The directors present the strategic report for the period ended 1 February 2026.

During the 2025/26 financial year, the AK Retail Group and its subsidiaries (the Group) demonstrated resilience and adaptability in a challenging consumer environment, with weaker demand particularly evident across online channels, alongside reduced footfall and a like-for-like decline across stores. Overall annual turnover declined by (5.3)% to £243.9m compared with the 2024/25 financial year.

During 2025/26, the Group continued to benefit from its diversified brand portfolio, broadening its customer reach across core and complementary markets. Key contributors included the continued success of Bad Rhino and PixieGirl, whilst Long Tall Sally experienced a decline during the year, reflecting continued instability in the North American market. Eurozone performance was also impacted by increased duties and taxes applied to orders over €150. In response, the Group adapted its business arrangements across both the US and Eurozone to mitigate the impact of increased duties and protect the profitability of international trading channels where possible.

Investment in enhancing the Group’s loyalty programme across all brands led to increased customer engagement and, coupled with targeted marketing campaigns, contributed to an expanded customer base, particularly within core demographics and geographies.

Alongside a refreshed and broadened product range across the brand portfolio, and despite persistent macroeconomic uncertainty, gross margin strengthened year on year to 64.2%.

The Group also continued to invest in its store estate during the year, opening five new stores and completing four major store refits to support its physical retail presence and enhance the customer experience.

Operationally, the Group maintained a disciplined approach to cost management while prioritising flexibility across its supply chain and trading channels. During the year, the Group invested in a new head office and additional warehouse capacity to support the requirements of the business and provide a platform for future growth. This operational flexibility enabled the Group to respond to external pressures, including currency volatility, evolving post-Brexit requirements and changing global trade conditions. The business continued to monitor potential tariff impacts and other cost pressures, with mitigation plans developed where appropriate.

Overall, the Group’s performance in 2025/26 reflects the resilience of its multichannel model, its continued focus on customer relevance and margin management, and its ability to adapt to a challenging retail and macroeconomic environment.

Brexit, US Tariffs and Exchange Rate Risks

Brexit and the US political environment continue to have an impact on the Group, particularly in ongoing trading relationships. We have reviewed the impacts to date and continue to address these challenges.

• Many of our customers are based in the EU, and we expect this segment to remain stable and grow in numbers.

• The Group employs a significant number of EU nationals, whom we welcome, value and trust that they will remain loyal with us.

• We are confident in managing any friction in the fulfilment of sales to maintain our offer.

• The implementation of US tariffs required ongoing monitoring and adaptive planning.

• Exchange Rate Risks: Variability in the US dollar presents persistent challenges, particularly due to the Company’s exposure to international transactions. To mitigate these risks, the Group actively manages currency exposure through forward contracts and continuously monitors exchange rate movements to safeguard profitability.

The Group is monitoring the impact and potential requirements of these risks and is well placed with its multichannel distribution offering and localised sourcing opportunities. We anticipate being able to react and mitigate where possible.

The future of the high street

As the high street continues to evolve, we are actively renegotiating leases with the aim of creating a sustainable operating environment in partnership with landlords. By linking rent to store performance and incorporating flexible lease terms, we are streamlining operations and ensuring the viability of our high street presence.

Inflation

The Group monitors the effect of inflationary impact on consumer costs to ensure our products remain competitively priced and continue to provide value for money.

Further progress has been made in developing our distribution partnerships across affiliate channels and wholesale throughout 2025/26, extending our reach and market presence. To further support profitable high street trading, we have enhanced our capacity to fulfil online orders directly from stores, enabling greater operational agility and customer service.

Our key performance indicators used in the management of the business

The directors recognise their duties under section 172(1) (a) to (f) of the Companies Act 2006 and at all times act in the way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole for the long term.

