Company registration number SC066647 (Scotland)
LOCH FYNE OYSTERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
LOCH FYNE OYSTERS LIMITED
COMPANY INFORMATION
Directors
Mr. C Anderson
Mr. V Lavrentyev
Mr V West
Secretary
Brodies Secretarial Services Limited
Company number
SC066647
Registered office
Clachan
Cairndow
Argyll & Bute
United Kingdom
PA26 8BL
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
LOCH FYNE OYSTERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
LOCH FYNE OYSTERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

The company reported turnover of £8.5m for the year and an operating loss of £0.9m, representing an improvement compared to the prior period loss of £1.8m.

Whilst this reflects improved underlying trading performance, the Loch Fyne Oyster businesses remain in a turnaround phase, with the losses incurred during the year being reflective of ongoing operational and biological challenges.

The business is committed to the brand and will continue to develop the opportunities available. Group synergies are starting to become realised and the directors anticipate that the group’s investment and the progression of commercial initiatives will support improved performance in the forthcoming years.

At the end of the year the company had a net deficit of £3.3m on its balance sheet. The directors have obtained assurances that the group’s parent (and ultimately its investors) will continue to provide financial support as necessary to allow the company to meet its obligations as they fall due. On the basis of the assurances received, the directors believe that there is a reasonable expectation that the company will have the necessary resources and support that will provide sufficient headroom to meet its forecast cash requirements.

Principal risks and uncertainties

The company faces a number of principal risks and uncertainties which could impact its performance, financial position and future prospects: Market and Economic Conditions Raw Material Supply Cost Inflation and Margin Pressure Operational Efficiency and Capacity Utilisation Biological and environmental risks Commercial and Customer risks The directors have established processes to identify, monitor and manage these risks: Regular financial and operational performance reviews Active management of customer pricing and margins; Investment in operational efficiency and infrastructure; Monitoring of aquaculture performance and biological risks; and Maintenance of appropriate funding and liquidity resources. The directors have a number of strategic initiatives in place in order to mitigate the above risks and uncertainties.

Financial instruments

The company's operations require continued access to sufficient levels of funding. Our financial risk management objectives are to ensure sufficient working capital and cash flow for the company and to ensure there is sufficient support for its growth strategy. This is achieved through careful management of our cash resources, through inter-company loans and by obtaining related party loan finance where necessary. No treasury transactions or derivatives are entered into.

On behalf of the board

Mr V West
Director
28 May 2026
LOCH FYNE OYSTERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

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

Principal activities

The principal activity of the company continued to be that of the production, wholesale and retail distribution of seafood.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid.

Directors

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

Mr. C Anderson
Mr. V Lavrentyev
Mr V West
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

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 financial instruments and associated risks.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr V West
Director
28 May 2026
LOCH FYNE OYSTERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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

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

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

- select suitable accounting policies and then apply them consistently;

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

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

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

LOCH FYNE OYSTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCH FYNE OYSTERS LIMITED
- 4 -
Opinion

We have audited the financial statements of Loch Fyne Oysters Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the 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 FRS 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 loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

LOCH FYNE OYSTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCH FYNE OYSTERS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

LOCH FYNE OYSTERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LOCH FYNE OYSTERS LIMITED (CONTINUED)
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Reviewing minutes of meetings of those charged with governance;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Alan Brown (Senior Statutory Auditor)
For and on behalf of Azets Audit Services, Statutory Auditor
Chartered Accountants
Titanium 1
Kings Inch Place
Renfrew
PA4 8WF
29 May 2026
LOCH FYNE OYSTERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
Year
Period
ended
ended
31 December
31 December
2025
2024
Notes
£
£
Turnover
3
8,522,099
13,186,660
Cost of sales
(7,135,227)
(11,479,341)
Gross profit
1,386,872
1,707,319
Administrative expenses
(2,270,224)
(2,987,210)
Other operating income
21,768
57,314
Exceptional item
4
-
0
(599,450)
Operating loss
5
(861,584)
(1,822,027)
Interest payable and similar expenses
7
(44,125)
(105,006)
Loss before taxation
(905,709)
(1,927,033)
Tax on loss
8
-
0
-
0
Loss for the financial year
(905,709)
(1,927,033)

