The director presents the strategic report for the year ended 31 December 2025.

Throughout 2025, the company continued to prioritise its strategic commitment to serving clients in premium office settings, by providing exceptional facilities management services. This dedication led to significant organic expansion, as turnover increased by £7.8m - from £42.7m to £50.5m - driven by deepening existing client relationships and new client wins.

The company maintained a strong gross profit margin of 16.8%, demonstrating the ongoing strength of its business model. Profit before tax for the year totalled £3.6m (up from £3.2m in 2024). Net assets were recorded at £0.9m at year-end, following a dividend payout of £4.3m in 2025 (compared to £5.9m in 2024). This retention of net assets underscores the company’s solid financial standing and its ability to remain resilient.

The financial health and credit ratings of clients were carefully monitored throughout the year to ensure ongoing creditworthiness. Clients consistently paid on time and maintained robust positions within their respective industries.

Anabas remains dedicated to its core strategy of delivering high-quality facilities management services to clients in premium corporate offices throughout the UK. By operating across a broad range of sectors, including Financial Services, Insurance, Media, Automotive, Advertising, and Pharmaceuticals, and supporting the headquarters of leading global brands, the company has firmly established its reputation as a trusted partner within the industry.

The company’s comprehensive service portfolio includes cleaning, security, building maintenance, catering, landscaping, office management, and customised solutions designed to meet unique client needs. Most services are delivered directly by Anabas employees, fostering a unified organisational culture. This approach is reinforced by thorough customer service training programmes, ensuring consistent quality and reliability for every client engagement.

Anabas places the utmost importance on cultivating strong and lasting client relationships, viewing them as the cornerstone of the company’s ongoing resilience and success. This strategic priority has consistently shaped the company’s approach, ensuring that client satisfaction and partnership remain central to every aspect of its operations.

Moving forward, Anabas will continue to uphold its proven strategy by focusing on nurturing these vital client connections, alongside fostering employee engagement and investing in innovative solutions to meet evolving market demands.

Recognising the dynamic needs of our clients, Anabas continues to invest in innovative technology solutions to adapt to changes in the world of facilities management and enhance the value provided to clients over time.

This forward-looking strategy underscores the company's commitment to operational excellence and long-term success, blending traditional service quality with cutting-edge advancements to remain at the forefront of the industry.

Anabas remains committed to sustainable growth by nurturing strong, long-term partnerships with existing clients and purposefully expanding its client portfolio. Reflecting leading practices among major facilities management companies, Anabas is emphasising organic growth—strengthening relationships with current clients to uncover new service opportunities, while also actively seeking new business to extend its market reach.

Looking ahead to 2026, the company will focus on refining and modernising systems across all business functions.

By investing in advanced technologies and improving processes, the company aims to boost efficiency for its teams, elevate service standards, and deliver even greater value for clients. This forward-thinking strategy is designed to ensure Anabas stays agile and resilient in a rapidly changing market.

High employee engagement remains central to Anabas’s strategy, as a motivated and skilled workforce is vital for delivering excellent service and building trusted client relationships. By proactively responding to the evolving needs of the industry and adopting best-in-class solutions, Anabas is well placed to maintain its growth trajectory and uphold its reputation for excellence in facilities management.

Client Retention: 2025 saw Anabas deliver a 99.5% client retention level. Our KPI target was 95%.

Health & Safety: Accident Performance

For the second year running, Anabas has continued to record a 25% reduction in accident frequency, exceeding the 2025 target by 15%.

The 25% reduction in accident frequency was achieved through increased hazard reporting (a rise of 32%), greater SLT visibility, targeted toolbox talks, improved manual‑handling training and proactive close‑out of safety actions.

Employee Engagement: Our 2025 Employee Engagement survey had a response rate of 65% with an overall engagement score of 82%, against our KPI target of 85% which was a slight decrease on the exceptional 2024 results (88%). We firmly believe these high engagement levels remain vital to delivering great service to our clients and continue to listen to the feedback provided by our teams.

