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

Southpaw Limited is an international strategic brand consultancy providing insight-led brand strategy, design and innovation services to a diverse portfolio of clients across consumer, corporate and healthcare sectors. The Group operates through a network of studios in London, New York, Singapore, Amsterdam, Sydney, Melbourne and Shanghai, serving clients across global and regional markets. During the year the Group expanded its international footprint through the establishment of Bulletproof Branding Services LLC in Dubai, creating a platform for future growth in the Middle East.

Turnover for the year was £42.5m (2024: £42.8m), representing a decrease of 0.6%. This stable revenue performance reflected the Group's deliberate focus on higher-value and strategically aligned client engagements, prioritising quality of work, client fit, and margin over volume growth. This approach enabled the Group to perform well despite continued market uncertainty across a number of territories. Gross profit was £37.9m (2024: £39.1m), representing a gross margin of 89.1% (2024: 91.3%). Administrative expenses reduced to £36.2m (2024: £37.5m), reflecting continued cost control and resource planning across the network.

Operating profit increased to £1.7m (2024: £1.6m) and profit before taxation increased to £1.9m (2024: £1.8m), an improvement of 5.6%. Interest income increased during the year, benefiting from higher cash deposit returns. Profit after taxation was £1.4m (2024: £1.7m), following a tax charge of £0.5m (2024: £0.1m). The Group also reported a total comprehensive income of £2.2m (2024: £0.3m), including a currency translation gain of £0.9m arising on consolidation.

The Group’s balance sheet remained strong at the end of the year. Net current assets increased to £26.9m (2024: £26.9m), while total equity increased to £27.0m (2024: £26.7m). Cash balances remained robust at £9.3m (2024: £11.1m), after dividends paid of £2.0m and continued investment in the Group’s international operations.

The directors continue to actively manage working capital, debtor recovery, and deferred income balances, while maintaining sufficient liquidity to support the Group’s operational needs and strategic priorities.

During the year the Group continued to refine its proposition, strengthen its operating infrastructure and focus on higher-quality client engagements capable of generating sustainable long-term value. The Group's revenue base remained well diversified geographically, with the USA, UK and Europe continuing to represent its largest markets. Revenue growth in the United States and other international markets helped offset softer trading conditions in certain territories.

The Group continued its transition towards a more integrated global operating model, increasing collaboration between studios and improving access to specialist capabilities across regions. This approach supports greater consistency of service delivery, more effective deployment of talent and improved operational efficiency throughout the network. Investment continued in technology, systems, data and workflow processes designed to enhance visibility of project performance, resource utilisation and financial management across the business. The directors believe these investments strengthen scalability, improve decision-making and support future profitability.

The establishment of the Dubai operation represents a significant strategic milestone for the Group. Initial trading commenced during the final two months of the financial year and made an encouraging contribution. Following the year end, the business has secured several significant client wins and continues to establish a credible presence within the region. Whilst geopolitical uncertainty remains a factor within the Middle East, the directors believe the region presents attractive long-term opportunities and remain committed to developing the business in a measured and controlled manner.

The Group continues to benefit from long-standing client relationships and a reputation for strategic insight, creativity and delivery excellence. The directors believe these strengths, combined with the Group's international footprint and strong balance sheet, position the business well for long-term sustainable growth in a rapidly evolving creative and consumer landscape.

The Group operates in a challenging and competitive global market. The directors consider the following to be the principal risks and uncertainties facing the Group, together with the actions taken to manage them.

Currency risk

As a global network, the Group transacts in multiple currencies and is exposed to fluctuations in exchange rates. Currency risk is managed through regular cashflow forecasting, monitoring of foreign currency exposures, and, where appropriate, natural hedging through matching local revenues and costs.

Market, client and regional risk

The creative services market remains competitive and fast-moving. Client marketing budgets, project timing and procurement decisions can be affected by macroeconomic uncertainty, inflationary pressure, interest rates, and, in certain territories, geopolitical or regional instability. The Group mitigates these risks by maintaining a diversified client portfolio and sector mix, operating across multiple international markets, and focusing on demonstrable strategic and creative value creation across long-term client relationships.

