wk-2025-12-27-ixbrl

Charles River Discovery Research Services UK Limited

Strategic report

The directors present their strategic report on Charles River Discovery Research Services UK Limited (the

"Company") for the 52 week period ended 27 December 2025.

Principal activities

The principal activity of the Company is conducting pharmaceutical research and early-stage drug development.

Business performance and future outlook

The turnover for the financial period was £104,503,000 (2024: £106,253,000). The loss for the period amounted

to £6,472,000 (2024: £3,886,000). No interim dividend was paid during the period (2024: £nil). The directors do

not recommend the payment of a final dividend in respect of the period (2024: £nil).

During the period the Company's turnover decreased by 1.6%, as a result of general market softness leading to a

slight contraction in early stage drug development. Gross profit margins decreased from 26.0% to 24.6% and net

profit margins decreased from 3.7% to 6.2% due to a change in product mix coupled with the underlying fixed

cost base. Employee numbers decreased from 706 to 637 in line with general activity levels and a focus on

operational efficiencies. At the end of the period the Company maintained a strong net assets position.

The Company commenced 2026 with a detailed plan to grow both turnover and profit, through consolidating its

strategic partnerships and alliances with the leading global customers in each of its business sectors. In

February 2026 it was announced that Charles River Laboratories International, Inc. (Charles River) has entered

into an agreement to sell certain assets of its Discovery and CDMO businesses, which includes the legal entity of

Charles River Discovery Research Services UK limited and a significant portion of its operations. The transaction

is expected to be completed in the second quarter of 2026. The directors have carefully considered the impact to

the business of current market conditions and through a tailored approach, involving strategic investment, believe

the business is best placed to take advantage of its position for growth when the market strengthens. In reaching

this conclusion, the directors have considered all available information, including extensive analysis of the impact

of market conditions on the business during 2025, latest forecast results for 2026, overall expected impact to the

market sector in which the Company operates, and the global economy in general.

Section 172 statement

The directors have considered the requirements of section 172 (1) of the Companies Act 2006 and have set out

the key considerations below.

The directors of the Company must act in a way which they consider, in good faith, would be most likely to

promote the success of the Company, and in doing so have regard (amongst other matters) to:

a. The likely consequences of any decision in the long term,

b. The interest of the Company’s employees,

c. The need to foster the Company’s business relationships with suppliers, customers and others,

d. The impact of the Company’s operations on the community and the environment,

e. The desirability of the Company maintaining a reputation for high standards of business conduct, and

f. The need to act fairly between members of the Company.

The Company is a wholly owned subsidiary of Charles River Laboratories International, Inc. a company

incorporated in the United States of America and listed on the New York Stock Exchange (NYSE:CRL).

Long term decisions and strategy

Charles River is committed to advancing human health and creating healthier lives. This commitment drives the

long-term strategy of the business and is an underlying factor in our decision-making processes. We partner with

our clients to help them deliver innovative, safe, and effective medicines to patients as quickly and efficiently as

possible. To do this effectively, we have invested, and continue to invest in both our capabilities and

technologies, which enable us to maintain a competitive advantage working with our clients from early in the

research process all the way through drug approval and beyond.

Charles River Discovery Research Services UK Limited

Strategic report (continued)

Interest of our employees

Our people are at the heart of who we are and the driving force in our collective purpose to create healthier lives.

And, it is our culture at Charles River that differentiates us. We create a work environment which gives every

person the ability to deliver on business commitments, while having purpose, being energised and continuously

learning, and focusing on quality outcomes. This environment is built on trust, inclusion, accountability, respect,

and well-being.

Relationship with suppliers, customers and others

At Charles River, we know that our internal organisation and Environmental, Health, Safety, and Sustainability

(EHS&S) performance is closely linked to our supply chain. We are dedicated to sustainable and responsible

supply chain management, as well as supplier diversity. We consider our suppliers, contractors, consultants, and

agents as a part of the Charles River team and we rely on them to help us accomplish both our business and

EHS&S objectives.

At Charles River, our purpose is clear, and our passion is strong: together, we support our clients’ research every

step of the way to create healthier lives. Our core mission is to utilise our scientific expertise, regulatory

leadership, and diverse portfolio to provide our clients with efficient, reliable, and scientific results on a cost-

effective basis. Our values: care, lead, own, and collaborate, are integral to everything we do at Charles River.

These values guide our business decisions and actions, representing the standards we hold ourselves to every

day.

Impact on the community and environment

At Charles River, our dedication to EHS&S is an integral part of our commitment to improve lives. Our vision is to

embed working safely and sustainably into everything we do and every decision we make. We firmly believe that

our care extends to the communities in which we live and work, promoting a program of investment in our local

community. During 2025, the Company directly supported not-for-profit organisations in our local areas through

financial donations. In addition to this, we enabled our employees, through workforce appeals, to donate to other

local charities such as food banks, nursing homes, and children’s charities.

Code of business conduct

The Charles River Code of Business Conduct and Ethics (Code) describes our values and outlines the

requirements and expected behaviour for all of us who work on behalf of the Company. We expect every

employee, including the members of our Board and executive leadership, to adhere to our Code. Our Code

outlines the laws and policies that apply to our business, such as anti-bribery and anti-corruption, anti-

harassment and anti-discrimination, conflicts of interest, intellectual property (IP), data privacy, and the protection

of confidential information.

The Charles River Code of Business Conduct and Ethics (Code) describes our values and outlines the

requirements and expected behaviour for all of us who work on behalf of the Company. We expect every

employee, including the members of our Board and executive leadership, to adhere to our Code. Our Code

outlines the laws and policies that apply to our business, such as anti-bribery and anti-corruption, anti-

harassment and anti-discrimination, conflicts of interest, intellectual property (IP), data privacy, and the protection

of confidential information.

Acting fairly between members

Ultimate governance and oversight responsibility for all Charles River group companies is held by the Board of

Charles River Laboratories International, Inc. which is the ultimate parent entity of the Company and its sole

member, Biofocus DPI (Holdings) Ltd. The Company, its sole member, and the ultimate parent entity share

common directors which ensures transparency, direct communications, and facilitates the sole members

involvement in the decision-making process.

Principal risks and uncertainties

Economic and industry risk

The key economic and industrial risks facing the Company are considered to be the level of research and

development activity undertaken by existing and potential customers, as well as the outsourcing policies of these

customers. These risks are managed by working across the pharmaceutical sectors, as well as active sales

programs, client engagement and monitoring of concentration of turnover.

Charles River Discovery Research Services UK Limited

Strategic report (continued)

Financial risk management

The Company’s activities expose it to a number of financial risks including cash flow risk, credit risk, liquidity risk

and price risk. The Company does not currently use derivative financial instruments.

Foreign currency risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates,

as the Company makes sales in US Dollars and Euros. To manage this risk, the Company makes purchases in

US Dollars and Euros, where possible.

Credit risk

The Company’s principal financial assets are bank balances and cash and trade and other debtors and amounts

owed from group undertakings.

The Company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance

sheet are net of provisions for doubtful debts. A provision for impairment is made where there is an identified loss

event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high

credit-ratings assigned by international credit-rating agencies.

The Company has no significant concentration of credit risk, with exposure spread over a large number of

counterparties and customers.

