LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 5 May 2026 and signed on its behalf.

S O E Reid

Director

Page 3

POLYBLEND UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLYBLEND UK LIMITED

Opinion

We have audited the financial statements of Polyblend UK Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 4

POLYBLEND UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLYBLEND UK LIMITED (CONTINUED)

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Page 5

POLYBLEND UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLYBLEND UK LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit, in respect to fraud, are:

• to identify and assess the risks of material misstatement of the financial statements due to fraud;
• to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and
• to respond appropriately to fraud or suspected fraud identified during the audit.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR).
• We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up.
• Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: enquiries of management; and journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

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

Page 6

POLYBLEND UK LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF POLYBLEND UK LIMITED (CONTINUED)

Use of our report

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

Simon Whalley (Senior statutory auditor)

for and on behalf of

Langtons Professional Services Limited

Chartered Accountants

Statutory Auditor

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

5 May 2026

Page 7

POLYBLEND UK LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2025

	2025	2024
Note	£	£


Turnover	4	10,612,756	11,176,479
Cost of sales		(7,775,616)	(8,206,832)
Gross profit		2,837,140	2,969,647
Administrative expenses		(1,888,675)	(1,786,037)
Operating profit	5	948,465	1,183,610
Interest receivable and similar income	9	5,086	19,795
Interest payable and similar expenses	10	(45,987)	(44,152)
Profit before tax		907,564	1,159,253
Tax on profit	11	(226,592)	(136,749)
Profit for the financial year		680,972	1,022,504

Other comprehensive income for the year
Unrealised (deficit)/surplus on revaluation of tangible fixed assets	(3,516)	12,600
Other comprehensive income for the year	(3,516)	12,600
Total comprehensive income for the year	677,456	1,035,104

The notes on pages 11 to 28 form part of these financial statements.

Page 8

POLYBLEND UK LIMITED

REGISTERED NUMBER: 06825328

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	13		1,416,375		1,368,980
			1,416,375		1,368,980
Current assets
Stocks	14	1,183,408		846,000
Debtors: amounts falling due within one year	15	3,891,221		3,619,656
Cash at bank and in hand	16	1,079,759		912,820
		6,154,388		5,378,476
Creditors: amounts falling due within one year	17	(1,475,849)		(1,219,682)
Net current assets			4,678,539		4,158,794
Total assets less current liabilities			6,094,914		5,527,774
Creditors: amounts falling due after more than one year	18		(937,500)		(487,505)
Provisions for liabilities
Deferred tax	21	(141,833)		(130,660)
			(141,833)		(130,660)
Net assets			5,015,581		4,909,609

Capital and reserves
Called up share capital	22	49,998	49,998
Revaluation reserve	23	374,467	377,983
Profit and loss account	23	4,591,116	4,481,628
		5,015,581	4,909,609

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 May 2026.

S O E Reid

Director

The notes on pages 11 to 28 form part of these financial statements.

Page 9

POLYBLEND UK LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2024	49,998	365,383	4,246,724	4,662,105
Comprehensive income for the year
Profit for the year	-	-	1,022,504	1,022,504
Surplus on revaluation of freehold property	-	12,600	(12,600)	-
Total comprehensive income for the year	-	12,600	1,009,904	1,022,504
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(775,000)	(775,000)
Total transactions with owners	-	-	(775,000)	(775,000)

At 1 January 2025	49,998	377,983	4,481,628	4,909,609
Comprehensive income for the year
Profit for the year	-	-	680,972	680,972
Transfer from revaluation reserve	-	(3,516)	3,516	-
Total comprehensive income for the year	-	(3,516)	684,488	680,972
Contributions by and distributions to owners
Dividends: Equity capital	-	-	(575,000)	(575,000)
Total transactions with owners	-	-	(575,000)	(575,000)
At 31 December 2025	49,998	374,467	4,591,116	5,015,581

The notes on pages 11 to 28 form part of these financial statements.

Page 10

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1.	General information

The entity is a private company limited by shares, which is incorporated under the Companies Act 2006 and registered in England and Wales. The registered office is 3 Everite Road, Widnes, Cheshire, WA8 8PT and the company number is 06825328.

