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REGISTERED NUMBER: 03577891 (England and Wales)

| SETRA WOOD PRODUCTS LIMITED |

| STRATEGIC REPORT, |

| REPORT OF THE DIRECTORS AND |

| FINANCIAL STATEMENTS |

| FOR THE YEAR ENDED 31 DECEMBER 2025 |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

| Page |

Company Information | 1 |

Strategic Report | 2 |  | to |  | 3

Report of the Directors | 4 |  | to |  | 5

Report of the Independent Auditors | 6 |  | to |  | 8

Statement of Income and Retained Earnings | 9 |

Statement of Financial Position | 10 |

Statement of Cash Flows | 11 |

Notes to the Statement of Cash Flows | 12 |

Notes to the Financial Statements | 13 |  | to |  | 19

SETRA WOOD PRODUCTS LIMITED

COMPANY INFORMATION

FOR THE YEAR ENDED 31 DECEMBER 2025

| DIRECTORS: | O Berg

| S Newman

| C Petersson

| J J Dodd

| W N F Urmston

| J S Linden

| SECRETARY: | S Newman

| REGISTERED OFFICE: | 5 Resolution Close

| Endeavour Park

| Boston

| Lincolnshire

| PE21 7TT

| REGISTERED NUMBER: | 03577891 (England and Wales)

| SENIOR STATUTORY AUDITOR: | Sally-Anne Hurn FCA

| AUDITORS: | Duncan & Toplis Audit Limited, Statutory Auditor

| 5 Resolution Close

| Endeavour Park

| Boston

| Lincolnshire

| PE21 7TT

| BANKERS: | Danske Bank

| ICB London

| 75 King William Street

| London

| EC4N 7DT

| SOLICITORS: | Roythornes

| Enterprise Way

| Spalding

| Lincolnshire

| PE11 3YR

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

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

REVIEW OF BUSINESS

The business continues to be primarily concerned with the importing of softwood products from Nordic, Baltic and Central European producers for further processing prior to sale, sale as sawn and more recently, sale of regularised structural timber. This customer base is primarily based in the United Kingdom and consists of timber and builders' merchants, modular building manufacturers, packaging companies, end users, truss manufacturers and DIY companies.

Key performance indicators:

| 2025 |  |  | 2024 |  |

| £'000 |  | £'000000 |  |  |

Turnover |  | 27,960 |  |  | 25,492 |  |

Gross Profit |  | 3,205 |  |  | 2,755 |  |

GP % |  | 11% |  |  | 11% |  |

Net Profit before Tax |  | 764 |  |  | 453 |  |

NP % |  | 3% |  |  | 2% |  |

Net Assets |  | 8,028 |  |  | 7,462 |  |

The business again experienced a turbulent year, with early activity positive and progressive pricing, however the second half of the year saw a downturn in activity and pricing. There is a lack of consumer confidence in the economy which is affecting the R&M sector, an important area for the business.

The business continues to be supplied with a secure supply of product from the parent company of sawn timber, further processed and structural products which continues to be supplemented by important third-party supply.

The business continues to have high expectations in terms of growth and feels it has the skill and experience required to achieve its ambitions. The business continues to invest in staff development with both internal and external training providers and consultants.

There were no significant investments in 2025 and we continue to maximise the plant and machinery available to us.

The business did not declare a dividend in 2025.

The net asset position has increased to £8,027,829.

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2025

PRINCIPAL RISKS AND UNCERTAINTIES

The solar investment continues to offset some of the risk surrounding energy pricing. The business has committed to fixed pricing in excess of 12 months.

The supply of timber products to the UK continued to be uncertain for 2025. Raw material costs are impacted by high log prices and availability of UK demanded lengths, dimensions and qualities is also under pressure. The sawmill importers to the UK are experiencing significant issues with profitability. We expect this to impact by way of rising raw material costs throughout the year. Whilst the UK economy remains fragile, passing on inevitable product price increases will be challenging throughout the supply chain. The company continues to develop new suppliers who can support its' core stock range as well as developing new customers and segments.