Liquidity risk

There is a level of uncertainty in the global market as a result of the current macroeconomic climate, which can

give rise to difficulty in accessing liquidity from third parties.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future

developments, the Company uses a mixture of long-term and short-term inter-company finance.

Price risk

The Company is not exposed to any significant price risk.

Charles River Discovery Research Services UK Limited

Strategic report (continued)

Key performance indicators (“KPIs”)

The financial key performance indicators that the directors consider to be important in monitoring the success of

the business are as follows:


	2025	2024
	£’000	£’000
Revenue per head	164	151

Revenue per head is calculated by dividing turnover for the period by total average employees throughout the

period. Proportionately, there has been an increase from the prior period which has been driven by the change in

turnover outweighing the change in staff levels.


	2025	2024
	%	%
Gross margin	24.6	26.0

The gross margin has deteriorated from the prior period due to changes in the cost base and revenue mix. This is

calculated by dividing the gross profit by the turnover for the period.


	2025	2024
	Days	Days
Debtor days	51	50

Debtor days are calculated by considering the trade debtors balance at period end against the turnover for the

period. This is actively managed on a day to day basis. Debtor days have increased compared to the prior period,

and there are no concerns over the recoverability of debtors held at the balance sheet date.

Approved by the Board on 6 May 2026 and signed on its behalf on 7 May 2026 by:

U Yilmaz

Director

Charles River Discovery Research Services UK Limited

Directors’ report

The directors present their report and the audited financial statements of the Company for the 52 week period

ended 27 December 2025 . The comparative period is the 52 week period ended 28 December 2024. The

registered number of the Company is 04622227.

Directors

The directors who held office during the financial period and up to the date of signing the financial statements are

as follows:

B Girshick

K Dolph

A Synnott (resigned 13 January 2025)

U Yilmaz

C Barnes(resigned 22 December 2025)

Dividends

The directors do not recommend the payment of a dividend in respect of the period, to the shareholder, Biofocus

DPI (Holdings) Ltd (2024 - £nil).

Business performance, future outlook and principal risks and uncertainties

The results for the period are set out in the Profit and loss account on page 13. The results for the period, future

developments and principal risks and uncertainties have been discussed in the Strategic report presented on

pages 2 to 5.

Going concern

The directors have prepared a cash flow forecast which shows that they expect the Company to be able to meet

its operating obligations from available cash resources and the group's European cash pooling system as they

fall due.

As at 27 December 2025, the Company had net current assets of £9,029,000 (2024 - £24,613,000) , including a

net cash balance of £2,798,000 (2024 - £2,223,000).

As mentioned in the Strategic report, Charles River has entered into an agreement to sell the legal entity and a

significant portion of the business of Charles River Discovery Research Services UK Limited, with the transaction

expected to be completed in the second quarter of 2026 (refer Note 27. Events after the end of the reporting

period). The directors do not have visibility of the Company's funding structure beyond the anticipated date of

sale, and have prepared a detailed cash flow forecast based on their current expectations for the continuing

business which demonstrates that the Company should be able to meet its operating obligations from available

cash resources as they fall due. However, they are unable to reflect how the change in control may affect the

business, and do not have insight into any financial support that the new parent may provide, if required.

Taking all of this into account, the directors have concluded that it is appropriate to adopt the going concern basis

in preparing these financial statements. However, they recognise that there is a material uncertainty arising from

the change in ownership which may cast significant doubt on the Company's ability to continue as a going

concern. These financial statements do not include any adjustments that would result if the company were

unable to continue as a going concern..

Financial risk management

Financial risks and the management of these risks have been discussed in the Strategic report presented on

pages 2 to 5 .

Directors’ indemnities

The Company has made qualifying third-party indemnity provisions for the benefit of its directors which were

made during the period and remain in force at the date of this report.

Charles River Discovery Research Services UK Limited

Directors' report (continued)

Disabled employees

The Company is committed to employment policies which allow best practice, based on equal opportunities for all

employees, irrespective of sex, race, colour, disability or marital status.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the

applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their

employment with the group continues and that appropriate training is arranged. It is the policy of the group that

the training, career development and promotion of disabled persons should, as far as possible, be identical with

that of other employees.

Employee involvement

The Company remains committed to its quality management programme which involves all staff in seeking to

continuously improve the services offered to sponsors. Staff share in the success of the group through bonus

arrangements. Staff training and development have continued to be emphasised through the availability of

extensive in-house training courses and through performance appraisal systems.

The Company communicates with its employees on all matters relevant to them through a variety of media.

These include all hands meetings, departmental meetings and one to one feedback, as well as a dedicated

intranet site and message boards. The key information provided to staff includes financial performance of the

group and its ultimate parent company, regulatory and quality issues and performance improvement initiatives.

Streamlined energy and carbon reporting (SECR) disclosure

The SECR disclosure presents our carbon footprint within the United Kingdom for Scope 1, 2 and 3 emissions

based on SECR Legislation, an appropriate intensity metric, the total energy usage of electricity, gas and

transport fuel, and a summary of energy efficiency actions taken during the relevant financial period.


	Period ended 27 December 2025	Period ended 28 December 2024
Energy consumption used to calculate emissions (kwh)	13,412,951	14,605,928
Emissions from combustion of gases tCO2e (Scope 1)	821	963
Emissions from combustion of fuel for transport purposes tCO2e (Scope 1)	-	-
Emissions from business travel in rental cars or employee owned vehicles where company is responsible for purchasing the fuel tCO2e (Scope 3)	12	21
Emissions from purchased electricity tCO2e (Scope 2, location-based)	1,571	1,914
Total gross tCO2e based on above	2,404	2,898
Intensity ratio (tCO2e / floor space m2)	0.12590	0.16096

Energy efficiency action summary

During the period, the Company continued to achieve direct savings in energy and associated carbon emissions,

through operational and technological improvements, including;

• Retrofitting of old fluorescent lighting with new LED lighting.

• Upgrading LED with lower consumption LED lighting in various areas.

• Water heaters put on timers so turned off in evenings and on weekends.

• Introduction of shutdown policy for equipment.

• Replacement of refrigerators and freezers with newer units.

Charles River Discovery Research Services UK Limited

Directors' report (continued)

Streamlined energy and carbon reporting (SECR) disclosure (continued)

Methodology notes


Reporting period	29 December 2024– 27 December 2025
Boundary (consolidation approach)	Operational approach
Alignment with financial reporting	SECR disclosure has been prepared in line with Charles River Discovery Research Services UK Limited ’s financial statements made up to the 27 December 2025
Reporting method	GHG Emissions reporting are in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard
Emissions factor source	DEFRA, 2025 for all emissions factors https://www.gov.uk/government/publications/greenhouse-gas-reporting- conversion-factors-2025
Conversion factor source	Federal Register EPA for natural gas and gasoline (petrol): https:// www.ecfr.gov/current/title-40/chapter-I/subchapter-C/ part-98#ap40.23.98_138.1 EPA GHG Emissions Factors Hub for natural gas and gasoline (petrol) https://www.epa.gov/climateleadership/center-corporate-climate- leadership-ghg-emission-factors-hub Diesel: U.S. Energy Information Administration for diesel https:// www.eia.gov/totalenergy/data/monthly/pdf/sec12_2.pdf
Calculation method	Activity Data x Emission Factor = GHG emissions Activity Data x Conversion Factor = kWh consumption
Other relevant information on calculation	Where applicable consumption was converted to kWh using conversion factors linked above, while emissions were calculated with the DEFRA emission factors. Transport data was calculated from mileage and litres to kWh and GHG emissions using the method above. In the absence of the exact vehicle types average conversion factors were used to calculate emissions. Not having the exact vehicle types we have used the Vehicles statistics’ table VEH1103, issued by the Department for Transport. We used the statistics for the period of Q3 2024 to Q4 2025 as during the preparation of the report the Q4 2025 figures were not published yet.
Reason for the intensity measurement choice	Following the recommendations of the SECR legislation and based on the nature of our business as we perform a wide range of activities, the floor space (tCO2e/floor space m2) gives the best overview on our efficiency performance on a longer scale.
Estimation	The report contains 0% estimated data for the reporting period.
Rounding	The total tCO2e expressed in the table above might have a slight difference compared to the absolute results due to rounding (no more than 1%).

