REGISTERED NUMBER: 03975223 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 30 September 2025

for

Hollis Group Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTOR:

W M Hollis

REGISTERED OFFICE:

Celebrity House

Common Road

Huthwaite

Sutton-In-Ashfield

Nottinghamshire

NG17 2JY

REGISTERED NUMBER:

03975223 (England and Wales)

AUDITORS:

Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

The director presents his strategic report of the company and the group for the year ended 30 September 2025.

The company is a holding company, consolidating the results of the trading subsidiary, Celebrity Motion Furniture Limited, for the year where the principal activity for the Group and the subsidiary is that of a manufacturer of upholstered furniture for sale to the retail trade, with a particular focus on motion furniture and riser recliners.

REVIEW OF BUSINESS

The Group delivered a strong performance during the year despite continued economic uncertainty, inflationary pressures, and a highly competitive marketplace. Demand for British-manufactured upholstered furniture remained resilient, supported by the strength of the Celebrity brand, continued product innovation, and strong relationships with retail partners.

The Group's turnover was slightly down during the year to £17.3m (2024 - £17.6m) and gross margins reduced to 28.4% (2024 - 30.2%) with demand for motion furniture in particular rising recliners chairs continuing to be strong.

The results were achieved in difficult trading conditions in the post pandemic era, which included the continuation of the war in Ukraine, high inflation, increased labour costs and interest rates all having an impact on retailer and consumer confidence.

A significant milestone was achieved during the year with the successful completion and settlement of the Company's Voluntary Arrangement (CVA). The early repayment of all remaining obligations has further strengthened the Group's balance sheet and financial position.

Another key development during the year was the acquisition of the remaining shareholding held by John Payne. Following completion of this transaction, W M Hollis became the sole shareholder of Hollis Group Holdings Limited. This acquisition simplifies the Group's ownership structure and provides a clear platform for long-term strategic decision-making and future investment.

The Group also continued to invest in product development, manufacturing capabilities, and innovation to support future growth.

PRINCIPAL RISKS AND UNCERTAINTIES

The process of risk management is applied through a combination of policies, procedures and internal controls. All

policies are subject to board approval and ongoing review by management. Compliance with regulation, legal and

ethical standards are a high priority for the Group to ensure we are able to continue trading. The finance team is

responsible for ensuring that effective internal controls exist to manage the financial risks and that these controls operate effectively for the benefit of the business.

The Board recognises that effective risk management remains essential to the continued success of the Group. Principal risks include competitive pressures, changing consumer confidence, supply chain challenges, inflationary costs, recruitment and retention of skilled employees, and regulatory changes. These risks are actively monitored and managed through strong internal controls and prudent financial management.

The Group manages some of these risks by constantly reappraising its manufacturing and operational costs and by continuing to improve the quality of its products and the speed and reliability of its deliveries and service.

FINANCIAL KEY PERFORMANCE INDICATORS

The Group continued to strengthen its financial position during the year. Key achievements include completion of all outstanding CVA obligations, improved profitability and cash generation, acquisition of the remaining shareholding in Hollis Group Holdings Limited, and continued investment in manufacturing and product development.

During the period the Group has reported a slight decrease in turnover of £326,114 (2024 - increase of £1,209,613) yet profit has increased by £390,642 (2024 - increase of £703,288). Turnover for the Group relates solely to the subsidiary Celebrity Motion Furniture Limited. Further detail in relation to Celebrity Motion Furniture Limited is included in its individual financial statements.

At the balance sheet date the Group has net assets of £2,508,745 (2024 - £2,338,735).

FINANCIAL INSTRUMENTS

A summary of the Group financial instruments and related disclosures affecting the financial statements are set out in the notes to the accounts. The Group's financial instruments comprise cash balances, trade debtors, trade creditors and other short-term liabilities. The Board regularly reviews the Group's exposure to financial risks and is satisfied that appropriate controls remain in place.

FUTURE DEVELOPMENTS

Following the successful completion of the CVA and consolidation of ownership, the Group enters the next financial year from a position of financial strength and stability. Management intends to continue investing in manufacturing efficiency, product innovation and technology, while expanding market share and strengthening retailer relationships.