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

LOCH FYNE OYSTERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 8 -
Year
Period
ended
ended
2025
2024
£
£
Loss for the year
(905,709)
(1,927,033)
Other comprehensive income
-
-
Total comprehensive income for the year
(905,709)
(1,927,033)
LOCH FYNE OYSTERS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Intangible assets
9
48,912
53,448
Tangible assets
10
2,062,431
2,171,194
Investments
11
525,000
525,000
2,636,343
2,749,642
Current assets
Stocks
13
515,292
504,668
Debtors
14
2,141,754
1,991,567
Cash at bank and in hand
125,104
131,564
2,782,150
2,627,799
Creditors: amounts falling due within one year
15
(8,625,943)
(7,657,414)
Net current liabilities
(5,843,793)
(5,029,615)
Total assets less current liabilities
(3,207,450)
(2,279,973)
Government grants
18
(130,502)
(152,270)
Net liabilities
(3,337,952)
(2,432,243)
Capital and reserves
Called up share capital
20
10,334,001
10,334,001
Share premium account
21
486,000
486,000
Profit and loss reserves
22
(14,157,953)
(13,252,244)
Total equity
(3,337,952)
(2,432,243)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 May 2026 and are signed on its behalf by:
Mr V West
Director
Company registration number SC066647 (Scotland)
LOCH FYNE OYSTERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 November 2023
10,334,001
486,000
(11,325,211)
(505,210)
Period ended 31 December 2024:
Loss and total comprehensive income for the period
-
-
(1,927,033)
(1,927,033)
Balance at 31 December 2024
10,334,001
486,000
(13,252,244)
(2,432,243)
Year ended 31 December 2025:
Loss and total comprehensive income for the year
-
-
(905,709)
(905,709)
Balance at 31 December 2025
10,334,001
486,000
(14,157,953)
(3,337,952)
LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
1
Accounting policies
Company information

Loch Fyne Oysters Limited is a limited liability company incorporated in Scotland. The registered office is Clachan, Cairndow, Argyll & Bute, United Kingdom, PA26 8BL.

1.1
Accounting convention

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

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

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

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. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

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

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The financial statements of the company are consolidated in the financial statements of Associated Seafoods Limited. These consolidated financial statements are available from its registered office.

The company operates a 52/53 week accounting period. The financial statements for 2025 are prepared from 4 January 2025 to 2 January 2026. The prior period financial statements are presented for the period from 29 October 2023 to 3 January 2025 due to the extension of the company's reporting period. As such, comparative amounts presented in the Profit and loss account may not be entirely comparable.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

The Directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. In adopting this basis, the Directors have considered the company’s trading performance, financial position, cash flow forecasts, funding arrangements and the principal risks and uncertainties facing the business for a period of at least 12 months from the date of approval of the financial statements.true

At 31 December 2025 the company had net liabilities of £3.3m and the company continues to rely on the continued support of the group in order to meets its liabilities as they fall due.

The group’s liquidity position is supported by a combination of committed banking facilities, investor funding and seasonal customer support arrangements.

The group has obtained assurances that its investors will continue to facilitate such financial support as necessary for the development and growth of the group to meet their long-term objectives including in relation to the rollover of existing facilities and any short-term liquidity requirements. In turn, the group has provided the same assurances to the company. The directors have satisfied themselves as to the validity of these assurances and that its investors have the means and authority to provide such funding if it is required.

Following these assurances, the directors are confident that there is sufficient headroom to meet the forecast cash requirements.

It is acknowledged that had such funding and assurances not been secured then a material uncertainty would exist which may cast doubt over the company’s ability to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business. However, on the basis of the funding and assurances received, no such uncertainty exists.

Accordingly, the Directors have concluded that it is appropriate to prepare the financial statements on a going concern basis.

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

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

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets

Intangible assets relate to licences acquired by the company in 2014.

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

Patents & licences
Over the life of the lease term, being a period of 25 years.
1.6
Tangible fixed assets

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

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

Freehold land and buildings
2% on cost
Plant and equipment
5% - 33% on cost
Fixtures and fittings
10% - 33% on cost
Motor vehicles
20% - 25% on cost

Freehold land is not depreciated.

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

Impairment losses are provided for in respect of assets for which the carrying value is in excess of the recoverable amount.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks include biological assets, raw materials and finished goods.

All stocks, including biological assets, are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

1.10
Cash at bank and in hand

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

1.11
Financial instruments

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

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

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.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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.