Charles River Discovery Research Services UK Limited

Directors' report (continued)

Statement of directors’ responsibilities

The directors are responsible for preparing the Annual report and financial statements in accordance with

applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial period. Under that law the

directors have prepared the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting

Standard Applicable in the UK and Republic of Ireland” 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.

• State whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been

followed, subject to any material departures disclosed and explained in the financial statements.

• Make judgments and accounting estimates that are reasonable and prudent.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the company will continue in business.

The directors are 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.

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.

Directors’ confirmations

In the case of each director in office at the date the Directors’ report is approved.

• So far as the director is aware, there is no relevant audit information of which the company’s auditors

are unaware.

• They have taken all the steps that they ought to have taken as a director in order to make themselves

aware of any relevant audit information and to establish that the company’s auditors are aware of that

information.

Independent auditors

The auditors, PricewaterhouseCoopers LLP have indicated their willingness to continue in office and a resolution

concerning their re-appointment will be proposed at the annual general meeting.

Approved by the Board on 6 May 2026 and signed on its behalf on 7 May 2026 by:

U Yilmaz

Director

Charles River Discovery Research Services UK Limited

Independent auditors’ report to the

members of Charles River Discovery

Research Services UK Limited

Report on the audit of the financial statements

Opinion

In our opinion, Charles River U.K. Limited’s financial statements:

• give a true and fair view of the state of the company’s affairs as at 27 December 2025 and of its profit for the

52 week period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in

the UK and Republic of Ireland”, and applicable law); and

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

We have audited the financial statements, included within the Annual Report, which comprise:

• the Balance sheet as at 27 December 2025;

• the Profit and loss account for the period then ended;

• the Statement of comprehensive income for the period then ended;

• the Statement of changes in equity for the period then ended; and

• the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable

law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the

financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

Material uncertainty related to going concern

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the

disclosure made in note 3b to the financial statements concerning the company’s ability to continue as a going

concern. On 26 February 2026 the company's ultimate controlling party, Charles River Laboratories International,

Inc., announced that it had entered into an agreement to divest certain assets within its Discovery and CDMO

businesses, including the company as a legal entity and a significant portion of the business of the company. The

transaction is expected to be completed in the second quarter of 2026. At the date of this report the Directors do

not have visibility of the company's post sale operational or funding structure under the new ownership, including

the terms on which such funding would be provided.. These conditions, along with the other matters explained in

note 3b to the financial statements, indicate the existence of a material uncertainty which may cast significant

doubt about the company's ability to continue as a going concern. The financial statements do not include the

adjustments that would result if the company were unable to continue as a going concern.

Charles River Discovery Research Services UK Limited

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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the

relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements

and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the

financial statements does not cover the other information and, accordingly, we do not express an audit opinion or,

except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent

material inconsistency or material misstatement, we are required to perform procedures to conclude whether

there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by

the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report

certain opinions and matters as described below.

Strategic report and Directors' report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic

report and Directors' report for the period ended 27 December 2025 is consistent with the financial statements

and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we did not identify any material misstatements in the Strategic report and Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of directors' responsibilities, the directors are responsible for the

preparation of the financial statements in accordance with the applicable framework and for being satisfied that

they give a true and fair view. The directors are also responsible for such internal control as they 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.

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 an auditors’ 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

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

detailed below.

Charles River Discovery Research Services UK Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance

with laws and regulations related to tax legislation and the Companies Act 2006, and we considered the extent to

which non-compliance might have a material effect on the financial statements. We evaluated management’s

incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override

of controls), and determined that the principal risks were related to the posting of inappropriate journal entries in

order to improve reported performance. Audit procedures performed by the engagement team included:

• Enquiries of management and individuals outside the finance function around known or suspected instances

of non-compliance with laws and regulations, claims and litigation and instances of fraud;

• Identifying and testing journal entries, including those with unexpected accounts combinations impacting

revenue;

• Understanding management's controls designed to prevent and detect irregularities;

• Challenging management's assumptions and judgements in determining accounting estimates; and

• Reviewing the financial statement disclosures and testing to supporting documentation, where appropriate, to

assess compliance with applicable laws and regulations.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of

instances of non-compliance with laws and regulations that are not closely related to events and transactions

reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher

than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for

example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s

website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving

these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report

is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the company, or returns adequate for our audit have not

been received from branches not visited by us; or

• certain disclosures of directors’ remuneration specified by law are not made; or

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

We have no exceptions to report arising from this responsibility.

Other matter

The company has passed a resolution in accordance with section 506 of the Companies Act 2006 that the senior

statutory auditor’s name should not be stated.

PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Edinburgh

7 May 2026

Charles River Discovery Research Services UK Limited

Profit and loss account


	Notes	Period ended 27 December 2025	Period ended 28 December 2024
		£'000	£'000
Turnover	5	104,503	106,253
Cost of sales		(78,831)	(78,611)
Gross profit		25,672	27,642
Administrative expenses		(30,208)	(30,902)
Other operating income		1,749	3,355
Operating (loss)/profit	6	(2,787)	95
Interest receivable and similar income	9	405	615
Interest payable and similar expenses	9	(392)	(1,219)
Other financial costs		(998)	(641)
Loss before taxation		(3,772)	(1,150)
Tax on loss	10	(2,700)	(2,736)
Loss for the financial period		(6,472)	(3,886)

Statement of comprehensive income


	Period ended 27 December 2025	Period ended 28 December 2024
	£'000	£'000
Loss for the financial period	(6,472)	(3,886)
Other comprehensive income	-	-
Total comprehensive expense for the financial period	(6,472)	(3,886)

The above results relate entirely to continuing activities.

The notes on pages 16 to 35 form part of these financial statements.

