ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 13483298

LONGACRE HAWK BIDCO LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

LONGACRE HAWK BIDCO LIMITED

COMPANY INFORMATION

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


Registered number	13483298


Registered office	1 Mercer Street
	London
	WC2H 9QJ


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

LONGACRE HAWK BIDCO LIMITED

CONTENTS

	Page
Group strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 7
Consolidated statement of comprehensive income	8
Consolidated statement of financial position	9
Company statement of financial position	10
Consolidated statement of changes in equity	11
Company statement of changes in equity	12
Notes to the financial statements	13 - 31

LONGACRE HAWK BIDCO LIMITED

GROUP 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

The business acquired 100% of the shares of PolyBlend UK Ltd in March 2022.

PolyBlend UK is a long established and profitable manufacturer of liquid PVC and Acrylic Plastisol products with a wide and diverse customer base.

PolyBlend also distributes speciality chemical products. Post-acquisition trading of PolyBlend has been in line with historical trends and management expectations.

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 PolyBlend 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

LONGACRE HAWK BIDCO 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 Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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

∙select suitable accounting policies for the Group'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 Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The company is an intermediate holding company.

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

Results and dividends

The loss for the year, after taxation, amounted to £105,276 (2024 - profit £201,884).

The directors do not recommend a dividend.

Directors

The directors who served during the year were:

D L Barrow (resigned 26 November 2025)

J Moreton

G E Nicholson (resigned 2 April 2025)

S O E Reid

S E Schmidt-Chiari

Page 2

LONGACRE HAWK BIDCO LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2025

Disclosure of information to auditors

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 and the Group's auditors are 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 and the Group's auditors are aware of that information.

Auditors

The auditors, 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

LONGACRE HAWK BIDCO LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRE HAWK BIDCO LIMITED

Opinion

We have audited the financial statements of Longacre Hawk Bidco Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company 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 Group's and of the Parent Company's affairs as at 31 December 2025 and of the Group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the Parent 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 Auditors' 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.

Page 4

LONGACRE HAWK BIDCO LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRE HAWK BIDCO LIMITED (CONTINUED)

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 Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the Parent Company 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 5

LONGACRE HAWK BIDCO LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRE HAWK BIDCO LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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 Group and parent 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 Group and parent 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 Group and parent 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 Auditors' report.

Page 6

LONGACRE HAWK BIDCO LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRE HAWK BIDCO 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 Auditors' 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 Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

5 May 2026

Page 7

LONGACRE HAWK BIDCO LIMITED

CONSOLIDATED 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		(2,244,762)	(2,113,968)
Operating profit	5	592,378	855,679
Interest receivable and similar income	9	5,086	19,795
Interest payable and similar expenses	10	(635,419)	(707,571)
(Loss)/profit before taxation		(37,955)	167,903
Tax on (loss)/profit	11	(67,321)	33,981
(Loss)/profit for the financial year		(105,276)	201,884

(Loss)/profit for the year attributable to:
Owners of the Parent Company	(105,276)	201,884
	(105,276)	201,884

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 13 to 31 form part of these financial statements.

Page 8

LONGACRE HAWK BIDCO LIMITED

REGISTERED NUMBER: 13483298

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Intangible assets	12		5,012,012		5,320,444
Tangible assets	13		1,416,375		1,368,980
			6,428,387		6,689,424
Current assets
Stocks	15	1,183,408		846,000
Debtors: amounts falling due within one year	16	1,369,446		1,477,903
Cash at bank and in hand	17	1,080,069		912,828
		3,632,923		3,236,731
Creditors: amounts falling due within one year	18	(5,559,339)		(2,580,591)
Net current (liabilities)/assets			(1,926,416)		656,140
Total assets less current liabilities			4,501,971		7,345,564
Creditors: amounts falling due after more than one year	19		(4,114,166)		(6,847,171)
Provisions for liabilities
Deferred taxation	22	(85,951)		(91,263)
			(85,951)		(91,263)
Net assets			301,854		407,130

Capital and reserves
Called up share capital	23	1,000	1,000
Profit and loss account	24	300,854	406,130
Equity attributable to owners of the Parent Company		301,854	407,130

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 13 to 31 form part of these financial statements.