Derecognition of financial assets

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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.12
Equity instruments

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.

1.13
Taxation

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

Current tax

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

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Deferred tax

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

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

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

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

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

1.15
Retirement benefits

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

1.16
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.17
Foreign exchange

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

1.18

Exceptional items

Exceptional items are those items of such incidence or quantum that they should be presented separately in the profit and loss account to allow for a proper understanding of the company's performance.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

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

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

Critical judgements & estimates

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Valuation and existence of biological assets

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of biological assets 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.

Impairment of investments

At the end of each financial year an assessment is made on whether there are indicators that the company's investments are impaired. Where necessary the company's assessment is based on an estimation of the recoverable amount of each asset. This is based on expected future cash flows which includes certain assumptions and judgements over future operating results.

3
Turnover and other revenue

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

2025
2024
£
£
Turnover analysed by class of business
Smoked salmon
5,517,939
9,740,930
Mussels and oysters
1,283,606
1,504,219
Osyter bar and shop
1,697,239
1,788,755
Other traded goods
23,315
152,756
8,522,099
13,186,660
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
5,418,159
8,767,051
Europe
2,892,311
3,283,423
Rest of the world
211,629
1,136,186
8,522,099
13,186,660
LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
3
Turnover and other revenue
(Continued)
- 18 -
2025
2024
£
£
Other revenue
Grants received
21,768
25,396
4
Exceptional item
2025
2024
£
£
Expenditure
Re-organisation costs
-
599,450

In the prior period, the company incurred exceptional costs relating to the restructure and re-organistion of the company's smokery operations, which relocated to Buckie during that period.

5
Operating loss
2025
2024
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(176)
2,781
Research and development costs
4,014
36,453
Government grants
(21,768)
(25,396)
Fees payable to the company's auditor for the audit of the company's financial statements
35,000
34,000
Depreciation of owned tangible fixed assets
226,353
268,233
Profit on disposal of tangible fixed assets
(18,333)
-
Amortisation of intangible assets
4,536
4,536
6
Employees

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

2025
2024
Number
Number
Office and Management
8
9
Processing and sales
23
43
Oyster bar and shop
25
17
Total
56
69
LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,424,315
2,136,095
Social security costs
161,941
195,918
Pension costs
40,704
59,860
1,626,960
2,391,873
7
Interest payable and similar expenses
2025
2024
£
£
Other finance costs on financial liabilities
44,125
105,006
8
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Loss before taxation
(905,709)
(1,927,033)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
(226,427)
(481,758)
Tax effect of expenses that are not deductible in determining taxable profit
4,533
4,251
Change in unrecognised deferred tax assets
221,809
456,956
Other permanent differences
85
25
Fixed asset differences
-
0
20,526
Taxation charge for the year
-
-

No liability to UK corporation tax arose for the year ended 31 December 2025 nor for the year ended 31 December 2024.

The company has an unrecognised deferred tax asset of £2.4m (2024 - £2.3m). This has not been recognised due to uncertainty as to when sufficient future profits will arise to offset the company's carried forward losses.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
9
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2025 and 31 December 2025
91,716
Amortisation and impairment
At 1 January 2025
38,268
Amortisation charged for the year
4,536
At 31 December 2025
42,804
Carrying amount
At 31 December 2025
48,912
At 31 December 2024
53,448
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2025
3,087,250
4,975,437
825,175
34,490
8,922,352
Additions
-
0
101,426
50,293
-
0
151,719
Disposals
(20,000)
(14,129)
-
0
-
0
(34,129)
At 31 December 2025
3,067,250
5,062,734
875,468
34,490
9,039,942
Depreciation and impairment
At 1 January 2025
1,537,559
4,400,982
780,888
31,729
6,751,158
Depreciation charged in the year
68,835
121,585
35,089
844
226,353
At 31 December 2025
1,606,394
4,522,567
815,977
32,573
6,977,511
Carrying amount
At 31 December 2025
1,460,856
540,167
59,491
1,917
2,062,431
At 31 December 2024
1,549,691
574,455
44,287
2,761
2,171,194

The carrying value of freehold property has been pledged as security over certain liabilities of the company.