Charles River Discovery Research Services UK Limited

Balance sheet


	Notes	As at 27 December 2025	As at 28 December 2024
		£'000	£'000
Fixed assets
Intangible assets	11	13,454	10,476
Goodwill	12	15,798	17,332
Tangible assets	13	20,998	24,205
Investments	14	2,248	2,918
		52,498	54,931
Current assets
Inventories	15	7,209	11,635
Debtors	16	40,252	42,919
Cash at bank and in hand	17	2,798	2,223
		50,259	56,777

Creditors: amounts falling due within one year	18	(41,230)	(32,164)
Net current assets		9,029	24,613
Total assets less current liabilities		61,527	79,544
Creditors: amounts falling due after more than one year	20	-	(14,079)
Provisions for liabilities	21	(5,893)	(3,747)
Net assets		55,634	61,718

Capital and reserves
Called up share capital	22	10,000	10,000
Share premium account		222	222
Share-based payment reserve		(1,315)	(1,703)
Merger reserve		(14,116)	(14,116)
Retained earnings		60,843	67,315
Total equity		55,634	61,718

The financial statements on pages 13 to 35 were authorised for issue by the Board of directors on 6 May 2026

and were signed on its behalf on 7 May 2026 by:

U Yilmaz

Director

Charles River Discovery Research Services UK Limited

Registered no. 04622227

Charles River Discovery Research Services UK Limited

Statement of changes in equity

For the period ended 27 December 2025


	Called up share capital	Share premium account	Share- based payment reserve	Merger reserve	Retained earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 31 December 2023	10,000	222	(790)	(14,116)	71,201	66,517
Loss for the financial period	-	-	-	-	(3,886)	(3,886)
Total comprehensive expense for the financial period	-	-	-	-	(3,886)	(3,886)
Credit relating to equity-settled share- based payments	-	-	(1,386)	-	-	(1,386)
Settlement of employee share schemes	-	-	473	-	-	473
Total transactions with owners, recognised directly in equity	-	-	(913)	-	-	(913)
Balance as at 28 December 2024	10,000	222	(1,703)	(14,116)	67,315	61,718
Loss for the financial period	-	-	-	-	(6,472)	(6,472)
Total comprehensive expense for the financial period	-	-	-	-	(6,472)	(6,472)
Credit relating to equity-settled share- based payments	-	-	761	-	-	761
Settlement of employee share schemes	-	-	(373)	-	-	(373)
Total transactions with owners, recognised directly in equity	-	-	388	-	-	388
Balance as at 27 December 2025	10,000	222	(1,315)	(14,116)	60,843	55,634

No dividends were paid or declared during the period (2024: £nil).

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

1. General information

Charles River Discovery Research Services UK Limited (the “Company”) is a private Company limited by shares

and is incorporated in the United Kingdom and registered in England. The address of its registered office is

Robinson Building, Chesterford Research Park ,Little Chesterford , Saffron Walden, England, CB10 1XL.

The principal activity of the Company is conducting pharmaceutical research and early stage drug development.

2. Statement of compliance

The individual financial statements of Charles River Discovery Research Services UK Limited have been

prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102,

‘‘The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’’ (‘‘FRS 102’’)

and the Companies Act 2006.

3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These

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

a. Basis of preparation

These financial statements cover the 52 week period beginning 29 December 2024 and ending 27 December

2025. The comparative reporting period covered the 52 week period beginning 31 December 2023 and ending

28 December 2024.

These financial statements are prepared on the going concern basis, under the historical cost convention, as

modified by the revaluation of certain financial assets and liabilities measured at fair value throughout the profit

and loss account.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting

estimates. It also requires management to exercise its judgement in the process of applying the Company’s

accounting policies. The areas involving a higher degree of judgement or complexity, or areas where

assumptions and estimates are significant to the financial statements are disclosed in note 4.

b. Going concern

On 25 February 2026 Charles River announced that it had entered an agreement to divest certain assets within

its Discovery and CDMO businesses, which includes the Company as a legal entity and a significant portion of

the business of the Company. The transaction is expected to be completed in the second quarter of 2026.

The directors do not have visibility of the Company's funding structure beyond the anticipated date of sale. They

have prepared a detailed cash flow forecast based on their current expectations for the continuing business

which demonstrates that the Company should be able to meet its operating obligations from available cash

resources as they fall due for a period of at least 12 months from the date of approval of these financial

statements. However, they are unable to reflect how the change in control may affect the business, because they

do not have insight into the intentions of the new parent for the Company nor any financial support that the new

parent may provide, if required, including the terms on which such funding would be provided.

Taking all of this into account, the directors have considered that these conditions indicate the existence of a

material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern.

The financial statements do not include the adjustments that would result if the Company were unable to continue

as a going concern.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

c. Exemptions for qualifying entities under FRS 102

FRS 102 allows a qualifying entity certain disclosure exemptions, if certain conditions, have been complied with,

including notification of and no objection to, the use of exemptions by the Company’s shareholders. A qualifying

entity is defined as a member of a Group that prepares publicly available financial statements, which give a true

and fair view, in which that member is consolidated. The Company is a qualifying entity as its results are

consolidated into the financial statements of Charles River Laboratories International, Inc. which are publicly

available.

As a qualifying entity, the Company has taken advantage of the following exemptions in its separate financial

statements:

i) from the requirement to prepare a statement of cash flows as required by paragraph 3.17(d) of FRS 102;

ii) from the requirement to present certain financial instrument disclosures, as required by sections 11 and 12 of

FRS 102;

iii) from disclosing share-based payment arrangements, required by paragraphs 26.18(b), 26.19 to 26.21 and

26.23 of FRS 102, concerning its own equity instruments;

iv) from the requirement to present a reconciliation of the number of shares outstanding at the beginning and

end of the period as required by paragraph 4.12(a)(iv) of FRS 102; and

v) from the requirement to disclose the key management personnel compensation in total as required by

paragraph 33.7 of FRS 102.

d. Consolidated financial statements

The Company is a wholly owned (indirect) subsidiary of Charles River Laboratories International, Inc. It is

included in the consolidated financial statements of Charles River Laboratories International, Inc. which are

publicly available. Therefore, the Company is exempt by virtue of section 401 of the Companies Act 2006 from

the requirement to prepare consolidated financial statements.

These financial statements are the Company’s separate financial statements.

e. Foreign currency

i) Functional and presentation currency

The Company’s functional and presentation currency is the pound sterling.

ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the

dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items

measured at historical cost are translated using the exchange rate at the date of the transaction and non-

monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in

the profit and loss account.

Foreign exchange gains and losses that relate to borrowings are presented in the profit and loss account within

‘finance (expense) / income’. All other foreign exchange gains and losses are presented in the profit and loss

account within ‘other operating (losses) / gains’.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

f. Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount

receivable for services rendered net of discounts and rebates allowed by the company and value added taxes.

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred

to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of

revenue can be measured reliably, (d) it is probable that future economic benefits will flow to the entity and (e)

when the specific criteria relating to the each of company’s sales channels have been met, as described below.

i) Sale of services

The Company provides pharmaceutical research services to its customers. This is primarily conducted in

exchange for a fee which is generally dependent on the resource dedicated to the project and charged at a

certain rate per full time equivalent (FTE) employee per year. Revenue on such contracts is recognised as the

services are rendered. The Company also receives milestone payments, these are recognised as revenue when

achieved. In other cases, the Company performs research services on a fixed price basis. In this case, turnover is

recognised as work is performed using the percentage of completion method, as measured by costs incurred to

date compared to estimated total costs at completion.

The timing of revenue recognition, billings and cash collections results in contract assets (unbilled revenue), and

contract liabilities (current and long-term deferred revenue and customer contract deposits) on the balance sheet.

