Caseware UK (AP4) 2025.0.111 2025.0.111 2025-12-31 2025-12-31 false 2025-01-01 false 45 45 false false 02813126 2025-01-01 2025-12-31 02813126 2024-01-01 2024-12-31 02813126 2025-12-31 02813126 2024-12-31 02813126 2024-01-01 02813126 4 2025-01-01 2025-12-31 02813126 4 2024-01-01 2024-12-31 02813126 d:Director1 2025-01-01 2025-12-31 02813126 d:Director2 2025-01-01 2025-12-31 02813126 d:Director2 2025-12-31 02813126 d:Director3 2025-01-01 2025-12-31 02813126 d:Director4 2025-01-01 2025-12-31 02813126 d:Director4 2025-12-31 02813126 d:RegisteredOffice 2025-01-01 2025-12-31 02813126 e:Buildings e:LongLeaseholdAssets 2025-01-01 2025-12-31 02813126 e:FurnitureFittings 2025-01-01 2025-12-31 02813126 e:FurnitureFittings 2025-12-31 02813126 e:FurnitureFittings 2024-12-31 02813126 e:FurnitureFittings e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02813126 e:ComputerEquipment 2025-01-01 2025-12-31 02813126 e:ComputerEquipment 2025-12-31 02813126 e:ComputerEquipment 2024-12-31 02813126 e:ComputerEquipment e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02813126 e:OtherPropertyPlantEquipment 2025-01-01 2025-12-31 02813126 e:OtherPropertyPlantEquipment 2025-12-31 02813126 e:OtherPropertyPlantEquipment 2024-12-31 02813126 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02813126 e:OwnedOrFreeholdAssets 2025-01-01 2025-12-31 02813126 e:CurrentFinancialInstruments 2025-12-31 02813126 e:CurrentFinancialInstruments 2024-12-31 02813126 e:CurrentFinancialInstruments 3 2025-12-31 02813126 e:CurrentFinancialInstruments 3 2024-12-31 02813126 e:CurrentFinancialInstruments e:WithinOneYear 2025-12-31 02813126 e:CurrentFinancialInstruments e:WithinOneYear 2024-12-31 02813126 e:ReportableOperatingSegment1 2025-01-01 2025-12-31 02813126 e:ReportableOperatingSegment1 2024-01-01 2024-12-31 02813126 f:UnitedKingdom 2025-01-01 2025-12-31 02813126 f:UnitedKingdom 2024-01-01 2024-12-31 02813126 e:UKTax 2025-01-01 2025-12-31 02813126 e:UKTax 2024-01-01 2024-12-31 02813126 e:ShareCapital 2025-12-31 02813126 e:ShareCapital 2024-12-31 02813126 e:ShareCapital 2024-01-01 02813126 e:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 02813126 e:RetainedEarningsAccumulatedLosses 2025-12-31 02813126 e:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 02813126 e:RetainedEarningsAccumulatedLosses 2024-12-31 02813126 e:RetainedEarningsAccumulatedLosses 2024-01-01 02813126 e:AcceleratedTaxDepreciationDeferredTax 2025-12-31 02813126 e:AcceleratedTaxDepreciationDeferredTax 2024-12-31 02813126 e:RetirementBenefitObligationsDeferredTax 2025-12-31 02813126 e:RetirementBenefitObligationsDeferredTax 2024-12-31 02813126 d:OrdinaryShareClass1 2025-01-01 2025-12-31 02813126 d:OrdinaryShareClass1 2025-12-31 02813126 d:OrdinaryShareClass1 2024-12-31 02813126 d:FRS102 2025-01-01 2025-12-31 02813126 d:Audited 2025-01-01 2025-12-31 02813126 d:FullAccounts 2025-01-01 2025-12-31 02813126 d:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 02813126 e:WithinOneYear 2025-12-31 02813126 e:WithinOneYear 2024-12-31 02813126 e:BetweenOneFiveYears 2025-12-31 02813126 e:BetweenOneFiveYears 2024-12-31 02813126 e:MoreThanFiveYears 2025-12-31 02813126 e:MoreThanFiveYears 2024-12-31 02813126 2 2025-01-01 2025-12-31 02813126 g:PoundSterling 2025-01-01 2025-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 02813126 HANKOOK TYRE U.K. LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
HANKOOK TYRE U.K. LIMITED COMPANY INFORMATION
Directors | Mr P Emery
| Mr C Han (resigned 31 December 2025)
| Mr S Jung
| Mr H S Chea (appointed 1 January 2026)
Registered number | 02813126
Registered office | Hankook House
| Parsons Road
| Drayton Fields Industrial Estate
| Daventry
| NN11 8RA
Independent auditor | MHA
| 11 Merus Court
| Meridian Business Park
| Leicester
| LE19 1RJ
HANKOOK TYRE U.K. LIMITED CONTENTS
| Page
Strategic Report | 1 - 5
Directors' Report | 6 - 9
Independent Auditor's Report | 10 - 13
Profit and Loss Account | 14
Balance Sheet | 15 - 16
Statement of Changes in Equity | 17
Notes to the Financial Statements | 18 - 36
HANKOOK TYRE U.K. LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
Principal activity
The principal activity of the Company during the year was to import, distribute and sell tyres in the UK. Hankook tyres are imported from the Hankook Group company factories in South Korea, China, Indonesia and Hungary. The tyres are sold principally into the replacement market and this year the value of the sales was £175 million (2024: £173 million) (before rebates), representing 90.7% (2024 - 94.1%) of total company turnover. The remaining 10.5% (2024 - 5.9%) is represented by original equipment supplies to vehicle manufacturers. The result of the Company shows a pre tax profit of £3.9 million (2024 - a pre-tax loss £1.0 million) for the year and sales (net of rebates) of £164.3 million (2024 - £157.8 million).
