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Silverfish UK Limited
Annual Report and Financial Statements
Year Ended 31 October 2025

Registration number: 04075057

Silverfish UK Limited

Contents

Strategic Report | 1 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Statement of Income and Retained Earnings | 11
Balance Sheet | 12
Notes to the Financial Statements | 13 to 27

Silverfish UK Limited

Strategic Report for the Year Ended 31 October 2025

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

Principal activity

The principal activity of the company is that of importer and wholesaler of premium bicycles, high-end bicycle clothing, components, and accessories.

Fair review of the business

Silverfish UK Limited is the sole trading company in the wider Silverfish Group. The details below cover the activity of the group as a whole.
The cycling sector continued to face challenging trading conditions during the year ending October 2025, with the macroeconomic factors noted in previous years’ financial statements continuing to impact performance. Whilst some categories showed signs of normalisation, overstocking remained a significant issue in most, and consequently discounting remained higher than usual as companies compete to reduce their inventory to support liquidity. Despite this backdrop, Silverfish continued to weather the storm better than most, with its carefully curated brand portfolio and disciplined operational management supporting a broadly stable trading performance.
Liquidity remains strong, with approximately £2.9m cash in group at year end (2024: £2.9m) and £2.9m in February 2026. This position reflects prudent working capital management and the successful completion of a sale and leaseback of the Saltash property in October 2025, which provided an additional £1.5 million of liquidity and a gain of £0.7m. Further information is provided in the Financial Risks section.

The company's key financial and other performance indicators during the year were as follows:

| Unit | 2025 | 2024
Turnover | £ | 11,636,885 | 11,974,796
Gross profit margin | % | 21 | 20

The slight decline in revenue reflects the lower levels of stock clearance, with year-end stock of £5.26m similar to that at October 2024 (£5.65m). This is compared to the previous financial year when stock reduced by £3.2m. This trend is also reflected in the improved gross profit margin % which is up from 20% to 21%.
The Group recorded an operating loss of £1,588k (2024: £2,516k), which includes £413k of goodwill amortisation (2024: £495k). While the loss is disappointing, it is an improvement on the prior year
performance and broadly consistent with expectations given the prevailing trading environment.
The directors remain focused on supporting the Group’s long-term success by maintaining sufficient cash headroom. The current liquidity position, together with new brand acquisitions and the bank’s ongoing support provide the directors with confidence that there is no immediate threat to the Group’s going-concern status. Securing the renewal of bank facilities beyond December 2026 remains a priority, and the directors consider the bank’s recent support for the sale and leaseback as a positive indicator in this regard.

Silverfish UK Limited

Strategic Report for the Year Ended 31 October 2025

Principal risks and uncertainties

Competitive markets
The Group operates in a highly competitive sector subject to supplier dynamics, retailer performance
and wider economic conditions. These risks are mitigated through:
• Continued investment in Silverfish’s differentiated distribution model,
• Careful alignment of purchasing with demand,
• Active management of inventory,
• Ongoing improvements to systems and processes, and
• Strong relationships with brand partners, who have remained supportive throughout recent market challenges.
Financial risks
The Group is exposed to credit, liquidity and foreign exchange risks, each managed through established controls.
Credit risk arises primarily from trade receivables. Historically, bad debts have been low, and the Group continues to apply robust credit control procedures.
Foreign exchange risk is typically managed through forward contracts that hedge approximately half of expected future currency exposures. In the year ending October 2025, the company used more complex derivative options as part of its foreign exchange risk mitigation for the first time to support an improvement in the average hedging rate and allow greater participation in any foreign exchange rate upside.
Liquidity risk is managed through regularly updated short and long range cash flow forecasts. These forecasts identified the need for additional financing in late 2025, leading to the sale and leaseback of the Saltash premises, which was completed in October 2025 and contributed approximately £1.5 million to the Group’s cash balance, which stands at around £2.9 million at February 2026. The directors remain committed to taking further actions if required to maintain adequate headroom.
The directors are also mindful of the bank loan maturity date of December 2026. An extension has been requested and will be formally reviewed in 2026. The bank’s support in recent years—including writing down debt at refinancing, resetting covenants, and releasing security to enable the sale and leaseback—provides confidence in a constructive outcome.
Covenant compliance
The senior lender, ThinCats, remains supportive of the business and is willing to reset covenants as part of the debt restructure timetabled for summer 2026.
Stock obsolescence
The prevailing market conditions have increased stock risk in recent years. Silverfish’s stock peaked at £10.5m in January 2023 but is has largely normalised in the year to October 2025 at around the £5-6m level. Despite this improved position, a careful review identified some remaining obsolete items, meaning a year end provision was maintained.
Legislation changes
The Group may be affected by regulatory changes relating to the manufacture, sale and use of bicycles and related products. Ongoing communication with brand partners and membership of national cycling bodies help ensure the Group remains informed of potential changes and can respond appropriately.

