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Registration number: 04617783

Network 2 Supplies Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2025

Network 2 Supplies Limited

Contents

Company Information | 1
Strategic Report | 2 to 4
Directors' Report | 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Profit and Loss Account | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Notes to the Financial Statements | 14 to 26

Network 2 Supplies Limited

Company Information

Directors | R Bolton R K Edwards A C T Gomarsall J A Gomarsall N J Razey S Taylor

Registered office | Network House Western Way Bury St Edmunds Suffolk IP33 3SP

Auditors | UHY Ross Brooke Suite I Windrush Court Blacklands Way Abingdon Business Park Abingdon Oxfordshire OX14 1SY

Network 2 Supplies Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the company is the provision of IT and telecommunications services, in particular the recycling of metal waste and related environmental services.

Business Overview

Network 2 Supplies Limited ("n2s") is an industry leader in IT Lifecycle Management with specialist expertise in the sustainability, security and compliance challenges associated with technology. The company’s mission is to redefine the lifecycle of technology pioneering innovations such as in precious metal recovery to achieve circularity in the IT and telecoms sectors. n2s is the first technology lifecycle management provider with expertise in decarbonisation to truly empower SME and large enterprise businesses to deliver and report on their IT sustainability goals.

Objectives and Strategy

Company Objectives:
- To increase revenues by at least 15% year-on-year over the next three years.
- To work in collaboration with strategic partners to supply products and materials for sustainable recycling development projects
- To develop the recycling capabilities of its facility based in the Midlands
- To implement manageable value streams to determine the strengths and weaknesses of the business
- To be the main provider of materials to our group company, Bio scope Technologies Ltd, for onward green refining.
Company Strategy :
To achieve these objectives, n2s is:
- Increasing the operating hours in its facility based in the Midlands to increase the recycling throughput.- ncreasing the manpower deployed in the facility based in the Midlands to increase output
- Improve customer support and post-sale engagement through enhancements to the company’s operational structure.
- Increasing Materials Buying activity through an increase in resource levels.
- Increase revenues through targeted collaborations with Facilities Management companies.

Review of Business

Performance Summary:
Revenues increased to £15.0 million in 2025, compared to £12.8 million in 2024, driven primarily by growth of the company’s existing customer base and the acquisition of strategic partners, which helped to achieve an Operating Profit of £876k in 2025 compared to an Operating Loss of £156k in 2024.
Key Performance Indicators (KPIs):
- Revenue growth: 15%
- Gross profit margin: 39%
- Customer retention rate: 88%
- New business: 12%

Network 2 Supplies Limited

Strategic Report for the Year Ended 31 December 2025

Principal risks and uncertainties

Risk |  | Description |  | Mitigation
Supply Chain Disruption |  | Increased lead times for international deliveries |  | Increased upfront payment and improved insurance policy
Regulatory Changes |  | Environment Agency permit issuance |  | Work closely with local authorities to ensure compliance
Cybersecurity |  | Data breaches or ransomware attacks |  | Upgraded IT systems, regular staff training, external audits

Environmental, Social and Governance (ESG)

Environmental:
The company reduced its carbon emissions year-on-year by switching to renewable energy at all its facilities.
Social:
The company actively engaged in supporting its customers to deliver technology resource to under-privileged children. The company increased its charitable donations in 2025 and is currently in the process of setting up a Charity Committee to diversify the recipients of its donations.
Governance:
A very strong working relationship exists between the Senior Leadership Team and the Board of Directors through daily communication and holding monthly Board meetings.
Future Outlook
The company will focus its sales and marketing teams on securing business in the data decommissioning sector in search of further growth. In addition, expansion of its facility in the Midlands will increase its hours of operation to boost revenues.
Investments planned for 2026 include further upgrades to site security and enhanced management systems for HR, Finance and Operations to enable efficiencies to be realised.

Network 2 Supplies Limited

Strategic Report for the Year Ended 31 December 2025

Section 172(1) statement

The directors of Network 2 Supplies Limited have acted in good faith to promote the success of the company for the benefit of its members, and in doing so have considered:
Long-term impact : All major decisions, including investment in automation and expansion, are assessed for long-term financial and environmental sustainability.
Employees: Regular town-hall meetings and anonymous surveys are used to engage employees and shape HR policy.
Business relationships: Strategic partnerships with key customers are nurtured through quarterly reviews and shared KPIs.
High standards of conduct : Regular review and update of Code of Conduct and whistleblowing policies.