These financial statements present information about the company as an individual undertaking. The principal activity of the company is the manufacture and distribution of liquid polymers, polymer additives and resins.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The presentation currency of these financial statements is pound sterling; the financial statements are rounded to the nearest pound

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis.

Page 11

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2%	straight line
S/Term Leasehold Property	-	20%	straight line
Plant & machinery	-	10%	straight line
Motor vehicles	-	20%	straight line
Office equipment	-	20%	straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.5

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.

Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 13

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.9

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Page 14

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.9

Financial instruments (continued)

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 15

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.13

Operating leases: the Company as lessee

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

2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

2.16

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.17

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Page 16

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The directors have made judgments in estimating useful lives of fixed assets, along with estimates for provision of slow moving stock and bad debts.

Turnover

The whole of the turnover is attributable to the principal business activity.

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	7,314,836	7,869,326
Rest of Europe	3,077,516	3,077,095
Rest of the world	220,404	230,058
	10,612,756	11,176,479

Page 17

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

	Exchange differences	(7,729)	17,218
	Other operating lease rentals	115,335	115,072

Fees payable to the Company's auditor for the audit of the Company's financial statements

10,850

10,500

Wages and salaries	1,347,593	1,299,157
Social security costs	160,026	141,115
Cost of defined contribution scheme	176,345	152,972
	1,683,964	1,593,244

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Production	19	18
Administration	8	7
Directors	3	3

	30	28

Page 18

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	309,765	330,619
Company contributions to defined contribution pension schemes	52,000	49,800
	361,765	380,419

	During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £92,413 (2024 - £94,405).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £44,400 (2024 - £42,200).

9.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	5,086	19,795
		5,086	19,795

10.	Interest payable and similar expenses
		2025	2024
		£	£

	Mortgage interest payable	45,987	44,152
		45,987	44,152

Page 19

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Corporation tax
Current tax on profits for the year	72,633	142,169
Adjustments in respect of previous periods	-	(141,085)
	72,633	1,084
Group taxation relief	142,786	155,466
	215,419	156,550

Total current tax	215,419	156,550

Deferred tax
Origination and reversal of timing differences	11,173	(3,684)
Adjustments in respect of previous periods	-	(16,117)
Total deferred tax	11,173	(19,801)


		226,592	136,749

Page 20

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.Taxation (continued)

Profit on ordinary activities before tax

907,564

1,159,253

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	226,891	289,813
Effects of:
Expenses not deductible for tax purposes	343	389
Fixed asset differences	2,698	7,090
Adjustments to tax charge in respect of prior periods	-	(157,202)
Other differences leading to an increase (decrease) in the tax charge	(3,340)	(3,341)
Total tax charge for the year	226,592	136,749

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12.	Dividends
		2025	2024
		£	£

	On Ordinary shares	575,000	775,000
		575,000	775,000

Page 21

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Tangible fixed assets

	Freehold property	Plant & machinery	Motor vehicles	Office equipment	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2025	1,074,783	837,792	17,595	203,567	2,133,737
Additions	-	153,645	-	1,322	154,967
At 31 December 2025	1,074,783	991,437	17,595	204,889	2,288,704
Depreciation
At 1 January 2025	111,523	488,939	6,399	157,896	764,757
Charge for the year on owned assets	13,360	75,276	2,799	16,137	107,572
At 31 December 2025	124,883	564,215	9,198	174,033	872,329
Net book value
At 31 December 2025	949,900	427,222	8,397	30,856	1,416,375
At 31 December 2024	963,260	348,853	11,196	45,671	1,368,980

Included in land and buildings is freehold land at a valuation of £485,648 which is not depreciated.

Cost or valuation at 31 December 2025 is as follows:

			Land and buildings
			£

		At cost	632,145
		At valuation:
		March 2022 directors valuation	442,638

			1,074,783

Page 22

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
	2025	2024
	£	£


Cost	632,145	632,145
Accumulated depreciation	(99,167)	(92,665)
Net book value	532,978	539,480

14.	Stocks
		2025	2024
		£	£

Raw materials and consumables	1,183,408	846,000
	1,183,408	846,000

15.

