Company registration number 14477500 (England and Wales)
EPMS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
EPMS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Miss K Brewin
Mr KJ Earles
Mr CG Hemingway
Company number
14477500
Registered office
1 The Moorings
Waterside Industrial Park
Waterside Road, Stourton
Leeds
LS10 1RW
Auditor
Sumer Auditco Limited
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
EPMS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 29
EPMS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

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

Review of the business

For the year ending 31 December 202 5, group turnover amounted to £30.7 million (202 4: £28.1 million). and profit before tax was £2.9 million (202 4 £1.9 million). As 31 December 202 5 the net assets of the group totalled £5.8 million (202 4: £4 million).

The directors are please with this year's group performance and profitability and believe the group is in a strong position going forward.

Principal risks and uncertainties

The key business risks and uncertainties affecting the group are considered to relate to competition and market forces in the industry.

The group does not actively use financial instruments as part of financial risk management. It is exposed to the usual credit risk and cash flow associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments means they are not subject to price risk or liquidity risk.

Key performance indicators

The directors monitor the performance of the group according to the following key performance indicators (KPI's): Turnover for the year ended December 202 5 continued to show a strong increase compared to the previous years. The directors also monitor detailed KPI's for each trading site.

On behalf of the board

Mr KJ Earles
Director
27 May 2026
EPMS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 202 5.

Principal activities

The principal activity of the group is that of distribution of specialist building supplies to the construction industry. The principal activity of the company is that of a holding company.

Results and dividends

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

Ordinary dividends were paid amounting to £241,663. The directors do not recommend payment of a further dividend.

Directors

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

Miss K Brewin
Mr KJ Earles
Mr CG Hemingway
Statement of directors' responsibilities

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

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

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

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.

EPMS HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -
On behalf of the board
Mr KJ Earles
Director
27 May 2026
EPMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EPMS HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of EPMS Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- T he information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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

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

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

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

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

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

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the trade;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group;

- we assessed the extent of compliance with the laws and regulations considered above through making enquiries of management and inspecting legal correspondence; and

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

EPMS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EPMS HOLDINGS LIMITED
- 6 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risks of fraud through management bias and override controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- discussions with senior management regarding relevant regulations and reviewing the company’s legal and professional fees.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Chris Neale (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
1st Floor
Mayesbrook House
Lawnswood Business Park
Leeds
LS16 6QY
27 May 2026
EPMS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
30,728,278
28,062,996
Cost of sales
(22,423,563)
(20,838,264)
Gross profit
8,304,715
7,224,732
Administrative expenses
(4,848,342)
(4,566,190)
Operating profit
4
3,456,373
2,658,542
Interest payable and similar expenses
8
(571,809)
(675,995)
Profit before taxation
2,884,564
1,982,547
Tax on profit
9
(906,059)
(689,835)
Profit for the financial year
1,978,505
1,292,712
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

EPMS HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Goodwill
11
7,772,435
8,421,769
Total intangible assets
7,772,435
8,421,769
Tangible assets
12
353,868
379,446
8,126,303
8,801,215
Current assets
Stocks
15
2,497,500
1,957,933
Debtors
16
5,148,883
4,797,588
Cash at bank and in hand
272,966
246,893
7,919,349
7,002,414
Creditors: amounts falling due within one year
17
(7,727,484)
(7,196,535)
Net current assets/(liabilities)
191,865
(194,121)
Total assets less current liabilities
8,318,168
8,607,094
Creditors: amounts falling due after more than one year
18
(2,485,447)
(4,500,891)
Provisions for liabilities
Deferred tax liability
21
69,000
79,324
(69,000)
(79,324)
Net assets
5,763,721
4,026,879
Capital and reserves
Called up share capital
23
350,200
350,200
Share premium account
1,478,500
1,478,500
Profit and loss reserves
3,935,021
2,198,179
Total equity
5,763,721
4,026,879

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

The financial statements were approved by the board of directors and authorised for issue on 27 May 2026 and are signed on its behalf by:
27 May 2026
Mr KJ Earles
Director
Company registration number 14477500 (England and Wales)
EPMS HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2025
31 December 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
13
14,629,547
14,629,547
Current assets
Debtors
16
1,795,057
1,015,000
Cash at bank and in hand
52
52
1,795,109
1,015,052
Creditors: amounts falling due within one year
17
(11,920,178)
(9,291,885)
Net current liabilities
(10,125,069)
(8,276,833)
Total assets less current liabilities
4,504,478
6,352,714
Creditors: amounts falling due after more than one year
18
(2,477,250)
(4,479,654)
Net assets
2,027,228
1,873,060
Capital and reserves
Called up share capital
23
350,200
350,200
Share premium account
1,478,500
1,478,500
Profit and loss reserves
198,528
44,360
Total equity
2,027,228
1,873,060

