The directors present the strategic report for the year ended 27 September 2025.

The results for Hot Copper Pub Company Limited for the period ended 27 September 2025 are shown in the Group income statement on page 11 of the accounts.

Progress in the year was mixed. The backcloth of the wars in Ukraine and the Middle East; the continuing high energy costs; and the further increases in the National Minimum Wage and National Insurance contributions, together with other burdens imposed by the Labour Government did little to inspire consumer confidence. This is causing consumers to hunker down and forswear many casual visits to their local. Consequently, the hospitality industry considers itself to be a sector under siege. Currently, two pubs close every day.

We also recognise that consumer habits are changing and that we need to do more to widen our customer base by making our sites more relevant to local requirements. We are taking active steps to respond to this.

• Total Gross profit margin is 73% (2024: 74%)

• Group turnover is down by 10% to £5.40m (2024: £6.03m)

• Shareholders equity has decreased year on year to £147,110 (2024: £3.2m)

• Further disruptions caused by the wars in Ukraine and the Middle East, and also by the increasing burden from higher taxes and new employment legislation being imposed by the Labour Government

• Inflation: continues to be incredibly challenging. First the war in Ukraine and now the conflict between Iran and the USA is making the markets for food and energy extremely volatile.

• Regulation and tax: the drinks industry is heavily regulated and taxed through excise duty. There is a risk that future increases could affect the market and our profitability

• A significant and adverse change in consumer behaviour: we continue to monitor trends as they emerge.

• Economic: the strength of the regional economy is a principal determinant of our success, and reduced consumer spending could adversely affect our performance. However, we mitigate this by proactively responding to changing consumer trends. We are also exposed to tariff disputes as well as swings in foreign exchange because we purchase some raw materials for the breweries in US$.

• COVID: a new variant of the pandemic.

• Operational Brands and reputation: the Company has an increasing range of brands and an excellent reputation; this could be adversely affected by unexpected events/incidents.

The core areas that are measured in each monthly set of management accounts are:

• Year on year sales growth

• Liquor gross margin %

• Brewery and food gross margin %

• Individual unit wages expressed as a % of total sales

• EBITDA % improvement per site year on year

• Return on capital employed per site %

We have maintained our consultancy with Prestige Purchasing with a full company tender completed throughout the year. They presented their outlook on food and drink inflation in December 2025; a subject that throughout the period under review remained extremely challenging.

Other key drivers of inflation in our sector have been commodities, wages, social security taxes, energy and fuel. The energy markets remain stubborn because it is driven by geopolitical conflicts and high wholesale prices. We continue to acquire our energy by means of a hybrid model through fixing our non-commodity costs and hedging our energy requirements on the wholesale market.

The current trading conditions remain challenging and in the current financial year, like for like turnover to date is showing as flat against prior year.

During the year, on 3rd June 2025, the company entered into a new Term Loan for £3,253,636 with Heritage Square Limited to enable it to purchase 6,192,597 A ordinary shares of £0.00001 each from Puma VCT 12 Plc and also refinance the Oasis loan.

The Company has a strong management team and a high-quality estate that is being continually enhanced.

Within the group are two subsidiaries, Warm Hearth Ltd and Knott End Pub Company Ltd, both of which hold one site each. As part of a strategic review of the group, it was determined that neither of these two sites fit the requirements of the estate going forward. As a consequence, both of these sites have been placed on the market for sale and therefore, those entities' accounts are prepared on a basis other than going concern. Given the group structure is made up of these two entities and Hot Copper Pub Company Ltd, the group cannot be considered a going concern.

The directors have reviewed cash flow forecasts and, following the grant of the new Term Loan with Heritage Square Limited, have a reasonable expectation that the company is a going concern at the date of signing the accounts. This is further supported with the loan provider, Heritage Square Ltd, willing to extend the terms of the current loan by a further year to now expire on 31st July 2027. Post year end, a sale of the Nottingham site within the company has enabled a proportion of this debt to be repaid.

On behalf of the board

The directors present their annual report and financial statements for the year ended 27 September 2025.

The principal activity of the company and group continued to be that of operating a chain of branded brew pubs.

The results for the year are set out on page 11.

No ordinary dividends were paid.

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

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

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

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

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 Hot Copper Pub Company Limited (the 'group') for the year ended 27 September 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the group 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 group financial statements:

• give a true and fair view of the state of the group's affairs as at 27 September 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the group 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.

Emphasis of matter - financial statements prepared on a basis other than going concern

We draw attention to Note 1.4 of the financial statements, which explains that the financial statements of all wholly owned subsidiaries in the group, being Warm Hearth Limited and Knott End Pub Company Limited, have been prepared on a basis other than going concern. This is due to the intention to cease trade in those entities once their remaining brewpubs are sold, which are currently on the market. As a result, the directors do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the group financial statements. Accordingly the group financial statements have been prepared on a basis other than going concern as described in Note 1.4. Our opinion is not modified in respect of this matter.

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 year for which the financial statements are prepared is consistent with the group 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 its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept 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 group 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 group 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 are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the group financial statements. We identified laws and regulations that are of significance in the context of the group by discussions with directors and by updating our understanding of the sector in which the group operates.

Laws and regulations of direct significance in the context of the group include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Other matters which we are required to address

We have reported separately on the parent company financial statements of Hot Copper Pub Company Limited for the year ended 27 September 2025. We issued an unqualified opinion on that 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.

Basis for opinion

Conclusions relating to going concern

Other information

Opinions on other matters prescribed by the Companies Act 2006

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.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and 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.