Debtors

					2025	2024
					£	£


Trade debtors	1,190,844	1,283,772
Amounts owed by group undertakings	2,563,023	2,185,627
Other debtors	49,479	76,645
Prepayments and accrued income	87,875	73,612
	3,891,221	3,619,656

16.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	1,079,759	912,820
	1,079,759	912,820

Page 23

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Bank loans	50,000	43,332
Trade creditors	958,481	631,743
Corporation tax	17,633	73,670
Other taxation and social security	217,976	197,836
Other creditors	61,606	84,140
Accruals and deferred income	170,153	188,961
	1,475,849	1,219,682

Bank loans are secured by a fixed and floating charge on the assets of the company.

18.	Creditors: Amounts falling due after more than one year
		2025	2024
		£	£

Bank loans	937,500	487,505
	937,500	487,505

Bank loans are secured by a fixed and floating charge on the assets of the company.

Page 24

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Amounts falling due within one year
Bank loans	50,000	43,332
	50,000	43,332
Amounts falling due 1-2 years
Bank loans	50,000	43,332
	50,000	43,332
Amounts falling due 2-5 years
Bank loans	887,500	444,173
	887,500	444,173

	987,500	530,837

Page 25

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Financial instruments
		2025	2024
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	1,079,759	912,820
Financial assets that are debt instruments measured at amortised cost	3,803,345	3,546,043
	4,883,104	4,458,863

	Financial liabilities
	Financial liabilities measured at amortised cost	(2,175,867)	(1,434,399)

	Financial assets measured at fair value through profit or loss comprises of cash at bank and in hand.
	Financial assets that are debt instruments measured at amortised cost comprises of trade and other debtors and amounts owed by group undertakings.
	Financial liabilities measured at amortised cost comprises of accruals, trade and other creditors and bank loans.

21.	Deferred taxation

		2025
		£

	At beginning of year	(130,660)
	Charged to the profit or loss	(11,173)
	At end of year	(141,833)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

Accelerated capital allowances	(99,843)	(85,182)
Revaluation of freehold land and buildings	(42,458)	(45,798)
Short term timing differences	468	320
	(141,833)	(130,660)

Page 26

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

49,998 (2024 - 49,998) Ordinary shares of £1.00 each	49,998	49,998

Each share carries one vote.

23.

Reserves

Revaluation reserve

The revaluation reserve is a non-distributable reserve arising from unrealised gains on tangible fixed asset revaluations.

Profit & loss account

The profit and loss account represents the sum of all profits and losses to date, less dividends paid.

24.	Contingent liabilities

The company has entered into a cross guarantee with its immediate parent to guarantee certain liabilities of the immediate parent. At the year end, the potential liabilities of these guarantees amount to £7,260,159 (2024 - £3,927,579).

25.	Pension commitments

The Company makes contributions to defined contribution (money purchase) personal pension schemes for its directors and employees. The assets of the schemes are held separately from those of the Company in independently administered funds. The pension cost charge represents contributions payable by the Company to the funds. Contributions totalling £1,873 (2024 - £1,282) were payable to the funds at the reporting date and are included in creditors.

Not later than 1 year	90,166	90,181
Later than 1 year and not later than 5 years	30,684	189,876
	120,850	280,057

Page 27

POLYBLEND UK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

27.	Related party transactions

		2025	2024
		£	£

	Sales to Dycem Limited	599,752	523,382
	Amount due from Dycem Limited	64,050	93,489

Dycem Limited is a company under common control.

The company has taken advantage of the exemption conferred under FRS102 not to disclose transactions with other 100% group companies.

28.	Controlling party

The company is a wholly owned subsidiary of Longacre Hawk Bidco Limited. The ultimate parent entity is Longacre Group Holdings Limited.

Both Longacre Hawk Bidco Limited and Longacre Group Holdings Limited prepare consolidated financial statements which are available from Companies House, Cardiff.

The controlling parties are I H Abrahams, S E Schmidt-Chiari and G E Nicholson.

Page 28