Our strategy remains steadfast: we continue to excel by focusing exclusively on serving private sector office occupiers. Throughout the year, Anabas has maintained its core approach; investing in our people, nurturing strong client relationships, and paying attention to the details that make a difference. This unwavering commitment enables us to deliver seamless, worry-free experiences for our clients every day, as we handle the intricacies that allow them to focus on their business with confidence.

As highlighted above, we have consistently grown while holding true to our core strategy - organic growth through deepening relationships, prioritising client retention, and cultivating advocacy. Our focus remains on the high-end private sector corporate office market, where our commitment to a five-star experience and meticulous attention to detail sets us apart. This singular focus gives us a deep understanding of the office environment and enables us to apply best practices for clients who value our expertise.

As businesses continue to encourage/mandate a return to the office and place renewed emphasis on in-person collaboration and employee development, Anabas remains a trusted partner. Our expertise in enhancing workplace experiences aligns perfectly with this shift, supporting our clients as they adapt and thrive in evolving office environments.

Looking ahead, our commitment is clear: we will continue to build on our proven strategy and focus, delivering tailored, high-quality service to the premium office sector. By investing in our staff and never losing sight of the small details, Anabas is there to take care of everything that matters.

The Directors have proactively identified the principal risks and uncertainties facing the business and have implemented robust strategies to manage and mitigate these challenges. Our strong risk management approach ensures we remain resilient and well-positioned to respond effectively to any emerging issues.

Economic & Market Conditions

Risk: Changes in economic conditions, inflationary pressures, and fluctuations in demand for FM services could impact revenue and profitability.

Mitigation: The company maintains a diverse client base across multiple sectors and actively monitors market trends to adjust its service offerings accordingly.

Cost Inflation & Supply Chain Disruptions

Risk: Ongoing cost pressures on labour and materials, coupled with supply chain challenges could affect the consistency and quality of service delivery. Volatile market conditions also increase the risk of delays or availability issues for sourcing essential materials.

Mitigation: Demonstrating our ongoing commitment to service excellence, our dedicated procurement team continue to build supplier relationships, ensures the correct sourcing of materials, robustly challenges price increases, and secures universal rates to maintain continuity of supply. Through effective negotiation, strategic supplier partnerships, and continuous review of sourcing strategies, we reinforce our ability to deliver reliable, high-quality service for our clients.

Labour Availability and Retention

Risk: The facilities management sector relies on attracting and retaining outstanding talent to deliver quality service, and is impacted by a range of external factors influencing workforce availability and cost.

Mitigation: Investment in workforce planning, offering training and development opportunities, launching employee engagement programs, and implementing proactive recruitment strategies through talent pools.

Regulatory & Compliance Risks

Risk: The FM sector is subject to health & safety, environmental, employment, and data protection regulations. Non-compliance could result in legal and financial penalties.

Mitigation: The company maintains robust compliance frameworks, regular training, and independent audits to ensure full regulatory adherence.

Health, Safety, Environmental (HSE) and Compliance Risks

Risk: FM services involve risks of workplace accidents, environmental issues, and non-compliance with regulations, potentially causing reputational or legal consequences.

Mitigation: The company prioritises HSE and risk management by:

• Using the Assure system to monitor incidents and share best practices.

• Promoting a proactive safety culture with hazard reporting and training.

• Conducting regular assessments and audits to prevent escalation.

• Maintaining compliance through ongoing training and adherence to industry standards.

Contractual & Operational Risks

Risk: The company relies on long-term contracts with clients. Contract disputes, poor service performance, or early contract terminations could impact revenue.

Mitigation: Strong contract management processes, regular performance reviews, continued client feedback requests and open client communication help maintain strong relationships.

Cybersecurity & Data Protection

Risk: Increased reliance on digital systems and data management exposes the company to risks associated with system failures, cyber-attacks, and data breaches. Such events could disrupt operations and damage client trust.

Mitigation: The company utilises a Managed Security Operations Centre (SOC) for 24/7 monitoring and rapid threat response. This dedicated team uses advanced tools and threat intelligence to detect vulnerabilities, manage incidents, and ensure regulatory compliance, minimising cyber risks and protecting sensitive data.