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £395,831 (2024 - £45,879 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 27 May 2026 and are signed on its behalf by:
27 May 2026
Mr KJ Earles
Director
Company registration number 14477500 (England and Wales)
EPMS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2024
350,200
1,478,500
908,955
2,737,655
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
1,292,712
1,292,712
Dividends
10
-
-
(3,488)
(3,488)
Balance at 31 December 2024
350,200
1,478,500
2,198,179
4,026,879
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
1,978,505
1,978,505
Dividends
10
-
-
(241,663)
(241,663)
Balance at 31 December 2025
350,200
1,478,500
3,935,021
5,763,721
EPMS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2024
350,200
1,478,500
1,969
1,830,669
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
-
45,879
45,879
Dividends
10
-
-
(3,488)
(3,488)
Balance at 31 December 2024
350,200
1,478,500
44,360
1,873,060
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
395,831
395,831
Dividends
10
-
-
(241,663)
(241,663)
Balance at 31 December 2025
350,200
1,478,500
198,528
2,027,228
EPMS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
4,635,805
2,653,660
Interest paid
(571,809)
(675,995)
Income taxes paid
(797,000)
(515,000)
Net cash inflow from operating activities
3,266,996
1,462,665
Investing activities
Purchase of tangible fixed assets
(154,994)
(92,289)
Proceeds from disposal of tangible fixed assets
2,783
12,734
Net cash used in investing activities
(152,211)
(79,555)
Financing activities
Repayment of borrowings
(2,167,654)
(746,577)
Repayment of bank loans
(640,000)
(640,000)
Payment of finance leases obligations
(39,395)
(24,786)
Dividends paid to equity shareholders
(241,663)
(3,488)
Net cash used in financing activities
(3,088,712)
(1,414,851)
Net increase/(decrease) in cash and cash equivalents
26,073
(31,741)
Cash and cash equivalents at beginning of year
246,893
278,634
Cash and cash equivalents at end of year
272,966
246,893
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 13 -
1
Accounting policies
Company information

EPMS Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 The Moorings, Waterside Industrial Park, Waterside Road, Stourton, Leeds, LS10 1RW.

The group consists of EPMS Holdings Limited and all of its subsidiaries.

1.1
Basis of preparation

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

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

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

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

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

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

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company EPMS Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

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

In forming this assessment, the directors have considered the group’s current and forecast financial performance, cash flows and liquidity position, including the availability of external funding. The group has external debt facilities in place which are subject to certain financial covenants. The directors have reviewed compliance with these covenants for the period ended and have also considered forecast covenant performance for the forecast period.

Based on this review, the directors confirm that the group was compliant with all external debt covenants at the reporting date and expects to remain compliant for a period of at least twelve months from the date of approval of the financial statements. The directors are therefore satisfied that no material uncertainty exists that would cast significant doubt on the ability to continue as a going concern.

1.5
Revenue

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.7
Tangible fixed assets

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

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

Short leasehold property improvements
10% straight line and 25% reducing balance
Fixtures and fittings & equipment
25% reducing balance
Motor vehicles
33% reducing balance

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

1.8
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

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

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

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
1.10
Stocks

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

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

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.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

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

Current tax

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

Deferred tax

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

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

1.15
Employee benefits

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

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

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

1.16
Retirement benefits

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

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 19 -
1.17
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and amortisation

The depreciation and amortisation policies have been set according to management's assessment of the useful lives of a typical asset in each category. It is not considered practical to use a per unit basis to allocate depreciation. The depreciation charged during the year was £182,260 and the amortisation charged in the year was £649,334. The director feels these are a fair reflection of the benefits derived from consumption of the fixed assets in use during the period.

3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Distribution of specialist building supplies
30,728,278
28,062,996
2025
2024
£
£
Turnover analysed by geographical market
UK sales
30,580,596
27,881,148
Non-UK sales
147,682
181,848
30,728,278
28,062,996
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
4,800
4,000
Depreciation of tangible fixed assets
182,260
104,852
Loss on disposal of tangible fixed assets
20,119
21,178
Amortisation of intangible assets
649,334
649,334
Operating lease charges
316,997
311,114
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,800
4,000
Audit of the financial statements of the company's subsidiaries
23,820
14,000
28,620
18,000
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Administration and distribution
37
35
-
-
Management
6
6
3
3
Total
43
41
3
3

