Polarseal Tapes and Conversions Limited
Annual Report and Financial Statements
For the year ended 31 December 2025
Company Registration No. 10164939 (England and Wales)
Polarseal Tapes and Conversions Limited
Company Information
Directors
J Rich
M D Rich
S F Rich
T Rich
Secretary
M D Rich
Company number
10164939
Registered office
Polarseal Tapes and Conversions
Guildford Road Trading Estate
Farnham
Surrey
GU9 9PZ
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Tapes and Conversions Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 28
Polarseal Tapes and Conversions Limited
Strategic Report
For the year ended 31 December 2025
Page 1

The directors have pleasure in presenting the Strategic Report for the year ended 31 December 2025, which can be read in conjunction with the Directors’ Report.

The principal activity of the company in the year under review was the converting of flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service p roviders driving value and simplicity for our customers.

Business Review

The company experienced strong growth during 2025 increasing its business levels whilst investing in people and operations to scale the business and deliver excellent service to existing and potential customers.

Financial Performance and Key Indicators

The business tracks several financial, operational, regulatory and quality metrics. Financial KPIs are revenue and adjusted EBITDA.

2025 revenue increased by 41.4% compared with 2024 to £18,288k.

2025 adjusted EBITDA increased by 1 1.7% compared with 2024 to £2,290k.

£'000s
2024
2025
Change
Revenue
12,935
18,288
5,353
Operating profit
1,156
320
(836)
Add:
Depreciation and similar expenses
193
242
49
Amortisation and similar expenses
378
397
19
Administrative costs relating to financing & foreign exchange
(1)
53
54
EBITDA
1,726
1,012
(714)
Adjusted for exceptional items:
Costs of business review and restructure
170
878
708
Non-capital investment in strategic projects
-
18
18
Charitable donations
155
163
8
Other exceptional items
-
219
219
Adjusted EBITDA
2,051
2,290
239
Adjusted EBTIDA %
15.86%
12.52%
Future Developments and Post Balance Sheet Events

The business has traded well into 2026 with an extremely buoyant order book and sales pipeline.

Capital investment programmes which were in progress at year end, including a site expansion programme and new staff welfare facilities at our Carlton site, are now completed - enhancing the company’s ability to deliver further growth into 2026.

Polarseal Tapes and Conversions Limited
Strategic Report (Continued)
For the year ended 31 December 2025
Page 2
Principle Risks and Uncertainties

The directors believe the company is well placed to manage its business risks.

The company manages its risk through strong internal controls, utilising competent third-party providers, and holding insurance where appropriate.

Liquidity Risk

The company carefully manages its cashflows and compiles a 13-week cash flow forecast. Budgets are produced annually and rolling forecasts are updated on a regular basis. The company works closely with banks to ensure available funding is sufficient to meet the company’s operating requirements.

Credit Risk

The company maintains robust credit control procedures including credit checks before agreeing to credit terms, and monitoring exposure on ongoing basis using credit reporting agencies.

Foreign currency risk

The company utilises foreign currencies for both sale and purchase transactions. The net impact of foreign currency purchases and sales is well balanced. The company also has access to currency management options through its banking provider.

Quality risk

The company provides products into the heavily regulated medical markets. The company operates a quality management system which has been certified to ISO 13485:2016, FDA, and EU MDR standards.

Legislative and regulatory risk

The company has in house Regulatory experts who are nominated to act as Person Responsible for Regulatory Compliance on behalf of the company in accordance with the regulatory and legal requirements. The company is audited by the relevant authorities to ensure compliance, and acts on audit recommendations promptly.

The company takes external legal advice from time to time to ensure compliance with legislation and minimise the risk of litigation.

The company has complied with all applicable legislation and regulations.

Information systems and cyber security risk

The business relies on its information systems in the normal course of business. As technology advances the risk of cyber-attacks on businesses becomes more prevalent. The company works with a third-party provider to ensure information systems are well maintained and regularly updated with the latest security patches as well as receiving training and assistance on prevention of, and response to, cyber security risks.