A contract asset is recorded when a right to consideration in exchange for goods or services transferred to a

customer is conditioned other than passage of time. A contract liability is recorded when consideration is

received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to

the customer under the terms of a contract. Contract liabilities are recognised as revenue after control of the

products or services is transferred to the customer and all revenue recognition criteria have been met.

g. Other income

Other income relates to income that is derived from costs recharged to other group companies. It is considered

to be part of normal recurring operating activities, but does not represent revenue (see accounting policy f.).

h. Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide

further understanding of the financial performance of the company. They are items that are material either

because of their size or their nature, and are considered non-recurring. These items are presented within the line

items to which they best relate and reported separately as exceptional items.

i. Employee benefits

The Company provides a range of benefits to employees, including annual bonus arrangements, paid holiday

arrangements and defined contribution pension plans.

i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense

in the period in which the service is received.

ii) Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been

paid the company has no further payment obligations. The contributions are recognised as an expense when

they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held

separately from the company in independently administered funds.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

i. Employee benefits (continued)

iii) Share-based payments

The Company participates in equity-settled, share-based compensation plans operated by Charles River

Laboratories International, Inc. (Note 8). The equity-settled arrangements are measured at fair value (excluding

the effect of non-market based vesting conditions) at the date of the grant. The fair value is expensed on a

straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual

number of shares or options that will vest.

The intrinsic value of options exercised during the period is invoiced to the Company by Charles River

Laboratories International, Inc. Any differences between the intrinsic value and the expense recognised in the

Profit and loss account for the period, are recognised as a debit or credit to the share appropriation reserve within

shareholders’ funds, and are shown in the statement of changes in equity.

National Insurance Contributions (NIC) payable by the Company on the exercise of share options, are provided

for based on the intrinsic value of these options and the prevailing rate of NIC at the balance sheet date.

iv) Annual bonus plan

The Company operates an annual bonus plan for eligible employees. An expense is recognised in the profit and

loss account when the Company has a legal or constructive obligation to make payments under the plan as a

result of past events and a reliable estimate of the obligation can be made.

j. Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is

recognised in the profit and loss account, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or

directly in equity respectively.

The Government enacted the R&D expenditure credit (“RDEC”) tax relief from 1 April 2013 and the Company

entered the scheme on this date. The Company has treated the RDEC as grant income within the financial

statements.

Current or deferred taxation assets and liabilities are not discounted.

i) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the period or prior periods. Tax

is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period

end.

ii) Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive

income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved

tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax

rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply

to the reversal of the timing difference.

k. Research and development expenditure

Research and development expenditure is charged to the Profit and loss account as incurred.

l. Grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset

received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue

are recognised in income over the period in which the related costs are recognised. Grants relating to assets are

recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is

recognised as deferred income.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

m. Business acquisitions

The Company accounts for business combinations using merger accounting principles. The Company allocates

the amounts that it pays for each acquisition to the assets it acquires and liabilities it assumes based on their fair

value of identifiable intangible assets acquired in a business combination on valuations that use information and

assumptions determined by management and which consider management’s best estimates of inputs and

assumptions that a market participant would use.

n . Intangible assets

Goodwill

Purchased goodwill, being the difference between the fair value of the consideration and the fair value of the net

assets acquired, is capitalised and amortised on a straight line basis over a prudent estimate of the period that

the Company is expected to benefit from it. Goodwill amortisation periods are determined on a case by case

basis up to a maximum of 20 years.

Other intangible assets

Other intangible assets are stated at cost less accumulated amortisation. The cost of intangible assets is the

consideration paid for their purchase. The intangible assets are amortised on a straight line basis over the

estimated period that the company is expected to benefit from them (see note 11).

Where factors, such as technological advancement or changes in market price, indicate that the residual value or

useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect

the new circumstances.

The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired.

o. Tangible assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use, dismantling and restoration costs and borrowing costs capitalised.

i) Short leasehold improvements

These include industrial premises and offices, and are stated at cost less accumulated depreciation and

accumulated impairment losses.

ii) Office equipment, fixtures and fittings, and laboratory equipment

These are stated at cost less accumulated depreciation and accumulated impairment losses.

iii) Depreciation and residual values

Land is not depreciated. Depreciation on other assets is calculated, using the straight-line method, to allocate the

cost to their residual values over their estimated useful lives, as follows:


Short leasehold improvements	Lease period
Office equipment, fixtures and fittings	3 to 5 years
Laboratory equipment	5 years
Motor vehicles	5 years

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

o. Tangible assets (continued)

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

iv) Subsequent additions and major components

Subsequent costs, including major inspections, are included in the assets carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow

to the company and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate

asset where they have significantly different patterns of consumption of economic benefits and are depreciated

separately over its useful life.

Repairs, maintenance and minor inspection costs are expensed as incurred.

v) Assets in the course of construction

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available

for use and are reviewed for impairment at each reporting date.

vi) Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal,

the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss

account.

p. Borrowing costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of

qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their

intended use, are capitalised and added to the cost of those assets until such time as the assets are substantially

ready for their intended use. All other borrowing costs are recognised in the profit and loss account in the period

in which they are incurred.

q. Leased assets

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers

whether the arrangement is, or contains, a lease based on the substance of the arrangement.

i) Finance leased assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as

finance leases.

Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if

lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease.

Where the implicit rate cannot be determined the company’s incremental borrowing rate is used.

Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are

assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease

payments are apportioned between capital repayment and finance charge, using the effective interest rate

method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

ii) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments

under operating leases are charged to the profit and loss account on a straight-line basis over the period of the

lease.

iii) Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the

calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the

lease expense, on a straight line basis over the period of the lease.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

r. Impairment of non-financial assets

At each balance sheet date, non-financial assets not carried at fair value are assessed to determine whether

there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the

asset is compared to the carrying amount of the asset.

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in

use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the

asset’s continued use. These cash flows are discounted using a pre-tax discount rate that represents the current

market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is

reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the

asset has been revalued when the amount is recognised in other comprehensive income to the extent of any

previously recognised revaluation. Thereafter any excess is recognised in the profit and loss account.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised

estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the

carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised

in prior periods. A reversal of an impairment loss is recognised in the profit and loss account.

s. Investments

Investments in subsidiary undertakings are held at cost less accumulated impairment losses.

t. Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories

are recognised as an expense in the period in which the related revenue is recognised.

Finished products for sale are capitalised as inventory. Cost is determined on a standard costing basis and

includes all applicable direct costs. Estimated selling price less cost to complete and sell is determined with

reference to market prices after deducting direct selling expenses. Slow moving inventory lines are written down

based on future forecast sales.

u. Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid

investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown

within borrowings in current liabilities.

v. Provisions and contingencies

i) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past

events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the

obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is

determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of

an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation

using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to

the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

ii) Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not

probable that there will be an outflow of resources or that the amount cannot be reliably measured at the

reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain

future events not wholly within the Company’s control. Contingent liabilities are disclosed in the financial

statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow

of economic benefits is probable.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

3. Summary of significant accounting policies (continued)

w. Financial instruments

The Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in

commercial paper, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective

evidence of impairment. 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 the profit and loss account.

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 the profit and loss account.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are

settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party

or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the

asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group

undertakings, 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 receipts discounted at a

market rate of interest.