Page 9

LONGACRE HAWK BIDCO LIMITED

REGISTERED NUMBER: 13483298

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2025

		2025		2024
Note		£		£

Fixed assets
Investments	14		11,138,132		11,138,132
			11,138,132		11,138,132
Current assets
Debtors: amounts falling due after more than one year	16	55,882		39,397
Debtors: amounts falling due within one year	16	41,250		43,875
Cash at bank and in hand	17	310		7
		97,442		83,279
Creditors: amounts falling due within one year	18	(6,646,518)		(3,546,539)
Net current liabilities			(6,549,076)		(3,463,260)
Total assets less current liabilities			4,589,056		7,674,872

Creditors: amounts falling due after more than one year	19		(3,176,666)		(6,359,666)

Net assets			1,412,390		1,315,206

Capital and reserves
Called up share capital	23		1,000		1,000
Profit and loss account brought forward		1,314,206		1,051,395
Profit for the year		97,184		262,811
Profit and loss account carried forward			1,411,390		1,314,206
			1,412,390		1,315,206

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 13 to 31 form part of these financial statements.

Page 10

LONGACRE HAWK BIDCO LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 29 January 2024	1,000	204,246	205,246
Comprehensive income for the year
Profit for the year	-	201,884	201,884
Total transactions with owners	-	-	-

At 1 January 2025	1,000	406,130	407,130
Comprehensive income for the year
Loss for the year	-	(105,276)	(105,276)
Total comprehensive income for the year	-	(105,276)	(105,276)
Total transactions with owners	-	-	-
At 31 December 2025	1,000	300,854	301,854

The notes on pages 13 to 31 form part of these financial statements.

Page 11

LONGACRE HAWK BIDCO LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 29 January 2024	1,000	1,051,395	1,052,395
Comprehensive income for the year
Profit for the year	-	262,811	262,811
Total transactions with owners	-	-	-

At 1 January 2025	1,000	1,314,206	1,315,206
Comprehensive income for the year
Profit for the year	-	97,184	97,184
Total comprehensive income for the year	-	97,184	97,184
Total transactions with owners	-	-	-
At 31 December 2025	1,000	1,411,390	1,412,390

The notes on pages 13 to 31 form part of these financial statements.

Page 12

LONGACRE HAWK BIDCO 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 1 Mercer Street, London, WC2H 9QJ and the company number is 13483298.

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 29 June 2021.

2.3

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group 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 13

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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 Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group 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 Group 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 Group 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.

2.5

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Interest income

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

2.7

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.

Page 14

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.8

Borrowing costs

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

2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.

2.10

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 and the Group operate and generate 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;

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

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.

Page 15

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.11

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill

years

2.12

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.

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
Short-term leasehold property	-	20%	straight line
Plant and 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.

2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 16

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.14

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.

2.15

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.

2.16

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.

2.17

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.

2.18

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 17

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments

The Group 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 Group's Statement of financial position when the Group 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 Group'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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies 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.

Page 18

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

2.Accounting policies (continued)

2.19

Financial instruments (continued)

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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.

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

The directors have made judgments in estimating useful lives of fixed assets, useful life of goodwill 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 19

LONGACRE HAWK BIDCO 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 auditors for the audit of the consolidated and Parent Company's financial statements

12,950

12,550

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	1,345,210	1,299,157
Social security costs	160,026	141,115
Cost of defined contribution scheme	176,345	152,972
	1,681,581	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

The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)

Page 20

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8.	Directors' remuneration
		2025	2024
		£	£

Directors' emoluments	205,493	221,773
Group contributions to defined contribution pension schemes	48,400	46,200
	253,893	267,973

	During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £92,413 (2024 - £94,405).
	The value of the Group'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
		£	£

Bank interest payable	275,225	372,487
Other loan interest payable	314,207	290,932
Mortgage interest payable	45,987	44,152
	635,419	707,571

Page 21

LONGACRE HAWK BIDCO 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

Total current tax	72,633	1,084

Deferred tax
Origination and reversal of timing differences	(5,312)	(18,948)
Adjustments in respect of previous periods	-	(16,117)
Total deferred tax	(5,312)	(35,065)


		67,321	(33,981)

(Loss)/profit on ordinary activities before tax

(37,955)

167,903

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	(9,489)	41,976
Effects of:
Non-tax deductible amortisation of goodwill and impairment	77,108	77,108
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	343	389
Fixed asset differences	2,698	7,090
Adjustments to deferred tax charge in respect of prior periods	-	(157,202)
Other differences leading to an increase (decrease) in the tax charge	(3,339)	(3,342)
Total tax charge for the year	67,321	(33,981)

Page 22

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11.Taxation (continued)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

12.	Intangible assets
	Group and Company

		Goodwill
		£
	Cost
	At 1 January 2025	6,183,334
	At 31 December 2025	6,183,334
	Amortisation
	At 1 January 2025	862,890
	Charge for the year on owned assets	308,432
	At 31 December 2025	1,171,322
	Net book value
	At 31 December 2025	5,012,012
	At 31 December 2024	5,320,444

Page 23

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

13.	Tangible fixed assets
	Group

	Freehold property	Plant and 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 freehold property is freehold land at a cost of £485,648 which is not depreciated.