Environmental risk

The company is registered with EcoVadis who operate an evidence-based platform, providing the company with sustainability ratings and allowing the company to assess the ESG performance of its own environment from its activities, whilst continuing to address health, safety and economic issues.

Geopolitical risk

The company recognises that geopolitical events, particularly the current conflict on the Middle East may have impacts to the company including cost inflation and supply constraints. The company works with both customers and suppliers, to maintain appropriate stock levels to maintain supply, and to ensure cost pressures are mitigated as far as possible, reviewing selling prices on a regular basis to ensure sustainable margins are maintained.

Polarseal Tapes and Conversions Limited
Strategic Report (Continued)
For the year ended 31 December 2025
Page 3

On behalf of the board

J Rich
Director
15 May 2026
Polarseal Tapes and Conversions Limited
Directors' Report
For the year ended 31 December 2025
Page 4

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

Principal activities

The principal activity of the company continued to be that of converting flexible materials into medical products and packaging of ancillary products. This includes partnering with specialist sterilisation service providers driving value and simplicity for our customers.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £416,879. The directors do not recommend payment of a further dividend.

Directors

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

J Rich
M D Rich
S F Rich
T Rich
Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

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

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

- select suitable accounting policies and then apply them consistently;

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

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

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

Polarseal Tapes and Conversions Limited
Directors' Report (Continued)
For the year ended 31 December 2025
Page 5
Statement of disclosure to auditor

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

On behalf of the board
J Rich
Director
15 May 2026
Polarseal Tapes and Conversions Limited
Independent Auditor's Report
To the Members of Polarseal Tapes And Conversions Limited
Page 6
Opinion

We have audited the financial statements of Polarseal Tapes and Conversions Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, 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 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 7

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 8
Auditor's responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 9

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

- We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Polarseal Tapes and Conversions Limited
Independent Auditor's Report (Continued)
To the Members of Polarseal Tapes And Conversions Limited
Page 10

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.

Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
15 May 2026
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Polarseal Tapes and Conversions Limited
Statement of Comprehensive Income
For the year ended 31 December 2025
Page 11
2025
2024
Notes
£
£
Turnover
3
18,288,456
12,934,977
Cost of sales
(13,359,908)
(8,960,034)
Gross profit
4,928,548
3,974,943
Administrative expenses
(4,799,086)
(2,828,649)
Other operating income
190,749
9,848
Operating profit
4
320,211
1,156,142
Interest receivable and similar income
7
4,765
11,518
Interest payable and similar expenses
8
(20,172)
(2,452)
Profit before taxation
304,804
1,165,208
Tax on profit
9
(166,575)
(385,156)
Profit for the financial year
138,229
780,052