Business review
Demand within the UK tyre market remained broadly stable overall. However, demand among Europool-registered manufacturers decreased by 10.7% in 2025 compared to 2024, primarily driven by an increase in the volume of non-Europool registered imported tyres entering the UK market. Import volumes continued to grow at a double-digit rate in 2025, following similar growth in the prior year. Ongoing increases in the general cost of living and energy costs have led consumers, including fleet operators, to adjust their purchasing behaviour, with an increasing tendency to opt for lower-tier tyre brands despite potential differences in performance. As a result, the UK tyre market is exhibiting increasing polarisation between premium and budget segments. Competitive intensity within the market has continued to increase, with distribution channels consolidating through acquisitions by larger groups seeking operational efficiencies. These developments, together with the ongoing upscaling of the tyre business and the expansion of platform-based models, are contributing to structural changes within traditional tyre distribution channels. In the passenger car segment, demand for all-season tyres continues to displace winter tyre demand. In 2025, demand for all-season products increased by double digits compared with 2024. Growth in SUV and 4x4 vehicles over recent years has continued to support steady demand for corresponding tyre products. Demand for van tyres has also demonstrated stable growth, supported by the expansion of last-mile delivery and the transition towards electric vehicles. The continued development of Hankook’s flagship brands, Hankook and Laufenn, has supported the Company in strengthening its position within higher value segments, maintaining overall revenue, and enabling Laufenn to deliver acceptable growth, thereby supporting a balanced brand portfolio. Hankook experienced a reduction in market share within the truck and bus segment, primarily due to increased competition within the free sales market. Notwithstanding this, the Company has continued to expand its presence within the HGV fleet sector through strong partnerships with fleet management solution providers. Hankook has also maintained a strong market presence in the UK to support its dealer network and fleet business. Furthermore, the expansion of Laufenn truck tyre sales has contributed to strengthening the Company’s position within the truck segment. Page 1
HANKOOK TYRE U.K. LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Principal risks and uncertainties
The management of the business and the execution of the Company’s strategy are subject to a number of risks. The Board undertakes formal reviews of these risks and has established appropriate processes to monitor and mitigate them. The occurrence of multiple risks simultaneously may have a compounded adverse effect on the Company. The principal risks affecting the Company are set out below: Competition The Company operates in a highly competitive market characterised by pricing and quality pressures. To mitigate this risk, the sales team continues to focus on customer development, with particular emphasis on increasing engagement with tyre retailers. By expanding the customer base and enhancing regional coverage, the Company seeks to diversify risk and reduce reliance on a limited number of wholesale customers, thereby improving overall business resilience. Regular market price reviews are undertaken to ensure that the Company’s products remain competitively and appropriately positioned. Credit risks The recovery of trade receivables remains a key priority. A deterioration in economic conditions may increase the Company’s exposure to bad debt risk. To mitigate this risk, trade receivables are fully insured by third-party providers, and robust credit control procedures and approval processes are maintained. Supply chain and logistics During 2025, the Company maintained appropriate inventory levels and product mix without significant disruption. However, risks within global supply chains continue to persist, alongside increasing supply commitments to original equipment (OE) customers and ongoing seasonal imbalances across European markets. In response, the Company is strengthening its global supply chain management fraheartsmework, including diversification of sourcing and enhanced supply chain controls, to ensure continuity of supply to UK customers throughout the year. This is supported by continued investment in warehousing capacity within the UK to facilitate stable distribution to end customers. Research and development The Company continues to invest significantly in the development of new and enhanced products, with a focus on improved performance, environmental considerations, and compliance with evolving regulatory requirements. Investment in tyres specifically designed for electric vehicles also continues, reflecting the increasing prevalence of electric vehicles within the market. Newly developed products are introduced into the UK market to ensure that customers have access to the latest technologies and product advancements.