The Directors believe the Group is well positioned to capitalise on future opportunities and remains committed to maintaining its reputation as one of the UK's leading upholstered furniture manufacturers.

ON BEHALF OF THE BOARD:

W M Hollis - Director

23 June 2026

The director presents his report with the financial statements of the company and the group for the year ended 30 September 2025.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2025.

DIRECTORS

W M Hollis has held office during the whole of the period from 1 October 2024 to the date of this report.

Other changes in directors holding office are as follows:

J D Payne - resigned 18 July 2025

DISCLOSURE IN THE STRATEGIC REPORT

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

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS

The auditors, Charnwood Accountants & Business Advisors LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

W M Hollis - Director

23 June 2026

Opinion

We have audited the financial statements of Hollis Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 September 2025 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of director

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

In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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:

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain

sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the

determination of material amounts and disclosures in the Financial Statements, to perform audit procedures to help

identify instances of non-compliance with other laws and regulations that may have a material effect on the Financial

Statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the

Financial Statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs(UK).The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. As such material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment and or collusion.

We obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the Company (and its subsidiary throughout) operate in and how the Company are complying with the legal and regulatory frameworks. Focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, United Kingdom Generally Accepted Accounting Practice, pension legislation and relevant UK tax legislation.

We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We identified the laws and regulations applicable to the company through discussions with directors and supervisors of the CVA, and from our commercial knowledge and experience of a manufacturing business;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, supervisors of the CVA and inspecting legal correspondence where applicable;

and

Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

We discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the Financial Statements may be susceptible to fraud, having obtained an understanding of the effectiveness of the control environment.

The engagement partner assessed that the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulations.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements. This included the evaluation of the risk of management override of controls. In assessing the potential risks of material misstatement, we obtained an understanding of the company's operations, including the nature of its income and expenditure together with its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. Also on the company's control environment, including the policies and procedures implemented by the company to ensure compliance with the requirements of the financial reporting framework.

Our audit procedures involved:

The evaluation of the design effectiveness of controls that the company has in place to prevent and detect fraud;

To undertake journal entry testing, with a focus on higher risk journal, such as, posted by senior management, journals with unusual attributes, journals without any descriptions, journals posted by staff not in the approved list of journals posting and closing journals posted during the preparation of the financial statements, which are material and not reoccurring or common postings which fall outside of the auditor's expectations. Together with assessing whether the judgments made in making accounting estimates, set out in Note 2, are indicative of a potential bias, in particular the carrying value of stocks, and investigated the rationale behind significant or unusual transactions identified.

In response to the risk of irregularities and non-compliance with laws and regulations our procedures included, but

were not limited to;

Agreeing financial statement disclosures to underlying supporting documentation;

Enquiring of management as to actual and potential litigation and claims against the parent or subsidiary company;

Enquiring of supervisors of the CVA for Hollis Group Holdings Limited;

Completing a review of relevant legal and professional costs within the accounting records for any evidence of

previously un-detected or un-reported instances of non-compliance.

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.

Christopher David Hutton FCCA (Senior Statutory Auditor)

for and on behalf of Charnwood Accountants & Business Advisors LLP

Statutory Auditor

The Point

Granite Way

Mountsorrel

Loughborough

Leicestershire

LE12 7TZ

24 June 2026

TURNOVER

3

17,308,303

17,634,417

Cost of sales

12,387,432

12,313,731

GROSS PROFIT

4,920,871

5,320,686

Distribution costs

1,204,743

1,915,569

Administrative expenses

2,351,478

2,223,767

3,556,221

4,139,336

1,364,650

1,181,350

Other operating income

224,154

-

OPERATING PROFIT

5

1,588,804

1,181,350

Interest receivable and similar income

3,785

985

1,592,589

1,182,335

Interest payable and similar expenses

6

19,612

-

PROFIT BEFORE TAXATION

1,572,977

1,182,335

Tax on profit

7

158,680

56,373

PROFIT FOR THE FINANCIAL YEAR

1,414,297

1,125,962

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,414,297

1,125,962

Profit attributable to:

Owners of the parent

1,414,297

1,125,962

Total comprehensive income attributable to:

Owners of the parent

1,414,297

1,125,962

FIXED ASSETS

Tangible assets

9

165,854

64,613

Investments

10

33,000

-

198,854

64,613

CURRENT ASSETS

Stocks

11

2,006,739

2,068,389

Debtors

12

2,820,200

2,947,365

Cash at bank and in hand

189,324

149,997

5,016,263

5,165,751

CREDITORS

Amounts falling due within one year

13

2,706,372

2,891,629

NET CURRENT ASSETS

2,309,891

2,274,122

TOTAL ASSETS LESS CURRENT LIABILITIES

2,508,745

2,338,735

CREDITORS

Amounts falling due after more than one year

14

(323,158

)

(897,000

)

PROVISIONS FOR LIABILITIES

19

(208,889

)

(117,012

)

NET ASSETS

1,976,698

1,324,723

CAPITAL AND RESERVES

Called up share capital

20

600,004

800,006

Capital redemption reserve

21

200,002

-

Retained earnings

21

1,176,692

524,717

SHAREHOLDERS' FUNDS

1,976,698

1,324,723

The financial statements were approved by the director and authorised for issue on 23 June 2026 and were signed by:

W M Hollis - Director

FIXED ASSETS

Tangible assets

9

-

-

Investments

10

33,001

1

33,001

1

CURRENT ASSETS

Debtors

12

1,754,400

150,000

Cash at bank

143,441

130,915

1,897,841

280,915

CREDITORS

Amounts falling due within one year

13

74,224

683,282

NET CURRENT ASSETS/(LIABILITIES)

1,823,617

(402,367

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,856,618

(402,366

)

CREDITORS

Amounts falling due after more than one year

14

-

1,853,194

NET ASSETS/(LIABILITIES)

1,856,618

(2,255,560

)

CAPITAL AND RESERVES

Called up share capital

20

600,004

800,006

Capital redemption reserve

21

200,002

-

Retained earnings

21

1,056,612

(3,055,566

)

SHAREHOLDERS' FUNDS

1,856,618

(2,255,560

)

Company's profit for the financial year

4,874,500

804,279

The financial statements were approved by the director and authorised for issue on 23 June 2026 and were signed by:

W M Hollis - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

800,006

(601,245

)

-

198,761

Changes in equity

Total comprehensive income

-

1,125,962

-

1,125,962

Balance at 30 September 2024

800,006

524,717

-

1,324,723

Changes in equity

Issue of share capital

(200,002

)

-

-

(200,002

)

Total comprehensive income

-

651,975

200,002

851,977

Balance at 30 September 2025

600,004

1,176,692

200,002

1,976,698

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 October 2023

800,006

(3,859,845

)

-

(3,059,839

)

Changes in equity

Total comprehensive income

-

804,279

-

804,279

Balance at 30 September 2024

800,006

(3,055,566

)

-

(2,255,560

)

Changes in equity

Issue of share capital

(200,002

)

-

-

(200,002

)

Total comprehensive income

-

4,112,178

200,002

4,312,180

Balance at 30 September 2025

600,004

1,056,612

200,002

1,856,618

Cash flows from operating activities

Cash generated from operations

1

57,732

120,772

Interest paid

(19,612

)

-

Tax paid

(130

)

-

Net cash from operating activities

37,990

120,772

Cash flows from investing activities

Purchase of tangible fixed assets

(114,100

)

(48,125

)

Purchase of fixed asset investments

(33,000

)

-

Interest received

3,785

985

Net cash from investing activities

(143,315

)

(47,140

)

Cash flows from financing activities

New loans in year

750,000

-

Loan repayments in year

(62,500

)

-

Capital repayments in year

(2,572

)

-

Share buyback

(762,322

)

-

Movements on invoice discounting

222,046

(82,325

)

Net cash from financing activities

144,652

(82,325

)

Increase/(decrease) in cash and cash equivalents

39,327

(8,693

)

