The directors present the strategic report for the period ended 28 December 2025.

The directors considered the group results for the period to be satisfactory in the current economic climate. The company had a 0.5% reduction in sales and maintained a profit in the financial period through managing cost areas.

During the year, a subsidiary completed the disposal of two restaurants that were no longer aligned with its core operational geography. This strategic divestment enables management to focus resources on strengthening the performance of the existing estate and progressing planned new‑store development. In addition, one restaurant was successfully relocated at the end of its lease term to secure a more commercially advantageous site. The subsidiary also exited an onerous lease, returning the property to the landlord to mitigate ongoing financial exposure.

The management of the business and the delivery of the company’s strategy are subject to a number of risks. The principal risks facing the group continue to be competitive pressures from other national retailers operating within the same local markets, together with the ongoing impact of the wider economic environment on customer demand.

The war in Ukraine, which has influenced supply chains and energy markets in recent years, continues to affect the cost of goods and utilities. However, these cost pressures have begun to stabilise, and energy prices have levelled during the year, supporting the maintenance of profitability. The group continues to mitigate these risks through appropriate pricing strategies where commercially viable, ensuring that increases in input costs are managed responsibly.

Energy is currently purchased on a monthly spot‑rate basis, with forward purchasing considered when market conditions present an acceptable level of risk.

The group has loans on floating interest rates and is aware of fluctuating interest lending rates and is regularly monitoring the movements with a view to taking action to fix the rate should this be considered appropriate.

The directors remain focused on monitoring cost pressures and responding appropriately to safeguard the group’s financial performance.

The group received rates relief under the Retail, Hospitality and Leisure Relief scheme as follows:

• April 2024 to March 2025    £94,969

• April 2025 to March 2026    £109,557

This relief will not be available in 2026/27 due to changes in the calculation of rates for hospitality venues. The company has not made use of any further government initiatives to help businesses.

The directors consider the financial key performance indicators to be turnover, gross profit margin, profit on ordinary activities before taxation and earnings before interest, tax, depreciation and amortisation (EBITDA).

Turnover has decreased in the period to £44,385,729 (2024: £44,552,725)

The gross profit margin has increased to 13.3% (2024: 11.7%)

EBITDA has increased to £3,763,704 (2023: £3,258,169)

Kefco monitors a range of non financial performance indicators. These include the Guest Experience Surveys (GES), Food Hygiene Ratings and Restaurant Operations Compliance Checks (ROCC)

For the period ended 28th December 2025:

• 100% of the stores had a food hygiene rating of 5 (out of 5) (2024: 95%)

• 67% achieved the highest ROCC score of ‘at standard’ (2024: 76%)

The group is planning to continue to invest in assets to promote further sales growth by providing customers with new products and restaurants.

This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its members as a whole and in doing so have regard (amongst other matters) to

•    the likely consequence of any decision in the long term

•    the interests of the company’s employees

•    the need to foster the company’s business relationships with suppliers, customers and others

•    the impact of the company’s operations on the community and the environment

•    the desirability of the company maintaining a reputation for high standards of business conduct

•    the need to act fairly between members of the company.

Decision making

Kefco Sales Limited, incorporated in 1972, has been operated by the same families since 1997. The company continues to invest in its existing restaurants through upgrades to equipment, décor and employee training, ensuring that sites remain welcoming and fit for purpose both now and in the long term. The directors also apply careful consideration to the selection and timing of new restaurant locations, ensuring that any new site is capable of sustaining the significant long‑term investment required.

Our stakeholders

Employees

Kefco recognises that the key to a successful business is well trained, reliable, motivated and informed management team and employees. All staff are trained in accordance with KFC’s requirements and additional training where necessary to satisfy health and safety and food safety and regulatory standards. Kefco also have an active apprenticeship scheme along with opportunities to obtain a recognised degree. Suitable and interested employees share equal opportunities for further training and career development. Employees are informed on a regular basis of current activities, progress and general matters of interest by various methods, including regular management meetings and restaurant comms.

Employee feedback is sought via 6 monthly employee surveys and employee are able to raise whistle blowing concerns through our speak up channel. Employees are supported via an Employee Assistance program, provided by our wellbeing partners, the Retail Trust.

Various employee bonus schemes within the company based on performance on a number of measures also assist with engaging the employees with the performance of the company. Employee are rewarded for long service and achievement of operational metrics. Store management teams rewarded quarterly for the achievement of operational and profitability measures supporting our company values and strategic goals.

Other stakeholders

Customer focus is an important side of the business. Compliance to service targets are set and measured as part of the strategic planning to ensure a high level of service to our customers is maintained. Through KFC, our customers can engage with our customer service team and we also obtain feedback from customers on the service received through an online survey offered with each purchase.

