The directors present the strategic report for the year ended 31 March 2026.

RESULTS, KEY PERFORMANCE INDICATORS AND DIVIDENDS

Turnover has fallen to £32,657,363 in the year 2026 from £38,457,856 in the year 2025. The gross profit margin has increased from 24% to 26% in the year due to the increase in demand and prices in the UK market.

The most significant non-financial KPI of the group is the quality of products sold to customers. The company strives to maintain the highest possible standards in respect of quality and the parent company which supplies many of the products sold has in place procedures and controls to ensure these standards are continually met.

STRATEGY

The company strategy is in line with that of the parent company, Medreich Limited, based on that of Meiji Seika Pharma Co., Ltd. The company is looking to achieve attractive and sustainable rates of growth and returns through a combination of organic growth and acquisitions.

During the year under review the company has continued to develop several pharmaceutical licences to be used in existing markets to complement the company’s existing range of products.

RESEARCH AND DEVELOPMENT

The group invests into the research and development of new pharmaceutical products and also different product delivery systems. The company anticipates that it will benefit from the improved product range available to its markets.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. Risks are reviewed by the Board and appropriate processes put into place to monitor and mitigate them.

For the non UK market the company supplies under contract to major customers with fixed prices. The main risk is that large price rises in the cost of the materials cannot be passed on to customers immediately. The raw material prices are under constant review and any exceptional rises are reviewed with customers to ensure the future selling price reflects these changes. For the UK the company holds stocks to service the market and customer base. The company is supplied mainly by the parent company and prices vary depending on the movement in customer demands and market situation.

As the company is supplied by the parent company, Medreich Limited, the product availability is dependent on their ability to produce and ship the goods in a timely manner. The company is reliant on its supplier to maintain high production standards and quality control. The production planning process is closely monitored, and customers are kept informed of developments. In the event of delays in the manufacturing process the company sometimes undertakes to air freight goods to customers to ensure delivery dates are met.

The directors of the company consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in the decisions taken during the year to 31 March 2026.

The statements below explain how the requirements of S172 have been met.

The likely consequences of any decision in the long term: The directors consider the likely consequences of any decision in the long-term. Details of any decisions made regarding dividends can be found in the directors’ report.

Engaging with our employees: The directors recognise that employees are fundamental and core to our business. The success of the business depends on attracting, retaining and motivating employees. The directors consider the implications of decisions on employees and the wider workforce, where relevant and feasible.

Engaging with our suppliers and customers: Delivering our strategy requires strong relationships with suppliers and customers which is promoted throughout the company.

Community and the environment: The company’s approach is to create positive change for the people and communities which we interact with.

Maintaining a reputation for high standards of business conduct: The directors adopt positive business values for the company. The general business principles adopted help the company act in line with these values and comply with relevant laws and regulations.

The need to act fairly as between members of the company: Our intention is to behave responsibly towards our shareholders and treat them fairly so they benefit from the success of the company.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of trading in pharmaceutical and chemical constituents and the provision of consultancy services. The company has the role to facilitate the sales and marketing of the overall group's manufacturing units around the world and to manage the subsidiary interests.

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The below table and supporting narrative summarise the Streamlined Energy and Carbon Reporting (SECR) disclosure in line with the requirements for a “large” unquoted company, as per The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. The disclosure also extends beyond the scope of a “large” unquoted company and includes emissions and energy consumption from the combustion of all fuels used in activities of the company.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per every £1,000,000 of revenue, the recommended ratio for the sector.

The Company is in the process of reviewing its energy contracts and any non-renewable source will be fully replaced by 100% renewable source for the purchased gas and electricity to reduce its CO2 emissions and the related environmental impact.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

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

• select suitable accounting policies and then apply them consistently;

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

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

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

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review and developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Medreich PLC (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' 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.

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.

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In planning and designing our audit tests, we identify and assess the risks of material misstatements within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

As a result of this assessment, we considered the opportunities and incentives that may exist within the company for fraud and identified that the greatest area of risk was in relation to management override, the impairment of stock, completeness of income and the impairment of intangible assets.

We have obtained an understanding of the legal and regulatory frameworks that the company operates in from discussions with the directors and our knowledge of the company and its industry sector. We have focussed on the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, local tax legislation and MHRA regulations.

We performed the following audit procedures after consideration of the above risks which included the following:

• review of a sample of the sales during the period from the initial point of sale to the recognition in the financial records;

• cut off testing to ensure sales are recorded in the correct period and based on stock movements;

• impairment review of stock ensuring NRV exceeds cost;

• impairment review of intangible assets ensuring licenses are in use and profitable or if not in use, there is evidence to show an active market;

• enquiry of management of actual and potential litigation and claims;

• reviewing minutes of meetings of those charged with governance;

• reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

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

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

The engagement partner has assessed that all engagement team members were made aware of the relevant laws and regulations and potential fraud risks and were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's 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.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 30 form part of these financial statements.