Approved and authorised by the Board on 30 April 2026 and signed on its behalf by:

......................................... S Taylor Director

Network 2 Supplies Limited

Directors' Report for the Year Ended 31 December 2025

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

Directors of the company

The directors who held office during the year were as follows:

R Bolton

R K Edwards

A C T Gomarsall

J A Gomarsall

N J Razey

S Taylor

Dividends

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

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 30 April 2026 and signed on its behalf by:

......................................... S Taylor Director

Network 2 Supplies Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

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

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

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

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

Network 2 Supplies Limited

Independent Auditor's Report to the Members of Network 2 Supplies Limited

Opinion

We have audited the financial statements of Network 2 Supplies Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Network 2 Supplies Limited

Independent Auditor's Report to the Members of Network 2 Supplies Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and 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 our 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 and the Directors' Report.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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.

Auditor 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.

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

Network 2 Supplies Limited

Independent Auditor's Report to the Members of Network 2 Supplies Limited

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our cumulative audit and commercial knowledge and experience of the company and the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Taxation Legislation, General Data Protection Rules (GDPR), Anti-Bribery Act, Employment Law and Health & Safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and analysing legal costs to ascertain if there have been instances of non-compliance with laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Network 2 Supplies Limited

Independent Auditor's Report to the Members of Network 2 Supplies 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 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.

......................................
Caroline Webster FCA (Senior Statutory Auditor)
For and on behalf of UHY Ross Brooke, Statutory Auditor
Suite I Windrush Court
Blacklands Way
Abingdon Business Park
Abingdon
Oxfordshire
OX14 1SY

12 May 2026

Network 2 Supplies Limited

Profit and Loss Account for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 14,976,251 | 12,791,566
Cost of sales |  | (9,239,621) | (7,905,206)
Gross profit |  | 5,736,630 | 4,886,360
Exceptional items | 6 | (268,411) | (160,376)
Administrative expenses |  | (4,740,982) | (5,010,970)
Other operating income | 4 | 148,440 | 128,697
Operating profit/(loss) | 5 | 875,677 | (156,289)
Interest payable and similar expenses | 7 | (73,855) | (71,045)
Profit/(loss) before tax |  | 801,822 | (227,334)
Tax on profit/(loss) | 11 | (127,915) | 39,911
Profit/(loss) for the financial year |  | 673,907 | (187,423)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Network 2 Supplies Limited

(Registration number: 04617783)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 1,125,688 | 1,193,817
Current assets |  |  |
Stocks | 13 | 240,433 | 213,076
Debtors | 14 | 3,631,955 | 2,972,639
Cash at bank and in hand |  | 1,344,163 | 345,986
|  | 5,216,551 | 3,531,701
Creditors: Amounts falling due within one year | 16 | (4,171,341) | (3,175,270)
Net current assets |  | 1,045,210 | 356,431
Total assets less current liabilities |  | 2,170,898 | 1,550,248
Creditors: Amounts falling due after more than one year | 16 | (3,851) | (57,119)
Provisions for liabilities | 18 | (198,740) | (198,729)
Net assets |  | 1,968,307 | 1,294,400
Capital and reserves |  |  |
Called up share capital |  | 10 | 10
Retained earnings |  | 1,968,297 | 1,294,390
Shareholders' funds |  | 1,968,307 | 1,294,400

Approved and authorised by the Board on 30 April 2026 and signed on its behalf by:

......................................... S Taylor Director

Network 2 Supplies Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Share capital £ | Retained earnings £ | Total £
At 1 January 2024 | 10 | 1,481,813 | 1,481,823
Loss for the year | - | (187,423) | (187,423)
At 31 December 2024 | 10 | 1,294,390 | 1,294,400

| Share capital £ | Retained earnings £ | Total £
At 1 January 2025 | 10 | 1,294,390 | 1,294,400
Profit for the year | - | 673,907 | 673,907
At 31 December 2025 | 10 | 1,968,297 | 1,968,307

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Network House
Western Way
Bury St Edmunds
Suffolk
IP33 3SP

These financial statements were authorised for issue by the Board on 30 April 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

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 Section 7 Statement of Cash Flows.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group..

Going concern

The financial statements have been prepared on a going concern basis. After reviewing financial projections, liquidity, risk assessments, and available funding, management concludes:
The Company has adequate resources to continue operating for at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Judgements

No significant judgements have had to be made by management in preparing these financial statements.

