REGISTERED NUMBER: 04333618 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

UNIVERSAL DEVELOPMENTS (LEICESTER)

LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

11

Consolidated Other Comprehensive Income

12

Consolidated Balance Sheet

13

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Cash Flow Statement

17

Notes to the Consolidated Cash Flow Statement

18

Notes to the Consolidated Financial Statements

20

DIRECTORS:

Mr M Durrani

Mrs US Durrani

Mrs N Durrani

SECRETARY:

Mr M Durrani

REGISTERED OFFICE:

61 Lunsford Road

Leicester

Leicestershire

LE5 0HJ

REGISTERED NUMBER:

04333618 (England and Wales)

SENIOR STATUTORY AUDITOR:

Mr P Bott FCA

AUDITORS:

Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

Universal Developments (Leicester) Limited is a family-run business. The group started as a packaging firm supplier, but since then we have grown to become an industry leader in flexible packaging. We since expanded into contract packaging, added cardboard packaging to the portfolio and can now receive, pack, label, store and deliver almost anything.

REVIEW OF BUSINESS

The financial year ended 2025 represented a significant period of strategic investment for the Group, laying the foundations for the Group's long-term growth, operational resilience and future profitability.

During the year, the Group invested substantially in the development of its new storage and distribution facility at Sunningdale Road. This purpose-built site has been designed to support the business's future expansion and forms a key part of the Group's long-term logistics and supply chain strategy.

The initial investment of approximately £350k covered the acquisition and preparation of the facility, infrastructure works and the installation of pallet racking with an initial capacity of approximately 2.5k pallet locations, increasing to around 3.5k pallet locations when fully completed.

Whilst the investment commenced during the 2025 financial year, the associated operational overheads were incurred from October 2025 onwards. These investment costs will continue throughout 2026 as the site is progressively developed and brought towards full operational capacity. The Directors anticipate that these costs will be recovered over time as warehouse occupancy increases and the facility becomes fully utilised.

In addition, the Group remains committed to an existing third-party storage contract, which continues until November 2026. Consequently, during this transition period, the business is carrying the cost of both the new in-house warehousing operation and the legacy external storage arrangement. Although this has resulted in a temporary increase in operating costs, it forms part of a carefully planned transition designed to strengthen the Group's long-term operational infrastructure and improve customer service.

Alongside this investment, the Group has committed capital expenditure of just under three quarters of a million pounds towards expanding and enhancing its contract packing operations at the Lunsford Road manufacturing facility. These investments are intended to increase production capacity, improve operational efficiencies and support the future growth of both existing and new customer programmes.

The Group has also continued to invest significantly in its commercial capabilities by expanding its senior management and sales functions. In September 2026, a Sales Director will join the business to lead the next phase of commercial growth, strengthening customer relationships, developing new markets, and supporting increased utilisation of the Group's expanded manufacturing and warehousing infrastructure.

REVIEW OF BUSINESS (CONTINUED)

The strategic investment programme extends well beyond facilities and equipment. During 2025 and 2026, the Group has invested heavily in strengthening its operational and financial infrastructure by implementing a new Warehouse Management System and migrating to the Intact financial management platform. Combined investment in these technology projects in the year was around £50k, with further acquisition and implementation costs of £150k expected in 2026. These platforms will provide enhanced operational control, improved financial reporting and greater visibility across the business.

Following the appointment of the Sales Director, the Group will also implement Salesforce as its customer relationship management platform, further strengthening the commercial infrastructure by improving customer engagement, sales forecasting, pipeline management and business intelligence.

The Directors have also invested in external advisory support to ensure the business continues to develop robust governance, strategic planning and sustainable long-term growth. These investments reflect the Directors' commitment to building a stronger organisation capable of supporting continued expansion over the coming years.

As the Group entered 2026, the broader flexible packaging industry faced additional challenges stemming from geopolitical instability in the Gulf region. Given that flexible packaging is heavily dependent on petrochemical-based raw materials, volatility in global oil and polymer markets has affected pricing, supply chain planning and material availability across the sector.

Despite these external market conditions, the Directors remain confident in the resilience of the Universal Developments (Leicester) Ltd group. Having successfully operated for over 30 years, the Group has established a strong reputation, a diversified customer portfolio, long-standing supplier relationships and a robust operational platform. These strengths have enabled the business to navigate market volatility while continuing to invest confidently in its future.

The Directors recognise that the financial performance for the period has been influenced by this deliberate investment programme rather than by short-term profit maximisation. The increased operating costs associated with new facilities, personnel, technology and infrastructure represent planned expenditure designed to generate sustainable long-term returns.

The Directors expect 2026 to remain a year of controlled investment as these projects become fully embedded within the business. The benefits of these investments are anticipated to begin materialising during the fourth quarter of 2026, with more significant returns expected throughout 2027 and beyond as warehouse utilisation increases, operational efficiencies are realised, and commercial growth accelerates.

The Directors remain confident in the financial stability of the Group. Long-term borrowings remain appropriately managed, liquidity continues to be maintained at prudent levels, and the investments undertaken over the past two years have created a strong platform for future growth.

Overall, the Directors believe that the investments made throughout 2025 and 2026, in facilities, manufacturing capability, technology, people and governance-will deliver significant long-term value for the Group, its customers and its stakeholders. Having laid these foundations, the business is now well positioned to move from a period of substantial investment into one of operational stability, improved profitability and sustainable growth over the coming years.

PERFORMANCE OF THE BUSINESS AND OUTLOOK

Turnover has increased by £304k (2.25%) on 2024, in line with budgeted figure. The increase in turnover is largely due an increase in contract packaging sales within the year.

