ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: 06787889

DAYBREAK FOODS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

DAYBREAK FOODS LIMITED

COMPANY INFORMATION

Directors	N J Dowthwaite
	R Jones


Company secretary	N J Dowthwaite


Registered number	06787889


Registered office	Madison House
	31 High Street
	Sunninghill
	Ascot
	Berkshire
	SL5 9NP


Independent auditors	Barnes Roffe Audit Limited
	Chartered Accountants & Statutory Auditors
	3 Brook Business Centre
	Cowley Mill Road
	Uxbridge
	Middlesex
	UB8 2FX

DAYBREAK FOODS LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 9
Statement of comprehensive income	10
Statement of financial position	11 - 12
Statement of changes in equity	13
Notes to the financial statements	14 - 29

DAYBREAK FOODS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 OCTOBER 2025

Introduction

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

Business review of the year

The last 12 months' trading has been steady as the business has navigated a very competitive market made more difficult by deflation in some areas. Turnover for the year was £37,122,982 (2024 £41,963,635) and profit before tax was £1,744,837 (2024 £2,331,252).

Principal risks and uncertainties

The management of the business and the execution of our strategy are subject to a number of risks. The following section comprises a summary of the main risks which we believe could potentially impact upon our operating and financial performance.

Macroeconomic environment:

Profitability of trading suffers through the economic cycle as consumer demand softens. Our investments in consumer marketing reduce the economic impact on our business. Euro denominated commodities are subject to exchange rate fluctuations. We constantly monitor exchange rates and maintain an appropriate level of forward cover to reduce exposure to fluctuations.

Economic and market risks:

The economic environment, and supplier and competitor pricing can affect the performance of the business in terms of both sales and costs. In order to mitigate losses arising from exchange rate fluctuations our Euro based purchases are hedged and, through development of our product ranges and quality, the company works to ensure that we deliver value for all our customers.

The company hedges its exposure to currency fluctuations by forward buying currency and this is done in a systematic way. The directors do not consider the exposure to market risk to be material as the hedge mechanism is designed so that there is no risk variable; that its gains are offset by losses such that there would be no effect on profitability.

Regulatory Risk:

The company's operations are subject to a broad spectrum of regulatory requirements particularly in relation to food hygiene and environmental issues, employment, pensions and tax. The directors monitor regulatory development, regular reviews and audits are carried out to ensure compliance and training needs are regularly reviewed and addressed as required.

IT systems and infrastructure:

The company is reliant on its IT infrastructure in order to trade. A failure in these systems could have a significant impact on our business. The company has controls in place to maintain the integrity and efficiency of its systems which are regularly updated and tested.

Foreign currency risk:

The company has no operations outside the UK but it buys most goods denominated in Euros. As a result the value of the company's assets and liabilities can be affected by movements between Sterling and the Euro. At the year end the exchange rate for the Euro was at 1.14 (2024 - 1.19).

Credit risk:

The risk of financial loss due to third parties failing to honour their obligations arises principally where the company sells goods to customers. The company has implemented policies to minimise such losses, and they require that terms are only granted to customers who meet the internal requirements for having suitable payment history and adequate creditworthiness.

Page 1

DAYBREAK FOODS LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2025

Financial key performance indicators

The year end position is reflected in the company's balance sheet, and represents a tough but successful year of trading.

In recent years the sales team was expanded in order to strengthen further the company's core business base.
Existing invoice finance facilities were not fully utilised at the year end, and remain available to fund any expansion of business activities in the current year. In a time of economic uncertainty the directors are confident that the company is well placed to maintain or improve its position in the market place. The directors are aware of market conditions which affect shipping costs and buying prices, however, the directors are hopeful that the current contracts will be similar in the next statutory accounts. The directors do not anticipate any material changes to the structure and supply chain of the business for the foreseeable future.

There are no known impending developments or negotiations which in the opinion of the directors would be seriously prejudicial to the interests of the company.

The strategy for longer term development is to maintain the core values of the company and objectives set out in the business objectives above.

Future developments

The directors will continue to monitor the market for opportunities to further develop the product range that the company can offer to its customers.

This report was approved by the board on 3 March 2026 and signed on its behalf.

N J Dowthwaite

Director

Page 2

DAYBREAK FOODS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 OCTOBER 2025

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £1,290,126 (2024 - £1,619,826).

The dividends declared for the year totalled £100,000 (2024 - £Nil).

Directors

The directors who served during the year were:

N J Dowthwaite

J Dowthwaite (resigned 12 August 2025)

R Jones

Matters covered in the Strategic Report

The company has chosen in accordance with the section 414C of the Company's Act 2006, to set out the following information which would otherwise be required to be continued in the Director's Report within the Strategic Report:

Likely financial risk management objectives and policies and future developments in the business of the company.