Financial key performance indicators
Given the straightforward nature of the Company’s operations, the directors do not consider that additional financial key performance indicators are necessary beyond those presented within the Profit and Loss Account. Page 2
HANKOOK TYRE U.K. LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Other key performance indicators
The Company's objective is to achieve sustainable rates of growth through a combination of sales growth and a closer connection with customers. The key elements to the Company's strategy for growth over the coming years include: - Continue to build a broad range of quality products and re-treaded commercial tyre sales in the UK; - Capitalising strong original equipment presence for replacement market; - Expanding the customer base to enhance regional coverage; - Launching new products in line with market demand; and - Additional marketing activities to increase brand value and awareness in the UK. Continue to build a broad range of quality products and re-treaded commercial tyre sales in the UK: The Company will continue to expand its range of all-season tyres and products aligned with the requirements of electric vehicles. In line with strengthened tyre labelling regulations, the Company remains committed to ensuring customer safety and maintaining product reliability. The “Alphatread” retreaded tyre programme, which supports environmental sustainability through extending tyre life cycles while offering customers additional choice, has continued to grow in 2025 following its development in 2024. Capitalising strong original equipment presence for replacement market: The Company continues to expand its OE customer base and invest in response to developments within the automotive sector. This supports growth within the replacement market, as consumers frequently select like-for-like replacements. Hankook remains a key supplier to leading premium European automotive manufacturers, including Porsche, Mercedes-Benz, BMW and Audi, as well as major electric vehicle manufacturers such as Tesla. Expanding the customer base to enhance regional coverage: The Company’s primary operational focus is to improve fulfilment rates from its Daventry warehouse and enhance customer satisfaction through efficient and timely supply. A key performance measure is the expansion of regional coverage, supported by supply chain stability. The Company maintains national coverage through its relationship with Kwik Fit and continues to expand its customer portfolio, particularly among regional and independent retailers. Launching new products in line with market demand: A number of new products were introduced during 2025, including high-performance and EV-specific tyres, as well as new truck tyre products. The Company continues to prioritise the development of EV-focused products in line with market trends. Additional marketing activities to increase brand value and awareness in the UK: Since 2022 Hankook has participated in the Road Transport Expo. Hankook also has sponsored key events like the NTDA Awards and Commercial Motor Awards for a long time. Hankook implemented a few successful retail promotions throughout 2025 to increase exposure of image of Hankook to consumers. Hankook also continues to invest in online, and digital marketing and aim to build closer relationships with its retailers to offer them unique marketing propositions tailored specifically to their individual requirements. Since 2023, as an “Official Partner” and the sole tyre supplier to the Formula-e series, which is the highest level of electric vehicle powered racing in the world, Hankook was recognised and awarded for its contribution for the best fan experience. Starting with the 2025 season, Hankook will also exclusively supply rally tyres for all WRC classes over the next 3 years. Page 3
HANKOOK TYRE U.K. LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 Future outlook The trading environment in 2025 has remained challenging, reflecting continued volatility in the global economic landscape. Nevertheless, demand within the SUV, 4x4, van and all-season segments continues to demonstrate growth within the UK market. Within the commercial sector, the development of service networks and fleet management solutions is expected to play an increasingly important role in sustaining business volumes and supporting long-term growth. The Company will continue to focus on maintaining its existing customer base while pursuing opportunities to expand through new customers and distribution channels, thereby strengthening its position within the market.
