REGISTERED NUMBER: 07155029 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

ALLWOOD RECYCLING SOLUTIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Income and Retained Earnings

10

Statement of Financial Position

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

15

DIRECTORS:

R Collins

G Ebery

P Hodgkiss

M T Gibson

REGISTERED OFFICE:

Suite 33 Lowry Mill Lees Street

Swinton

Manchester

M27 6DB

REGISTERED NUMBER:

07155029 (England and Wales)

AUDITORS:

TGFP

Chartered Accountants & Statutory Auditors

Fulford House

Newbold Terrace

Leamington Spa

Warwickshire

CV32 4EA

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

REVIEW OF BUSINESS

We help organisations of all sizes and niches to recycle as much as possible by offering bespoke recycling solutions to ensure the most sustainable and cost-effective outcome for all involved. We provide a tailored waste management service to include (but not limited to):

- On-site assistance - our trained operatives work on site to sort and segregate all waste streams.

- Swift collections - courtesy of our nationwide network of reliable carriers, we are able to provide speedy collections to all our clients.

- Stand trailer supply - we supply stand trailers for the transportation of goods.

- Complete waste management - services that are designed specifically for our clients.

For the 12 months ended December 2025 turnover was £24.5m (2024: £20.8m) increased activity and new clients has contributed to a higher turnover with gross margins remaining largely consistent with previous years.

The outlook for the coming year is very positive, the business continues to grow organically with new contracts being won post year end.

PRINCIPAL RISKS AND UNCERTAINTIES

Credit Risk

Credit risk relates to operating activities and the risk that customers do not pay, this risk is managed by the external rating of credit limits and the robust monitoring of debtors. The Company is in a strong financial position with sufficient cash reserves available and finances its operations through retained earnings.

Economic Risk

Commodities such as scrap metal, cardboard and recycled plastics are subject to world supply and demand which impacts prices. The Company has a wide variety of outlets for the material which allows for alignment of global commodity pricing.

Regulatory Risk

Regulation constantly changes that affects the waste and recycling sectors. The Company mitigates the risk by maintaining the highest standards with our certifications to IS9001 Quality Management Systems, ISO14001 Environmental Management Systems, ISO45001 Occupational Health and Safety Systems, ISO27001 Information Security Systems and Safe Contractor status. We are also a CIWM Affiliated member.

Reputational Risk

We pride ourselves on providing effective, cost-efficient and responsible waste and recycling services nationwide. Factors adversely affecting our reputation would be detrimental to trade, we mitigate the risk in a number of ways; a) employing the right staff, b) training all our staff by using CIWM waste awareness training courses, c) ensuring the correct resources are deployed, and, d) continuous review and improvement of the services we offer.

KEY PERFORMANCE INDICATORS

The Directors and Senior Management Team review financial performance each month, including turnover, costs, profit and client performance. Debtors and creditors are reviewed regularly along with cashflow projections.

Staff training and performance are actively monitored to ensure our workforce are able to provide the best service possible.

POST PERIOD CHANGE

On the 31st January 2026, 100% of the share capital of Allwood Recycling Solutions was acquired by Papilo Ltd. Papilo is a total waste management company that provides waste management services, environmental impact reporting and works with customers to move waste up the waste hierarchy and reduce their carbon footprint.

The acquisition significantly strengthens Papilo's market position and service capabilities, creating a combined group with c£60m in revenues, an experienced team of over 200 employees and diversifies the portfolio of waste materials management. Allwood will come under the Papilo brand as contracts are transitioned through a managed integration process.

ON BEHALF OF THE BOARD:

R Collins - Director

22 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of waste management and recycling services.

DIVIDENDS

Details of dividends paid in the year are disclosed in note 7.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

R Collins , G Ebery , P Hodgkiss and M T Gibson were appointed as directors after 31 December 2025 but prior to the date of this report.

D Wheeler , M Wheeler and A G Milne ceased to be directors after 31 December 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The business' principal financial instruments comprise bank balances, insurance debtors, insurance creditors and other creditors. The main purpose of these instruments is to finance the business' operations.

Debtors are managed in respect of credit risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

STRATEGIC REPORT

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report)

Regulations 2013, the company has prepared a Strategic Report, which includes information that would have

previously been included in the Directors' Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, TGFP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Collins - Director

22 May 2026

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We have considered how irregularities, including fraud, can be detected in this business and how they may occur.

To mitigate these risks we have carried out the following risk assessment procedures:

- Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

- Performing analytical review procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- Testing of journal entries throughout the year and post year end which met a defined risk criteria.

In respect of non- compliance with laws and regulations we have carried out the following enquiries:

- Review of correspondence with tax authorities for any instances of non-compliance with tax laws and regulations;

- Reviewing the financial statements disclosures and agreeing to supporting documentation

- Review of legal expenditure and understanding the nature of expenditure incurred.

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

Use of our report

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

BENJAMIN R REYNOLDS (Senior Statutory Auditor)

for and on behalf of TGFP

Chartered Accountants & Statutory Auditors

Fulford House

Newbold Terrace

Leamington Spa

Warwickshire

CV32 4EA

22 May 2026

TURNOVER

24,511,271

20,792,283

Cost of sales

19,761,362

16,685,374

GROSS PROFIT

4,749,909

4,106,909

Administrative expenses

1,953,668

1,746,181

OPERATING PROFIT

4

2,796,241

2,360,728

Interest receivable and similar income

17,137

53,987

2,813,378

2,414,715

Interest payable and similar expenses

5

47,252

4,181

PROFIT BEFORE TAXATION

2,766,126

2,410,534

Tax on profit

6

711,001

616,271

PROFIT FOR THE FINANCIAL YEAR

2,055,125

1,794,263

Retained earnings at beginning of year

4,027,806

3,233,543

Dividends

7

(500,000

)

