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

The group delivered another profitable year during 2025, achieving turnover growth of 3% from £45,332,118 to £46,676,198. This increase reflects continued growth across the customer base and expansion into food-service markets. Growth remains positive despite challenging market conditions and demonstrates resilience in a testing market.

The group remains financially strong, supported by substantial cash reserves of £10,084,528, low external debt, strong liquidity ratios, and net assets of £34,384,344. Both the customer base and the asset base remain strong with the majority of customers being blue chip and most of the assets free from borrowings.

However, cost pressures remain a key challenge with slightly declining margins and increasing working capital requirements. The gross margin is under pressure from rising commodity costs and labour expenses. With the net profit margin being affected by depreciation and a significant extraordinary impairment charge.

Whilst it remains in a strong position the group continues to monitor profit margins, rising labour costs and increasing commodity cost exposure.

Historically there has been a focus on UK market which currently sits at 96% of revenue. There has been significant investment recently into expansion of food-service sector sales and the export market.

The group continues to strengthen its market position through customer acquisition and operational improvements. Our revenue growth demonstrates sustained demand for products despite inflationary pressures affecting consumers and businesses.

Strategic investment in property assets and production capacity demonstrates the directors’ commitment to long-term growth.

Investment properties increased by £1,683,580, from £109,681 to £1,793,261. The group is investing in assets as part of the long-term growth plan to provide both additional income and increased space for expansion.

The group continues investing heavily in production capability to support future operational efficiency and capacity expansion.

The main uncertainties in the business are relatively unchanged. The nature of our business is that we don’t have visibility over the long term prices of commodities and as such, they remain a long term uncertainty.

The key performance indicators are discussed below;

Turnover has increased by 3% to £46,676,198, driven by growth across the customer base, specifically new customers and further expansion into food services.

Steadily rising commodity costs and an increase in employment costs were the key factors in the downward pressure on gross profit margin falling from 24% to 22%.

Adjusted operating costs (excluding loss on disposal of investment property and exceptional items) remained stable at £4,087,670, which is largely down to management controlling departmental expenditure.

Net assets have increased £3,841,698 to £34,384,344, as a result of profits in year offset by dividends paid.

The Directors of Haywood and Padgett Holdings Limited recognise their duty under Section 172 of the Companies Act 2006 to promote the success of the group for the benefit of its members as a whole, whilst having regard to the interests of employees, suppliers, customers, the wider community and the environment, together with the long-term consequences of decisions made by the Board.

The Board considers stakeholder interests as part of its decision-making process and seeks to ensure that decisions support the long-term sustainability and success of the business.

Long-Term Success

The group continued to invest in its future during the year through capital expenditure of approximately £1.5 million on plant and equipment and the acquisition of investment properties and development land costing approximately £1.7 million. These investments support the group’s long-term growth strategy, improve operational capability and create opportunities for future expansion.

The Board regularly reviews strategic objectives, market conditions, operational performance and investment opportunities to ensure that the group remains well positioned to respond to changing customer demand and market developments.

Despite inflationary pressures affecting raw materials and labour costs, turnover increased to £46.7 million (2024: £45.3 million), demonstrating the resilience of the business and the effectiveness of management’s long-term planning.

Employees

The Board recognises that employees are fundamental to the continued success of the group. During the year the group employed an average of 210 people (2024: 206) and continued to invest in its workforce through training, communication and operational engagement initiatives.

Regular management meetings and departmental discussions provide employees with opportunities to contribute ideas, raise concerns and participate in continuous improvement initiatives. The Board seeks to maintain a safe, inclusive and supportive working environment where employees are encouraged to develop their skills and contribute to the Company’s objectives.

The Directors recognise the impact of rising living costs and labour market pressures and continue to monitor remuneration and employee welfare to support employee retention and engagement.

Customers, suppliers and business partners

The group’s success depends upon maintaining strong and long-term relationships with its customers. The Board focuses on delivering consistent product quality, reliable service and competitive pricing.

Growth during the year was achieved through both existing customer relationships and the acquisition of new customers, particularly within the food-service sector. The group works closely with customers to understand their requirements and develop solutions that create mutual value.

The Board believes that maintaining high standards of product quality, food safety and customer service is essential to sustaining the group’s reputation and long-term commercial success.

The group relies on long-standing relationships with suppliers to ensure continuity of supply and product quality. Commodity markets continue to experience pricing volatility and supply chain pressures; therefore, the Board maintains regular dialogue with suppliers and seeks collaborative approaches to procurement and cost management.

Strategic purchasing decisions during the year enabled the group to manage fluctuations in raw material prices more effectively. The Directors believe that treating suppliers fairly and maintaining trusted relationships strengthens supply chain resilience and supports sustainable growth.

Community and Environment

As a significant employer within the local area, the group recognises its responsibility to contribute positively to the communities in which it operates.

The group supports local charitable activities, fundraising initiatives and community events throughout the year. The Board encourages employee participation in community engagement activities and seeks to maintain positive relationships with local stakeholders.

Environmental considerations form part of the group’s operational and investment decision-making process. The group continues to evaluate opportunities to improve efficiency, reduce waste and manage energy consumption across its operations.

Standards of Business Conduct

The Board is committed to maintaining high standards of business conduct, integrity and corporate governance. The group’s reputation is founded upon the quality of its products, the reliability of its service and the professionalism of its employees.

The Directors regularly review operational performance, financial controls, health and safety compliance and food production standards to ensure that the business continues to operate responsibly and in accordance with applicable laws and regulations.

Members of the company

Haywood and Padgett Holdings Limited is a family-owned business. The Directors maintain regular communication regarding the strategic direction of the business, capital investment decisions and dividend policy.