The notes on pages 13 to 30 form part of these financial statements.

The notes on pages 13 to 30 form part of these financial statements.

The notes on pages 13 to 30 form part of these financial statements.

Medreich PLC is a private company limited by shares incorporated in England and Wales. The registered office is Warwick House, Plane Tree Crescent, Feltham, Middlesex, TW13 7HF.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. Early adoption of the Periodic Review 2024 has been applied.

With effect from 1 April 2025, the company changed its presentational currency from United States dollars to pounds sterling. Management considers that pounds sterling more appropriately reflects the underlying transactions, funding arrangements and economic environment in which the company operates, as the majority of its activities, costs and financing are denominated in pounds sterling.

The company’s functional currency remains unchanged.

The change in presentational currency has been applied in accordance with applicable financial reporting standards. Comparative information has been restated as follows. Assets and liabilities have been translated at the closing exchange rate at the comparative reporting date. Income and expenses have been translated at the exchange rates prevailing at the dates of the transactions, or at appropriate average rates where these provide a reasonable approximation. No amounts have been recognised in profit or loss as a result of the change. An amount of £3,711,197 was transferred to profit and loss reserves to reflect foreign exchange movements arising on the translation of opening balances. The current year financial information has been presented in pounds sterling throughout.

Monetary amounts in these financial statements are rounded to the nearest £.

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

The company has taken advantage of the exemption under section 401(1) of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

Medreich PLC is ultimately owned by Meiji Holdings Co., Limited and the results of Medreich PLC are included in the consolidated financial statements of Meiji Holdings Co., Limited which are available on the Tokyo stock exchange. The registered office of Meiji Holdings Co., Limited is 4-16, Kyobashi 2-chome, Chuo-ku, Tokyo 104-0031, Japan.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

Given the company has adequate cash and reserves in place and the continuing support of the group, the company is in a position to continue as a going concern for the next twelve months following the approval of the financial statements.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other income consists of rental income and sundry income in relation to the sale of licences. Rental income is accounted for on a straight line basis over the term of the rental agreement. Sundry income in relation to the sale of licences is recognised once established milestones have been reached with regards to the licence.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets comprise licences granted to the company. The products to which the licences relate are defined as having finite useful lives and therefore the licences are amortised on a straight line basis over the period of time that the company expects to benefit from sales of the pharmaceutical products to which they relate.

Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired. The following amortisation bases are applied:

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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

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

Cost is calculated using the weighted average method.

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

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

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

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

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

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

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

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

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

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

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

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

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

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

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

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

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

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

At inception, the company assesses whether a contract is, or contains, a lease within the scope of the amended lease requirements of FRS 102, which have been early adopted. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right of use asset and a lease liability at the lease commencement date. Right of use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The amended lease requirements have been applied from the date of early adoption. Where the company early adopted the amendments part way through the term of an existing lease, a right of use asset and a lease liability have been recognised in respect of the remaining lease term as at the transition date. Comparative information has not been restated.

The lease liability at transition is measured as the present value of the remaining lease payments, discounted using the company’s incremental borrowing rate at the date of transition. The corresponding right of use asset is measured at an amount equal to the lease liability, adjusted for any prepaid or accrued lease payments recognised immediately prior to transition.

The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

Where a right of use asset is recognised on transition to the amended lease requirements, the carrying value reflects the company’s right to use the underlying asset from the transition date to the end of the lease term.

The right of use asset is subsequently depreciated using the straight line method from the commencement date, or from the transition date in respect of leases recognised on early adoption, to the earlier of the end of the useful life of the right of use asset or the end of the lease term. The estimated useful lives of right of use assets are determined on the same basis as those of other property, plant and equipment. The right of use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, or at the transition date in respect of leases recognised on early adoption, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, the company’s estimate of the amount expected to be payable under a residual value guarantee, or the company’s assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right of use asset, or is recorded in profit or loss if the carrying amount of the right of use asset has been reduced to zero.

The company applies the recognition exemption available under FRS 102 (2024) for short term leases. A short term lease is defined as a lease that, at the commencement date, has a lease term of 12 months or less and does not contain a purchase option.

For such leases, the company does not recognise a right of use asset or lease liability on the balance sheet. Instead, lease payments are recognised as an expense on a straight line basis over the lease term, unless another systematic basis is more representative of the pattern of the lessee’s benefit.

The company reviews the lease term at inception to determine whether the lease qualifies as short‑term and reassesses this only if there is a lease modification. Any variable lease payments that are not included in the lease liability are recognised as an expense in the period in which they are incurred.