Additionally, our in-house team and managed service provider maintain strong IT security measures—such as firewalls, encryption, and multi-factor authentication—and regularly train employees with cybersecurity sessions and simulated phishing attacks to strengthen awareness and defences.

I am aware of my "Section 172" duty to promote the success of the business. In promoting the success of the company I consider long term consequences and seek to act fairly, balancing the interests of customers, shareholders, employees, suppliers, business partners and others as detailed below.

The company recognises that its employees are fundamental to its success and is committed to fostering an inclusive, supportive, and engaging workplace. Throughout the year, we have taken steps to promote:

• Employee Engagement: Regular communication is maintained through staff meetings, surveys, and one-on-one discussions to ensure employees feel valued and heard.

• Well-being Initiatives: Employee well-being remains a priority, with access to mental health support and wellness programs which is accessible to all of our staff, and their immediate family members, in the strictest of confidence.

• Monthly Business Update: The Managing Director hosts a monthly call to share key performance metrics, project highlights, and strategic initiatives with staff. This helps promote transparency, boost engagement, and keep everyone aligned with company goals.

• Back to the Floor Days: Management actively shadows frontline employees for a day to experience their daily challenges, gain first-hand insight into operational pain points, and foster empathy. Following this, managers prepare reports on actionable improvements - addressing any difficulties and enhancing support for staff - so we can strengthen our service lines for clients and create a more engaging, responsive workplace.

• Recognition Awards: We promote small decency awards throughout the Company, recognising that small decencies lead to great experiences. Each month, our Managing Director selects a "star of the month" during the business update call, and the most exceptional employee is honoured with the "star of the year" award!

During 2025 Anabas continued to strengthen its Environmental, Social and Governance performance, with measurable progress across carbon reduction, workforce engagement, health and safety, responsible procurement and external assurance. The business remains focused on embedding ESG into day-to-day operations, supporting clients’ sustainability objectives and maintaining the high standards expected within premium corporate workplace facilities management.

The company actively engages with key stakeholders to build strong, sustainable relationships:

• Suppliers: We prioritise collaboration with environmentally responsible suppliers, reinforcing our commitment to sustainability and ethical sourcing.

• Customers: Regular feedback mechanisms help us understand client needs, enhance service delivery, and ensure customer satisfaction.

• Regulators & Industry Bodies: The company remains compliant with relevant laws and regulations, engaging proactively with regulators and industry organisations to uphold best practices.

By maintaining open communication and fostering strong relationships with employees, customers, suppliers, and regulatory bodies, the company continues to create a sustainable and responsible business environment.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 December 2025.

The company is a facilities management company operating across the UK, focused on the corporate office environment.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £4.3m (2024: The dividend to the parent company was £5.6m, with total dividends of £5.9m). The director does not recommend payment of a final dividend.

During the financial year, the Board was led by Alistair Craig, who continues to serve as the Company Director.

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

Regular communication is maintained through staff meetings, surveys, and one-on-one discussions to ensure employees feel valued and heard.

In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2025 to 31 December 2025, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’, using DESNZ's conversion factors as applicable. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover.

Environmental Stewardship:

Anabas has made significant strides in enhancing environmental stewardship by expanding the use of renewable energy sources and reducing its carbon footprint.

The company has implemented an ongoing energy audit program to identify opportunities for optimizing energy consumption and has taken proactive steps to implement energy-saving measures across all facilities. 

Energy Management:

Anabas continues to promote energy-efficient technologies at client sites, providing employee training and conducting energy-efficient audits.

The company supports clients in implementing energy-efficient technologies, with metrics such as energy consumption per square foot and percentage reduction in energy consumption being monitored to assess progress. Anabas continues to enhance its data collection on natural gas usage at its head office, resulting in reported Scope 1 emissions of 3.60 tonnes of carbon dioxide equivalent (tCO2e) . The head office in Darlington is powered by an entirely renewable source tariff for electricity.