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

Polarseal Tapes and Conversions Limited
Balance Sheet
As at 31 December 2025
Page 12
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
11
145,822
495,822
Other intangible assets
11
82,654
68,274
Total intangible assets
228,476
564,096
Tangible assets
12
1,071,508
552,153
1,299,984
1,116,249
Current assets
Stock
14
4,045,688
2,491,557
Debtors
15
5,302,600
1,954,402
Cash at bank and in hand
23,481
791,813
9,371,769
5,237,772
Creditors: amounts falling due within one year
16
(7,574,002)
(3,036,196)
Net current assets
1,797,767
2,201,576
Total assets less current liabilities
3,097,751
3,317,825
Creditors: amounts falling due after more than one year
17
(4,211)
(17,297)
Provisions for liabilities
Deferred tax liability
20
(199,731)
(128,069)
(199,731)
(128,069)
Net assets
2,893,809
3,172,459
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
2,893,709
3,172,359
Total equity
2,893,809
3,172,459
The financial statements were approved by the board of directors and authorised for issue on 15 May 2026 and are signed on its behalf by:
J Rich
Director
Company Registration No. 10164939
Polarseal Tapes and Conversions Limited
Statement of Changes in Equity
For the year ended 31 December 2025
Page 13
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100
2,987,881
2,987,981
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
780,052
780,052
Dividends
10
-
(595,574)
(595,574)
Balance at 31 December 2024
100
3,172,359
3,172,459
Year ended 31 December 2025:
Profit and total comprehensive income for the year
-
138,229
138,229
Dividends
10
-
(416,879)
(416,879)
Balance at 31 December 2025
100
2,893,709
2,893,809
Polarseal Tapes and Conversions Limited
Statement of Cash Flows
For the year ended 31 December 2025
Page 14
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
590,798
2,160,067
Interest paid
(20,172)
(2,452)
Income taxes paid
(281,969)
(295,096)
Net cash inflow from operating activities
288,657
1,862,519
Investing activities
Purchase of intangible assets
(49,373)
(47,490)
Purchase of tangible fixed assets
(774,901)
(114,483)
Proceeds from disposal of tangible fixed assets
1,252
141
Interest received
4,765
11,518
Net cash used in investing activities
(818,257)
(150,314)
Financing activities
Repayment of bank loans
-
(559,008)
Payment of finance leases obligations
(13,086)
(289,168)
Dividends paid
(416,879)
(595,574)
Net cash used in financing activities
(429,965)
(1,443,750)
Net (decrease)/increase in cash and cash equivalents
(959,565)
268,455
Cash and cash equivalents at beginning of year
791,813
523,358
Cash and cash equivalents at end of year
(167,752)
791,813
Relating to:
Cash at bank and in hand
23,481
791,813
Bank overdrafts included in creditors payable within one year
(191,233)
-
0
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements
For the year ended 31 December 2025
Page 15
1
Accounting policies
Company information

Polarseal Tapes and Conversions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Polarseal Tapes and Conversions, Guildford Road Trading Estate, Farnham, Surrey, GU9 9PZ.

1.1
Accounting convention

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

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

1.3
Turnover

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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
1
Accounting policies
(Continued)
Page 16
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

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 acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
20% straight line
1.7
Tangible fixed assets

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:

Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
Office equipment
33% reducing balance
Property Improvements
20% straight line

Assets in the course of construction are not depreciated.

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

1.8
Stock

Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials only.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
1
Accounting policies
(Continued)
Page 17

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

1.9
Cash and cash equivalents

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

1.10
Financial instruments

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.

1.11
Taxation

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

Current tax

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

Deferred tax

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

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.

1.12
Employee benefits

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

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

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

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
1
Accounting policies
(Continued)
Page 18
1.13
Retirement benefits

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

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.15
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

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

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 19
Key sources of estimation uncertainty

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.

Useful economic lives of intangible assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 11 for the carrying amount of the intangible assets and notes 1.5 and 1.6 for the useful economic lives for each class of asset.

Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property, plant and equipment and note 1.7 for the useful economic lives for each class of asset.

Stock

The level of stocks and the stock provision are set out in note 14. For each line of stock, a provision is made against the cost of the stock, where the Net Realisable Value is less than cost. Net Realisable Value is the estimated selling price for stocks less all estimated costs of completion and costs necessary to make the sale. The estimated selling price for each stock line is a judgement based mainly on recent selling patterns for that product.

