Company registration number 16318226 (England and Wales)
PELTA MEDICAL PAPERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
PELTA MEDICAL PAPERS LIMITED
COMPANY INFORMATION
Director
Ms R J F Khan
(Appointed 14 March 2025)
Company number
16318226
Registered office
Waterhouse Mills
Beetham
Milnthorpe
LA7 7AR
Auditor
MHA
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
PELTA MEDICAL PAPERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
PELTA MEDICAL PAPERS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 1 -

The director presents the Strategic Report of Pelta Medical Papers Limited (“the Company”) for the period from incorporation on 14 March 2025 to 31 December 2025, the Company’s first period of trading. The Company is part of the Pelta Holdings Limited group and acquired the Pelta Medical Papers business and assets on 6 June 2025.

Review of the business

Pelta Medical Papers is a specialist manufacturer of sterile barrier and medical papers, made at Waterhouse Mill in Beetham, Cumbria. Paper has been made at the Mill for more than a century, and it was here in 1969 that the first steam-sterilisable medical packaging papers were pioneered. The Company’s papers play a critical role in the sterile supply chain, protecting the instruments and devices on which clinicians and their patients depend every day.

Today the Company supplies its PeltaMed range to more than 220 customers across 49 countries, in a sector with high regulatory barriers to entry. Its accreditations, including ISO 9001, ISO 14001, ISO 45001, EN 868 and ISO 11607, underpin the quality, consistency and security of supply its customers expect.

Revenue for the period was £11.1m at a gross margin of 24.9%. Operating profit and profit before tax were both £1.0m, and net assets at the period end were £4.9m. As this is the Company’s first accounting period, no comparative figures are presented.

The period was one of renewal and momentum. Under committed long-term ownership, the business strengthened its supply arrangements, improved its sales mix and traded profitably from its first period, entering 2026 with a strengthening order book while continuing to invest in the Mill, its people and its products. The business is funded principally from its own trading cash flows, without external bank term debt, and with additional financial support available from its owner as and when required.

The director considers revenue, gross margin, operating profit and net assets, as set out above, to be the key financial performance indicators of the business. The Company qualifies as medium-sized and, in accordance with section 414C(6) of the Companies Act 2006, this review does not include analysis using non-financial key performance indicators.

Principal risks and uncertainties

The principal risks and uncertainties facing the Company, and the measures taken to manage them, are as follows.

Input prices and availability. The Company’s principal input costs are pulp and energy. Exposure is managed through a diversified pulp supply base, a prudent energy procurement policy and pricing mechanisms with customers.

Customer demand and concentration. Mitigated by long-standing relationships with key medical device manufacturers and converters and by the diversification of applications and geographies.

Foreign exchange. A substantial proportion of sales are exported. Exposure is reduced by purchasing key inputs in the currencies of the related sales receipts, with the residual position monitored by the director.

Regulatory and quality compliance. The Company maintains the accreditations required for its markets and operates established quality management and product safety systems.

Operational risk. Production is concentrated at a single site. This is managed through planned maintenance investment, business continuity arrangements and comprehensive property damage and business interruption insurance.

Liquidity and funding. Cash flow is managed through detailed short-term forecasting. The Company is funded principally from its trading cash flows, with additional support available from its owner as and when required.

People and skills. The business depends on specialist technical expertise, and the director gives priority to the retention, development and succession of key skills.

PELTA MEDICAL PAPERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 2 -
Future Developments

The director expects the Company to build on this momentum through the continued development of the PeltaMed range, growth across its export markets and ongoing investment in the Beetham site, its people and product innovation. The director is confident in the long-term prospects of the business, supported by non-cyclical demand, high barriers to entry, the Company’s leading positions in its core products and the committed support of its owner.

On behalf of the board

Ms R J F Khan
Director
22 July 2026
PELTA MEDICAL PAPERS LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 3 -

The director presents her annual report and financial statements for the period ended 31 December 2025.

Principal activities

The principal activity of the company commenced being that of supplying paper for packaging of medical equipment

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Ms R J F Khan
(Appointed 14 March 2025)
Auditor

MHA were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Ms R J F Khan
Director
22 July 2026
PELTA MEDICAL PAPERS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 4 -

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

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless she is 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 director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. She is 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.