The company continues to monitor the consequence and effect of customer consolidation on its business. Credit insurance within the merchant sector is also being tightened, and we have seen a significant number of liquidated businesses in the last 12 months. The business has also worked hard with its customers to reduce the number of debtor days, and this will continue to be a focus area in the coming 12 months.

The company currently has agreements with buying groups along with a large proportion of independent customers who underpin the sales focus. The company has always had a loyal customer base that have supported the company ethos of quality products and excellent service. The business will continue to focus its efforts in these areas.

The company currently uses a banking facility including an overdraft facility as part of a group account, administered by the ultimate controlling party, Setra Group AB. The company is aware of risks associated with banking fraud and continue to monitor its processes to mitigate any risks to the business or its customers and suppliers.

The business continues to monitor exchange rates and the impact they can have on the cost of material as well as global influences on the supply of timber.

The business recognises the National Minimum Wage and has implemented the latest increases amongst affected staff. This has an inevitable effect on the differentials between skilled and unskilled staff, and there are ongoing concerns regarding labour costs in the UK.

ENVIRONMENTAL POLICY

The business has a robust environmental policy and is certified to sell both FSC and PEFC material. All material sourced from suppliers is supplied either as FSC or as PEFC. Our position on environmental responsibility and sustainability is further enhanced by the approach to sustainability of our parent company.

The business has invested in solar as it strives to reduce its carbon footprint. In addition to solar, the business has also invested in electric mechanical handling and electric vehicles to further enhance its environmental responsibilities.

The business has a compliance manager who focuses on Health, Safety and Environmental factors in the business.

During the year the business supported several local charities and community groups.

ON BEHALF OF THE BOARD:

S Newman - Director

4 March 2026

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2025

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the importation and distribution of machined softwood.

DIVIDENDS

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

RESEARCH AND DEVELOPMENT

The company is not currently undertaking any research and development activity.

FUTURE DEVELOPMENTS

The business continues to be supported by its parent company and is seen as a key strategic market for future growth of softwood product sales. The business has a close working relationship with the parent company and continues to make a positive contribution to the group results and liquidity.

DIRECTORS

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

O Berg

S Newman

C Petersson

J J Dodd

W N F Urmston

J S Linden

DIRECTORS INDEMNITY INSURANCE

During the year the company has made payments for directors indemnity insurance.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

- | select suitable accounting policies and then apply them consistently;

- | make judgements and accounting estimates that are reasonable and prudent;

- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

REPORT OF THE DIRECTORS

FOR THE YEAR ENDED 31 DECEMBER 2025

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

S Newman - Director

4 March 2026

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SETRA WOOD PRODUCTS LIMITED

Opinion

We have audited the financial statements of Setra Wood Products Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SETRA WOOD PRODUCTS LIMITED

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as valuation of stock and associated provisions, as well as the risk of inappropriate journal entries to manipulate profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive testing on accounting estimates, including reviewing the method used by management to make those estimates, re-performing the calculation, and reviewing the outcome post year-end.

Secondly, the company is subject to other laws and regulations where the consequence for non- compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Employment laws, Health & Safety regulations and Chain of Custody requirements.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included discussion with senior management around whether any incidents occurred in the year, a review of Health & Safety policies in place, reviewing the chain of custody report and a review of legal and professional fees for evidence of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions or the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