3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Sales
18,288,456
12,934,977
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
12,861,425
8,695,701
Rest of the World
5,427,031
4,239,276
18,288,456
12,934,977
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 20
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
22,889
(14,536)
Research and development costs
17,923
96
Government grants
-
(2,933)
Fees payable to the company's auditor for the audit of the company's financial statements
32,801
38,020
Depreciation of owned tangible fixed assets
255,176
192,874
(Profit)/loss on disposal of tangible fixed assets
(882)
149
Amortisation of intangible assets
384,993
378,263
Operating lease charges
362,148
235,131
5
Employees

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

2025
2024
Number
Number
Office staff
28
31
Production staff
68
58
Total
96
89

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
3,987,344
3,098,158
Social security costs
482,444
302,322
Pension costs
71,681
58,574
4,541,469
3,459,054
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
297,632
150,825
Company pension contributions to defined contribution schemes
3,142
2,151
300,774
152,976
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
6
Directors' remuneration
(Continued)
Page 21

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024: 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
135,337
73,652
7
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
1,665
11,518
Interest receivable from loans
3,100
-
0
Total income
4,765
11,518
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost
Interest on bank overdrafts and loans
20,172
2,452
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
94,913
405,677
Deferred tax
Origination and reversal of timing differences
71,662
(20,521)
Total tax charge
166,575
385,156
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
9
Taxation
(Continued)
Page 22

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:

2025
2024
£
£
Profit before taxation
304,804
1,165,208
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
76,201
291,302
Tax effect of expenses that are not deductible in determining taxable profit
90,374
6,354
Deferred tax adjustments in respect of prior years
-
0
87,500
Taxation charge for the year
166,575
385,156
10
Dividends
2025
2024
£
£
Final paid
416,879
595,574
11
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2025
3,500,000
280,313
3,780,313
Additions
-
0
49,373
49,373
At 31 December 2025
3,500,000
329,686
3,829,686
Amortisation and impairment
At 1 January 2025
3,004,178
212,039
3,216,217
Amortisation charged for the year
350,000
34,993
384,993
At 31 December 2025
3,354,178
247,032
3,601,210
Carrying amount
At 31 December 2025
145,822
82,654
228,476
At 31 December 2024
495,822
68,274
564,096

The carrying amount of the goodwill above is £145,822 (2024: £495,822). The remaining amortisation period is under one year.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 23
12
Tangible fixed assets
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Office equipment
Property improvements
Total
£
£
£
£
£
£
£
Cost
At 1 January 2025
-
0
1,386,776
234,536
15,000
111,436
161,542
1,909,290
Additions
309,835
254,678
137,978
-
0
13,614
58,796
774,901
Disposals
-
0
-
0
-
0
-
0
(4,736)
-
0
(4,736)
At 31 December 2025
309,835
1,641,454
372,514
15,000
120,314
220,338
2,679,455
Depreciation and impairment
At 1 January 2025
-
0
932,018
166,492
9,768
88,583
160,276
1,357,137
Depreciation charged in the year
-
0
177,361
51,500
1,309
11,981
13,025
255,176
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(4,366)
-
0
(4,366)
At 31 December 2025
-
0
1,109,379
217,992
11,077
96,198
173,301
1,607,947
Carrying amount
At 31 December 2025
309,835
532,075
154,522
3,923
24,116
47,037
1,071,508
At 31 December 2024
-
0
454,758
68,044
5,232
22,853
1,266
552,153
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
12
Tangible fixed assets
(Continued)
Page 24

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Plant and equipment
22,376
29,834
13
Financial instruments
2025
2024
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,879,375
1,846,751
Carrying amount of financial liabilities
Measured at amortised cost
6,992,790
2,534,759
14
Stock
2025
2024
£
£
Stock
4,045,688
2,491,557

A stock impairment provision has been applied totalling £858,383 (2024: £285,426).

15
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
4,736,727
1,757,302
Amounts owed by group undertakings
8,408
54,364
Other debtors
134,240
35,085
Prepayments and accrued income
423,225
107,651
5,302,600
1,954,402
Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 25
16
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
18
1,479,730
-
0
Obligations under finance leases
19
14,070
14,070
Trade creditors
1,901,366
601,843
Amounts owed to group undertakings
25,605
-
0
Corporation tax
94,913
281,969
Other taxation and social security
490,510
236,765
Other creditors
634,762
755,952
Accruals and deferred income
2,933,046
1,145,597
7,574,002
3,036,196
17
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
19
4,211
17,297
18
Loans and overdrafts
2025
2024
£
£
Bank loans
1,288,497
-
0
Bank overdrafts
191,233
-
0
1,479,730
-
0
Payable within one year
1,479,730
-
0
19
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
14,070
14,090
In two to five years
4,211
17,277
18,281
31,367