As a franchisee of KFC, the company’s main suppliers are selected by KFC with who the relationship is maintained. Kefco aims to assist with all its suppliers by ensuring prompt payment of invoices in line with agreed terms and to quickly resolve any disputes that may arise. Of the suppliers not selected by KFC, the directors will usually have arranged the contracts and are the point of contact enabling the maintenance and building on of a long-term relationship and understanding of both companies’ operational needs.

Impact on the community and environment

The group is committed to reducing the environmental impact of our operation. We ensure used oil is collected, recycled and used as biofuel. Food waste is also separated, collected and used to create energy. Where available, excess cooked food is passed to local charities via partnership with Fairshare to distribute. The company also seeks out energy saving initiatives within its restaurants to reduce emissions as well as costs.

For several years, Kefco Sales Limited have partnered with local councils through the “Cleaner Essex” initiative in an effort to reduce litter and more recently with The Great British Spring Clean. This has also included employees organising and taking part in litter picks away from the areas of their regular litter picks surrounding their restaurants.

Kefco prides itself as being a company that maintains high standards of ethical conduct and maintain a reputation for high standards of business conduct.

The company operates in accordance with the modern slavery policy of its franchisor, which sets out clear standards to identify, manage and mitigate the risks of slavery and human trafficking within the supply chain. Internally, the company undertakes rigorous right‑to‑work checks for all employees and has procedures in place to ensure individuals receive their own pay directly. Close senior management involvement at restaurant level also ensures strong familiarity with employees and provides an additional safeguard against potential exploitation.

The risk of bribery within the company is considered to be very low. Only senior members of the management team are authorised to enter into contracts with suppliers, all of whom are made aware of their responsibilities in relation to anti‑bribery legislation. The company maintains a zero‑tolerance approach to bribery, and the Finance Director provides oversight of all outward payments as an additional control.

As a close company, all shareholders are appointed directors and remain actively involved in the day‑to‑day operations of the business, including oversight of both operational and financial transactions.

On behalf of the board

The directors present their annual report and financial statements for the period ended 28 December 2025.

Kefco Group Limited is the holding company of several 100% owned subsidiaries and does not trade in its own name. The principal activity of the group is that of operating retail premises under the KFC (Kentucky Fried Chicken) franchise.

The results for the period are set out on page 12.

The directors have not recommended a dividend for this period.

Reduction of Share Capital

During the year, the Company passed a special resolution dated 5 December 2025 to reduce its share premium account of £10,969,900 to nil, in accordance with sections 641 to 644 of the Companies Act 2006. The directors made a solvency statement confirming the Company's ability to meet its liabilities as required under the Act. The reduction has been treated as a realised profit and transferred to distributable reserves in accordance with Article 3(2) of SI 2008/1915.

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

The Group manages its cash and borrowing requirements to ensure that sufficient liquid resources are maintained to meet the operational needs of the business, whilst seeking to maximise interest income and minimise interest expense.

The group is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Investments of cash surpluses and borrowings are made through our bank.

Applications for employment from disabled persons are always given full and fair consideration, taking into account the individual’s abilities and aptitudes. Should an existing employee become disabled, the company makes every reasonable effort to ensure their continued employment, including the provision of suitable alternative duties and appropriate training where required.

It is the company’s policy that the training, career development and promotion opportunities available to disabled employees should, as far as reasonably practicable, be equivalent to those offered to all other employees.

Within the bounds of commercial confidentiality, information is communicated to all employees on matters affecting the progress of the group and issues of interest or concern to them in their roles.

Members of the management team make regular visits to restaurants, where they discuss current business matters with staff and encourage open dialogue. In addition, routine staff meetings are held within each restaurant to promote engagement and ensure employees have the opportunity to raise questions and contribute to discussions.

The company is committed to the development of its employees and provides training to support both personal growth and career progression. This includes investment in a range of training programmes, with opportunities available up to degree‑level study for those who demonstrate the interest and capability to progress.

Details of our engagement with customers and suppliers can be found in our S172 statement.

The auditor, Rickard Luckin Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Streamlined Energy and Carbon Reporting (SECR)

The group companies operations impact mainly on the greenhouse gas emission through the use of energy to produce our products served in and from our restaurants include cooking, refrigeration and air conditioning. This includes the use of electricity and gas. The group also generates greenhouse gases through the use of travel within the business.

During the period the group’s CO2 emissions totalled 1,401 tonnes (2024: 1,612 tonnes), the electricity consumption amounted to 5,853 MWh (2024: 5,799 MWh), gas consumption amounted to 1,354 MWh (2024: 1,506 MWh) and travel amounted to 100 MWh (2024: 123 MWh).

The method used to obtain this information was from meter readings and travel data, converted into CO2 emissions via approved calculations.

Energy usage in the cooking process will be affected by sales whereas energy used in air conditioning of the restaurants will be affected by the outside temperature and other weather aspects. 50% of the vehicle fleet are electric vehicles.