PELTA MEDICAL PAPERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PELTA MEDICAL PAPERS LIMITED
- 5 -
Opinion

We have audited the financial statements of Pelta Medical Papers Limited (the 'company') for the period ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including material 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 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 responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with those 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 director's 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 director 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 director is 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.

PELTA MEDICAL PAPERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PELTA MEDICAL PAPERS LIMITED (CONTINUED)
- 6 -

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 director's r eport for the financial period for which the financial statements are prepared is consistent with the financial statements; and

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

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 director's report.

Matters on which we are required to report by exception

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

- Enquiries with management about any known or suspect instances of non-compliance with laws and regulations and fraud;

- An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness;

- Auditing the risk of fraud in revenue by way of cut off testing, as well as sales transaction testing to obtain evidence that revenue has occurred and recognised in the correct accounting period; and

- An evaluation of the company's internal control environment.

PELTA MEDICAL PAPERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PELTA MEDICAL PAPERS LIMITED (CONTINUED)
- 7 -

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 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 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.

Jenny McCabe FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Lancaster, United Kingdom
22 July 2026
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
PELTA MEDICAL PAPERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 8 -
Period
ended
31 December
2025
Notes
£
Turnover
3
11,074,201
Cost of sales
(8,318,797)
Gross profit
2,755,404
Administrative expenses
(1,720,743)
Exceptional item
4
(65,328)
Operating profit
5
969,333
Interest payable and similar expenses
8
(9,859)
Profit before taxation
959,474
Tax on profit
9
(141,887)
Profit for the financial period
817,587
Other comprehensive income
Revaluation of tangible fixed assets
5,449,632
Tax relating to other comprehensive income
(1,362,408)
Total comprehensive income for the period
4,904,811

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

PELTA MEDICAL PAPERS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2025
31 December 2025
- 9 -
2025
Notes
£
£
Fixed assets
Negative goodwill
10
(1,520,257)
Tangible assets
11
5,858,493
Current assets
Stocks
13
1,853,756
Debtors
14
3,340,928
Cash at bank and in hand
167,809
5,362,493
Creditors: amounts falling due within one year
15
(3,368,000)
Net current assets
1,994,493
Total assets less current liabilities
6,332,729
Provisions for liabilities
Deferred tax liability
16
1,427,916
(1,427,916)
Net assets
4,904,813
Capital and reserves
Called up share capital
18
2
Revaluation reserve
4,087,224
Profit and loss reserves
817,587
Total equity
4,904,813

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

The financial statements were approved and signed by the director and authorised for issue on 22 July 2026
Ms R J F Khan
Director
Company registration number 16318226 (England and Wales)
PELTA MEDICAL PAPERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Period ended 31 December 2025:
Profit
-
-
817,587
817,587
Other comprehensive income:
Revaluation of tangible fixed assets
-
5,449,632
-
5,449,632
Tax relating to other comprehensive income
-
(1,362,408)
-
0
(1,362,408)
Total comprehensive income
-
4,087,224
817,587
4,904,811
Issue of share capital
18
2
-
-
2
Balance at 31 December 2025
2
4,087,224
817,587
4,904,813
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 11 -
1
Accounting policies
Company information

Pelta Medical Papers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Waterhouse Mills, Beetham, Milnthorpe, LA7 7AR.

1.1
Reporting period

The financial statements have been prepared for the period from the date of incorporation, 14 March 2025, to 31 December 2025.

1.2
Basis of preparation

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

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

The financial statements have been prepared under the historical cost convention, except for certain tangible fixed assets which are measured at revalued amounts as described in the accounting policies below.

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

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

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

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

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

The financial statements of the company are consolidated in the financial statements of Pelta Holdings Limited. These consolidated financial statements are available from its registered office, 71-75 Shelton Street, London, England, WC2H 9JQ.

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -
1.3
Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operational existence for the foreseeable future.true

In assessing the appropriateness of the going concern basis of preparation, the Director has undertaken a detailed review of the Company's current financial position and future prospects. This assessment has included consideration of the Company's cash flow forecasts, which reflect the Directors' latest expectations of future trading and cash generation, together with post year-end trading performance and updated trading forecasts. These forecasts incorporate assumptions regarding anticipated revenue, operating costs, working capital requirements and capital expenditure.