Page 3

DAYBREAK FOODS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

During the year Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.

This report was approved by the board on 3 March 2026 and signed on its behalf.

N J Dowthwaite

Director

Page 4

DAYBREAK FOODS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAYBREAK FOODS LIMITED

Opinion

We have audited the financial statements of Daybreak Foods Limited (the 'Company') for the year ended 31 October 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 October 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Page 5

DAYBREAK FOODS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAYBREAK FOODS LIMITED (CONTINUED)

Other information

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

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

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

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

∙the financial statements are not in agreement with the accounting records and returns; or

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

∙we have not received all the information and explanations we require for our audit; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime

Page 6

DAYBREAK FOODS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAYBREAK FOODS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

∙The Senior statutory auditor 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 discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;

∙The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:

i) Companies Act 2006
ii) FRS 102
iii) Tax legislation
iv) Employment legislation
v) Agents and Brokers Global Standards.
vi) Food Standards Act 1999
vii) Health & safety

∙ We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing supporting evidence where applicable; and

∙Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of noncompliance throughout the audit.

Page 7

DAYBREAK FOODS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAYBREAK FOODS LIMITED (CONTINUED)

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 consider there was susceptibility to fraud and 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;

∙Reviewing the financial statements and testing the disclosures against supporting documentation;

∙Performing analytical procedures to identify any unusual or unexpected trends or anomalies;

∙Inspecting and testing journal entries to identify unusual or unexpected transactions;

∙Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and

∙Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.

The areas that we identified as being susceptible to misstatement through fraud were:

∙Management bias in the estimates and judgements made;

∙Management override of controls; and

∙Posting of unusual journals or transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Page 8

DAYBREAK FOODS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAYBREAK FOODS LIMITED (CONTINUED)

Use of our report

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

Simon Carr (Senior Statutory Auditor)

for and on behalf of

Barnes Roffe Audit Limited

Chartered Accountants & Statutory Auditors

3 Brook Business Centre

Cowley Mill Road

Uxbridge

Middlesex

UB8 2FX

Date: 6 March 2026

Page 9

DAYBREAK FOODS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 OCTOBER 2025

	2025	2024
Note	£	£


Turnover	4	37,122,982	41,963,635
Cost of sales		(30,346,793)	(35,610,129)
Gross profit		6,776,189	6,353,506
Distribution costs		(3,493,330)	(3,148,549)
Administrative expenses		(2,541,042)	(2,824,265)
Other operating income	5	944,751	1,878,761
Operating profit	6	1,686,568	2,259,453
Interest receivable and similar income	10	58,269	73,011
Interest payable and similar expenses	11	-	(1,212)
Profit before tax		1,744,837	2,331,252
Tax on profit	12	(454,711)	(711,426)
Profit for the financial year		1,290,126	1,619,826

Other comprehensive income for the year
Movement on cash flow hedged forward contract	34,429	116,236
Unrealised gain/(loss) on cashflow hedged forward contract	61,815	(34,429)
Other comprehensive income for the year	96,244	81,807
Total comprehensive income for the year	1,386,370	1,701,633

The notes on pages 14 to 29 form part of these financial statements.

Page 10

DAYBREAK FOODS LIMITED

REGISTERED NUMBER: 06787889

STATEMENT OF FINANCIAL POSITION

AS AT 31 OCTOBER 2025

		2025		2024
Note	£	£	£	£

Fixed assets
Tangible assets	15		309,946		203,616
			309,946		203,616
Current assets
Stocks	16	3,135,170		3,527,536
Debtors: amounts falling due within one year	17	10,456,472		6,562,390
Cash at bank and in hand	18	4,126,048		5,138,119
		17,717,690		15,228,045
Creditors: amounts falling due within one year	19	(9,377,571)		(8,109,469)
Net current assets			8,340,119		7,118,576
Total assets less current liabilities			8,650,065		7,322,192
Deferred tax	21		(77,487)		(35,984)
Net assets			8,572,578		7,286,208

Capital and reserves
Called up share capital	22	7,200	7,200
Foreign exchange reserve	23	61,815	(34,429)
Profit and loss account	23	8,503,563	7,313,437
		8,572,578	7,286,208

Page 11

DAYBREAK FOODS LIMITED

REGISTERED NUMBER: 06787889

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 OCTOBER 2025

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 March 2026.

N J Dowthwaite

Director

The notes on pages 14 to 29 form part of these financial statements.