Directors' statement of compliance with duty to promote the success of the Company
As required by Section 172 of the Companies Act, a director of a company must act in good faith in a way which promotes the success of the Company for the benefit of the shareholders. In doing so, each director has regard, amongst other matters, to the following: The likely consequences of any decision in the long term The directors understand the business and the markets in which it operates. With their considerable industry experience, they are well equipped to understand the consequences of any strategic long-term decisions. The interests of the Company's employees The directors recognise that its employees are fundamental to the business and the delivery of the Company's goals and ambitions. The success of the Company depends upon attracting, retaining and motivating our employees. The directors strive towards providing a positive and safe environment with opportunities for staff to grow and develop. The need to foster the Company's business relationships with suppliers, customers and others Our company operates within the automotive and tyre industry in the UK and Ireland markets and therefore supplying good quality products and services to customers is key to our ongoing success. Maintaining strong mutually beneficial relationships with customers is also key in delivery of our strategy and as such we continually assess the priorities of our customers by engaging with them. To ensure the quality of service in the whole process of supply chain satisfies customers, we monitor our third party suppliers regularly, supporting locally situated businesses where possible ensuring payment practices are adhered to. The impact of the Company's operations on the community and environment Our company, locally and on a global level, is proud of its contribution to not only in its local communities and its contribution to local charitable causes, but also its overall low impact on the environment. The Company's reputation for high standards of business conduct The Company continually aims to meet the highest standards in relation to its reputation and business conduct. All standards need to be maintained throughout the business in order to retain our reputation within the market in which we operate. Need to act fairly between members of the Company The Company will always act fairly between members of the group. The directors consider which course of action best enables delivery of the Groups strategy with regards to the long term, taking into consideration the impact on its stakeholders. Page 4
HANKOOK TYRE U.K. LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 This report was approved by the board and signed on its behalf.
................................................ Mr H S Chea Director
Date: 7 July 2026
Page 5
HANKOOK TYRE U.K. LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2025 The directors present their report and the financial statements for the year ended 31 December 2025.
Principal activity
The principal activity of the Company during the year was to import, distribute and sell tyres in the UK.
Results and dividends
The profit for the year, after taxation, amounted to £3,391,571 (2024 - loss £1,014,903). No dividend has been recommended.
Directors
The directors who served during the year were:
Mr P Emery
Mr C Han (resigned 31 December 2025)
Mr S Jung
Future developments
The Company’s future developments are set out in the Group strategy and future outlook section of the Strategic Report in accordance with s414C(11) of the Companies Act 2006 as the directors consider this to be of strategic importance to the Company.
Going concern
The directors have assessed the financial position of the Company, including its trading forecasts, cash position and funding requirements and concluded that the Company is reliant on the ongoing financial and operational support of the Parent Company. The Company has received confirmed ongoing financial and operational support (including the continued supply of product) from its ultimate parent undertaking, Hankook Tire & Technology Co., Ltd. The directors therefore have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future and no material uncertainty has been identified. The Company therefore continues to adopt the going concern basis of accounting in preparing the financial statements.
Post balance sheet events
There have been no significant events affecting the Company since the year end.
Auditor
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Page 6
HANKOOK TYRE U.K. LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Environmental matters
We are conscious of our duty to use resources responsibly and to minimise any environmental impacts of our business activities. All emissions are UK and offshore and there are no non-UK (global) emissions. We have used the Location based approach for our Electricity Emission calculations reported below. UK energy usage in the year was as follows:
Energy Type | 2025 KWh | 2024 KWh
Gas | - | 187,215
Cars (by market segment) Miles | 530,251 | 536,067
Electricity | 282,376 | 582,928
Total | 812,627 | 1,306,210
The main reason for the reduction in electricity between 2024 and 2025 is due to the move to a new more energy efficient premises in 2025. In 2024 we had two separate premises. UK Scope 1 and 2 greenhouse gas emissions were as follows:
|  | 2025 | 2024