Silverfish UK Limited

Strategic Report for the Year Ended 31 October 2025

Approved and authorised by the Board on 16 March 2026 and signed on its behalf by:

......................................... Mr M Osborne Director

Silverfish UK Limited

Directors' Report for the Year Ended 31 October 2025

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

Directors of the company

The directors who held office during the year were as follows:

Mr D Mabbott

Mr M Osborne

Mr A Metcalfe

Mr E Gardiner

Financial instruments

Objectives and policies

The group effectively manages its working capital through a range of established controls, including key performance indicators, a treasury management policy and the use of a revolving credit facility with its primary lender. To manage exposure to currency volatility, the Group uses foreign exchange forward contracts to hedge a proportion of anticipated surpluses and deficits.

Price risk, credit risk, liquidity risk and cash flow risk

Operational and financial risks are managed through a combination of forward planning, benchmarking of purchase prices, and regular credit assessments supported by external credit checking tools. Cash flow risk is addressed through detailed cash flow modelling, frequent reviews of liquidity and covenant headroom, and proactive communication with finance providers. These controls collectively support the Group’s ability to respond effectively to changes in market conditions.

Silverfish UK Limited

Directors' Report for the Year Ended 31 October 2025

Going concern

The principal risk to the Group’s going concern position relates to liquidity, reflecting the impact of recent sector-wide challenges on working capital and profitability. Further details are provided in the Strategic Report.
The sale and leaseback of the Saltash property, completed in October 2025, significantly strengthened the Group’s cash position. As a result, the directors have concluded that the Group remains a going concern, and the financial statements have been prepared on this basis.
The Board’s assessment is supported by:
• The bank’s stated intention to negotiate a debt restructure in the summer of 2026, which will include a covenant reset,
• The Group’s strong liquidity position (approximately £2.9m cash as at February 2026),
• Detailed forward-looking forecasts, and
• The continued support of shareholders, the bank and key suppliers.
At the time of signing, the group is in breach of certain financial covenants attached to its senior bank debt, which in turn has triggered a related breach of the shareholder loan notes. As a result, these balances, which totalled £13,319,583 (2024: £13,215,076) at the balance sheet date, are technically repayable on demand. As the breaches occurred pre year end the debt is presented as a current liability at the balance sheet date. If the breaches are waived, the debts remain scheduled for final repayment at the end of the 2026 calendar year. The group does not currently hold sufficient cash to settle these amounts in full were they to be demanded immediately, although the directors expect the waivers and loan rescheduling to be agreed in the normal course of discussions.
The directors recognise that certain matters require consideration when assessing going concern at the date of approval. The directors acknowledge these facts currently represent a material uncertainty that, if they were not addressed, would have the potential to cast doubt on the entity’s ability to continue as a going concern at the date of approval. However, they note that these matters are being addressed and the debt restructure, including a covenant reset, is expected to be completed without difficulty. This reflects the bank’s recent approach, including its agreement to release its security over the property to enable the sale and leaseback. The directors are also confident that an extension to the facility repayment date, which is scheduled for negotiation in summer 2026, will be agreed in the normal course of discussions, at which point these going concern uncertainties would be resolved. On this basis, the Board continues to adopt the going concern basis in preparing the accounts.