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below:
(i) Impairment of debtors - £0.8m (2024: £1.4m)
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
(ii) Accrued income - £1.2m (2024: £0.5m)
The company’s revenue policies (set out in revenue recognition policy below) are fundamental to how the Company values the work it has carried out in each reporting period. Management will still use their judgement to set an estimated sales price based on market conditions as at the year-end date. The expected metal yield (recovery percentage) is estimated based on historical data for similar product grades processed by the company.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover represents the sales value of work completed at the balance sheet date excluding VAT. The Company's contractual obligations are performed over time therefore revenue is recognised as the contract activity progresses to reflect the Company's partial performance of its contractual obligations. Revenue is calculated by reference to the value of work performed.
Turnover from metal recovery and recycling services is recognised when the significant risks and rewards of ownership of the processed materials have passed to the buyer.

Foreign currency transactions and balances

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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.

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Tax

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 balance sheet date.

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

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Leasehold property costs | 10% on cost
Plant and machinery | 10 - 25% on reducing balance
Equipment | 15% on reducing balance
Motor vehicles | 25% on reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Scarp Materials
This is weighed at year-end and a conservative scrap material price is used based on the current London Metal Exchange prices.
Resale Stock
This is second hand computer equipment for resale. The second hand computer equipment market can have variable prices due to demand and management use their judgement to set an estimated sales prices based on market conditions as at the year-end date. Then 25% of this is taken as the deemed purchase price for stock which is generally obtained from site clearances.
Any purchased stock is shown at the lower of cost and net realisable value.
Any items which become obsolete due to advances in technology are written down on a quarterly basis.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3 | Turnover

The analysis of the company's Turnover for the year by geographical market is as follows:

| 2025 £ | 2024 £
UK | 8,454,909 | 10,360,869
Europe | 990,305 | 383,747
Rest of world | 5,531,037 | 2,046,950
| 14,976,251 | 12,791,566

4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Government grants | - | 273
Rental income | 148,440 | 127,101
Miscellaneous other operating income | - | 1,323
| 148,440 | 128,697

5 | Operating profit/(loss)

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 280,999 | 294,169
Foreign exchange losses | 3,739 | -
Profit on disposal of property, plant and equipment | (4,089) | (8,549)

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

6 | Exceptional items

The exceptional items disclosed relate to development costs, pre 2025 historic waste disposal and exceptional employment costs.

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on obligations under finance leases and hire purchase contracts | 16,062 | 19,691
Interest expense on other finance liabilities | 57,793 | 51,354
| 73,855 | 71,045

8 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,856,314 | 3,992,190
Social security costs | 407,402 | 411,944
Other short-term employee benefits | 24,143 | 21,283
Pension costs, defined contribution scheme | 124,894 | 184,901
Other employee expense | 66,303 | 38,450
| 4,479,056 | 4,648,768

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Direct | 66 | 75
Sales | 3 | 4
Administration and management | 24 | 36
| 93 | 115

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

9 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 443,285 | 572,900
Contributions paid to money purchase schemes | 8,702 | 54,026
| 451,987 | 626,926

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 271,183 | 200,077
Company contributions to money purchase pension schemes | 6,500 | 10,677

10 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 30,000 | 26,731

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

11 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 127,904 | -
Deferred taxation |  |
Arising from origination and reversal of timing differences | 11 | (39,911)
Tax expense/(receipt) in the income statement | 127,915 | (39,911)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit/(loss) before tax | 801,822 | (227,334)
Corporation tax at standard rate | 200,456 | (56,834)
Tax increase/(decrease) from effect of capital allowances and depreciation | 21,687 | (7,671)
Effect of expense not deductible in determining taxable profit (tax loss) | 3,885 | 13,200
Tax decrease arising from group relief | (19,197) | -
(Decrease)/increase in UK and foreign current tax from unrecognised tax loss or credit | (78,927) | 51,305
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period | 11 | (39,911)
Total tax charge/(credit) | 127,915 | (39,911)