We have established and maintain strong relationships with our customers, suppliers, and producers. We recognise that ongoing engagement with customers and key business partners is fundamental to our continued success. To this end, we facilitate regular dialogue and collaboration where practical and mutually beneficial. Our customer service call centre, complemented by email feedback channels, ensures effective communication, while dedicated supplier service managers further strengthen our supply chain partnerships. Throughout all operations — both in the UK and internationally — we are committed to upholding the highest ethical standards and complying with all relevant regulations.

We are dedicated advocates for supporting the community, particularly local initiatives. During this period, our contributions have included support for charities assisting families with children who have additional needs, disabilities, or life-limiting conditions. Our partnership with Barnardo’s continues to provide essential household equipment, emergency assistance, and Christmas food hampers to families in need. In addition, we have launched projects such as dental hygiene education for children and the provision of disability aids to enable accessible outings and holidays for families. Our commitment also extends to national fundraising campaigns selected by our employees. We are proud recipients of the gold award for charitable donations made through our Group-assisted payroll giving scheme.

As an equal opportunity employer, we remain committed to investing in our people and their working environment. We actively seek training and development opportunities and support staff advancement within the organisation. Our collaborations with universities and colleges aim to equip young people with valuable professional experience. Additionally, we partner with the Retail Trust to offer confidential employee support services, underscoring our dedication to positive workplace relations and best practices.

We prioritise environmental responsibility by minimising our ecological impact wherever possible. Our stores, warehouse, and offices recycle as many recyclables as possible. The adoption of hybrid and electric vehicles helps us reduce emissions, and our solar panel installations contribute clean electricity back to the National Grid.

Clear communication is integral to our relationships with bankers and professional advisors, whose guidance is highly valued.

In summary, we strive to foster sustainable business growth, uphold ethical standards, support our workforce, engage with our communities, and operate with environmental consciousness.

On behalf of the board

The directors present their annual report and financial statements for the period ended 1 February 2026.

The principal activity of the company and group continued to be that of clothing retail and related accessories.

The results for the period are set out on page 10.

Ordinary dividends were paid amounting to £2,162,760 (2025: £1,040,678). The directors do not recommend payment of a further dividend.

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

Liquidity risk arises from the Group's management of working capital and the repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group policy is to ensure that there will be sufficient cash to meet its liabilities as they fall due. To achieve this cash balances are maintained at a level to meet expected requirements for at least the next month. The Board regularly receives both short and long term cash flow projections. At the end of the period these projections indicated that the Group is expected to have sufficient liquid resources to meet its obligations.

Market risk arises primarily from the Group's use of foreign currency financial instruments. It is the risk that the fair value of future currency cash flows from financial instruments will fluctuate because of changing foreign exchange rates. The Group is predominately exposed to currency risk on purchases made from suppliers in the Far East, but denominated in US $. The Group is also increasingly exposed to Sales in the Euro-zone and elsewhere, denominated in Euro €. Some purchases are made from suppliers denominated in Euro € and for the moment these perform a natural hedge.

Credit risk is the risk of financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligation. Being a retailer, credit sales are of a minimum, but where goods are sold on credit an appropriate credit assessment is implemented before entering a contract. Trade receivables predominantly relate to balances due from trusted customer payment platforms and selected reputable trade customers. The accounts are actively monitored, and minimal credit losses are expected on such contracts. Credit risk also arises from cash and cash equivalents and deposits with banks. Only highly rated banks are accepted. We bank with Barclays Bank Plc and Allied Irish Banks Plc whose current Moodys Credit Ratings are grade A. The Group does not enter into arrangements to manage credit risk.

The Group's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.

The group's policy is to consult and discuss with employees, 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.

Post year end, an interim dividend of £12,800,000 was declared by the company.

On 10 June 2026, the Company has completed the acquisition of 100% of the equity interest in Spalding United Football Club (2017) Ltd, a company previously classified as a related party due to the majority shareholding by Andrew Killingsworth.