Based on this assessment, the Director has a reasonable expectation that the Company has adequate resources to continue in operational existence and to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements. Accordingly, the financial statements have been prepared on the going concern basis.

1.4
Revenue

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

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

Other income consists of supplier rebates and sales of other materials which are not related to the principal activities of the company.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of an unincorporated business over the fair value of the identifiable assets, liabilities and contingent liabilities 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 economic life and is amortised on a systematic basis over its estimated useful life.

Where the fair value of the identifiable net assets acquired exceeds the cost of acquisition (negative goodwill), the excess is recognised on the balance sheet and released to the profit and loss account over the estimated useful economic lives of the identifiable non-monetary assets to which it relates. Accordingly, the element attributable to inventory is recognised over two years, consistent with the expected period over which the related economic benefits are realised. The element relating to the consideration paid is also recognised over two years, reflecting the period over which the associated benefit is expected to arise.

Goodwill is reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. Where the recoverable amount of the acquired business is less than its carrying amount, an impairment loss is recognised immediately in the profit and loss account. Impairment losses recognised for goodwill are not reversed in subsequent periods.

1.6
Tangible fixed assets

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

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -

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:

Plant and equipment
3 - 30 years straight line
Fixtures and fittings
5 - 10 years straight line
Computers
20 years straight line
Motor vehicles
5 years straight line

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 credited or charged to profit or loss.

Assets whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the assets is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss es are recognised in profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Stocks

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

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

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.10
Financial instruments

The company 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 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 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.

Other financial assets

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

Impairment of financial assets

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

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

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

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

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

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

Other financial liabilities

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
Taxation

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

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Current tax

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

Deferred tax

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

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

1.13
Employee benefits

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

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

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

1.14
Retirement benefits

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

1.15
Leases
As lessee

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

PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

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

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

Key sources of estimation uncertainty

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

The amortisation of negative goodwill requires management to estimate the pattern over which the economic benefits associated with the underlying assets acquired are expected to be realised. The directors have allocated the negative goodwill to the relevant assets acquired and determined the basis on which it is released to the profit and loss account.

The element attributable to inventory is recognised in the profit and loss account as the related inventory is sold and the associated gain is realised. The remaining element is amortised over two years, reflecting the period over which the related economic benefits are expected to arise.

These estimates are based on management's assessment of the useful economic lives of the acquired assets, the expected rate of inventory realisation and the timing of future economic benefits.

3
Turnover
2025
£
Turnover analysed by class of business
Sales
10,477,281
Rebates/Compensation
596,920
11,074,201
2025
£
Turnover analysed by geographical market
UK
856,589
Europe
7,146,461
Rest of the World
3,071,151
11,074,201
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 18 -
4
Exceptional item
2025
£
Expenditure
Exceptional items
65,328

Exceptional costs of £65,328 arise due to the acquisition of the trade and have been presented separately due to their non-recurring nature and to aid comparability of the underlying trading performance.

5
Operating profit
2025
Operating profit for the period is stated after charging/(crediting):
£
Exchange losses
8,762
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
Depreciation of tangible fixed assets
21,139
Profit arising on acquisition of trade and assets (negative goodwill)
(1,555,913)
Operating lease charges
156,964

The release of negative goodwill reflects the gain arising on the acquisition of the trade and assets at a value below the fair value of the identifiable net assets acquired, with the credit recognised in accordance with the accounting policy set out in note 1.5.

6
Employees

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

2025
Number
104

Their aggregate remuneration comprised:

2025
£
Wages and salaries
3,045,370
Social security costs
375,114
Pension costs
166,448
3,586,932
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 19 -
7
Director's remuneration
2025
£
Remuneration for qualifying services
28,269
8
Interest payable and similar expenses
2025
£
Interest on invoice finance arrangements
8,503
Other interest on financial liabilities
1,356
9,859
9
Taxation
2025
£
Current tax
UK corporation tax on profits for the current period
76,379
Deferred tax
Origination and reversal of timing differences
65,508
Total tax charge
141,887