SETRA WOOD PRODUCTS LIMITED

Use of our report

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

Sally-Anne Hurn FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

5 Resolution Close

Endeavour Park

Boston

Lincolnshire

PE21 7TT

10 March 2026

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2025

| 2025 |  | 2024

| Notes | £ | £ |

TURNOVER | 3 | 27,959,873 |  | 25,492,070 |  |

Cost of sales | 24,754,497 |  | 22,736,982 |  |

GROSS PROFIT | 3,205,376 |  | 2,755,088 |  |

Administrative expenses | 2,492,342 |  | 2,370,610 |  |

713,034 |  | 384,478 |  |

Other operating income | 1,629 |  | - |  |

OPERATING PROFIT | 5 | 714,663 |  | 384,478 |  |

Interest receivable and similar income | 49,141 |  | 68,086 |  |

PROFIT BEFORE TAXATION | 763,804 |  | 452,564 |  |

Tax on profit | 6 | 197,590 |  | 118,539 |  |

PROFIT FOR THE FINANCIAL YEAR | 566,214 |  | 334,025 |  |

Retained earnings at beginning of year | 7,301,615 |  | 8,267,590 |  |

Dividends | 7 | - |  | (1,300,000 | ) |

RETAINED EARNINGS AT END OF YEAR | 7,867,829 |  | 7,301,615 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

STATEMENT OF FINANCIAL POSITION

31 DECEMBER 2025

| 2025 | 2024 |

| Notes | £ | £ | £ | £ |

FIXED ASSETS

Tangible assets | 8 | 2,248,508 |  | 2,441,132 |  |

CURRENT ASSETS

Stocks | 9 | 6,349,352 |  | 3,482,654 |  |

Debtors | 10 | 3,109,667 |  | 3,208,539 |  |

Cash at bank and in hand | 410,666 |  | 1,288,552 |  |

9,869,685 |  | 7,979,745 |  |

CREDITORS

Amounts falling due within one year | 11 | 3,666,322 |  | 2,472,929 |  |

NET CURRENT ASSETS | 6,203,363 |  | 5,506,816 |  |

TOTAL ASSETS LESS CURRENT LIABILITIES | 8,451,871 |  | 7,947,948 |  |

PROVISIONS FOR LIABILITIES | 13 | 424,042 |  | 486,333 |  |

NET ASSETS | 8,027,829 |  | 7,461,615 |  |

CAPITAL AND RESERVES

Called up share capital | 14 | 160,000 |  | 160,000 |  |

Retained earnings | 7,867,829 |  | 7,301,615 |  |

SHAREHOLDERS' FUNDS | 8,027,829 |  | 7,461,615 |  |

The financial statements were approved by the Board of Directors and authorised for issue on 4 March 2026 and were signed on its behalf by:

S Newman - Director | O Berg - Director

C Petersson - Director | J S Linden - Director

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

| 2025 |  | 2024

| Notes | £ | £ |

Cash flows from operating activities

Cash generated from operations | 1 | (612,132 | ) | 1,073,761 |  |

Tax paid | (206,000 | ) | (110,000 | ) |

Taxation refund | - |  | 102,807 |  |

Net cash from operating activities | (818,132 | ) | 1,066,568 |  |

Cash flows from investing activities

Purchase of tangible fixed assets | (137,085 | ) | (103,108 | ) |

Sale of tangible fixed assets | 28,190 |  | 31,000 |  |

Interest received | 49,141 |  | 65,100 |  |

Net cash from investing activities | (59,754 | ) | (7,008 | ) |

Cash flows from financing activities

Equity dividends paid | - |  | (1,300,000 | ) |

Net cash from financing activities | - |  | (1,300,000 | ) |

Decrease in cash and cash equivalents | (877,886 | ) | (240,440 | ) |

Cash and cash equivalents at beginning of year | 2 | 1,288,552 |  | 1,528,992 |  |

Cash and cash equivalents at end of year | 2 | 410,666 |  | 1,288,552 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2025