Scope |  | Conversion rate | Metric Tonnes CO2e | Conversion rate | Metric Tonnes CO2e
Scope 1 | Combustion of Gas | 0.183 | 0.0 | 0.183 | 34.2
Scope 1 | Fuel for Transport | Various | 139.6 | Various | 139.7
Scope 2 | Purchase of Electricity | 0.177 | 50.0 | 0.207 | 120.7
|  | Total (gross) | 189.6 | Total (gross) | 294.6
Intensity ratios
|  | 2025
|  | Metric Tonnes CO2e | Turnover £m | Intensity Ratio
Scope 1 | Combustion of Gas | 0.0 | 193.1843 | 0.000
Scope 1 | Fuel for Transport | 139.6 | 193.1843 | 0.723
Scope 2 | Purchase of electricity | 50.0 | 193.1843 | 0.259
|  | 2024
|  | Metric Tonnes CO2e | Turnover £m | Intensity Ratio
Scope 1 | Combustion of Gas | 34.2 | 184.1418 | 0.186
Scope 1 | Fuel for Transport | 139.7 | 184.1418 | 0.759
Scope 2 | Purchase of electricity | 120.7 | 184.1418 | 0.655
The figures above represent Hankook Tyres UK Limited energy use and associated GHG emissions from electricity and gas for the 2025 reporting year arising from activities, however it should be noted that we no longer use gas since we moved to a new warehouse. We have followed the UK Government GHG Conversion Factors 2025 for Company Reporting as issued by the Department for Energy Security and Net Zero. We have also used the GHG Protocol Value Chain (Scope 2) Standard. The figures relate to the required elements of each scope 2 category rather than the optional elements. Page 7
HANKOOK TYRE U.K. LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025 There are no emissions from business travel in rental cars or employee-owned vehicles where the Company is responsible for purchasing the fuel. 2025 Energy Efficient actions These actions were identified in the 2024 SECR disclosure as planned initiatives to be implemented following our relocation to the new warehouse and office in February 2025. Lighting LED lighting has been installed throughout our office and warehouse which are furthermore operated on motion sensors to reduce running costs and improve energy efficiencies. Temperature control Our heating and climate control system has been reviewed and serviced to be more efficient alongside a new energy saving boiler being installed. Equipment When purchasing new capital equipment, consideration is given to the energy efficiency of the equipment. This is an ongoing process. 2026 proposed Energy Efficient actions In 2026, the company will start to change our lease cars (passenger vehicles) to electric as the current leases expire. 12 of our 23-car fleet will be changed in the first half of the year and a further 9 later in the year. The remaining 2 cars will be changed in 2027 and 2028 respectively.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information. Page 8
HANKOOK TYRE U.K. LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2025
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙state whether applicable UK 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 to 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. This report was approved by the board and signed on its behalf.
................................................ Mr H S Chea Director
Date: 7 July 2026
Hankook House
Parsons Road
Drayton Fields Industrial Estate
Daventry
NN11 8RA
Page 9
HANKOOK TYRE U.K. LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED
Opinion
We have audited the financial statements of Hankook Tyre U.K. Limited (the 'Company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 December 2025 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Page 10
HANKOOK TYRE U.K. LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Directors' Report 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 9, 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. Page 11
HANKOOK TYRE U.K. LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED)
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. 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: ∙Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud; ∙Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; ∙Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; ∙Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and ∙Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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. Page 12
HANKOOK TYRE U.K. LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HANKOOK TYRE U.K. LIMITED (CONTINUED) Liam Hammond FCA (Senior Statutory Auditor) for and on behalf of MHA, Statutory Auditor Leicester, United Kingdom 7 July 2026 MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542). Page 13
HANKOOK TYRE U.K. LIMITED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2025
| 2025 | As restated 2024
Note | £ | £
Turnover | 4 | 164,272,568 | 157,823,288
Cost of sales |  | (156,294,572) | (148,195,732)
Gross profit |  | 7,977,996 | 9,627,556
Administrative expenses |  | (11,472,054) | (9,599,135)
Other operating income | 5 | 9,400,606 | 918,203
Operating profit | 6 | 5,906,548 | 946,624
Interest receivable and similar income | 10 | 27,661 | 35,678
Interest payable and similar expenses | 11 | (1,995,264) | (1,997,205)
Profit/(loss) before tax |  | 3,938,945 | (1,014,903)
Tax on profit/(loss) | 12 | (547,374) | -
Profit/(loss) for the financial year |  | 3,391,571 | (1,014,903)
There were no recognised gains and losses for 2025 or 2024 other than those included in the Profit and Loss Account.
There was no other comprehensive income for 2025 (2024 - £Nil).
The notes on pages 18 to 36 form part of these financial statements.