Transactions in currencies other than Pounds Sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

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

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

Determine whether there are indicators of impairment of the company's tangible or intangible assets. Factors taken into consideration when reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

The recoverability of trade debtors is considered to be a key area of judgement. In assessing whether an impairment provision is required, management considers ageing of balances, historical bad debt experience, the creditworthiness of individual customers, and current and forward looking economic conditions. This assessment requires judgement as the timing and extent of recoverability may differ from initial expectations. Based on the information available at the reporting date, management believes that the carrying value of trade debtors is appropriate.

Determine whether any provision is required against slow moving or obsolete stock items. These decisions will depend on an assessment of the expiry date of the goods held in stock at the balance sheet date along with a physical inspection to identify any damaged stock items.

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

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the asset and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as the working condition of the assets and whether the assets are still in use are both taken into account.

Intangible fixed assets relate to licences granted to the company enabling the sale of certain pharmaceutical products. The licences themselves are considered to have indefinite useful lives, however, the products are considered to have finite useful lives. The licences are therefore amortised over the useful lives of the pharmaceutical products to which they relate. The actual lives of the assets are reviewed annually. In re-assessing asset lives, factors such as the expected sales of the product and current gross profit margins achieved are taken into consideration. Where the company assess that the current valuation of the asset is higher than the foreseeable future profit generated by an asset, an impairment adjustment will be prepared to adjust the value of the assets in line with the recalculated expected future profits generated.

In the opinion of the directors it would be seriously prejudicial to the interests of the company to disclose an analysis of turnover by geographical market and different business segments.

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

Their aggregate remuneration comprised:

There is no directors' remuneration in the year (2025: Nil).

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

More information on impairment movements in the year is given in note 11.

The right of use assets are related to the lease obligations in note 20.

These financial statements are separate company financial statements for Medreich Plc.

Details of the company's subsidiaries at 31 March 2026 are as follows:

Inopharm Ltd is considered to be a subsidiary based on Medreich PLC's ability to direct the relevant activities of Inopharm Ltd.

The total provision against slow moving and obsolete stock as at 31 March 2026 was £2,139,666 (2025: £1,805,595).

Amounts owed by group undertakings include amounts that:

- incur interest of 2.5% on these balances.

- are held on behalf of the company.

- are unsecured.

- are repayable within one year if demanded.

Amounts owed by parent company include amounts that:

- incur no interest on these balances.

- are held on behalf of the company.

- are unsecured.

- are repayable within one year if demanded.

Amounts owed to group and parent undertakings include amounts that:

- incur no interest on these balances.

- are loaned to the company.

- are unsecured.

- are repayable within 180 days.

The interest expense on lease liabilities recognised in the profit and loss is £30,967 (2025: £Nil).

The lease shown in the accounts does not obtain any variable payment items.

The total cash outflow relating to leases in the period amounted to £561,292.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and that after more than 12 months from the reporting date per above.

The lease obligations are related to the right of use assets in note 13.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax asset set out above is not expected to reverse within 12 months and relates to capital allowances in excess of depreciation and timing differences in relation to unpaid pension amounts.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Amounts due in relation to the defined contribution pension scheme as at 31 March 2026 were £9,018 (2025: £8,948).

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

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

The remuneration of key management personnel is as follows.

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

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties by Medreich Plc at the balance sheet date:

Entities which have significant control over the company £5,649,358 (2025: £12,068,056).

Entities which are under common control £51,720 (2025: £35,420).

Amounts owed by related parties to Medreich Plc at the balance sheet date:

Entities over which the company has control, joint control or significant influence £543,620 (2025: £1,130,369). Debtors also include £23,118 (2025: £34,885) of accrued interest in relation to these entities. Interest is charged at 2.5% per annum and the loan is repayable on demand. There are also trading amounts due to entities over which the company has control, joint control or significant influence of £23,068 (2025: £53,345).

Entities which have significant control over the company £3,496,613 (2025: £865,849).

The company has taken advantage of the exemption under section 33.1a of Financial Reporting Standard 102 not to disclose related party transactions with wholly owned group members.

Guarantees from related parties

Medreich Ltd, the parent company, has provided a guarantee against the office lease.

Meiji Holdings Co., Ltd, the ultimate parent company, has provided a guarantee against the bank overdraft facility.

The parent company is Medreich Ltd, a company incorporated in India.

Meiji Holdings Co., Ltd (incorporated in Japan) is regarded by the directors as being the company's ultimate parent company. Its registered office is 4-16, Kyobashi 2-chome, Chuo-ku, Tokyo 104-0031, Japan.

Meiji Holdings Co., Ltd is the parent company of the smallest and largest group for which group accounts are prepared. The accounts of Meiji Holdings Co., Ltd may be obtained from the Tokyo Stock Exchange.