Highlights from the Directors' Report

Financial results

The low inflation of 2024 continued into the early part of 2025 but increased in the second half of the year. Expected UK GDP growth of 1.3% in 2025 was largely in the first half of the year with Q4 showing stagnation of only 0.1% growth. Against this backdrop, the Company’s performance was satisfactory with sales levels and operating margins showing small increases from the prior year.

54% of the business’ export trade was transacted through the Company’s sister company in the Netherlands and is therefore not recorded in the accounts of Metro Drinks Limited as it is not part of a group for consolidation purposes.

Other

In July 2025 the company became a B-Corp with an impact score of 89.1. This further underpins the company’s ambition to be recognised as a business that makes a positive social and environmental impact.

Outlook for 2026

In March, the USA and Israel commenced hostilities against Iran. One of the consequences of this is disruption to marine transport and damage to infrastructure which will affect fossil fuel prices and energy costs resulting in a wider effect on the company’s input costs. The war will likely cause inflationary pressures and consumer spending may stall as this is felt throughout the year. It is both too early and too volatile for the directors to make any predictions on how the war will affect trading in 2026 but there are signs that the company’s trading will not avoid some level of impact.

Beyond geo-political events, the directors are unaware of any issues that will materially impact on trading levels.

Directors

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

P J Bendit

F K Bendit

Reporting period

For the fourth year, the Company is reporting the energy consumption of the Company and its operations. This report applies to the year ended 31st December 2025.

Independent assessment

The report has been independently prepared and records the Company’s Greenhouse Gas (GHG) emissions in accordance with the UK Government’s ‘Environmental Reporting Guidelines: Including Streamlined Energy and Reporting Guidance’.

The GHG emissions have been assessed using the internationally recognised WRI GHG Protocol – Corporate Accounting and Reporting Standard, using the 2025 emission conversion factors published by the UK Government departments DEFRA and BEIS.

Voluntary streamlined energy and carbon report (Continued)

Organisational boundaries

The Operational Control approach has been selected as being the most appropriate for the established organisational boundaries.

Operational scopes

Only Scope 1 and 2 emissions are required to be disclosed in this report, but the Company has voluntarily included the Scope 3 emissions that are generated by the Company’s third-party operators and therefore indirectly and de facto produced by the Company. We believe it is correct and appropriate to include them as they make up the bulk of the Company’s activities over which it has influence. These Scope 3 emissions are principally as follows:

Upstream emissions:        Third party road, sea and rail freight emissions

                Business travel

                Emissions associated with energy supply (WTT & T&D)

Downstream emissions:        Third party warehousing

Third party delivery of finished goods to customers

Carbon Neutral certification    

Total emissions assessed amount to 338.47 Tonnes for the 12 months ended 31st December 2025, which compares with 296.65 Tonnes during the prior year. The company has offset 100% of these emissions through the carbon offset scheme as shown below:

Breakdown of total emissions for the year ended 31st December

Energy efficiency actions

Only 3.86% of the Company’s emissions fall under Scopes 1 and 2, with 96.14% falling under Scope 3, the majority of which are emitted by the third parties engaged by the Company in the course of its business.

The ability of the Company to achieve a future significant reduction in its Scope 1 and 2 emissions is restricted by current local planning and conservation laws (eg installation of solar panels on or within the curtilage of listed buildings). It is likely that only small step changes will be achieved over the coming years.

In so far as Scope 3 emissions are concerned, the Company continues to find ways to optimise its logistics to reduce the number of “food miles” (and associated emissions) involved in the transportation of materials and finished goods. These include sourcing raw materials from as close to the UK as possible, with currently 45% being grown in the UK and 44% in Europe, leaving just 11% from other continents.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

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

Metro Drinks Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Workshop, Endlewick House, Arlington, Polegate, East Sussex, United Kingdom, BN26 6RU.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

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

Revenue comprises sales of goods provided to customers net of value added tax and other sales taxes. Revenue is recognised when performance obligations are satisfied and the control of goods is transferred to the buyer.

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

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it related 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.

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.

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.

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

Included within trade debtors above is an amount of £545,616 (2024: £625,946) covered under an invoice discounting facility.

Included with bank loans and overdrafts above are advances under an invoice discounting facility of £nil (2024: £11,790) which are secured on the trade debtors of the company. See other debtors note above for details of current year invoice discounting facility.

Included with bank loans and overdrafts is £nil (2024: £110,199) of Coronavirus Business Interruption Loans.

Included with bank loans and overdrafts is £nil (2024: £20,833) of Coronavirus Business Interruption Loans.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

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.

A director's loan issued to P Bendit and F Bendit remains at £410,000 at year end (2024: £410,000).

The company was owed £395 by P Bendit (2024: £510) as at the year end. This had been repaid in 2026.

During the year the company invoiced Folkington's Drinks B.V., a company in which P Bendit and F Bendit are also shareholders, a total of £88,434 (2024: £82,489). During the year the company incurred costs of £449,713 (2024: £336,641) in relation to stock purchases. At the balance sheet date, the company was owed £151,151 (2024: £176,140) from Folkington's Drinks B.V.

The ultimate controlling party is P Bendit.