Disclosure of information to the auditors

Each director has taken 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. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 16 March 2026 and signed on its behalf by:

......................................... Mr M Osborne Director

Silverfish UK Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom 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 company will continue in business.

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

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Silverfish UK Limited

Independent Auditor's Report to the Members of Silverfish UK Limited

Opinion

We have audited the financial statements of Silverfish UK Limited (the 'company') for the year ended 31 October 2025, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's affairs as at 31 October 2025 and of its loss for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Material uncertainty relating to going concern
We draw attention to Note 2 in the financial statements, which sets out that the group is in breach of the covenants on its debt facilities, which are currently due for repayment at the end of the 2026 calendar year. These events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in 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.

Silverfish UK Limited

Independent Auditor's Report to the Members of Silverfish UK Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

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:

Silverfish UK Limited

Independent Auditor's Report to the Members of Silverfish UK Limited

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. The key laws and regulations we identified were employment and health and safety legislation.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102), the Companies Act and the relevant tax compliance regulations in the UK.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewed legal and professional costs to identify legal costs in respect of non compliance;
• Enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non compliance with laws and regulations;
• Review minutes of board meetings.
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 fraudulent financial reporting. Our procedures involved the following;
• Review of nominal journal entries for reasonableness;
• Review of significant accounting estimates for bias;
• Substantives testing the accuracy and occurence of sales.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Silverfish UK Limited

Independent Auditor's Report to the Members of Silverfish UK Limited

......................................
Duncan Leslie (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Stonehouse
Plymouth
Devon
PL1 3GW

16 March 2026

Silverfish UK Limited

Statement of Income and Retained Earnings

Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 11,636,885 | 11,974,796
Cost of sales |  | (9,163,829) | (9,542,458)
Gross profit |  | 2,473,056 | 2,432,338
Administrative expenses |  | (4,533,422) | (4,183,451)
Other gains/losses | 4 | 673,842 | -
Operating loss | 5 | (1,386,524) | (1,751,113)
Other interest receivable and similar income | 9 | 42,709 | 55,295
Interest payable and similar charges | 10 | (87,930) | (87,930)
|  | (45,221) | (32,635)
Loss before tax |  | (1,431,745) | (1,783,748)
Loss for the financial year |  | (1,431,745) | (1,783,748)
Retained earnings brought forward |  | (559,177) | 1,224,571
Retained earnings carried forward |  | (1,990,922) | (559,177)

There are no other movements on any components of equity.

Silverfish UK Limited

Balance Sheet

31 October 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 12 | 209,256 | 201,776
Tangible assets | 13 | 83,086 | 1,044,614
|  | 292,342 | 1,246,390
Current assets |  |  |
Stocks | 14 | 5,264,928 | 5,650,429
Debtors | 15 | 2,749,883 | 1,925,334
Cash at bank and in hand |  | 2,832,789 | 2,816,869
|  | 10,847,600 | 10,392,632
Creditors: Amounts falling due within one year | 17 | (13,130,764) | (12,198,099)
Net current liabilities |  | (2,283,164) | (1,805,467)
Net liabilities |  | (1,990,822) | (559,077)
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Profit and loss account |  | (1,990,922) | (559,177)
Shareholders' deficit |  | (1,990,822) | (559,077)

Approved and authorised by the Board on 16 March 2026 and signed on its behalf by:

......................................... Mr M Osborne Director

Company Registration Number: 04075057

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Units 3B & 3C
Woodacre Court
Saltash Parkway Industrial Est
Saltash
Cornwall
PL12 6LY

These financial statements were authorised for issue by the Board on 16 March 2026.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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 years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.
The company has taken advantage of the exemption, under FRS102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its ultimate parent company, Silverfish Holdings Limited, included the company's cash flows in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the Silverfish Holdings Limited group.