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
1,910,870
1,914,510
-
0
-
0
Social security costs
229,289
219,057
-
-
Pension costs
221,532
265,502
-
0
-
0
2,361,691
2,399,069
-
0
-
0
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 21 -
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
146,454
292,366
Company pension contributions to defined contribution schemes
152,986
202,390
299,440
494,756
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
51,934
75,957
Company pension contributions to defined contribution schemes
50,328
98,822
8
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
567,876
673,515
Interest on finance leases and hire purchase contracts
3,933
2,480
Total finance costs
571,809
675,995
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
916,495
677,951
Adjustments in respect of prior periods
(112)
-
0
Total current tax
916,383
677,951
Deferred tax
Origination and reversal of timing differences
(10,324)
11,884
Total tax charge
906,059
689,835
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Taxation
(Continued)
- 22 -

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

2025
2024
£
£
Profit before taxation
2,884,564
1,982,547
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
721,141
495,637
Tax effect of expenses that are not deductible in determining taxable profit
166,055
13,808
Change in unrecognised deferred tax assets
920
-
0
Adjustments in respect of prior years
(112)
-
0
Depreciation on assets not qualifying for tax allowances
18,055
180,390
Taxation charge
906,059
689,835
10
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
241,663
3,488
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 23 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2025 and 31 December 2025
9,740,006
Amortisation and impairment
At 1 January 2025
1,318,237
Amortisation charged for the year
649,334
At 31 December 2025
1,967,571
Carrying amount
At 31 December 2025
7,772,435
At 31 December 2024
8,421,769
The company had no intangible fixed assets at 31 December 2025 or 31 December 2024.
12
Tangible fixed assets
Group
Short leasehold property improvements
Fixtures and fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2025
32,907
189,194
255,801
477,902
Additions
-
0
58,476
121,108
179,584
Disposals
-
0
(26,320)
(61,507)
(87,827)
Adjustments
-
0
-
0
74,862
74,862
At 31 December 2025
32,907
221,350
390,264
644,521
Depreciation and impairment
At 1 January 2025
13,817
61,160
23,479
98,456
Depreciation charged in the year
4,892
58,165
119,203
182,260
Eliminated in respect of disposals
-
0
(26,320)
(38,605)
(64,925)
Adjustments
-
0
-
0
74,862
74,862
At 31 December 2025
18,709
93,005
178,939
290,653
Carrying amount
At 31 December 2025
14,198
128,345
211,325
353,868
At 31 December 2024
19,090
128,034
232,322
379,446
The company had no tangible fixed assets at 31 December 2025 or 31 December 2024.
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
12
Tangible fixed assets
(Continued)
- 24 -

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Motor vehicles
47,064
73,551
-
0
-
0

On the initial consolidation of the Group, fixed assets acquired by Holdings were recognised at net book value, rather than at original cost with corresponding accumulated depreciation. In prior years disposals of motor vehicles were stated at their original cost and corresponding accumulated depreciation and not their net book value.

In the current year adjustments have been made to the opening disposal cost and accumulated depreciation figures for motor vehicles to ensure that these balances are presented consistently with the Group’s accounting policy. Adjustments affect presentation only and have no impact on the net book value of fixed assets or the profit or loss for the current and previous year.

The understatement of opening gross cost and accumulated depreciation balances arising in prior periods has been assessed and determined to be not material to the financial statements. Accordingly, no prior period restatement has been made.

13
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
14,629,547
14,629,547
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2025 and 31 December 2025
14,629,547
Carrying amount
At 31 December 2025
14,629,547
At 31 December 2024
14,629,547
14
Subsidiaries

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

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
14
Subsidiaries
(Continued)
- 25 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
EPMS Group Limited
1 The Moorings Waterside Industrial Park, Waterside Road Stourton, Leeds, West Yorkshire, UK
Ordinary
100.00
-
EPMS Supplies Limited
1 The Moorings Waterside Industrial Park, Waterside Road Stourton, Leeds, West Yorkshire, UK
Ordinary
0
100.00
15
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Finished goods and goods for resale
2,497,500
1,957,933
-
0
-
0
16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,150,058
3,948,691
-
0
-
0
Corporation tax recoverable
57
-
0
57
-
0
Amounts owed by group undertakings
-
0
-
0
1,795,000
1,015,000
Other debtors
53,763
12,915
-
0
-
0
Prepayments and accrued income
945,005
835,982
-
0
-
0
5,148,883
4,797,588
1,795,057
1,015,000

Amounts owed by group undertakings are interest free and repayable on demand.