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. Accounts 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 payables are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is

discharged, cancelled or expires.

iii) Offsetting

Financial assets and liabilities are offset and 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.

x. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary

shares or options are shown in equity as a deduction, net of tax, from the proceeds.

y. Distributions to equity holders

Dividends and other distributions to the Company’s shareholders are recognised as a liability in the financial

statements in the period in which the dividends and other distributions are approved by the Company’s

shareholders. These amounts are recognised in the statement of changes in equity.

z. Related party transactions

The Company discloses transactions with related parties which are not wholly owned with the same group. It

does not disclose transactions with its parent or with members of the same group that are wholly owned.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

4. Critical accounting judgements and estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the application of the accounting policies and the reported amounts of assets and

liabilities, revenue and expenses. Actual results may differ from these estimates.

Estimates and assumptions are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

(a) Key accounting estimates and uncertainties

The directors make estimates and assumptions concerning the future in the process of preparing the entity

financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual

results. The estimates and assumptions that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial period are addressed below.

i) Useful economic lives of intangible assets

The annual amortisation on intangible fixed assets is sensitive to changes in the estimated useful economic lives

of the assets. The useful economic lives are reviewed annually and are amended when necessary to reflect

current estimates based on technological advancement, economic utilisation, and market developments.

ii) Useful economic lives of tangible assets

The annual depreciation on tangible assets is sensitive to changes in the estimated useful economic lives and

residual values of the assets. The useful economic lives and residual values are reviewed annually. They are

amended when necessary to reflect current estimates, based on technological advancement, future investments,

economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible

assets and note 3 for the useful economic lives for each class of tangible assets.

iii) Percentage of completion revenue recognition

Revenue on long term projects is estimated based on the percentage of completion method, applied to the overall

agreed contract value. If the estimates of the end result of a contract change, the sales and profits recognised

are adjusted in the period when the change first becomes known and can be evaluated.

iv) Impairment of goodwill

Goodwill is assessed annually to test the remaining useful economic life and whether the carrying value requires

to be impaired. In order to do this, the company relies on a number of factors, including historical results,

forecasts, and market data.

v) Impairment of inventory

The Company analyses its inventory levels on a quarterly basis and writes down inventory that is determined to

be damaged, obsolete or otherwise unmarketable, with a corresponding charge to cost of products sold.

(b) Other areas of judgement and accounting estimates

i) Recoverability of debtors

The Company makes a judgement as to whether trade and other debtor balances are recoverable, based on

available evidence such as the age of the debt, historical experience, and debtor correspondence. Any amounts

judged as not recoverable are written off to the profit and loss account in the period that the judgement is

determined. Any amounts previously provided for the impairment of the debt are released from the provision and

credited to the profit and loss account in the same period.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

5. Turnover

The directors are of the opinion that the Company has only one class of business, namely contract scientific

research and consultancy. However, the Company provided its services to customers in a number of

geographical areas and its turnover can be summarised as follows:


	2025	2024
	£'000	£'000
United Kingdom	20,664	17,982
European Union	16,819	24,983
North America	62,917	61,012
Other	4,103	2,276
	104,503	106,253

6. Operating (loss)/profit


	2025	2024
Operating (loss)/profit is stated after charging/(crediting):	£'000	£'000

Depreciation and amortisation for the period:
- Tangible assets - owned	8,100	5,569
- Intangible assets and goodwill	4,048	3,715
Operating lease rentals	4,282	3,885
Restructuring costs	629	1,637
Research and development tax credit	(5,953)	(7,005)
Expenses recharged to other group companies	(1,749)	(3,355)
Foreign exchange loss	1,003	390
Charge to provision for onerous lease costs	1,511	2,647

The analysis of auditors’ remuneration is as follows:


	2025	2024
	£'000	£'000
Fees payable to the Company’s auditors for the audit of the Company’s financial statements	327	309
Total audit fees	327	309

Auditors' remuneration relates solely to fees payable for the audit of the company's financial statements. No non-

audit services were provided to the company by the auditors.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

7. Employee information


	2025	2024
	No.	No.
The average monthly number of employees was:
Technical, research and development	551	606
Sales and administration	86	100
	637	706

	2025	2024
	£'000	£'000
Staff costs during the period
Wages and salaries	34,387	34,740
Social security costs	4,525	3,837
Other pension costs	3,389	4,153
Share option costs	761	473
	43,062	43,203

	2025	2024
	£'000	£'000
Directors’ remuneration
Aggregate emoluments	193	148
Pension scheme contributions	26	19
	219	167

	2025	2024
	£'000	£'000
Remuneration of highest paid director
Aggregate remuneration	193	62
Pension scheme contributions	26	8
	219	70

At the balance sheet date, no directors (2024 - one director) was a member of a defined contribution pension

plan.

One director remunerated by the Company exercised share warrants in the period (2024 - one).

The Company has made arrangements for its staff to join a group personal pension plan should they wish. The

Company’s contribution to the scheme is fixed and the assets of the scheme are held separately in independently

administered funds. There were no outstanding or prepaid contributions at the balance sheet date.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

8. Share-based payments and share options

The ultimate parent company Charles River Laboratories International, Inc. has stock-based compensation plans

under which employees are granted stock-based awards such as stock options, RSUs, and PSUs.

During the financial periods ended 27 December 2025 and 28 December 2024, the primary share-based awards

and their general terms and conditions are as follows:

• Stock options, which entitle the holder to purchase a specified number of shares of common stock at an

exercise price equal to the closing market price of common stock on the date of grant; typically vest over 4

years; and typically expire 5 or 10 years from date of grant.

• RSUs, which represent an unsecured promise to grant at no cost a set number of shares of common stock

upon the completion of the vesting schedule, and principally vest over 4 years. With respect to RSUs,

recipients are not entitled to cash dividends and have no voting rights on the stock during the vesting period.

• PSUs, which entitle the holder to receive at no cost, a specified number of shares of common stock within a

range of shares from zero to a specified maximum and typically vest over 3 years. Payout of this award is

contingent upon achievement of certain performance and market conditions.

The options are equity settled and the exercise price is the share price at the grant date. The Company accounts

for all share option schemes in accordance with Section 26 of FRS 102 (“Share-based payments”). The fair value

is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted

to reflect the actual number of shares or options that will vest.

The volatility is based on a statistical analysis of daily share prices over a period equal to the vesting period of the

schemes ending on the day before the grant date for the schemes.


	2025	2024
Volatility	43%	37%
Risk free interest rates	4.10%	4.40%
Expected dividend yield	Nil	Nil
Weighted average remaining contractual life of options outstanding at end of period	5.5 years	6.0 years

The Company is unable to directly measure the fair value of employee services received. Instead, the fair value

of the share options granted during the period is determined using the Black-Scholes model. The model is

internationally recognised as being appropriate to value employee share option schemes similar to the Charles

River Laboratories International, Inc. schemes. In the fair value model it has been assumed that the expected

dividend yield for the share option plan is nil and the estimated life of the share options is 5.5 years (period ended

28 December 2024: 6.0 years).

The Company recognised total expenses of £761,000 related to Charles River Laboratories International, Inc.

equity-settled share-based payment transactions in the period ended 27 December 2025 (2024 - £473,000).