Technology and AI risk

Artificial intelligence and data-enabled tools are reshaping creative workflows, client expectations, and the competitive landscape. The Group actively monitors developments in this area and continues to develop its technology strategy by enhancing its technology stack, while ensuring that the adoption of new technologies is supported by appropriate governance procedures and remains consistent with client confidentiality obligations, data security requirements, intellectual property considerations, and the Group's standards of creative quality and professional conduct.

Creative quality and reputation risk

The Group’s reputation is central to winning and retaining clients. Failure to deliver work that meets client expectations, brand standards, regulatory requirements or cultural sensitivities could adversely affect client relationships and the Group’s reputation and future business opportunities. The Group maintains quality review processes, senior creative oversight, clear client approval protocols, and industry leading project management disciplines. Our international network also provides local market insight to support culturally relevant and responsible creative work.

People and talent risk

The Group’s success depends on attracting, retaining, and developing talented people across its markets. Average employee numbers reduced to 308 during the year (2024: 334), reflecting ongoing resource planning, optimisation and alignment of capacity with client demand. The Group continues to invest in its people’s wellbeing, training, flexible working arrangements, engagement initiatives and people systems to support retention and maintain the capability required to deliver for clients.

Credit and working capital risk

The Group’s working capital profile is influenced by the timing of project delivery, client billings, cash collection, and deferred income balances. Management closely monitors debtor recovery, accrued income, deferred income, and supplier balances; with regular reviews of cash flow forecasts and client payment performance to maintain appropriate liquidity and financial discipline.

International expansion risk

Expansion into new markets, including the Middle East, exposes the Group to additional regulatory, commercial, cultural and operational considerations. These risks are managed through local leadership, Group oversight and ongoing monitoring of business performance and compliance requirements.

Regulatory, legal and reputational risk

The Group operates across multiple jurisdictions and is required to comply with a wide range of legal and regulatory requirements, including employment, tax, data protection, anti-bribery, intellectual property and health and safety legislation. The Group maintains appropriate policies, governance processes, and professional advisory services to support compliance and promote the highest standards of ethical conduct across the network, maintaining our B Corp status.

The directors have considered the Group’s forecasts, cash resources, working capital requirements, and principal risks. At the time of approving the financial statements, the directors have a reasonable expectation that the Group and parent company have adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

Looking ahead, the Group’s objective is to preserve revenue resilience while improving profitability, enhance operational efficiency, strengthen cash generation and optimise consistency of delivery across the network. Management will continue to focus on high-quality client engagements, disciplined cost management and investment in capability, technology and innovation. Continued support will be provided to the Dubai operation as it builds on its initial success and develops a sustainable long-term presence within the Middle East.

The directors remain confident in the Group’s strategic direction, supported by its strong balance sheet, diversified international client base, established reputation, and continued investment in creative, technological and operational capability.

The directors confirm that, during the year, they have acted in a way that they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, while having regard to the matters set out in section 172(1) of the Companies Act 2006.

Long-term consequences of decisions

The directors’ principal long-term focus has been the continued development of a resilient global agency network. Decisions during the year included continued investment in systems, technology and data, further refinement of the Group operating model and the establishment of the Dubai presence. The Board continues to support the growth of the Dubai operation, which has seen strong client wins in the current year and is building a presence in the region despite wider regional unrest. These decisions were taken to strengthen client service, improve operational efficiency, support employees and enhance the Group’s ability to scale sustainably over the long term.

Our people

The directors recognise that the Group’s people are central to its success. The Group has continued to support employee wellbeing, training and development, flexible working arrangements and engagement across its markets. People-related insights are of the utmost importance in management discussions and strategic planning, particularly in relation to resourcing, capability development, wellbeing and retention.

Customer, suppliers and business relationships

The Group seeks to build long-term, collaborative relationships with clients and suppliers based on trust, transparency, and shared standards. During the year the Group continued to focus on strategic client partnerships, clear communication, and high-quality delivery. Supplier relationships, including production, technology and professional service partners, are managed with regard to quality, reliability, value, and alignment with the Group’s values.