On 1 September 2025 our auditors, Ensors Accountants LLP, merged with Azets Audit Services Limited. Accordingly Ensors Accountants LLP formally resigned as the company’s auditors with the directors duly appointing Azets Audit Services Limited, trading as Ensors to fill the vacancy arising. The auditor, Azets Audit Services Limited, trading as Ensors will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This statement incorporates the performance of the UK activities of the AK Retail Group Limited and its subsidiary; Yours Clothing Limited.

The Group is committed to control and where possible reduce greenhouse gas emissions. We have already taken a number of steps to reduce our energy consumption from fossil fuels, including upgrading to LED in stores, all of our company cars are petrol electric hybrids and vehicles are serviced in accordance with manufacturer’s recommendations, we have installed smart meters in the majority of our stores, and we have a large solar PV array installed at our Head Office to supply non-polluting electricity back to the National Grid. We are up to date with the simpler recycling scheme in our buildings using waste compartments bins to recycle. We have newer modern Head Office building with double glazed windows.

Our greenhouse gas emissions performance and energy usage for the period ended 1 February 2026 is:

Intensity ratio tCO2e/FTE (tonnes of carbon dioxide equivalent / full time equivalent employees) kWh=kilowatt hour

The greenhouse gas emissions and climate change performance is aligned with the GHG Protocol methodology. The GHG Protocol establishes comprehensive global standardised frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions. The framework has been in use since 2001, and forms a recognised structured format, to calculate a carbon footprint. Emissions Factors Applied – DEFRA 2025.

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 AK Retail Group Limited (Formerly known as AK Retail Holdings Limited) (the 'parent company') and its subsidiaries (the 'group') for the period ended 1 February 2026 which comprise the group profit and loss account, 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 the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 1 February 2026 and of the group's profit for the period then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 period 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.

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.

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group operates in and how the group are complying with the legal and regulatory framework;

• inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

• discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the group's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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 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 £28,949,886 (2025 - £34,210,299 profit).

AK Retail Group Limited (Formerly known as AK Retail Holdings Limited) (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Saxon House, Bakewell Road, Orton Southgate, Peterborough, PE2 6XJ.

The group consists of AK Retail Group Limited (Formerly known as AK Retail Holdings Limited) and all of its subsidiaries.

The current reporting period covers the 52 weeks period ended 1 February 2026 whereas the comparative period covers 53 weeks ended 2 February 2025.

This arises because the group prepares its financial statements to the Sunday closest to the end of January, which occasionally results in a 53 week financial year.

The financial performance and position of the group are therefore not entirely comparable between the two periods due to the additional week in the previous year.

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.

Following a review of disclosures in the prior period, the group has reclassified the following items in the comparative period: reclassified short term investments from cash at bank to short term investments within current assets and reclassified the onerous contract provision release to rent expense.

The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company AK Retail Group Limited (Formerly known as AK Retail Holdings Limited) together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 1 February 2026.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. The recognition for store sales is deemed to be the completion of transaction. For internet sales this is the anticipated receipt of the goods by the customer. For all other revenue streams the recognition point is dictated by the terms and conditions forming the sales contract. Where the buyer has a right of return and has subsequently exercised that right, an appropriate provision is made against revenue.

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.

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.

Property rented to a group entity is accounted for as tangible fixed assets.

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. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is based on the first-in first-out principle and comprise all cost of purchase, any cost of conversion and other costs bringing the stock to their present location and condition including duty and freight.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's 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.

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

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

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

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

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

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

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

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

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

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.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

An onerous contact is considered to exist where the unavoidable costs exceed the economic benefit to be received from the contract. The present obligation under an onerous contract is measured and recognised as a provision.

Provision for the expected cost of customer right of return under sale of goods legislation and group terms and conditions is recognised at the period end. The provision is the director's best estimate of the amounts required to settle any such obligation.

Where the group has incurred a liability to make good a leasehold property, at the expiration of the lease or on leaving, an estimate is made for that cost and a provision for such amount is spread over the life of the lease.

In circumstances where there is a potential liability and the amount cannot be estimated reliably then a contingent liability is disclosed.