17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
19
640,000
640,000
640,000
640,000
Obligations under finance leases
20
32,283
34,048
-
0
-
0
Loan notes
19
39,750
845,000
39,750
845,000
Trade creditors
3,517,921
2,766,416
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
11,233,358
7,773,731
Corporation tax payable
502,677
383,237
-
0
-
0
Other taxation and social security
433,580
396,564
-
0
-
0
Other creditors
1,755,769
1,206,775
-
0
-
0
Accruals and deferred income
805,504
924,495
7,070
33,154
7,727,484
7,196,535
11,920,178
9,291,885
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
17
Creditors: amounts falling due within one year
(Continued)
- 26 -

For further detail on the borrowings and invoice financing see Note 19.

Amounts owed to group undertakings are interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
19
2,140,000
2,780,000
2,140,000
2,780,000
Obligations under finance leases
20
8,197
21,237
-
0
-
0
Loan notes
19
337,250
1,699,654
337,250
1,699,654
2,485,447
4,500,891
2,477,250
4,479,654
19
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
2,780,000
3,420,000
2,780,000
3,420,000
Other loans
377,000
2,544,654
377,000
2,544,654
3,157,000
5,964,654
3,157,000
5,964,654
Payable within one year
679,750
1,485,000
679,750
1,485,000
Payable after one year
2,477,250
4,479,654
2,477,250
4,479,654

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
19
Loans and overdrafts
(Continued)
- 27 -

Bank loans, which rank in priority to the loan notes, include the following:

Facility A loan – £1,280,000 (202 4: £1,920,000) - final repayment is to be made on 31 December 2027.

Facility B loan – £1,500,000 (202 4: £1,500,000) is repayable on 31 December 2027.

Invoice Financing Facility – the total facility is £4,000,000, with £1,743,000 drawn at 31 December 202 5 (202 4: £1,192,690).

The two facility loans have variable interest rates based on the bank's base rate, plus a margin. Facility A has a margin of 5.5% above the bank's base rate, Facility B has a margin of 6.4% above the bank's base rate.

Loan notes include the following:

Instrument | Repayment date | Interest rate | Instrument Value
|  |  | 202 5 | 202 4
|  |  | £ | £
A loan note | 30/12/2027 | BOE rate +3.5% | - | 1,932,904
B loan note | 30/12/2027 | 0% | - | 195,000
C loan note | One year post retirement | 0% | 377,000 | 416,750

20
Finance lease obligations
Group
Company
2025
2024
2025
2024
Amounts due:
£
£
£
£
Current liabilities
32,283
34,048
-
0
-
0
Non-current liabilities
8,197
21,237
-
0
-
0
40,480
55,285
-
-
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
32,283
34,048
-
0
-
0
In two to five years
8,197
21,237
-
0
-
0
40,480
55,285
-
-

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 28 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
70,000
80,905
Credit to profit or loss
(1,000)
(1,581)
69,000
79,324
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 January 2025
79,324
-
Credit to profit or loss
(10,324)
-
Liability at 31 December 2025
69,000
-

T he deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
221,532
265,502

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
106
106
106
106
B Ordinary shares of £1 each
94
94
94
94
A Preference shares of £1 each
150,000
150,000
150,000
150,000
B Preference shares of £1 each
200,000
200,000
200,000
200,000
350,200
350,200
350,200
350,200
EPMS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 29 -
24
Operating lease commitments
As lessee

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
298,768
260,157
-
-
Years 2-5
574,165
395,489
-
-
After 5 years
337,018
18,938
-
-
1,209,951
674,584
-
-
25
Cash generated from group operations
2025
2024
£
£
Profit after taxation
1,978,505
1,292,712
Adjustments for:
Taxation charged
906,059
689,835
Finance costs
571,809
675,995
Loss on disposal of tangible fixed assets
20,119
21,178
Amortisation and impairment of intangible assets
649,334
649,334
Depreciation and impairment of tangible fixed assets
182,260
104,852
Movements in working capital:
Increase in stocks
(539,567)
(61,080)
Increase in debtors
(351,238)
(346,255)
Increase/(decrease) in creditors
1,218,524
(372,911)
Cash generated from operations
4,635,805
2,653,660
26
Analysis of changes in net debt - group
1 January 2025
Cash flows
New finance leases
31 December 2025
£
£
£
£
Cash at bank and in hand
246,893
26,073
-
272,966
Borrowings excluding overdrafts
(5,964,654)
2,807,654
-
(3,157,000)
Obligations under finance leases
(55,285)
39,395
(24,590)
(40,480)
(5,773,046)
2,873,122
(24,590)
(2,924,514)
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