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

| 2025 |  | 2024

£ | £ |

| Profit before taxation | 763,804 |  | 452,564 |  |

| Depreciation charges | 298,905 |  | 310,541 |  |

| Loss/(profit) on disposal of fixed assets | 2,614 |  | (4,344 | ) |

| Finance income | (49,141 | ) | (68,086 | ) |

1,016,182 |  | 690,675 |  |

| (Increase)/decrease in stocks | (2,866,698 | ) | 1,235,429 |  |

| Decrease/(increase) in trade and other debtors | 98,872 |  | (594,512 | ) |

| Increase/(decrease) in trade and other creditors | 1,139,512 |  | (257,831 | ) |

| Cash generated from operations | (612,132 | ) | 1,073,761 |  |

2. | CASH AND CASH EQUIVALENTS

| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

| Year ended 31 December 2025

| 31.12.25 |  | 1.1.25

£ | £ |

| Cash and cash equivalents | 410,666 |  | 1,288,552 |  |

| Year ended 31 December 2024

| 31.12.24 |  | 1.1.24

£ | £ |

| Cash and cash equivalents | 1,288,552 |  | 1,528,992 |  |

3. | ANALYSIS OF CHANGES IN NET FUNDS

| At 1.1.25 | Cash flow | At 31.12.25

£ | £ | £ |

| Net cash |

| Cash at bank and in hand | 1,288,552 |  | (877,886 | ) | 410,666 |  |

1,288,552 |  | (877,886 | ) | 410,666 |  |

| Total | 1,288,552 |  | (877,886 | ) | 410,666 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1. | GENERAL INFORMATION

| Setra Wood Products Limited is a limited company incorporated in England and Wales. The address of the registered office is given in the company information on page one of these financial statements. The nature of the company's operations and principal activities are detailed in the Report of the Directors.

| The principle place of business is: Estuary Road, King's Lynn, Norfolk PE30 2HJ.

| The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest pound.

2. | ACCOUNTING POLICIES

| Basis of preparing the financial statements

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

| The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

| • | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).

| The company is a subsidiary of Setra Group AB, a company registered in Sweden. Consolidated financial statements of Setra Group AB can be obtained from Setra Group SE - 105 22 Stockholm, Sweden.

| Significant judgements and estimates

| In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

| The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:

| (i) Stock - Milling Overhead Absorption

| Management adopt an overhead absorption rate for milled stock items to account for the value added during the milling process. The estimation and assumptions used to assess that this rate is reasonable and in line with applicable accounting frameworks is the rate per hour and efficiency of the milling plant and machinery. The efficiency rate is estimated by senior management using standardised methodology and is regularly reviewed.

| Turnover

| Turnover represents the invoiced value of goods supplied, excluding value added tax and trade discounts. Revenue is recognised on completion of an order and the raising of a sales invoice.

| Tangible fixed assets

| Tangible fixed assets are recognised at cost less depreciation and accumulated impairment losses.

| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful economic life or, if held under a finance lease, over the lease term, whichever is the shorter.

| Short leasehold |  | - 8% on cost |  |

| Improvements to property |  | - 8% on cost |  |

| Plant and machinery |  | - 10% on reducing balance |  |

| Fixtures and fittings |  | - 20% on cost |  |

| Motor vehicles |  | - 25% on cost |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

2. | ACCOUNTING POLICIES - continued

| Stocks

| Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell on a first-in-first-out basis. Due allowance is made for obsolete and slow moving items.

| Financial instruments

| The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks, other third parties and related parties.

| Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the financial reporting date.

| Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is as 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.

| Taxation

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

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

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

| Deferred tax

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

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

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

| Foreign currencies

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

| Leasing commitments

| Costs in respect of operating leases are charged on a straight line basis over the lease term.

| Pension costs and other post-retirement benefits

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

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

2. | ACCOUNTING POLICIES - continued

| Impairment

| Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3. | TURNOVER

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

| The company's principal activity was carried on within the United Kingdom.