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.

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.

Short-term investment

Short-term investment includes deposits held with banks for maturity date more than three months and less than twelve months.

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

The Group has contractual obligations to return leasehold properties to their original state prior to return to the landlord at the end of the lease. The Group estimates the amount of this future liability based upon a combination of historical experience of vacating stores and a best estimate of the likely future costs to be incurred in making good the Group property portfolio. The estimate is calculated store by store as a specific amount with adjustment made for any special circumstances relating to an individual property. The carrying value is disclosed in note 23.

The Group determine the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised.

The Group has many lease contracts that include extension and termination options. The Group evaluates whether it is reasonably certain whether or not to exercise option to renew or terminate the lease. It considers all relevant economic factors as to whether to exercise either renewal or termination.

The valuation of investment property presents a high estimation of uncertainty. This is due to the valuation being based on property values calculated on current market data. As to mitigate the risk, management have been provided with a valuation undertaken by a third party who specialises in residential property valuation.

The Group provides for the full cost price of specific stock items where they are identified as damaged or not fit for sale. The Group also provides for stock shrinkage, based on historically observed rates of loses, for the period between the most recent stock take and the period end. Slow moving stock items are provided for in full and items identified with a cost price in excess of current sales price, based on managements understanding of the products and market, are provided for to reduce the stock value to the recoverable amount.

Return provision

The Group estimates store returns by applying a return rate percentage, based on historical experience, to sales in the period leading up to the period end.  Online sales return provision is based upon the actual return of sold items following the period end.

Other provisions

The Government grant income received by the Group is subject to UK subsidy control conditions, as well as specific conditions attached to the grants themselves. The unprecedented nature of Covid-19 support funding means application of these conditions is open to a degree of interpretation. Where the Group has received income in connection with government grants but does not believe it will comply with all of the conditions, a provision is made for the Group's best estimate of amounts that will be repaid but the actual amount that will be repaid is not certain. The amount of £2,652,459, was provided for in previous financial periods and is included within accruals and deferred income in relation to such Government Grants.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2025 - 1).

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

Their aggregate remuneration comprised:

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

Investment property comprises of property held for rental income and capital appreciation. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Tailor Made Estate Agency, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors do not consider the market value has significantly changed since this valuation was completed.

Listed investments comprise publically traded shares. The shares have been carried at their closing price as at the reporting date using data obtained from the Financial Times.

Details of the company's subsidiary at 1 February 2026 is as follows:

During the period, the Company made investments into fixed term deposits with a bank.

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

The deferred tax asset /liability set out above is expected to reverse within 12 months.

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. At the balance sheet date, £103,136 (2025: £98,793) of contributions were outstanding.

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:

Post year end, an interim dividend of £12,800,000 was declared by the company.

On 10 June 2026, the Company has completed the acquisition of 100% of the equity interest in Spalding United Football Club (2017) Ltd, a company previously classified as a related party due to the majority shareholding by Andrew Killingsworth.

Mr Andrew Killingsworth maintains a loan account with the company. At the period end, the company owed £34,869 (2025 - £9,931) to Mr Andrew Killingsworth. During the year, Mr Andrew Killingsworth received a dividend of £2,162,760 (2025 - £1,040,678) from the company.

The Group has taken advantage of the exemption available under FRS 102 para 33.1A not to disclose transactions entered into between two or more members of a group.

All key management personnel are also Directors. Please see note 6 for details of the Directors remuneration.

At the period end, Spalding United Football Club (2017) Ltd owed £1,255,000 (2025 - £nil) to the Company. A provision has been made for non-recoverability of a loan of £nil (2025 - £366,041) given to Spalding United Football Club (2017) Ltd. Mr Andrew Killingsworth is a director and majority shareholder of Spalding United Football Club (2017) Ltd.

The Group is ultimately controlled by Mr Andrew Killingsworth, by virtue of his 100% shareholding in the parent company.