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

2025
£
Profit before taxation
959,474
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
239,869
Tax effect of expenses that are not deductible in determining taxable profit
290,997
Tax effect of income not taxable in determining taxable profit
(388,979)
Taxation charge for the period
141,887
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
9
Taxation
(Continued)
- 20 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2025
£
Deferred tax arising on:
Revaluation of property
1,362,408
10
Intangible fixed assets
Negative goodwill
£
Cost
At 14 March 2025
-
0
Additions
(3,076,170)
At 31 December 2025
(3,076,170)
Amortisation and impairment
At 14 March 2025
-
0
Amortisation charged for the period
(1,555,913)
At 31 December 2025
(1,555,913)
Carrying amount
At 31 December 2025
(1,520,257)
11
Tangible fixed assets
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 14 March 2025
-
0
-
0
-
0
-
0
-
0
-
0
Additions
-
0
400,092
6,368
13,533
10,000
429,993
Revaluation
108,493
5,097,669
80,307
142,031
-
0
5,428,500
At 31 December 2025
108,493
5,497,761
86,675
155,564
10,000
5,858,493
Depreciation and impairment
At 14 March 2025
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
-
0
20,363
381
395
-
0
21,139
Revaluation
-
0
(20,363)
(381)
(395)
-
0
(21,139)
At 31 December 2025
-
0
-
0
-
0
-
0
-
0
-
0
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
11
Tangible fixed assets
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
(Continued)
- 21 -
Carrying amount
At 31 December 2025
108,493
5,497,761
86,675
155,564
10,000
5,858,493

During the year, the Company acquired the business and certain assets of Pelta Medical Papers Ltd from the administrators. The identifiable tangible fixed assets acquired have been recognised at cost at the acquisition date.

Subsequently, an independent valuation of the plant and machinery was undertaken by Gordon Brothers Asset Ingenuity Limited, Chartered Surveyors and RICS Registered Valuers, using a Depreciated Replacement Cost methodology. Management has used this valuation as the basis for determining the fair value of the acquired plant and machinery recognised within these financial statements at the period end date.

12
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Pelta Medical Papers Germany GmbH
Poststraße 8, 21227 Bendestorf, Germany
Ordinary shares
100.00
Pelta Trading (Shanghai) Co., Ltd.
819 West Nanjing Road, Jing'an District, Shanghai 200040, China
Ordinary shares
100.00
13
Stocks
2025
£
Raw materials and consumables
779,535
Finished goods and goods for resale
1,074,221
1,853,756
14
Debtors
2025
Amounts falling due within one year:
£
Trade debtors
1,052,868
Other debtors
700,587
Prepayments and accrued income
1,587,473
3,340,928
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 22 -
15
Creditors: amounts falling due within one year
2025
£
Trade creditors
1,220,450
Amounts owed to group undertakings
140,000
Corporation tax
76,379
Other taxation and social security
738,002
Other creditors
626,705
Accruals and deferred income
566,464
3,368,000

Amounts owed to group undertakings include a loan of £140,000 due to Pelta Holdings Limited, which is secured by fixed and floating charges over the Company's assets and undertaking.

Other creditors include a loan of £275,000 due to Bela Properties Limited, which is secured by fixed and floating charges over the Company's assets and undertaking.

Other creditors also include £312,000 in respect of the acquisition of the trade and assets, which is secured by fixed and floating charges over the Company's assets and undertaking.

16
Deferred taxation

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

Liabilities
2025
Balances:
£
Fixed asset timing differences
1,433,289
Short term timing differences
(5,373)
1,427,916
2025
Movements in the period:
£
Liability at 14 March 2025
-
Charge to profit or loss
65,508
Charge to other comprehensive income
1,362,408
Liability at 31 December 2025
1,427,916
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
- 23 -
17
Retirement benefit schemes
2025
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
166,448

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2025
2025
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
1
1
A Ordinary shares of £1 each
1
1
2
2
19
Operating lease commitments
As lessee

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

2025
£
Within 1 year
343,555
Years 2-5
1,125,000
1,468,555
20
Related party transactions
Transactions with related parties

During the period the company entered into the following transactions with related parties:

Purchases
2025
£
Entities with control, joint control or significant influence over the company
140,000
Other related parties
76,518
PELTA MEDICAL PAPERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2025
20
Related party transactions
(Continued)
- 24 -
2025
Amounts due to related parties
£
Entities with control, joint control or significant influence over the company
140,000
Other related parties
275,000
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