Name of parent of group

These financial statements are consolidated in the financial statements of Silverfish Holdings Limited.

The financial statements of Silverfish Holdings Limited may be obtained from Companies House.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Going concern

The principal risk to the Group’s going concern position relates to liquidity, reflecting the impact of recent sector-wide challenges on working capital and profitability. Further details are provided in the Strategic Report.
The sale and leaseback of the Saltash property, completed in October 2025, significantly strengthened the Group’s cash position. As a result, the directors have concluded that the Group remains a going concern, and the financial statements have been prepared on this basis.
The Board’s assessment is supported by:
• The bank’s stated intention to negotiate a debt restructure in the summer of 2026, which will include a covenant reset,
• The Group’s strong liquidity position (approximately £2.9m cash as at February 2026),
• Detailed forward-looking forecasts, and
• The continued support of shareholders, the bank and key suppliers.
At the time of signing, the group is in breach of certain financial covenants attached to its senior bank debt, which in turn has triggered a related breach of the shareholder loan notes. As a result, these balances, which totalled £13,319,583 (2024: £13,215,076) at the balance sheet date, are technically repayable on demand. As the breaches occurred pre year end the debt is presented as a current liability at the balance sheet date. If the breaches are waived, the debts remain scheduled for final repayment at the end of the 2026 calendar year. The group does not currently hold sufficient cash to settle these amounts in full were they to be demanded immediately, although the directors expect the waivers and loan rescheduling to be agreed in the normal course of discussions.
The directors recognise that certain matters require consideration when assessing going concern at the date of approval. The directors acknowledge these facts currently represent a material uncertainty that, if they were not addressed, would have the potential to cast doubt on the entity’s ability to continue as a going concern at the date of approval. However, they note that these matters are being addressed and the debt restructure, including a covenant reset, is expected to be completed without difficulty. This reflects the bank’s recent approach, including its agreement to release its security over the property to enable the sale and leaseback. The directors are also confident that an extension to the facility repayment date, which is scheduled for negotiation in summer 2026, will be agreed in the normal course of discussions, at which point these going concern uncertainties would be resolved. On this basis, the Board continues to adopt the going concern basis in preparing the accounts.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Judgements

Deferred tax. The company has made the significant judgement to recognise no deferred tax asset of £1,359,461 (2024 - £860,929) related to carried forward tax losses at this time.

Key sources of estimation uncertainty

Stock provision. The company estimates the stock provision based on a risk analysis of outstanding stock at the year end and an assessment of estimated realisable value of discontinued stock. This estimate is dependent on the assumption that the future pattern of stock sales accurately reflects the past history of similar stock movement. The carrying amount is £525,811 (2024 - £497,119).

Foreign currency derivatives. Under its hedging strategy the company has taken out a number of forward foreign currency contracts and foreign currency options. The fair valuation of these derivatives at year end is subject to a significant degree of underlying estimate uncertainty. Depending on the spot market movement post year end the company is exposed to future potential gains or losses on these contracts. At year end the company had live contracts to buy or sell over £4m of foreign currency. The carrying amount is £- (2024 - £Nil).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Turnover is recognised on point of despatch on sale of goods.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items are carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Tax

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Intangible assets

Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Asset class | Amortisation method and rate
Website and computer software costs | 25% straight line

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and assets under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Land and buildings | 2% Straight line
Plant and machinery | 10-33% Straight line
Motor vehicles | 25% Reducing balance
Assets under construction | N/A

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the Profit or Loss Account.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Bank loans;
• Cash and bank balances; and
• Derivative forward and option foreign currency contracts.
All financial instruments (other than the derivatives) are classified as basic.
Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Derivative financial instruments and hedging

The group uses forward and option foreign currency contracts to reduce exposure to foreign exchange rates.
Derivative financial instruments are initially measured at fair value and are subsequently measured at fair value through profit or loss. When the fair value is positive the derivatives are carried as current assets; and as current liabilities when the fair value is negative. The fair value of the forward foreign currency contracts is calculated by comparing the year end spot rate or year end forward rate, which acts as an approximation for the fair value of the contracts, with the contracted rates.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