(1,000,000

)

RETAINED EARNINGS AT END OF YEAR

5,582,931

4,027,806

FIXED ASSETS

Tangible assets

8

1,749,427

1,466,050

CURRENT ASSETS

Debtors

9

4,748,891

3,817,937

Cash at bank and in hand

1,935,327

1,646,805

6,684,218

5,464,742

CREDITORS

Amounts falling due within one year

10

2,607,913

2,685,027

NET CURRENT ASSETS

4,076,305

2,779,715

TOTAL ASSETS LESS CURRENT LIABILITIES

5,825,732

4,245,765

CREDITORS

Amounts falling due after more than one year

11

(45,997

)

(62,397

)

PROVISIONS FOR LIABILITIES

15

(196,802

)

(155,560

)

NET ASSETS

5,582,933

4,027,808

CAPITAL AND RESERVES

Called up and paid share capital

16

2

2

Retained earnings

17

5,582,931

4,027,806

SHAREHOLDERS' FUNDS

5,582,933

4,027,808

The financial statements were approved by the Board of Directors and authorised for issue on 22 May 2026 and were signed on its behalf by:

R Collins - Director

Cash flows from operating activities

Cash generated from operations

1

2,398,420

2,211,716

Interest paid

(41,597

)

-

Interest element of hire purchase payments paid

(5,655

)

(4,181

)

Tax paid

(1,056,534

)

(283,705

)

Taxation refund

19,560

-

Net cash from operating activities

1,314,194

1,923,830

Cash flows from investing activities

Purchase of tangible fixed assets

(526,898

)

(564,176

)

Interest received

17,137

53,987

Net cash from investing activities

(509,761

)

(510,189

)

Cash flows from financing activities

Capital repayments in year

(16,400

)

(17,940

)

Amount introduced by directors

489

-

Amount reimbursed to directors

-

(2,915

)

Equity dividends paid

(500,000

)

(1,000,000

)

Net cash from financing activities

(515,911

)

(1,020,855

)

Increase in cash and cash equivalents

288,522

392,786

Cash and cash equivalents at beginning of year

2

1,646,805

1,254,019

Cash and cash equivalents at end of year

2

1,935,327

1,646,805

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

2025

2024

£

£

Profit before taxation

2,766,126

2,410,534

Depreciation charges

243,521

215,034

Loss on disposal of fixed assets

-

770

Finance costs

47,252

4,181

Finance income

(17,137

)

(53,987

)

3,039,762

2,576,532

Increase in trade and other debtors

(931,443

)

(579,771

)

Increase in trade and other creditors

290,101

214,955

Cash generated from operations

2,398,420

2,211,716

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,935,327

1,646,805

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,646,805

1,254,019

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,646,805

288,522

1,935,327

1,646,805

288,522

1,935,327

Debt

Finance leases

(78,797

)

16,400

(62,397

)

(78,797

)

16,400

(62,397

)

Total

1,568,008

304,922

1,872,930

1.	STATUTORY INFORMATION

Allwood Recycling Solutions Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. For the period under review there were no specific areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates had a material bearing on the financial statements.

Turnover

Turnover comprises the fair value of the consideration received or receivable for the provision of goods and services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns and discounts.

The company recognises turnover when the amount can be reliably measured and it is probable that future economic benefits will flow to the entity.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Long leasehold

-

2.5% on cost

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and impairment loss.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Financial instruments

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

Taxation

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

Current taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Trade debtors

Trade debtors are amounts owed from customers for services performed and goods sold in the ordinary course in business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised costs using the effective interest method, less provision for impairment. A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classed as equity. Equity instruments are measured at fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,187,856

3,588,521

Social security costs

488,541

339,752

Other pension costs

188,299

283,773

4,864,696

4,212,046

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

2025

2024

Directors

2

2

Clerical and managerial

17

14

Site managers and supervisors

18

17

Operatives

96

92

Service engineer

1

1

134

126

2025

2024

£

£

Directors' remuneration

170,105

167,655

Directors' pension contributions to money purchase schemes

-

115,566

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

Money purchase schemes

-

2

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

72,206

62,318

Depreciation - owned assets

243,521

215,034

Loss on disposal of fixed assets

-

770

Auditors' remuneration

7,000

7,000

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

HMRC interest

41,597

-

Hire purchase

5,655

4,181

47,252

4,181

6.

TAXATION

Analysis of the tax charge

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

2025

2024

£

£

Current tax:

UK corporation tax

669,759

460,711

Deferred tax

41,242

155,560

Tax on profit

711,001

616,271

Reconciliation of total tax charge included in profit and loss

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

2025

2024

£

£

Profit before tax

2,766,126

2,410,534

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

691,532

602,634

Effects of:

Expenses not deductible for tax purposes

14,710

10,950

Capital allowances in excess of depreciation

(36,482

)

(5,055

)

Deferred tax

41,241

7,742

Total tax charge

711,001

616,271

7.

DIVIDENDS

2025

2024

£

£

A Ordinary shares of £0.50 each

Interim

250,000

500,000

B Ordinary shares of £0.50 each

Interim

250,000

500,000

500,000

1,000,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

At 1 January 2025

711,012

889,227

119,807

Additions

147,649

342,958

6,819

Disposals

-

-

(106,015

)

At 31 December 2025

858,661

1,232,185

20,611

DEPRECIATION

At 1 January 2025

37,197

237,164

99,010

Charge for year

19,040

169,888

17,826

Eliminated on disposal

-

-

(106,015

)

At 31 December 2025

56,237

407,052

10,821

NET BOOK VALUE

At 31 December 2025

802,424

825,133

9,790

At 31 December 2024

673,815

652,063

20,797