9. Net interest receivable / payable

(a) Interest receivable and similar income


	2025	2024
	£'000	£'000
Bank interest receivable and similar income	342	418
Interest receivable from group undertakings	63	197
Total interest receivable and similar income	405	615

(b) Interest payable and similar expenses


	2025	2024
	£'000	£'000
Interest payable to group undertakings	392	1,219

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

10. Tax on loss

(a) Analysis of charge for the period


	2025	2024
	£'000	£'000
Current tax:
UK corporation tax	1,075	1,491
Adjustment in respect of previous periods	18	(376)
	1,093	1,115
Deferred tax:
Origination and reversal of timing differences	1,711	2,092
Adjustment in respect of prior periods	(104)	(471)
	1,607	1,621

Total tax charge for the period	2,700	2,736

(b) Factors affecting tax charge for the period

The tax assessed for the period is different (2024: different) to the standard rate of corporation tax in the UK of

25.00% (2024 – 25.00%). The differences are explained below:


	2025	2024
	£'000	£'000

Loss before taxation	(3,772)	(1,150)

Loss before tax at the standard rate of UK corporation tax of 25% (2024– 25%)	(943)	(288)
Expenses not deductible for tax purposes	862	2,009
Income not taxable	(245)	(1,080)
Adjustment in respect of prior periods	(86)	(847)
Share options – permanent deduction	(13)	26
Deferred tax asset not recognised (see note 19)	3,125	2,916
Total tax charge for the period	2,700	2,736

There has been no change to corporation tax rates for the financial year ended 31 December 2025. For the

financial period ended 27 December 2025, the current weighted average tax rate is 25% (28 December 2024

weighted average tax rate was 25%). Deferred taxes at the balance sheet date have been measured using these

enacted tax rates and reflected in these financial statements.

The Charles River Laboratories International, Inc. group falls within the scope of the OECD Pillar Two model

rules. Pillar Two was enacted in the UK via the UK Finance (No 2) Act 2023 on 11 July 2023. The Pillar Two

legislation was effective in the UK for accounting periods beginning on or after 31 December 2023. As the Pillar

Two legislation is effective at the reporting date, the company has estimated its related current tax exposure.

Under the legislation, the company is liable to pay a top-up tax in the UK for the difference between the GloBE

effective tax rate for the UK and the 15% minimum rate. In addition, top-up taxes are payable locally where

qualifying domestic minimum top-up taxes have been legislated and are in effect.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

10. Tax on loss (continued)

The company has an estimated weighted average effective tax rate that exceeds 15% in the UK, and as such

applies the CbCR effective tax rate safe harbour provisions in calculating this basis. No top-up taxes have

therefore been accrued in the current reporting period.

The company applies the exception to recognising and disclosing information about deferred tax assets and

liabilities related to Pillar Two income taxes.

11. Intangible assets


	Technology	Customer relationships	Other	Total
	£'000	£'000	£'000	£'000

Cost
At 29 December 2024	3,351	12,636	6,113	22,100
Additions	4,086	1,451	-	5,537
At 27 December 2025	7,437	14,087	6,113	27,637

Accumulated amortisation
At 29 December 2024	3,351	3,924	4,349	11,624
Charge for the period	545	1,137	832	2,514
Revaluation	-	-	45	45
At 27 December 2025	3,896	5,061	5,226	14,183

Net book value
At 27 December 2025	3,541	9,026	887	13,454

At 28 December 2024	-	8,712	1,764	10,476

The intangible assets relate to certain technologies, know-how, and customer relationships acquired in the course

of business.

On 7 July 2017, the Company acquired the trade and assets of Caprotec GmbH. These assets were fully

amortised in 2019.

On 1 April 2019, the Company acquired the trade and net assets of its subsidiary KWS Biotest Limited, including

certain intangible assets, which are being amortised over ten years from the original date of acquisition.

On 21 May 2021, the Company acquired the trade and net assets of its subsidiary Retrogenix Limited, including

intangible assets, such as know-how and customer relationships. These intangible assets are being amortised

over one to ten years depending on their type.

On 11 January 2022 the Company purchased an intangible software asset. This asset is being amortised as

software costs over five years which is the period of use set out in the purchase agreement. The agreement is

denominated in US Dollars, and during the period, the cost of the asset was revalued to reflect the impact of

foreign exchange movement.

On 24 June 2025 the Company acquired certain intangible and tangible assets from another group company.

The intangible assets are being amortised over periods of between three to fifteen years depending on their type,

from the date of original acquisition by Charles River.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

12. Goodwill


	£'000
Cost
At 29 December 2024	43,033
At 27 December 2025	43,033

Accumulated amortisation
At 29 December 2024	25,701
Charge for the period	1,534
At 27 December 2025	27,235

Net book value
At 27 December 2025	15,798

At 28 December 2024	17,332

The goodwill arising on the acquisition of the net assets and trading businesses of Biofocus DPI (Holdings) Ltd

and Cambridge Discovery Limited was fully amortised in 2021.

The goodwill arising on the acquisition of the net assets and trading business of Argenta Discovery 2009 Limited,

is being amortised over 16 years from the date of acquisition, being the expected useful life of the goodwill.

The goodwill arising on the acquisition of the net assets and trading business of Retrogenix Limited, is being

amortised over 15 years from the date of acquisition, being the expected useful life of the goodwill.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

13. Tangible assets


	Short leasehold improvements	Laboratory equipment	Office equipment, fixtures and fittings	Motor vehicles	Assets under construction	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Cost
At 29 December 2024	14,328	47,040	4,733	15	2,849	68,965
Additions	468	5,023	207	-	1,254	6,952
Transfers	54	2,538	-	-	(2,592)	-
Disposals	(2,693)	(6,893)	(938)	-	(892)	(11,416)

At 27 December 2025	12,157	47,708	4,002	15	619	64,501

Accumulated depreciation
At 29 December 2024	6,819	33,577	4,349	15	-	44,760
Charge for the period	3,693	4,180	227	-	-	8,100
Disposals	(2,688)	(5,735)	(934)	-	-	(9,357)

At 27 December 2025	7,824	32,022	3,642	15	-	43,503

Net book value
At 27 December 2025	4,333	15,686	360	-	619	20,998
At 28 December 2024	7,509	13,463	384	-	2,849	24,205

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

14. Investments


	£'000
Cost and net book value
Cost at 29 December 2024 and 27 December 2025	7,828
Impairment at 29 December 2024	(4,910)
Impairment charge for the period	(670)
Net book value at 27 December 2025	2,248


The subsidiary undertakings of the Company at 27 December 2025 are:
Name of company	Country of incorporation and principal operations	Registered address	Principal activities during the period	Description of shares held	%
KWS Biotest Limited	United Kingdom	Robinson Building, Chesterford Park, Little Chesterford, Saffron Walden, England, CB10 1XL	Collaborative drug discovery	£0.01 ordinary shares	100
Cobra Biologics Holdings Limited	United Kingdom	Stephenson Building, The Science Park, Keele, Staffordshire, ST5 5SP	Other research and experimental development on natural sciences and engineering.	£0.01 ordinary shares £0.01 deferred shares	100


The minority interest investments of the Company at 27 December 2025 are:
Name of company	Country of incorporation and principal operations	Registered address	Principal activities during the period	Description of shares held	%
Fios Genomics Limited	United Kingdom	Nine Edinurgh Bioquart, Little France Road, Edinburgh, EH16 4UX	Provision of services for analysis of gene expression, microRNA and SNP data	£0.0001 ordinary shares	10
BitBio Limited	United Kingdom	Pioneer House Vision Park, Histon, Cambridge, Cambridgeshire, United Kingdom, CB24 9NL	Develops technology to allow for reprogramming of stem cells.	40,818 B-1 Shares - £0.000001 36,712 B-2 Shares - £0.000005	2

During the period the Company recognised an impairment of £670,000 in its investment in BitBio Limited. The

impairment arose following the issue of higher preferential ranking shares at a price per share lower than the

carrying value per share of the investment held by the Company. The resulting impairment reduces the carrying

value of the investment, aligning both categories of Series B shares with current market value.