Page 12

DAYBREAK FOODS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 OCTOBER 2025

	Called up share capital	Foreign exchange reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 November 2023	7,200	(116,236)	5,693,611	5,584,575
Comprehensive income for the year
Profit for the year	-	-	1,619,826	1,619,826
Movement on cashflow hedged forward contract	-	116,236	-	116,236
Unrecognised loss on cash flow hedged forward contract	-	(34,429)	-	(34,429)
Total comprehensive income for the year	-	81,807	1,619,826	1,701,633

At 1 November 2024	7,200	(34,429)	7,313,437	7,286,208
Comprehensive income for the year
Profit for the year	-	-	1,290,126	1,290,126
Movement on cashflow hedged forward contract	-	34,429	-	34,429
Unrealised gain on cash flow hedged forward contract	-	61,815	-	61,815
Total comprehensive income for the year	-	96,244	1,290,126	1,386,370
Dividends: Equity capital	-	-	(100,000)	(100,000)
At 31 October 2025	7,200	61,815	8,503,563	8,572,578

The notes on pages 14 to 29 form part of these financial statements.

Page 13

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

1.	General information

Daybreak Foods Limited is a company limited by shares, incorporated in England and Wales. The registered office address is Madison House, 31 High Street, Sunninghill, Ascot, Berkshire, SL5 9NP.

The company specialises in importing and selling ambient temperature food products.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

The directors note that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the Statement of financial position date. As such, the directors believe that there are no significant uncertainties in their assessment of whether the business is a going concern and therefore have prepared the accounts on a going concern basis.

2.3

Financial reporting standard 102 - reduced disclosure exemption

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows.

This information is included in the consolidated financial statements of Daybreak Group Holdings Limited as at year ended 31 October 2025 and these financial statements may be obtained from Companies House, Madison House 31 High Street, Sunninghill, Ascot, SL5 9NP.

Page 14

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

Commissions recievable

Commissions are recognised when the service is provided.

2.6

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life of three to ten years.

2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

2.Accounting policies (continued)

2.7

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.

Depreciation is provided on the following bases:

				Motor vehicles	-	25% on reducing balance
				Office equipment	-	25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of comprehensive income.

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

2.Accounting policies (continued)

2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income within 'other operating income'.

2.13

Finance costs

Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the lease term.

2.16

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

Page 17

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

2.Accounting policies (continued)

2.17

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.19

Hedge accounting

The Company uses variable to fixed interest rate swaps to manage its exposure to exchange rate risk on its foreign currency transactions. These derivatives are measured at fair value at each reporting date.

To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.

Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

Page 18

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgement 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 directors consider that the implementation of hedging for forward contracts is a key accounting policy, and the value is obtained from the other party to the contract. The directors consider the estimation of intangible asset life and its value to the business a key area of estimation uncertainty.

4.	Turnover
		2025	2024
		£	£

United Kingdom	37,122,982	41,963,635
	37,122,982	41,963,635

All turnover arose from the company's principal activity.

5.	Other operating income
		2025	2024
		£	£

Commissions receivable	944,751	1,878,761
	944,751	1,878,761

Depreciation of tangible fixed assets	72,002	61,817
Loss on sales of tangible asset	927	11,746
Amortisation of goodwill	-	573,880
Foreign exchange difference	16,890	18,096

Page 19

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

7.	Auditors' remuneration
		2025	2024
		£	£


Fees payable to the Company's auditor for the audit of the Company's annual financial statements	16,955	16,465
	16,955	16,465

8.	Employees
		2025	2024
		£	£

Wages and salaries	1,656,383	1,400,097
Social security costs	232,147	169,987
Cost of defined contribution scheme	88,859	139,091
	1,977,389	1,709,175

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Sales	5	5
Administration	14	14

	19	19

Page 20

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

9.	Directors' remuneration
		2025	2024
		£	£


Directors' emoluments	861,429	628,953
Company contributions to defined contribution pension schemes	56,696	107,427
	918,125	736,380

The highest paid director received remuneration of £768,102 (2024 - £420,738), and company pension contributions of £25,835 (2024 - £43,335), less amounts released from accruals of £33,335 (2024 - £nil), were made to a money purchase scheme on their behalf.

During the year retirement benefits were accruing to 3 directors (2024 - 3) in respect of defined contribution pension schemes.

The remuneration for key management is as disclosed for directors.