Included in the cost of land and buildings is freehold land of £155,000 (2024 - £155,000) which is not depreciated.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
11
Fixed asset investments
2025
2024
Notes
£
£
Investments in subsidiaries
12
525,000
525,000
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2025 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Seasalter (Walney) Limited
The Old Gravel Works, South Walney Island, Barrow in Furness, LA14 3YO
Ordinary
100.00
13
Stocks
2025
2024
£
£
Oyster and mussel farm stocks
343,936
298,837
Smokery and shellfish stocks
100,448
122,665
Oyster bar and shop stocks
70,908
83,166
515,292
504,668
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
933,235
761,340
Amounts owed by group undertakings
1,082,273
634,386
Other debtors
29,526
36,027
Prepayments and accrued income
96,720
559,814
2,141,754
1,991,567
15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Other borrowings
16
7,494,429
6,142,643
Trade creditors
929,962
1,304,903
Taxation and social security
52,993
42,382
Other creditors
19,407
98,627
Accruals and deferred income
129,152
68,859
8,625,943
7,657,414
LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
16
Loans and overdrafts
2025
2024
£
£
Loans from group undertakings
7,494,429
4,856,068
Other loans
-
0
1,286,575
7,494,429
6,142,643
Payable within one year
7,494,429
6,142,643

Other loans relate to loans due to Farm Originals Limited. These were assigned in full to Associated Seafoods Limited during the year.

Loans from group undertakings related to loans payable to Associated Seafoods Limited. These are interest free and fall due on demand.

17
Operating lease commitments

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

2025
2024
£
£
Within 1 year
16,657
3,522
Years 2-5
16,702
14,088
After 5 years
25,030
28,552
58,389
46,162

The company's leasing arrangements relate to Crown Estate leases for sea sites and the leasing of land, buildings and vehicles on operating leases.

18
Government grants
2025
2024
£
£
Arising from government grants
130,502
152,270

Deferred income relates to deferred government grants previously received in respect of the development of the company's premises and various aquaculture projects.

Under the terms of capital grants received, The Scottish Government have the right to repayment of the grant in whole or in part if the company disposes of any equipment funded by grant funds without written consent of the Scottish Government for a period of five or ten years respectively from the completion date of the project.

LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
40,704
59,860

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.

20
Share capital
2025
2024
£
£
Ordinary share capital
Issued and fully paid
103,340,000 Ordinary of 10p each
10,334,000
10,334,000
10,334,000
10,334,000
Preference share capital
Issued and fully paid
1 Preference 7% of £1 each
1
1
1
1

This is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

The preference share carries the right of fixed preferential dividend of 7% per annum on the amount of the paid up nominal value of the preference share. The dividend accrues on a daily basis and is payable on 5 April each year.

21
Share premium account
2025
2024
£
£
At the beginning and end of the year
486,000
486,000
22
Profit and loss reserves
2025
2024
£
£
At the beginning of the year
(13,252,244)
(11,325,211)
Adjusted balance
(13,252,244)
(11,325,211)
Loss for the year
(905,709)
(1,927,033)
At the end of the year
(14,157,953)
(13,252,244)
LOCH FYNE OYSTERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 24 -
23
Related party transactions
Transactions with related parties
Other finance costs
2025
2024
£
£
Entities with control, joint control or significant influence over the company
44,125
88,667
Other related parties
-
13,973

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
-
0
1,286,575
Other information

Further information with regards to amounts due to related parties is detailed in note 16 to the financial statements.

The company has taken advantage of the disclosure exemption under FRS 102.33.1A not to disclose related party transactions with wholly owned members of the same group.

24
Ultimate controlling party

The company is a wholly owned subsidiary of Associated Seafoods Limited, a company incorporated in Scotland. Its registered office is Capital Square, 58 Morrison Street, Edinburgh, Scotland, EH3 8BP.

Associated Seafoods Limited's parent is Scottish Seafood Investments Limited, an investment company registered in British Virgin Islands under registration number 2019384. The ultimate parent undertaking of Scottish Seafood Investments Limited is Northern Link Limited, an investment company registered in British Virgin Islands under registration number 580292. The registered office of both entities is 3rd Floor, Yamraj Building, Market Square, PO Box 3175, Road Town, Tortola, British Virgin Islands.

Associated Seafoods Limited is the smallest and largest group into which the entity is consolidated. Copies of the group accounts can be obtained publicly from Companies House.

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