3 | Revenue

The analysis of the company's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 11,636,885 | 11,974,796

The analysis of the company's Turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 9,825,547 | 10,035,783
Europe | 1,811,338 | 1,939,013
| 11,636,885 | 11,974,796

4 | Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

| 2025 £ | 2024 £
Gain on disposal of tangible assets | 673,842 | -

5 | Operating loss

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 64,293 | 71,340
Amortisation expense | 71,850 | 33,765
Foreign exchange (gains)/losses | (127,442) | 18,690
Operating lease expense - property | 38,750 | 38,750
Operating lease expense - plant and machinery | 89,089 | 67,636
Profit on disposal of property, plant and equipment | (673,842) | -

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 1,827,861 | 1,799,432
Social security costs | 239,189 | 193,366
Pension costs, defined contribution scheme | 56,388 | 45,191
Redundancy costs | 23,062 | 45,286
| 2,146,500 | 2,083,275

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Management | 3 | 3
Administration and support | 12 | 12
Sales | 12 | 11
Production and warehouse | 20 | 22
| 47 | 48

7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 393,355 | 381,257
Contributions paid to money purchase schemes | 25,682 | 24,031
| 419,037 | 405,288

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under defined benefit pension scheme | 3 | 3

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 138,732 | 137,363
Company contributions to money purchase pension schemes | 6,250 | 4,701

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

8 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 14,800 | 14,080

9 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 42,709 | 55,295

10 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 87,930 | 87,930

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

11 | Taxation

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Loss before tax | (1,431,745) | (1,783,748)
Corporation tax at standard rate | (357,936) | (445,937)
Tax decrease from effect of capital allowances and depreciation | (157,471) | -
Effect of expense not deductible in determining taxable profit (tax loss) | 18,714 | 8,939
Increase from tax losses for which no deferred tax asset was recognised | 498,532 | 436,998
Decrease from effect of tax incentives | (1,839) | -
Total tax charge/(credit) | - | -

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Difference between accumulated depreciation, amortisation and capital allowances | (32,748) | -
Tax losses carried forward | 32,748 | -
| - | -

2024 | Asset £ | Liability £
Difference between accumulated depreciation, amortisation and capital allowances | (24,150) | -
Tax losses carried forward | 24,150 | -
| - | -

There are £5,437,845 of unused tax losses (2024 - £3,443,715) for which no deferred tax asset is recognised in the balance sheet.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

12 | Intangible assets

| Website and computer software £ | Total £
Cost or valuation
At 1 November 2024 | 642,641 | 642,641
Additions | 79,330 | 79,330
At 31 October 2025 | 721,971 | 721,971
Amortisation
At 1 November 2024 | 440,865 | 440,865
Amortisation charge | 71,850 | 71,850
At 31 October 2025 | 512,715 | 512,715
Carrying amount
At 31 October 2025 | 209,256 | 209,256
At 31 October 2024 | 201,776 | 201,776

Included in the carrying value is £17,495 (2024: £161,667) of assets under development.

Amortisation of intangible assets is presented within administrative expenses.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

13 | Tangible assets

| Land and buildings £ | Plant and machinery £ | Motor vehicles £ | Total £
Cost or valuation
At 1 November 2024 | 1,255,180 | 349,638 | 25,526 | 1,630,344
Additions | - | 28,922 | - | 28,922
Disposals | (1,255,180) | (98,315) | - | (1,353,495)
At 31 October 2025 | - | 280,245 | 25,526 | 305,771
Depreciation
At 1 November 2024 | 340,268 | 227,989 | 17,473 | 585,730
Charge for the year | 20,710 | 41,570 | 2,013 | 64,293
Eliminated on disposal | (360,978) | (66,360) | - | (427,338)
At 31 October 2025 | - | 203,199 | 19,486 | 222,685
Carrying amount
At 31 October 2025 | - | 77,046 | 6,040 | 83,086
At 31 October 2024 | 914,912 | 121,649 | 8,053 | 1,044,614

Included within the net book value of land and buildings above is £Nil (2024 - £914,912) in respect of long leasehold land and buildings.