10.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	58,269	73,011
		58,269	73,011

11.	Interest payable and similar expenses
		2025	2024
		£	£

	Other interest payable	-	1,212
		-	1,212

Page 21

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

Corporation tax
Current tax on profits for the year	413,208	735,538

Total current tax	413,208	735,538

Deferred tax
Origination and reversal of timing differences	41,503	(24,112)
Total deferred tax	41,503	(24,112)


	Tax on profit	454,711	711,426

Page 22

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

12.Taxation (continued)

Profit on ordinary activities before tax

1,744,837

2,331,252

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	436,209	582,813
Effects of:
Expenses not deductible for tax purposes and impairment	9,170	150,114
Capital allowances for year in excess of depreciation	8,334	(8,335)
Other timing differences	998	(13,166)
Total tax charge for the year	454,711	711,426

13.	Dividends
		2025	2024
		£	£

	Dividends paid	100,000	-
		100,000	-

Page 23

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

14.	Intangible assets

		Goodwill
		£
	Cost
	At 1 November 2024	6,586,538
	At 31 October 2025	6,586,538
	Amortisation
	At 1 November 2024	6,586,538
	At 31 October 2025	6,586,538
	Net book value
	At 31 October 2025	-
	At 31 October 2024	-

Page 24

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

15.	Tangible fixed assets

	Office equipment	Motor vehicles	Total
	£	£	£
Cost
At 1 November 2024	145,035	268,878	413,913
Additions	18,538	200,721	219,259
Disposals	-	(95,249)	(95,249)
At 31 October 2025	163,573	374,350	537,923
Depreciation
At 1 November 2024	123,892	86,405	210,297
Charge for the year	6,448	65,554	72,002
Disposals	-	(54,322)	(54,322)
At 31 October 2025	130,340	97,637	227,977
Net book value
At 31 October 2025	33,233	276,713	309,946
At 31 October 2024	21,143	182,473	203,616

16.	Stocks
		2025	2024
		£	£

Goods in transit	716,514	870,095
Finished goods and goods for resale	2,418,656	2,657,441
	3,135,170	3,527,536

Page 25

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

17.

Debtors

					2025	2024
					£	£


Trade debtors	5,952,217	5,399,962
Amounts owed by group undertakings	732,088	732,088
Other debtors	3,482,021	140,909
Prepayments and accrued income	290,146	289,431
	10,456,472	6,562,390

18.	Cash and cash equivalents
		2025	2024
		£	£

Cash at bank and in hand	4,126,048	5,138,119
	4,126,048	5,138,119

19.	Creditors: Amounts falling due within one year
		2025	2024
		£	£

Trade creditors	8,263,546	7,029,162
Corporation tax	44,215	282,015
Other taxation and social security	95,574	54,021
Other creditors	434,503	347,229
Accruals and deferred income	539,733	397,042
	9,377,571	8,109,469

Page 26

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

20.	Financial instruments
		2025	2024
		£	£

Financial assets
Financial assets measured at fair value through profit or loss	61,815	-
Financial assets that are debt instruments measured at amortised cost	10,166,326	6,304,009
	10,228,141	6,304,009

Financial liabilities
Financial liabilities measured at fair value through profit or loss	-	34,429
Financial liabilities measured at amortised cost	8,759,864	7,341,962
	8,759,864	7,376,391

	Financial assets and liabilities measured at fair value through profit or loss comprise forward contracts revalued at year-end. At the year end, the notional value of the contracts was £2,725,303 (2024 - £3,580,085).
	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and amounts owed by group undertakings.
	Financial liabilities measured at amortised cost comprise trade creditors, other creditors and amounts owed to group undertakings.

21.	Deferred taxation

		2025
		£

	At beginning of year	35,984
	Charged to Statement of comprehensive income	41,503
	At end of year	77,487

Page 27

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

21.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:
	2025	2024
	£	£

	Accelerated capital allowances	77,487	35,984
		77,487	35,984

22.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

7,200 ordinary shares of £1 each	7,200	7,200

23.

Reserves

Foreign exchange reserve

The foreign exchange cash flow hedge reserve relates to the amount of unrecognised gain or loss on forward contracts that are cash flow hedged.

Profit and loss account

The profit and loss account includes all current and prior year retained profits and losses.

24.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £88,859 (2024 - £139,091) for the year. Contributions totaling £15,835 (2024 - £33,335) were payable as at the year end.

25.	Commitments under operating leases

The Company had no commitments under non-cancellable operating leases at the reporting date.

26.	Transactions with directors

Included within other debtors is an amount of £3,397,000 (2024 - £92,000) owed by a director of the company.

Page 28

DAYBREAK FOODS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

27.	Related party transactions
	The company has taken advantage of the exemption provided under the provision of FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ not to disclose transactions between wholly owned members of a group.

28.	Ultimate parent undertaking and controlling party

The immediate and ultimate parent undertaking is Daybreak Group Holdings Limited, a company incorporated in England and Wales and whose registered address is Madison House, 31 High Street, Sunningdale, Ascot, Berkshire, SL5 9NP. The ultimate controlling party is Mr N Dowthwaite by virtue of his shareholding in the parent company.

29.	Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 29