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

12 | Tangible assets

| Leasehold property costs £ | Plant and machinery £ | Equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 January 2025 | 391,814 | 1,076,257 | 200,924 | 845,298 | 2,514,293
Additions | 40,111 | 101,645 | 50,571 | 45,276 | 237,603
Disposals | - | - | - | (133,090) | (133,090)
At 31 December 2025 | 431,925 | 1,177,902 | 251,495 | 757,484 | 2,618,806
Depreciation
At 1 January 2025 | 89,188 | 673,301 | 65,131 | 492,856 | 1,320,476
Charge for the year | 37,542 | 118,587 | 37,564 | 87,306 | 280,999
Eliminated on disposal | - | - | - | (108,357) | (108,357)
At 31 December 2025 | 126,730 | 791,888 | 102,695 | 471,805 | 1,493,118
Carrying amount
At 31 December 2025 | 305,195 | 386,014 | 148,800 | 285,679 | 1,125,688
At 31 December 2024 | 302,626 | 402,956 | 135,793 | 352,442 | 1,193,817

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Leasehold property costs | 28,096 | 31,801
Plant and machinery | 42,996 | 107,632
Motor vehicles | 164,020 | 225,092
| 235,112 | 364,525

13 | Stocks

| 2025 £ | 2024 £
Stocks | 240,433 | 213,076

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

14 | Debtors

| 2025 £ | 2024 £
Trade debtors | 792,350 | 1,387,632
Amounts owed by intercompany undertakings | 1,012,972 | 502,853
Other debtors | 104,582 | 140,613
Prepayments | 328,471 | 313,807
Accrued income | 1,192,938 | 541,431
VAT | 200,642 | 86,303
| 3,631,955 | 2,972,639

15 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank | 1,344,163 | 345,986

16 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 17 | 99,152 | 136,713
Trade creditors |  | 1,312,072 | 1,253,594
Social security and other taxes |  | 109,343 | 104,913
Other payables |  | - | 38,208
Accruals |  | 1,893,350 | 853,018
Income tax liability | 11 | 127,904 | -
Deferred income |  | 45,795 | 25,481
Directors' current accounts |  | 583,725 | 763,343
|  | 4,171,341 | 3,175,270
Due after one year |  |  |
Loans and borrowings | 17 | 3,851 | 57,119

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

17 | Loans and borrowings

Non-current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | 3,851 | 57,119

Current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | 99,152 | 136,713

The hire purchase contracts and finance leases are secured on the underlying assets.

18 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 January 2025 | 198,729 | 198,729
Increase (decrease) in existing provisions | 11 | 11
At 31 December 2025 | 198,740 | 198,740

19 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £124,894 (2024 - £184,901).

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

20 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary of £1 each | 10 | 10 | 10 | 10

21 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 667,331 | 741,691
Later than one year and not later than five years | 280,058 | 697,988
| 947,389 | 1,439,679

22 | Related party transactions

Transactions with directors

2025 | At 1 January 2025 £ | Amounts advanced £ | Amounts repaid £ | At 31 December 2025 £
A C T Gomarsall
| - | 8,842 | (8,842) | -
J A Gomarsall
| - | 1,909 | (1,909) | -

Network 2 Supplies Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

2024 | At 1 January 2024 £ | Amounts advanced £ | Amounts repaid £ | At 31 December 2024 £
A C T Gomarsall
| - | 2,634 | (2,634) | -
J A Gomarsall
| 585 | 3,273 | (3,858) | -

Mr J A Gomarsall

The premises from which the company trades was acquired by J A Gomarsall and M Fennings, a former director of the immediate parent company, during 2012. The company has a fifteen year lease with a current rent of £242,599 per annum. During the year the total rent paid to J A Gomarsall and M Fennings was £242,599 (2024: £242,599). At the year end £0 (2024: £40,417) is unpaid.
J A Gomarsall had a loan with the company. At the balance sheet date a balance of £57,330 (2024:£51,788) was owed to J A Gomarsall. The loan is unsecured.
Interest of £5,543 at a rate of 7.25% was paid on the loan

Mr N J Razey

N J Razey had a loan with the company. At the balance sheet date a balance of £222,149 (2024:£207,121) was owed to N J Razey. The loan is unsecured.
Interest of £15,028 at a rate of 7.25% was paid on the loan

Mr S Taylor

S Taylor had a loan with the company. During the year £267,264 was repaid. At the balance sheet date a balance of £304,246 (2024:£545,132) was owed to S Taylor. The loan is unsecured.
Interest of £31,429 at a rate of 7.25% was paid on the loan.

Mr R K Edwards

During the year charges of £14,143 have been made by Ezro Limited which has a director and shareholder in common. £658 was outstanding at the year end.

23 | Parent and ultimate parent undertaking

The company's immediate parent is Bio Scope 3 Ltd, incorporated in England and Wales.
The ultimate parent is Bio Scope 3 Ltd, incorporated in England and Wales.
These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.