4. | EMPLOYEES AND DIRECTORS

| 2025 |  | 2024

£ | £ |

| Wages and salaries | 1,770,408 |  | 1,692,475 |  |

| Social security costs | 205,968 |  | 178,194 |  |

| Other pension costs | 114,459 |  | 99,688 |  |

2,090,835 |  | 1,970,357 |  |

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

| 2025 |  | 2024

| Directors | 6 |  | 6 |  |

| Admin and sales | 17 |  | 16 |  |

| Other | 29 |  | 30 |  |

52 |  | 52 |  |

| 2025 |  | 2024

£ | £ |

| Directors' remuneration | 298,541 |  | 300,438 |  |

| Directors' pension contributions to money purchase schemes | 28,878 |  | 29,614 |  |

| The number of directors to whom retirement benefits were accruing was as follows:

| Money purchase schemes | 3 |  | 3 |  |

| Information regarding the highest paid director is as follows:

| 2025 |  | 2024

£ | £ |

| Emoluments etc | 106,492 |  | 106,275 |  |

| Pension contributions to money purchase schemes | 14,813 |  | 18,302 |  |

| Accrued pension at 31 December 2025 | 1,234 |  | 1,530 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

5. | OPERATING PROFIT

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

| 2025 |  | 2024

£ | £ |

| Depreciation - owned assets | 298,905 |  | 310,541 |  |

| Loss/(profit) on disposal of fixed assets | 2,614 |  | (4,344 | ) |

| Auditors' remuneration | 21,350 |  | 20,140 |  |

| Auditors' remuneration - other | 22,971 |  | 29,710 |  |

| Operating leases - land and buildings | 247,617 |  | 184,902 |  |

| Operating leases - equipment rental | 169,113 |  | 156,701 |  |

6. | TAXATION

| Analysis of the tax charge

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

| 2025 |  | 2024

£ | £ |

| Current tax:

| UK corporation tax | 259,881 |  | 179,112 |  |

| Deferred tax | (62,291 | ) | (60,573 | ) |

| Tax on profit | 197,590 |  | 118,539 |  |

| Reconciliation of total tax charge included in profit and loss

| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

| 2025 |  | 2024

£ | £ |

| Profit before tax | 763,804 |  | 452,564 |  |

| Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%) | 190,951 |  | 113,141 |  |

| Effects of:

| Expenses not deductible for tax purposes | 3,539 |  | 2,374 |  |

| Depreciation in excess of capital allowances | 3,100 |  | 3,024 |  |

| Total tax charge | 197,590 |  | 118,539 |  |

| Factors that may affect future tax charges

| The statutory UK corporation tax rate is currently 25%, with a small profits rate of 19%.

| 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, based on tax law and the corporation tax rates that have been enacted, or substantially enacted, at the year end date.

7. | DIVIDENDS

| 2025 |  | 2024

£ | £ |

| Ordinary shares of £1 each

| Interim | - |  | 1,300,000 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