Page 14
HANKOOK TYRE U.K. LIMITED REGISTERED NUMBER: 02813126 BALANCE SHEET AS AT 31 DECEMBER 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 6,252,050 |  | 5,718,147
|  |  | 6,252,050 |  | 5,718,147
Current assets |  |  |  |  |
Stocks | 14 | 58,372,121 |  | 44,132,022 |
Debtors: amounts falling due within one year | 15 | 74,077,089 |  | 58,199,546 |
Cash at bank and in hand | 16 | 4,483,848 |  | 2,453,954 |
|  | 136,933,058 |  | 104,785,522 |
Current liabilities |  |  |  |  |
Creditors: amounts falling due within one year | 17 | (123,571,813) |  | (94,868,342) |
Net current assets |  |  | 13,361,245 |  | 9,917,180
Total assets less current liabilities |  |  | 19,613,295 |  | 15,635,327
Provisions for liabilities |  |  |  |  |
Deferred tax | 18 | (605,561) |  | (19,164) |
|  |  | (605,561) |  | (19,164)
Net assets |  |  | 19,007,734 |  | 15,616,163
Capital and reserves |  |  |  |  |
Called up share capital | 19 |  | 25,000 |  | 25,000
Profit and loss account |  |  | 18,982,734 |  | 15,591,163
|  |  | 19,007,734 |  | 15,616,163
Page 15
HANKOOK TYRE U.K. LIMITED REGISTERED NUMBER: 02813126 BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2025 The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ Mr H S Chea
Director
Date: 7 July 2026
The notes on pages 18 to 36 form part of these financial statements. Page 16
HANKOOK TYRE U.K. LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2024 | 25,000 | 16,606,066 | 16,631,066
Loss for the year | - | (1,014,903) | (1,014,903)
At 1 January 2025 | 25,000 | 15,591,163 | 15,616,163
Profit for the year | - | 3,391,571 | 3,391,571
At 31 December 2025 | 25,000 | 18,982,734 | 19,007,734
| The notes on pages 18 to 36 form part of these financial statements.
| Profit and loss account Includes all current and prior year retained profits and losses.
Page 17
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
1. | General information
Hankook Tyre U.K. Limited is a private company limited by shares incorporated and registered in England. Registered number is 02813126. Its registered address is Hankook House, Parsons Road, Drayton Fields Industrial Estate, Daventry, NN11 8RA. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": - the requirements of Section 7 Statement of Cash Flows; - the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); - the requirement of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Hankook Tire and Technology Co., Ltd as at 31 December 2025 and these financial statements may be obtained from 133 Teheran-Ro (Yeoksam-Dong), Gangnam-Ku, Seoul, Korea. The following principal accounting policies have been applied:
| 2.2 | Going concern
The directors have assessed the financial position of the Company, including its trading forecasts, cash position and funding requirements and concluded that the Company is reliant on the ongoing financial and operational support of the Parent Company. The Company has received confirmed ongoing financial and operational support (including the continued supply of product) from its ultimate parent undertaking, Hankook Tire & Technology Co., Ltd. The directors therefore have a reasonable expectation that the Company will be able to continue in operational existence for the foreseeable future and no material uncertainty has been identified. The Company therefore continues to adopt the going concern basis of accounting in preparing the financial statements. Page 18
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.3 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is British Pound Sterling (£). Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Profit and Loss Account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Profit and Loss Account within 'other operating income'.
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Items deducted from sales are accounted for on the following principals: ∙Sales rebate - for customers with large volume purchases or routine trading; sales amounts shall be reduced or certain amounts shall be paid depending on accumulated transactions volume or transactions for a certain period. ∙Volume discount - on purchasing certain volumes, a certain portion supply price shall be discounted for sales promotion. Page 19
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Interest income
Interest income is recognised in the Profit and Loss Account using the effective interest method.
| 2.7 | Finance costs
Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.
| 2.8 | Borrowing costs
All borrowing costs are recognised in the Profit and Loss Account in the year in which they are incurred.
| 2.9 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 20
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.11 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Profit and Loss Account during the period in which they are incurred. Page 21
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.11 | Tangible fixed assets (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Leasehold improvements | - | 10 years
|  |  |  | Fixtures and fittings | - | 5 years
|  |  |  | Computer equipment | - | 3 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and Loss Account.
| 2.12 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is 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 and Loss Account.
| 2.13 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.14 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.15 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. Page 22
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.16 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to the Profit and Loss Account.
| 2.17 | Financial instruments
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the Profit and Loss Account. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Profit and Loss Account. Page 23
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.17 | Financial instruments (continued)
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the Profit and Loss Account. Basic 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 Company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the Profit and Loss Account. They are subsequently measured at fair value with changes in the Profit and Loss Account. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the Profit and Loss Account. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Page 24
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 2.Accounting policies (continued)
| 2.17 | Financial instruments (continued)
Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
| 2.18 | Contingent assets
When an inflow of economic benefits is probable (more likely than not) but not virtually certain, the Company will disclose a description of the nature of the contingent assets at the end of the reporting period, and, when practicable, an estimate of their financial effect. When the flow of future economic benefits to the Company is virtually certain, then the related asset is not a contingent asset, and its recognition is appropriate. Page 25
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of assets. (ii) Impairment of assets The Company makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. (iii) Revenue recognition and Rebate accrual The Company has commercial rebate agreements in place with certain customers based on volumes and other incentives. Management use judgement to determine the amount likely to be payable for the year. The Company recognises an accrual in relation to rebates due to customers at the year end. These are dependant on the level of trade with those customers during the year.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Tyre sales | 164,272,568 | 157,823,288
|  | 164,272,568 | 157,823,288
Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 164,272,568 | 157,823,288
|  | 164,272,568 | 157,823,288
Page 26
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
5. | Other operating income
|  |  |  |  | 2025 | As restated 2024
|  |  |  |  | £ | £
| Other operating income | 5,225 | 13,426
| Duty tax refund | 9,395,381 | 904,777
|  | 9,400,606 | 918,203
| Duty tax refunds of £9,395,381 (2024 - £904,777) represent amounts received in the year in respect of Countervailing and Anti-Dumping duties paid on the importation of tyres in prior periods. As these refunds relate to duties incurred on imports in earlier financial years and do not arise from current year trading activity, they have been recognised within other operating income in the Profit and Loss Account.