Carbon Emissions Reduction:

Anabas is dedicated to reducing carbon emissions through its commitment to the Science-Based Targets Initiative (SBTi). The company has taken important steps such as developing and utilising toolkits to measure Scope 3 emissions, analysing business travel mileage, and collaborating with supply chain partners to collect their Scope 3 emissions data. To further support greenhouse gas reduction, Anabas offers employees environmentally friendly transport options, including an electric car programme and the Cycle to Work scheme. In addition, the company has partnered with a consultant to advance its sustainability goals.

Energy Efficiency and Compliance:

Anabas has fulfilled its obligations under the Energy Savings Opportunity Scheme (ESOS) by successfully completing and submitting its Phase 3 report to the Environment Agency. The company remains committed to advancing its energy performance and environmental responsibility, as demonstrated by ongoing efforts toward Phase 4 and its focus on continuous improvement.

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

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

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

The director is 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. He is 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.

We have audited the financial statements of Anabas (UK 2) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of income and retained earnings, the balance sheet 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 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 financial statements are authorised for issue.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

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

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

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

• certain disclosures of director's remuneration specified by law are not made; or

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

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

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

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 principal 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 commercial knowledge and experience of the facilities management 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 and data protection, anti-bribery, employment, environmental and health and 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;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

• understanding the design of the company’s remuneration policies.

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;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; 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;

• reading the packs provided to those charged with governance during monthly meetings;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Anabas (UK 2) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Pioneer Court, Darlington, Co Durham, DL1 4WD.

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 amounts 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.

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

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Sofinord, a company incorporated in France. Copies of consolidated financial statements can be obtained from the Company Secretary at 2 rue du Capitaine Scott, 75015 Paris, France.

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

Turnover represents the value of services provided under contracts to the extent that there is a right to consideration. Turnover is recorded at the value of the consideration due and is stated after trade discounts and net of VAT. Where a contract has only been partially completed at the balance sheet date turnover represents the value of the service provided to date based on a proportion of the total expected consideration at completion. Where payments are received from customers in advance of services provided, the amounts are recorded as 'Deferred income' and included as part of 'Creditors due within one year'.

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

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

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

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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

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

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

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 leases asset are consumed.

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.

In the application of the company’s accounting policies, the director is 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.

An analysis of the company's turnover is as follows:

All of the company's turnover derives from UK activities.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

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:

Amounts owed by group undertakings are repayable on demand and bear interest at 0.80% above the EURIBOR 3 month rate.

Amounts owed to group undertakings are unsecured and repayable on demand.

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

The 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.

Included in other creditors are amounts totalling £nil (2024: £105,003) owing in respect of pension contributions.

The company has one class of ordinary shares which carry full voting rights, full rights to distributions and are non redeemable.

Capital redemption reserve

Includes amounts arising from the redemption or purchase of the company's own shares

Profit and loss reserves

Includes all current and prior period retained profits and losses

The company leases the premises from which it operates.

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:

The company has taken advantage of the exemption, as provided by paragraph 33.1A of FRS102 and does not disclose transactions with members of the same group that are wholly owned.

The company is a subsidiary of Armonia UK Holdings Limited.

The ultimate parent undertaking, smallest and largest group to consolidate these financial statements is Sofinord, a company incorporated in France. Copies of consolidated financial statements can be obtained from the Company Secretary at 2 rue du Capitaine Scott, 75015 Paris, France.

The ultimate controlling party is Patrick Thelot.

The company has exposures to two main areas of risk: loss of a key customer and customer credit risk.

Loss of a key customer

The company mitigates the risk of losing a key customer through delivery of a high quality service on a multi-year contract, with a typical contract length of between two and five years.

Customer credit risk

The company typically offers credit terms to its customers which allow payment of the trade receivable after delivery of the goods or performance of the services. The company is at risk to the extent that a customer may be unable to pay the receivable on the specified due date. To minimise this risk the company has a policy of only dealing with customers who have demonstrated creditworthiness. To determine creditworthiness the company makes use of independent rating agencies, other publicly available information and its own trading records.