15. Inventories


	2025	2024
	£'000	£'000
Raw materials	3,028	6,753
Work in progress	1,236	1,322
Finished goods for resale	2,945	3,560
	7,209	11,635

The amount of stocks recognised as an expense during the period was £3,235,000 ( 2024: £(2,067,000) ).

There is no material difference between the carrying amount of inventory and the replacement cost. Inventories

are stated after provisions for impairment of £2,197,000 (2024: £1,088,000).

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

16. Debtors


	2025	2024
	£'000	£'000
Amounts falling due within one year:
Trade debtors	14,742	14,450
Amounts owed by group undertakings	4,062	8,264
Other debtors	1,057	1,018
R&D expenditure credit	12,444	11,550
Deferred tax	-	1,015
Prepayments and accrued income	7,947	6,622
	40,252	42,919

The amounts owed by group undertakings includes a balance of £1,537,000 (2024: £3,518,000) related to

intercompany cash pooling which bears interest at SONIA less 0.40%. The remainder represents trading

balances, which are unsecured, do not bear interest, and are repayable on demand.

Trade debtors are stated after provisions for impairment of £140,000 (2024: £214,000).

17. Cash at bank and in hand

Cash at bank includes a restricted amount of £200,000 (2024: £200,000 ) held on guarantee in favour of HMRC.

All other cash at bank and in hand is freely disposable.

18. Creditors: amounts falling due within one year


	2025	2024
	£'000	£'000
Trade creditors	6,784	5,386
Amounts owed to group undertakings	14,376	12,311
Taxation and social security	3,597	1,805
Other creditors	43	119
Accruals and deferred income	16,430	12,543
	41,230	32,164

The amounts owed to group undertakings represents trading balances, which are unsecured, do not bear

interest, and are repayable on demand.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

19. Deferred tax


		£'000
Movement in period:
At 29 December 2024		1,015
Deferred tax charge to profit and loss account for the period		(1,711)
Adjustment in respect of previous periods		104
At 27 December 2025		(592)

At 27 December 2025 the Company had deferred tax liabilities/assets comprising the following:


	2025	2024
	£'000	£'000
Tax losses carried forward	-	3,125
Fixed asset timing differences	(980)	(2,426)
Short term timing differences (trading)	388	316
	(592)	1,015

Unrecognised deferred tax assets as at 27 December 2025 amounted to £6,041,000 (2024 - £2,916,000)

including £nil (2024 - £nil) of unrecognised restricted RDEC deferred tax. In accordance with Section 29 of FRS

102 ‘Income tax’, the unprovided deferred tax asset will be utilised in future accounting periods, once there is

sufficient, persuasive, reliable evidence that the Company will generate sufficient future trading profits from the

same trading activities.

The net deferred tax liability expected to reverse in the next 12 months in 2026 is £954,925. This primarily relates

to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation,

(£980,044 deferred tax liability), offset by expected tax deductions when payments are made to utilise provisions.

20. Creditors: amounts falling due after more than one year


	2025	2024
	£'000	£'000

Amounts owed to group undertakings	-	14,079
	-	14,079

The amounts owed to group undertakings represents loans from Charles River Laboratories Holdings Limited

which bear interest at Libor +0.25% and are repayable within a period of five years from first utilisation, which

was 29 March and 17 December 2021.

21. Provisions for liabilities


	Deferred tax (note 19)	Onerous lease	Dilapidations	Total
	£'000	£'000	£'000	£'000
At 29 December 2024	-	2,647	1,100	3,747
Charged to profit and loss account	-	1,511	43	1,554
Liability transferred from debtors	592	-	-	592
At 27 December 2025	592	4,158	1,143	5,893

The dilapidation provision represents the directors’ best estimate of the present value of the cost of reinstating the

Company’s leased premises to their original condition on termination of the leases as the Company is obliged to

do under the corresponding lease agreements. It is expected that the related cash outflows will occur at such

point in time as the lease terminates and is not renewed.

The onerous lease provision has arisen following the Company's decision to vacate a business property which is

under lease contract until 2035. During the period, the Company decided to vacate two further properties which

are under lease contract until 2027 and 2028. The provision has been calculated in accordance with FRS102

s21 and IFRIC 21.

Charles River Discovery Research Services UK Limited

Notes to the financial statements

Period ended 27 December 2025

22. Called up share capital


	2025	2024
	£'000	£'000
Issued, called up and fully paid
10,000,004 (2024 - 10,000,004) ordinary shares of £1 each	10,000	10,000

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

repayment of capital.

23. Financial commitments

At 27 December 2025, the Company had the following future minimum lease payments under non-cancellable

operating leases for each of the following periods:


	Land and buildings
	2025	2024
	£'000	£'000
Operating lease commitments which expire:
Less than a year	4,283	3,886
Later than one year and not later than five years	13,996	13,392
Later than five years	10,000	13,977
	28,279	31,255

24. Capital commitments

Contracts placed for future capital expenditure not provided in the financial statements are as follows:


	2025	2024
	£'000	£'000
Contracted for but not provided for	350	-

25. Related party transactions

The Company has taken advantage of the exemption contained in paragraph 33.1A of FRS 102 “Related party

transactions” not to disclose transactions with other group companies (or investees of the group qualifying as

related parties) on the basis that it is a wholly-owned subsidiary of Charles River Laboratories International, Inc.

for which consolidated financial statements are publicly available.

26. Controlling parties

The immediate parent company is Biofocus DPI (Holdings) Ltd, a company registered in the United Kingdom .

The ultimate parent undertaking and controlling party for the whole period was Charles River Laboratories

International, Inc., a company registered in the United States of America, with registered office address at 251

Ballardvale Street, Wilmington, MA 01887, which is the parent undertaking of the smallest and the largest group

into which the results of the Company are consolidated. Copies of the consolidated financial statements of

Charles River Laboratories International, Inc. can be obtained from its registered office, or the website

www.criver.com.

27. Events after the end of the reporting period

As discussed in the Strategic report and Directors report, on 25 February 2026 Charles River announced that it

had entered into an agreement to divest certain assets of its Discovery and CDMO businesses. This includes the

legal entity and a significant portion of the business of Charles River Discovery Research Services UK Limited.

The transaction is expected to complete in the second quarter of 2026.


Contents	Page
Directors and advisers	1
Strategic report	2
Directors' report	6
Independent auditors' report to the members of Charles River Discovery Research Services UK Limited	10
Profit and loss account	13
Statement of comprehensive income	13
Balance sheet	14
Statement of changes in equity	15
Notes to the financial statements	16