Other matters which we are required to address

Use of our report

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

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 loss for the year was £3,233,935 (2024 - £4,023,281 loss).

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

Hot Copper Pub Company Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is Highdown House, Yeoman Way, Worthing, West Sussex, BN99 3HH.

The group consists of Hot Copper Pub Company Limited and all of its subsidiaries.

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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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 Hot Copper Pub Company Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 27 September 2025.

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.

Warm Hearth Limited and Knott End Pub Company Limited have been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Warm Hearth Limited and Knott End Pub Company Limited.

At the time of approving the financial statements, the directors have a reasonable expectation that the

parent has adequate resources to continue in operational existence for the foreseeable future. The Company has a strong management team and a high-quality estate that is being continually enhanced.

The directors have reviewed cash flow forecasts and, following the grant of the new Term Loan with Heritage Square Limited, have a reasonable expectation that the parent company is a going concern at the date of signing the accounts, thus the directors continue to adopt the going concern basis of accounting in preparing the parent's financial statements. This is further supported with the loan provider, Heritage Square Ltd, willing to extend the terms of the current loan by a further year to now expire on 31 July 2027. Post year end, a sale of the Nottingham site within the company has enabled a proportion of this debt to be repaid.

Within the group are two subsidiaries, Warm Hearth Ltd and Knott End Pub Company Ltd, both of which hold one site each. As part of a strategic review of the group, it was determined that neither of these two sites fit the requirements of the estate going forward. As a consequence, both of these sites have been placed on the market for sale and therefore, those entities accounts are no longer prepared on a going concern basis. As a result, once these subsidiaries cease to trade, the trading group will cease to exist and hence the directors have prepared the consolidated accounts on a basis other than going concern.

The company reports on a 52 week period, as a result the reporting date differs between periods. The comparative information also covers a 52 week period.

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

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

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and 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 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.

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 income statement.

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

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. 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.

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, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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 statement of financial position 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, 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, 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.

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.

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

Debt instruments may be designated as being measured at fair value through 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.

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 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.

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

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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

Areas of judgement and estimation include the depreciation of fixed assets and classification of income and expenses as follows:

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Judgement is used to identify and determine whether an item should be classified as exceptional so to separately disclose and not affect the underlying performance. This involves the nature of the item as well as size and frequency.

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.

Estimation is required to determine whether any impairment is required for property, plant and equipment. These are based on value in use and fair values which are derived from external valuations and market conditions.

Exceptional costs in the year relate to property valuation and loan refinancing costs.

Exceptional costs in the prior year relate to PILON costs in respect of a disposed site.

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected credit for the year 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:

In respect of Property, plant and equipment:

A third party valuation was carried out in the year on all sites held by the group and an impairment has been recognised in respect of one freehold site held by the company.

In the prior year, impairments were recognised in respect of two freehold sites, as well as one leasehold site owned by the company and one property held in Knott End Pub Company Limited, a subsidiary.

Following the property impairments and intercompany debtor provisions recognised in the individual subsidiary financial statements, impairments have also been recognised in the parent company's investments in subsidiaries to reflect this.

Details of the company's subsidiaries at 27 September 2025 are as follows. Hot Copper Pub Company Limited owns 100% of the share capital in each entity.

Amounts included in other loans relates to the Bounce Back Loan Scheme and is therefore guaranteed by the UK government. No fees or interest were payable in the first 12 months. After 12 months, interest was payable at 2.5%. The loan is repayable, in instalments, until November 2026.

During the year, on 3rd June 2025, the company entered into a new Term Loan for £3,253,636 with Heritage Square Limited to enable it to purchase 6,192,597 A ordinary shares of £0.00001 each from Puma VCT 12 Plc and also refinance the Oasis loan. The new loan was taken out in two tranches, with tranche A attracting a fixed interest rate of 9% and tranche B attracting an interest rate of 12%.

At the year end the closing position on the loan tranches was as follows:

Tranche A: £2,689,748

Tranche B: £657,879

The new loan is secured by a fixed and floating charge over the freehold and leasehold properties held by the group. Post year end the terms have been extended to 31 July 2027.

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.

A, B and C shareholders are all entitled to participate for the purpose of voting rights.

A, B, and C shareholders are entitled to participate in dividends and other distributions as set out in the articles of association adopted on 24 December 2020.

Deferred shares carry no voting, dividend, or other distribution rights, and are redeemable at the company's discretion.

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:

During the period the group incurred franchise fees of £234,000 (2024: £273,000) under franchise arrangements with Brewhouse & Kitchen Limited, a company with common directorship of Kristian Gumbrell and Simon Bunn. A further £28,800 (2024: £34,380) was recharged from Brewhouse & Kitchen Limited in respect of other intercompany recharges. At 27 September 2025 the group owed a total of £100,364 to Brewhouse and Kitchen Limited (2024: was owed £8,409).

During the period the company incurred franchise fees of £156,000 (2024: £195,000) under franchise arrangements with Brewhouse & Kitchen Limited, a company with common directorship of Kristian Gumbrell and Simon Bunn. A further £19,200 (2024: £24,780) was recharged from Brewhouse & Kitchen Limited in respect of other intercompany recharges. At 27 September 2025 the company owed a total of £76,099 to Brewhouse and Kitchen Limited (2024: was owed £6,890).

No disclosure has been made in respect of key management personnel remuneration on the basis that no key management personnel are remunerated in the Hot Copper group.

The directors do not consider that there is any one ultimate controlling party of the company.