6. | Operating profit
| The operating profit is stated after charging/(crediting):
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange losses/(gains) | 106,767 | (31,688)
| Depreciation of owned tangible fixed assets | 595,851 | 164,115
| Impairment of stocks recognised or reversed | 138,570 | (40,846)
| Operating lease charges | 3,223,119 | 2,385,548
7. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor and its associates:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements | 45,000 | 68,685
| Fees payable to the Company's auditor and its associates in respect of: |  |
| Taxation compliance services | 4,750 | 5,500
| All assurance services not included above | 11,926 | 17,000
| All other non-audit services | 5,750 | 4,500
Page 27
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 2,858,406 | 2,711,556
| Social security costs | 409,364 | 374,102
| Cost of defined contribution scheme | 158,678 | 150,536
|  | 3,426,448 | 3,236,194
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Sales | 19 | 19
|  | Administration | 26 | 26
|  |  | 45 | 45
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 681,765 | 610,893
| Company contributions to defined contribution pension schemes | 19,304 | 15,956
|  | 701,069 | 626,849
| During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £309,024 (2024 - £256,595).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2024 - £NIL).
Page 28
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Interest on bank deposits | 27,661 | 35,678
|  | 27,661 | 35,678
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 1,995,264 | 1,997,205
|  | 1,995,264 | 1,997,205
Page 29
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 49,522 | -
| Adjustments in respect of previous periods | (88,545) | -
|  | (39,023) | -
| Total current tax | (39,023) | -
| Deferred tax |  |
| Origination and reversal of timing differences | 586,397 | -
| Total deferred tax | 586,397 | -
|  | 547,374 | -
Page 30
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit/(loss) on ordinary activities before tax | 3,938,945 | (1,014,903)
| Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 984,736 | (253,726)
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 97,538 | 20,543
| Capital allowances for year in excess of depreciation | 506,840 | (466,053)
| Adjustments to tax charge in respect of prior periods | (88,545) | -
| Utilisation of tax losses | (958,607) | -
| Unrelieved tax losses carried forward | - | 711,378
| Other differences leading to a decrease in the tax charge | 5,412 | (12,142)
| Total tax charge for the year | 547,374 | -
| Factors that may affect future tax charges
There are no factors to note that may affect future tax charges. BEPS 2.0 Pillar Two Legislation Hankook Tyre U.K. Limited is part of a group that operates in a number of jurisdictions. The effective tax rate for the financial year 2025 was 14% (2024 - 0%) as a result of Capital allowances and trading losses utilised. For periods which commenced on or after 1 January 2024, new tax legislation applied to ensure the effective tax rate of the UK companies within the group was at least 15%, subject to various complex calculations. This is in line with the minimum taxation rules announced by the G7 and progressed by the OECD Inclusive Framework on Base Erosion and Profit Shifting. These rules have been implemented in the UK via the Domestic Top Up Tax legislation during the year. Historically Hankook Tyre U.K. Limited’s effective rate has been below 15% but the Company has assessed its exposure to Domestic Top Up Tax to be immaterial. In addition, Hankook Tyre U.K. Limited is taking advantage of the temporary deferred tax exemption within the “International Tax Reform — Pillar Two Model Rules (Amendments to FRS 102)". This means the Company does not recognise deferred tax assets and liabilities related to OECD pillar two income taxes and does not disclose information about them. Page 31
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
13. | Tangible fixed assets
|  | Leasehold Improvements | Computer equipment | Fixtures and fittings | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 January 2025 | 5,198,249 | 2,645,284 | 60,419 | 7,903,952
| Additions | 472,233 | 723,045 | 6,232 | 1,201,510
| Disposals | (117,269) | (137,153) | - | (254,422)
| At 31 December 2025 | 5,553,213 | 3,231,176 | 66,651 | 8,851,040
| Depreciation |  |  |  |
| At 1 January 2025 | 179,711 | 1,969,406 | 36,688 | 2,185,805
| Charge for the year | 378,321 | 210,802 | 6,728 | 595,851
| Disposals | (117,269) | (65,397) | - | (182,666)
| At 31 December 2025 | 440,763 | 2,114,811 | 43,416 | 2,598,990
| Net book value |  |  |  |
| At 31 December 2025 | 5,112,450 | 1,116,365 | 23,235 | 6,252,050
| At 31 December 2024 | 5,018,538 | 675,878 | 23,731 | 5,718,147
14. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Finished goods and goods for resale | 58,372,121 | 44,132,022
|  | 58,372,121 | 44,132,022
| A charge of £138,570 (2024 - £40,846 gain) was recognised in cost of sales against stock during the year due to an increase in the overall stock provision.