The Board believes that balancing reinvestment in the business with appropriate returns to shareholders supports the long-term interests of members and the sustainability of the group.

The Directors have had regard to the interests of all key stakeholders throughout the year. Decisions relating to investment in operational assets, property acquisitions, employee engagement, supplier relationships and customer service have been taken with consideration of their long-term impact on the group’s performance, reputation and sustainability.

The Directors believe that these actions have contributed to the continued growth, financial strength and long-term success of the group.

On behalf of the board

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

The principal activity of the company is that of a holding company and the group continued to be that of the production of wholesale bakery products.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £368,000. 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:

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

The below summarises energy usage in the group;

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per tonne of production, the recommended ratio for the sector.

We have installed smart LED lighting across the site to reduce energy use when rooms are not in use.

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.

We have audited the financial statements of Haywood and Padgett Holdings 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 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 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 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.

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:

At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:

• Communicating identified laws and regulations at planning throughout the audit team to remain alert to any indications of non-compliance throughout the audit.

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as non-compliance with laws and regulations.

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

• Reviewing inspection documents from health and safety visits and food standard visits.

We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:

• Override of internal controls (e.g. segregation of duties)

• Entering into transactions outside the normal course of business, especially with related parties

• Fraudulent revenue recognition, including fictitious sales and sales being recorded in the wrong period.

• Presenting bias in accounting judgements and estimates, particularly ones that are key to the business.

In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:

• Enquiries of management as to whether they had any knowledge of any actual or suspected fraud

• Review of material journal entries made throughout the year as well as those made to prepare the financial statements

• Reviewing the underlying rationale behind transactions in order to assess whether they were outside the normal course of business.

• Increased revenue substantive testing across all material income streams.

• Assessing whether management’s judgements and estimates indicated potential bias

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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

Use of our report

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year 31 October 2025 was £368,000 (31 October 2024 - £3,975,610 profit).

Haywood and Padgett Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Bakery, Shawfield Road, Carlton Industrial Estate, Barnsley, S71 3HS.

The group consists of Haywood and Padgett Holdings Limited and all of its subsidiaries.

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

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

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

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

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

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

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

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

The consolidated group financial statements consist of the financial statements of the parent company Haywood and Padgett Holdings 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.

The current group structure was formed following a group reorganisation, that has been accounted for using merger accounting as permitted under FRS102 19.27. As a result the consolidated financial statements contain a merger reserve which is the difference between the nominal value of the shares issued plus the fair value of any other consideration given, and the nominal value of the shares received in exchange.

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

Other income comprises rental income and bank interest receivable for the financial year.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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

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.

Freehold land and buildings are held at deemed cost on transition to FRS102.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

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

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

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

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs.

Stocks are written off as and when they pass their expiration date.

Stock cost is calculated on a FIFO basis.

Properties under development are stated at cost plus direct materials incurred in bringing stock to its present condition. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

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

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

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 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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

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 directors are of the opinion that there are no key estimates or judgements which have a significant risk of causing a material misstatement.

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

Their aggregate remuneration comprised:

The UK corporation tax rate during the year was 25% (2024: 25%).

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:

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

Property, plant and equipment

During the year, the directors approved the decision to disassemble a machine, which is no longer in use. As the asset is not expected to generate significant, future economic benefits, its recoverable amount was assessed as £nil.

More information on impairment movements in the year is given in note 13.

Plant and machinery with a cost totalling £1,253,057 (2024: £1,253,057) and a net book value of £469,272 (2024: £594,578) are held under asset finance agreements. The finance is secured on the asset to which it relates.

Freehold land and buildings held at deemed cost on transition to FR102 are held based on the directors' valuation at the date of transition.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Brought forward investment property has not been formally revalued since October 2021. The directors have reviewed the property and are of the opinion that its fair value has not materially changed since that date and therefore no revaluation adjustment has been recognised in the current period.

Investment properties purchased in the year are held at their original acquisition cost, no revaluation has been performed and the directors consider the carrying value to not be materially different from fair value at the reporting date.

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

Included in other debtors are directors loan accounts of £1,056,030 (2024 - £1,067,992). The loans are unsecured, interest free with no set repayment terms. The directors do not expect these loans to be repaid in the next 12 months.

Obligations under finance leases are secured on the assets in which they relate.

Obligations under finance leases are secured on the assets in which they relate.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. The average lease term is 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

The deferred tax liability recognised represents timing differences between accelerated capital allowances and the depreciation charge on fixed assets. The deferred tax liability will reverse over the period the assets are depreciated for.

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.

The different share classes of the company rank pari passu save as with respect to dividends.

All share classes may have right to a dividend as declared by the Company from time to time.

The holder of one class of shares shall have no right or entitlement to dividends merely because dividends have been declared or paid on any other class of shares in the capital of the Company.

Further details of the rights, preferences and restrictions attaching to the different classes of shares are available in the articles of association.

Includes all historic revaluations and subsequent depreciation.

The merger reserve represents the difference between the nominal value of the shares issued plus the fair value of any other consideration, and the nominal value of shares received in exchange.

Includes all current and prior period retained profits.

At the year end the group was committed to purchasing plant and machinery costing £291,344 (2024 - £1,139,287) of which £113,450 (2024 - £485,480) was unpaid at the year end.

The remuneration of key management personnel is as follows.

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 outstanding at the reporting end date:

Dividends totalling £368,000 (2024 - £562,000) were paid in the year in respect of shares held by the company's directors.

Interest free and unsecured loans were granted to the group's directors as follows, the closing balances are included in other debtors.

The ultimate controlling party is W Padgett by virtue of their shareholding.