Page 24

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

14.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2025	11,138,132
	At 31 December 2025	11,138,132

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Polyblend UK Limited

England and Wales

Ordinary

100%

15.	Stocks
		Group	Group
		2025	2024
		£	£

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

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 25

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16.	Debtors
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Due after more than one year
Deferred tax asset	-	-	55,882	39,397
	-	-	55,882	39,397

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Due within one year
Trade debtors	1,190,842	1,283,771	-	-
Other debtors	49,479	76,645	-	-
Prepayments and accrued income	129,125	117,487	41,250	43,875
	1,369,446	1,477,903	41,250	43,875

17.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	1,080,069	912,828	310	7
	1,080,069	912,828	310	7

Page 26

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

18.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	3,059,284	653,332	3,009,284	610,000
Trade creditors	958,481	631,743	-	-
Amounts owed to group undertakings	-	-	2,563,023	2,185,627
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	1,244,359	939,870	1,074,211	750,912
	5,559,339	2,580,591	6,646,518	3,546,539

Bank loans are secured by way of a fixed and floating charge over all assets of the company.

Accruals and deferred income of £1,074,209 (2024 - £750,912) are secured by way of a fixed and floating charge over all assets of the company.

19.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank loans	937,500	3,670,505	-	3,183,000
Other loans	3,176,666	3,176,666	3,176,666	3,176,666
	4,114,166	6,847,171	3,176,666	6,359,666

Bank loans are secured by way of a fixed and floating charge over all assets of the company.

Other loans are secured by way of a fixed and floating charge over all assets of the company.

Page 27

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

20.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Amounts falling due within one year
Bank loans	3,059,284	653,332	3,009,284	610,000
	3,059,284	653,332	3,009,284	610,000
Amounts falling due 1-2 years
Bank loans	50,000	655,332	-	612,000
Other loans	3,176,666	-	3,176,666	-
	3,226,666	655,332	3,176,666	612,000
Amounts falling due 2-5 years
Bank loans	887,500	3,015,173	-	2,571,000
Other loans	-	3,176,666	-	3,176,666
	887,500	6,191,839	-	5,747,666

	7,173,450	7,500,503	6,185,950	6,969,666

Page 28

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

21.	Financial instruments
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Financial assets
Financial assets measured at fair value through profit or loss	1,080,069	912,828	310	7
Financial assets that are debt instruments measured at amortised cost	1,240,322	1,360,416	-	-
	2,320,391	2,273,244	310	7

	Financial liabilities
	Financial liabilities measured at amortised cost	(9,436,023)	(9,154,975)	(7,260,161)	(7,720,578)

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

22.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(91,263)
	Charged to profit or loss	5,312
	At end of year	(85,951)

Page 29

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

22.Deferred taxation (continued)

Company

		2025
		£

	At beginning of year	39,397
	Charged to profit or loss	16,485
	At end of year	55,882

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£

Accelerated capital allowances	(99,843)	(85,182)	-	-
Revaluation of freehold land and buildings	(42,458)	(45,798)	-	-
Short term timing differences	56,350	39,717	55,882	39,397
	(85,951)	(91,263)	55,882	39,397

23.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

10,000 (2024 - 10,000) Ordinary shares of £0.10 each	1,000	1,000

24.

Reserves

Profit and loss account

The profit and loss account includes all previous profits and losses, less dividends paid.

25.	Pension commitments

The Group 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 Group in independently administered funds. The pension cost charge represents contributions payable by the Group to the funds. Contributions totalling £1,873 (2024 - £1,282) were payable to the funds at the reporting date and are included in creditors.

Page 30

LONGACRE HAWK BIDCO LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

26.	Commitments under operating leases
	At 31 December 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

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

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 subsidiary of Longacre Group Holdings Limited.

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

Page 31