The group has measured the CO2e for each customer transaction and for each £1 of sales. The results for 2024 are as follows:

Intensity Measure 2025 2024

CO2e per transaction    0.433    0.474    Kg of CO2e produced per sales transaction

CO2e per £1 of Turnover    0.031    0.036    Kg of CO2e produced per £1 of sales

Whilst the group is conscious of its effect on the environment, it has not set any targets to work towards at present but is implementing energy saving initiatives when suitable.

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

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

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

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable 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 group and parent company will continue in business.

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

We have audited the financial statements of Kefco Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 28 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 28 December 2025 and of the group's loss for the period then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial period 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.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

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

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.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the group’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

• Challenging assumptions made by management in its significant accounting estimates in particular: Depreciation of tangible fixed assets and amortisation of intangible fixed assets;

• Identifying and testing journal entries during the year and around the year end, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, journal entries posted by senior management and consolidation journals;

• Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;

• Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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

Use of our report

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,158,409 (2024 - £719,112 loss).

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

Kefco Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is First Floor, Kefco House, Rochford Business Park, Cherry Orchard Way, Rochford, Essex, SS4 1GP.

The group consists of Kefco Group Limited and all of its subsidiaries.

The accounting reference date is 28 December (2024 - 29 December). The company prepares its management accounts on a weekly basis and these annual accounts are made up to 28 December 2025 (2024 - 29 December).

The financial statements are prepared for the reporting period 29 December 2024 to 28 December 2025 (2024 - 25 December 2023 to 29 December 2024).

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being the ultimate parent of a group which prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the disclosure requirements for parent company information presented within the consolidated financial statements of Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures.

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

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

The consolidated group financial statements consist of the financial statements of the parent company Kefco Group Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 28 December 2025 (2024 - 29 December). Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

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

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

Whilst the group balance sheet shows a net current liability position, the directors have considered the timing of cash inflows and are satisfied that funds will be available to meet liabilities as they arise.

Turnover shown in the profit or loss represents gross receipts from restaurant activities in the United Kingdom during the period, excluding value added tax, and is recognised upon receipt of goods by the customer.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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

Negative goodwill represents the excess of the fair value of the net assets acquired over the cost of the acquired business. It is initially recognised as a negative asset at cost and is subsequently measured at cost less accumulated amortisation. Negative goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is the length of the individual franchise licences acquired.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

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

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

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

Equity investments are measured at fair value through profit or loss.

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

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

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

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

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts, Bank overdrafts are shown within borrowings in current liabilities.

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

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

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

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

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

The group operates a defined contribution pension scheme for certain employees. The assets of the scheme are held separately from those of the group in independent and separate trustee administered funds. The annual contributions payable are charged to the group profit or loss and outstanding contributions are included on the group balance sheet.

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

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

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

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

Tangible fixed assets are depreciated over their expected useful economic life. There is a certain level of judgement and estimation over this life and this impacts the carrying value of these assets. The depreciation charge is recognised within administrative expenses.

Intangible fixed assets are amortised over their expected useful economic life. There is a certain level of judgement and estimation over this life and this impacts the carrying value of these assets. The amortisation charge is recognised within administrative expenses.

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

Their aggregate remuneration comprised:

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

Included in goodwill are costs totalling £2,540,725 which arose as a result of a subsidiary purchasing trade and assets from KFC (GB) Limited. It is being amortised over 10 years. The carrying value at the balance sheet date was £719,125 (2024 - £1,093,525).

Included in negative goodwill are amounts totalling £3,223,401 which arose on acquisition of J&J Restaurants Limited and its subsidiaries. It is being amortised over the life of the franchises the negative goodwill is apportioned to. The carrying value at the balance sheet date was a negative of £1,179,751 (2024 - £1,579,192).

More information on impairment movements in the period is given in note 11.

Details of the company's subsidiaries at 28 December 2025 are as follows:

The bank loans and overdrafts are secured by a fixed and floating charge over the undertaking and all the property and assets, future and present. It is subject to a cross guarantee between all group companies to HSBC Bank Plc.

The total bank loans figure of £6,407,145 is due in under one year. The bank loan is repayable in quarterly instalments with interest charged at 2.5% above the SONIA rate.

Included in debenture loans are two debenture loans which are repayable in 2026 and 2028 with a respective unsecured interest rate of 4% and 5% respectively.

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

At the balance sheet data £36,220 (2024: £25,025) was payable to the scheme and included in creditors.

On 5th December 2025, the company undertook a capital reduction whereby the balance of £10,969,900 of share premium was reduced to nil and the amount transferred to profit and loss reserve.

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

The Company has taken advantage of the exemption conferred by section 33 of FRS 102 "Related party disclosures" not to disclose transactions with wholly owned members of the group headed by Kefco Group Limited.

For the current and preceding period there was no ultimate controlling party.