Cash and cash equivalents at beginning of year

2

149,997

158,690

Cash and cash equivalents at end of year

2

189,324

149,997

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

30.9.25

30.9.24

£

£

Profit before taxation

1,572,977

1,182,335

Depreciation charges

34,910

76,797

Movement in provisions

91,877

117,012

Finance costs

19,612

-

Finance income

(3,785

)

(985

)

1,715,591

1,375,159

Decrease/(increase) in stocks

61,650

(14,881

)

Decrease/(increase) in trade and other debtors

239,387

(615,274

)

Decrease in trade and other creditors

(1,958,896

)

(624,232

)

Cash generated from operations

57,732

120,772

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2025

30.9.25

1.10.24

£

£

Cash and cash equivalents

189,324

149,997

Year ended 30 September 2024

30.9.24

1.10.23

£

£

Cash and cash equivalents

149,997

158,690

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.10.24

Cash flow

changes

At 30.9.25

£

£

£

£

Net cash

Cash at bank

and in hand

149,997

39,327

189,324

149,997

39,327

189,324

Debt

Finance leases

-

2,572

(22,050

)

(19,478

)

Debts falling due

within 1 year

(675,936

)

300,936

-

(375,000

)

Debts falling due

after 1 year

(897,000

)

584,500

-

(312,500

)

(1,572,936

)

888,008

(22,050

)

(706,978

)

Total

(1,422,939

)

927,335

(22,050

)

(517,654

)

1.	STATUTORY INFORMATION

Hollis Group Holdings 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 General Information page.

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

Hollis Group Holdings Limited (the 'company') is a private company and its subsidiary undertakings (the 'group') are limited liability companies incorporated and domiciled in the United Kingdom. All group companies are limited by shares and 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 (£).

The nature of the company's operations and its principal activities are set out in the Strategic Report.

The financial statements are prepared in Sterling (£), which is the functional currency of the company. The financial statements are for the period of 52 weeks ending 28 September 2025 (2024: 52 weeks ending 29 September 2024).

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 and under the provision of The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The financial statements have been prepared on a going concern basis under the historical cost convention.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed the notes below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to enable it to continue to meet its obligations as they fall due for a period of 12 months from the date of sign off, of these financial statements. The Directors have considered current bank reserves and lending facilities and prepared detailed profit and cashflow forecasts for a period of 12 months from the date of sign off of these financial transactions. Since the period end the company is trading within the facilities available to it and continues to trade profitably.

On that basis, the directors have prepared these financial statements on a going concern basis.

Basis of consolidation

The consolidated financial statements incorporate the assets, liabilities and results of the Company and its

subsidiary undertakings controlled by the group up to 30 September each year.

Subsidiary undertakings are fully consolidated from the date on which control is transferred to the Group.

Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The consolidated financial statements incorporate the results of business combinations using the equity accounting method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit & loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

The financial statements of all subsidiary undertakings are prepared to the same reporting date as the Company. All subsidiary undertakings have been consolidated.

The principal subsidiary undertakings of the Company at 30 September each year are detailed in the notes to the Company balance sheet. Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

Inter-company transactions, balances and unrealised gains on transactions between Group companies are

eliminated on consolidation.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the Group's accounting policies, which are described in the accounting policies below,

management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

In preparing these financial statements, the directors have made the following key judgements that have a

significant effect on the amounts recognised in the financial statements as described below.

- Determine whether there are indicators of impairment of the Group's tangible and intangible assets along with residual values and asset lives. The residual value is the net realisable value of an asset at the end of its useful economic life. The Group has made an assessment of the residual values that are appropriate for the business and reviews this assessment annually.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

a) Establishing useful economic lives for depreciation purposes of property, plant and equipment

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant portion of the

total assets. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimates of residual values. The director and senior management team regularly review these asset useful economic lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the tangible fixed asset accounting policy.

b) Stock provisioning

At each reporting date judgement is used by management to establish the net realisable value of stock. Provisions are established for net realisable value where appropriate and are made are based on facts available at the time. The level of provision required is reviewed on an on-going basis.

In arriving at an estimate for the net realisable value of stock, judgement is required in assessing their likely

value on realisation taking into account market and technological changes associated with the demand for the product line.