Community and environment

The Group remains committed to responsible and sustainable business practices. The Group has been carbon neutral since 2012 and continues to review its carbon emissions through an externally conducted carbon audit. The London studio achieved B Corp accreditation in 2024, and the Group continues to consider opportunities to extend responsible business practices across the wider network.

Business conduct

The directors are committed to maintaining high standards of integrity, respect, and accountability across the Group. The Group’s policies, governance processes, training and communications are designed to support ethical decision-making, compliance with applicable laws and regulations and responsible use of technology, including AI-enabled tools.

Acting fairly between members

The directors seek to act fairly between members through transparent governance, regular financial and operational reporting, and a consistent approach to strategic decision-making across the Group. The Group continues to operate with regard to its transfer pricing policies and the need for accountability across its international entities.

On behalf of the board

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

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

Ordinary dividends were paid amounting to £1,971,096 (2024: £812,500). The directors do not recommend payment of a further dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

As each company in the group is exempt, there is no requirement to report on its emissions, energy consumption or energy efficiency activities.

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.

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.

Qualified Opinion

We have audited the financial statements of Southpaw Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2025 and of the group's profit for the year then ended;

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

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

Basis for qualified opinion

The parent company's balance sheet includes an intercompany debtor balance of £1,530,852, as at 31 October 2024, receivable from Bulletproof Design PTE Limited, a subsidiary undertaking. For the comparative year end we were unable to obtain sufficient appropriate audit evidence to support the full recoverability of this balance. Should this have proven to not be recoverable, the profit and loss for the parent company would have been impacted by the same amount in the prior year and that same value would be reversed in the current year.

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

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti bribery, employment, environmental and health and safety legislation;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

• understanding the design of the company's renumeration policies.

Audit responses to risks identified

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• investigating any legal and professional expenses incurred throughout the period; and

• enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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.

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.

The notes on pages 18 to 35 form part of these financial statements.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,238,478 (2024 - £614,942 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Southpaw Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 10 Bedford Street, London, WC2E 9HE.

The group consists of Southpaw 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. 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 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 Southpaw Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 October 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

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

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

Turnover is measured based on the consideration to which the company expects to be entitled in exchange for transferring promised services to a client, including expenses, discounts, and disbursements but excluding value added tax.

Service fee income is determined by reference to the proportion of staff and labour costs incurred on a contract to date relative to the total expected staff and labour costs of that contract.

Expenses and disbursements recharged to clients are recognised as turnover only at the point at which the underlying expense or disbursement has been paid by the company and will only be recognised in full on completion of a milestone project.

Where turnover recognised exceeds amounts invoiced to clients, the excess is included within accrued income. Where amounts invoiced to or received from clients exceed the relevant amount of turnover recognised, the excess is included within deferred income.

Professional services income is recognised proportionally over the course of the delivered service, exclusive of value added tax.

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

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

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

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

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

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

Equity investments are measured at at cost less impairment. In the parent company financial statements, investments in subsidiaries 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.

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 balance sheet when the group becomes party to the contractual provisions of the instrument.

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

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

Financial assets are assessed for indicators of impairment at each reporting end date.

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

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

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

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

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

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

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

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

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

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

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

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

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 if, and only if, there is 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.

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.

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

Turnover from service contracts is recognised by reference to the proportion of staff and labour costs incurred to date relative to the total expected staff and labour costs of the contract. Judgement is required in estimating total expected contract costs, which directly affects the amount and timing of revenue recognised.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 0).

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

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

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

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Deferred income is included in the financial statements as follows:

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.

Called up share capital: represents the nominal value of the shares that have been issued.

Profit and loss account: includes all current and prior period retained profit and losses.

There are fixed and floating charges over all assets of the company and group.

The company's credit cards are secured by way of a debenture over the whole assets of the company,

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

The total lease payments recognised as an expense during the period was £2,212,981 (2024: £2,515,212 ).

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were recognised as an expense in the period in respect of bad and doubtful debts due from related parties:

The ultimate controlling party of the company is the director and majority shareholder, G S Mundae.