Page 32
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
15. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 59,188,844 | 50,537,754
| Amounts owed by group undertakings | 971,901 | 547,593
| Other debtors | 382,271 | 378,325
| Prepayments and accrued income | 1,181,382 | 1,271,715
| Tax recoverable | 132,238 | 101,241
| Duty tax recoverable | 12,220,453 | 5,362,918
|  | 74,077,089 | 58,199,546
| Amounts owed by group undertakings are repayable on demand and do not attract interest. Duty tax recoverable of £12,220,453 (2024 - £5,362,918) represents amounts refundable to the Company in respect of Countervailing and Anti-Dumping duties paid on historical imports of tyres.
16. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 4,483,848 | 2,453,954
|  | 4,483,848 | 2,453,954
Page 33
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
17. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank overdrafts | 39,845,058 | 44,974,268
| Trade creditors | 2,898,898 | 2,001,711
| Amounts owed to group undertakings | 62,841,448 | 33,717,290
| Other taxation and social security | 5,090,076 | 3,124,207
| Other creditors | 18,595 | 16,429
| Accruals and deferred income | 12,877,738 | 11,034,437
|  | 123,571,813 | 94,868,342
| The bank overdraft of £39,845,058 (2024 - £44,974,268) is part of a cash pooling arrangement agreed between the bank and Hankook Tire & Technology Co.,Ltd., the parent company, where the parent company is the principal customer to that agreement and has the ultimate responsibility for the repayment of balances. There are fixed and floating charges over the undertaking and all property and assets present and future to secure the bond/guarantee facility the bank has with the Company. Amounts owed to group undertakings are repayable on demand and do not attract interest.
Page 34
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
18. | Deferred taxation
|  | 2025
|  | £
| At beginning of year | 19,164
| Charged to profit or loss | (586,397)
| At end of year | 605,561
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | 611,061 | 19,164
| Provisions | (5,500) | -
|  | 605,561 | 19,164
19. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 25,000 (2024 - 25,000) Ordinary shares of £1.00 each | 25,000 | 25,000
| Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.
20. | Prior year adjustment
During the year, the Company reclassified duty tax refunds of £904,777 from cost of sales to other operating income in respect of the prior financial year. These amounts relate to Countervailing and Anti-Dumping duties paid on the importation of tyres in 2023. Due to additional duty tax refunds becoming recognisable in 2025, and to improve comparability between periods, the related 2024 comparative balance has been reclassified to conform with the current year presentation. The prior year comparative amounts have been restated accordingly. Cost of sales has been restated from £147,290,955 to £148,195,732. Other operating income has been restated from £13,426 to £918,203. This reclassification has no impact on profit for the financial year previously reported. Page 35
HANKOOK TYRE U.K. LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
21. | Commitments under operating leases
| At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 3,139,637 | 3,238,405
| Later than 1 year and not later than 5 years | 12,183,981 | 12,272,626
| Later than 5 years | 25,081,469 | 28,121,646
|  | 40,405,087 | 43,632,677
22. | Related party transactions
| The Company has taken advantage of the exemption available under FRS 102 33.1A not to disclose transactions with other wholly owned subsidiaries of the Group. Amounts paid for key management personnel during the period totalled £718,363. There are no other related party transactions or balances that require disclosure.
23. | Controlling party
The parent company, ultimate controlling party and largest and smallest group for which group accounts are prepared, is Hankook Tire & Technology Co., Ltd and these group accounts can be obtained from the registered office address: 133 Teheran-Ro (Yeoksam-Dong), Gangnam-Ku, Seoul, Korea.
Page 36