8. | TANGIBLE FIXED ASSETS

| Improvements |

| Short |  | to |  | Plant and

| leasehold |  | property |  | machinery

£ | £ | £ |

| COST

| At 1 January 2025 | 244,788 |  | 313,844 |  | 2,759,307 |  |

| Additions | 40,259 |  | - |  | 1,220 |  |

| Disposals | (1,535 | ) | - |  | (44,633 | ) |

| At 31 December 2025 | 283,512 |  | 313,844 |  | 2,715,894 |  |

| DEPRECIATION

| At 1 January 2025 | 175,854 |  | 73,231 |  | 770,788 |  |

| Charge for year | 14,547 |  | 25,111 |  | 198,483 |  |

| Eliminated on disposal | (1,371 | ) | - |  | (28,529 | ) |

| At 31 December 2025 | 189,030 |  | 98,342 |  | 940,742 |  |

| NET BOOK VALUE

| At 31 December 2025 | 94,482 |  | 215,502 |  | 1,775,152 |  |

| At 31 December 2024 | 68,934 |  | 240,613 |  | 1,988,519 |  |

| Fixtures |

| and |  | Motor |

| fittings |  | vehicles |  | Totals

£ | £ | £ |

| COST

| At 1 January 2025 | 153,590 |  | 176,861 |  | 3,648,390 |  |

| Additions | 13,716 |  | 81,890 |  | 137,085 |  |

| Disposals | (47,637 | ) | (98,851 | ) | (192,656 | ) |

| At 31 December 2025 | 119,669 |  | 159,900 |  | 3,592,819 |  |

| DEPRECIATION

| At 1 January 2025 | 97,093 |  | 90,292 |  | 1,207,258 |  |

| Charge for year | 21,777 |  | 38,987 |  | 298,905 |  |

| Eliminated on disposal | (47,613 | ) | (84,339 | ) | (161,852 | ) |

| At 31 December 2025 | 71,257 |  | 44,940 |  | 1,344,311 |  |

| NET BOOK VALUE

| At 31 December 2025 | 48,412 |  | 114,960 |  | 2,248,508 |  |

| At 31 December 2024 | 56,497 |  | 86,569 |  | 2,441,132 |  |

9. | STOCKS

2025 | 2024 |

£ | £ |

| Finished goods and goods for resale | 6,349,352 |  | 3,482,654 |  |

10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |

2025 | 2024 |

£ | £ |

| Trade debtors | 2,975,106 |  | 3,089,658 |  |

| Prepayments | 134,561 |  | 118,881 |  |

3,109,667 |  | 3,208,539 |  |

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

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

2025 | 2024 |

£ | £ |

| Trade creditors | 1,530,069 |  | 771,920 |  |

| Taxation | 117,881 |  | 64,000 |  |

| Other taxation and social security | 617,001 |  | 496,610 |  |

| Amounts due to fellow group undertakings | 1,353,104 |  | 1,091,920 |  |

| Accrued expenses | 48,267 |  | 48,479 |  |

3,666,322 |  | 2,472,929 |  |

12. | LEASING AGREEMENTS

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

2025 | 2024 |

£ | £ |

| Within one year | 338,899 |  | 382,588 |  |

| Between one and five years | 549,676 |  | 896,877 |  |

| In more than five years | 32,177 |  | 78,522 |  |

920,752 |  | 1,357,987 |  |

13. | PROVISIONS FOR LIABILITIES

2025 | 2024 |

£ | £ |

| Deferred tax

| Accelerated capital allowances | 424,042 |  | 486,333 |  |

| Deferred |

| tax |

£ |

| Balance at 1 January 2025 | 486,333 |  |

| Credit to Income Statement during year | (62,291 | ) |

| Balance at 31 December 2025 | 424,042 |  |

14. | CALLED UP SHARE CAPITAL

| Allotted, issued and fully paid:

| Number: | Class: | Nominal | 2025 | 2024 |

| value: | £ | £ |

| 160,000 | Ordinary | £1 | 160,000 |  | 160,000 |  |

15. | ULTIMATE PARENT COMPANY AND CONTROLLING PARTY

| The ultimate parent undertaking and controlling party was Setra Group AB, a company registered in Sweden. Copies of Setra Group AB's consolidated financial statements can be obtained from Setra Group SE - 105 22 Stockholm, Sweden.

| Following a change in share ownership of Setra Group AB on 30 April 2025, the ultimate parent undertaking and controlling party became Skogsägarna Mellanskog (organisation number: 785000-3349), a company registered in Sweden. Copies of Skogsägarna Mellanskog's annual report are available from info@mellanskog.se.

SETRA WOOD PRODUCTS LIMITED (REGISTERED NUMBER: 03577891)

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31 DECEMBER 2025

16. | RELATED PARTY DISCLOSURES

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

2025 | 2024 |

£ | £ |

| Commission income | 349,384 |  | 364,915 |  |

| Purchases | 11,854,204 |  | 9,352,816 |  |

| Management fee | 208,638 |  | 208,638 |  |

| Amount due to related party | 1,353,104 |  | 1,091,920 |  |

| The amounts due to the related parties are unsecured, interest free and repayable on demand.

| The total key management compensation in the year is equivalent to the amounts noted in point 4 of the notes to the financial statements regarding directors.