Restriction on title and pledged as security

Leasehold land and buildings with a carrying amount of £Nil (2024 - £914,912) has been pledged as security for the bank loans and overdrafts included within creditors: amounts due within one year and after one year.

14 | Stocks

| 2025 £ | 2024 £
Finished goods and goods for resale | 5,264,928 | 5,650,429

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

15 | Debtors

| 2025 £ | 2024 £
Trade debtors | 2,506,456 | 1,703,855
Other debtors | 120,494 | 87,764
Prepayments | 122,933 | 133,715
| 2,749,883 | 1,925,334

16 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 300 | 63
Cash at bank | 2,828,141 | 2,812,458
Short-term deposits | 4,348 | 4,348
| 2,832,789 | 2,816,869

17 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 18 | 1,440,890 | 1,440,890
Trade creditors |  | 1,435,143 | 405,332
Amounts due to group undertakings |  | 9,697,804 | 10,025,510
Social security and other taxes |  | 295,811 | 156,958
Outstanding defined contribution pension costs |  | 9,779 | 11,539
Other creditors |  | 34,748 | 36,568
Accruals |  | 216,589 | 121,302
|  | 13,130,764 | 12,198,099

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

18 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 1,440,890 | 1,440,890

Bank borrowings

Bank loan is denominated in £ with a nominal interest rate of 6.5%, and the final instalment is due on 31 January 2027. The carrying amount at year end is £1,440,890 (2024 - £1,440,890). The loan is secured by a fixed and floating charge of all property and undertakings of the company. The chargors are the 4 constituent companies of the Silverfish Holdings Limited group.

Loan covenants
On 30 September 2024 the group breached a financial covenant on its bank borrowings, the senior debt facility. As a result the liability is presented as current.

19 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 226,899 | 100,773
Later than one year and not later than five years | 591,115 | 138,493
Later than five years | 662,500 | -
| 1,480,514 | 239,266

The amount of non-cancellable operating lease payments recognised as an expense during the year was £127,839 (2024 - £106,386).

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

20 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary A shares of £1 each | 50 | 50 | 50 | 50
Ordinary B shares of £1 each | 50 | 50 | 50 | 50
| 100 | 100 | 100 | 100

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
All shares rank equally for voting purposes. On a show of hands, each member has one vote and on a poll, each member has one vote per share held.
Dividends may be paid to the holders of one or more classes of shares to the exclusion of the other or to all classes of shares, in each case at the same or differing rates, as determined by ordinary resolution or resolution of the directors.

21 | Parent and ultimate parent undertaking

The company's immediate parent is Silverfish UK (Holdings) Limited, incorporated in England and Wales.
The ultimate parent is Silverfish Holdings Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is Silverfish Holdings Limited. These financial statements are available upon request from Companies House

22 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £56,388 (2024 - £45,191).
Contributions totalling £9,779 (2024 - £11,539) were payable to the scheme at the end of the year and are included in creditors.

Silverfish UK Limited

Notes to the Financial Statements

Year Ended 31 October 2025

23 | Financial instruments

Financial liabilities measured at fair value

Forward foreign currency contracts
The fair value of the forward and option foreign currency contracts is calculated by comparing the year end spot rate or forward rate against the contracted rates.
The fair value is £Nil (2024 - £Nil) and the change in value included in profit or loss is £Nil (2024 - £Nil).

24 | Related party transactions

The company has taken advantage of the exemption provided by FRS 102 to not disclose transactions entered in to between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

During the financial year Silverfish UK Limited completed a sale and operating leaseback on its leasehold property with a third party. As part of this transaction a Director of Silverfish UK Limited resigned as a Director and Member of a related party, a company which held the freehold interest of the site.