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 26
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
201,712
139,345
Short term timing differences
(1,981)
(11,276)
199,731
128,069
2025
Movements in the year:
£
Liability at 1 January 2025
128,069
Charge to profit or loss
71,662
Liability at 31 December 2025
199,731

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,681
58,574

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.

22
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
23
Financial commitments, guarantees and contingent liabilities

A debenture in favour of HSBC bank plc has been given by the Company in respect of a trade finance agreement incorporating full title guarantee over a pledge over the goods and absolute assignment over present and future rights as unpaid seller of the goods.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 27
24
Operating lease commitments
As lessee

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

2025
2024
£
£
Within 1 year
122,042
1,846
Years 2-5
503,480
5,539
625,522
7,385
25
Events after the reporting date

On 25 February 2026, the company entered into an invoice discounting facility with HSBC Invoice Finance (UK) Limited. The facility is secured by fixed charges over purchased debts and includes a negative pledge.

26
Related party transactions

During the year the directors incurred expenses on behalf of the Company and the total balance owed by the Company at the year end was £298,897 (2024: £696,299).

The Company operates from two premises, both of which are owned by the directors of the Company. During the year, rent of £270,910 (2024: £229,182) was paid by the Company to directors and additional expenses of £36,762 (2024: £25,885). As at the year end, included in trade creditors was a balance of £8,400 (2024: £nil) due to the directors in respect of these charges.

During the year, the Company made sales of £190,749 (2024: £167,739) to IST Scientific LLP holding a close relationship with the directors. As at the year end, included in trade debtors was a balance of £2,959 (2024: £55,859) due from IST Scientific LLP in respect of these sales.

In addition, during the year the Company incurred charges of £243,146 (2024: £87,998) from IST Scientific LLP. As at the year end, included in trade creditors was a balance of £6,176 (2024: £nil) due to IST Scientific LLP in respect of these charges.

The Company has taken exemption under FRS 102 section 33.1A from disclosing transactions with group companies, on the grounds that each company party to the transactions is wholly owned within the group.

27
Ultimate controlling party

The ultimate and immediate parent company is Polarseal Holdings Limited, a company registered in England and Wales, which is both the smallest and largest group that prepares consolidated accounts. Copies of the group accounts can be obtained from Polarseal Tapes And Conversions, Guildford Road Trading Estate, Farnham, Surrey, United Kingdom, GU9 9PZ.

The directors consider there to be no ultimate individual controlling party.

Polarseal Tapes and Conversions Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2025
Page 28
28
Cash generated from operations
2025
2024
£
£
Profit after taxation
138,229
780,052
Adjustments for:
Taxation charged
166,575
385,156
Finance costs
20,172
2,452
Investment income
(4,765)
(11,518)
(Gain)/loss on disposal of tangible fixed assets
(882)
149
Amortisation and impairment of intangible assets
384,993
378,263
Depreciation and impairment of tangible fixed assets
255,176
192,874
Movements in working capital:
(Increase)/decrease in stock
(1,554,131)
23,619
(Increase)/decrease in debtors
(3,348,198)
1,890,383
Increase/(decrease) in creditors
4,533,629
(1,481,363)
Cash generated from operations
590,798
2,160,067
29
Analysis of changes in net funds/(debt)
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
791,813
(768,332)
23,481
Bank overdrafts
-
0
(191,233)
(191,233)
791,813
(959,565)
(167,752)
Borrowings excluding overdrafts
-
(1,288,497)
(1,288,497)
Lease liabilities
(31,367)
13,086
(18,281)
760,446
(2,234,976)
(1,474,530)
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