Our KPI's for the year show what we have achieved this year:

KPI's £

2025

2024

Turnover

13,814

13,510

Gross Profit

4,066

3,522

Gross Profit %

29.43%

26.07%

Operating Profit

50

266

Operating Profit %

0.36%

1.97%

Net Profit/(Loss)

(14

)

454

Net Assets

9,182

9,195

The company has a budgeting system in place whereby actual performance is measured against budget on a monthly basis.

Our experienced management team and strong financial position enable us to be well positioned to continue the successful development of the company.

The directors are responsible for the maintenance of the company's website www.uniflex.co.uk.

PRINCIPAL RISKS AND UNCERTAINTIES

The group manages liquidity risk by ensuring that there are sufficient funds to meet amounts due to trade creditors and loan repayments. Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding in terms of time and credit limits.

ON BEHALF OF THE BOARD:

Mr M Durrani - Secretary

20 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

An interim dividend of £NIL (2024: £NIL) was paid during the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

Mr M Durrani

Mrs US Durrani

Other changes in directors holding office are as follows:

Mrs N Durrani - appointed 2 January 2025

DONATIONS

The group made charitable donations of £85,845 (2024: £117,028) in the year to 31 December 2025.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 company and the group 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Mark J Rees LLP Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr M Durrani - Secretary

20 July 2026

Opinion

We have audited the financial statements of Universal Developments (Leicester) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISA's (UK).

We obtained an understanding of the legal and regulatory frameworks applicable to the company and industry in which it operates through our general commercial experience. We determined that the following laws and regulations were most significant: FRS 102, Companies Act 2006 and the relevant tax compliance regulations in the UK. In addition, we concluded that there are certain laws and regulations that may have an effect in the determination of the amounts and disclosures in the financial statements such as health and safety and employee related matters.

We enquired of management concerning the group's policies and procedures relating to:

-the identification and compliance with laws and regulations;

-the detection and response to the risks of fraud;

-the internal controls inherent within the group to mitigate fraud risk and non-compliance to laws and regulations

We enquired of management, whether they were aware of any instance of non-compliance with laws and regulations or whether they had any knowledge of actual, suspected or alleged fraud.

We communicated relevant laws and regulations and potential areas of fraud to all audit team members including the potential for fraud in revenue recognition. We remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.

We have determined that the principal risk areas where material irregularities could occur were related to posting manual journal entries to manipulate financial performance, revenue recognition, stock valuation and significant one-off or unusual transactions.

Our audit procedures were designed to respond in particular to these identified risks (including non compliance with laws and regulations and fraud).

Our audit procedures included but were not limited to:

- A review of a sample of stock lines to ensure the valuation of stock is at the lower of cost and net realisable value along with attendance at stocktake to sample the stock count of stock lines.

- A review of a sample of orders received in the year to ensure these were correctly recorded in revenue and detailed cut off testing around the year end to ensure revenue is correctly recognised.

- A review of laws and regulations the company is subject to, being specifically food and hygiene and health and safety, followed by compliance checks and discussion with management to ensure no instances of non compliance.

- Addressing the risks of fraud through management override of controls by performing journal entry test.

We did not identify any matters during the course of our work that indicated non-compliance with laws and regulations or relating to fraud.

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

Use of our report

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

Mr P Bott FCA (Senior Statutory Auditor)

for and on behalf of Mark J Rees LLP Chartered Accountants

and Statutory Auditors

Granville Hall

Granville Road

Leicester

LE1 7RU

10 August 2026

TURNOVER

5

13,813,969

13,509,701

Cost of sales

9,747,617

9,987,234

GROSS PROFIT

4,066,352

3,522,467

Administrative expenses

4,016,287

3,440,009

50,065

82,458

Other operating income

6

-

183,162

OPERATING PROFIT

8

50,065

265,620

Profit on sale of tangible

fixed assets

9

-

302,341

50,065

567,961

Interest receivable and similar income

178,436

153,529

228,501

721,490

Interest payable and similar expenses

10

167,374

287,239

PROFIT BEFORE TAXATION

61,127

434,251

Tax on profit

11

74,895

(19,402

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(13,768

)

453,653

(Loss)/profit attributable to:

Owners of the parent

(13,768

)

453,653

(LOSS)/PROFIT FOR THE YEAR

(13,768

)

453,653

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(13,768

)

453,653

Total comprehensive income attributable to:

Owners of the parent

(13,768

)

453,653

FIXED ASSETS

Intangible assets

13

13,200

15,400

Tangible assets

14

2,597,165

2,147,487

Investments

15

-

-

2,610,365

2,162,887

CURRENT ASSETS

Stocks

16

1,010,807

1,328,704

Debtors

17

7,264,431

4,782,442

Cash at bank

3,613,286

6,028,891

11,888,524

12,140,037

CREDITORS

Amounts falling due within one year

18

4,833,830

4,600,347

NET CURRENT ASSETS

7,054,694

7,539,690

TOTAL ASSETS LESS CURRENT LIABILITIES

9,665,059

9,702,577

CREDITORS

Amounts falling due after more than one year

19

(11,662

)

(138,066

)

PROVISIONS FOR LIABILITIES

22

(471,679

)

(369,025

)

NET ASSETS

9,181,718

9,195,486

CAPITAL AND RESERVES

Called up share capital

23

1,200

1,200

Share premium

24

623,000

623,000

Retained earnings

24

8,557,518

8,571,286

SHAREHOLDERS' FUNDS

9,181,718

9,195,486

The financial statements were approved by the Board of Directors and authorised for issue on 20 July 2026 and were signed on its behalf by:

Mr M Durrani - Director

FIXED ASSETS

Intangible assets

13

-

-

Tangible assets

14

-

-

Investments

15

624,000

624,000

624,000

624,000

CURRENT ASSETS

Debtors

17

700,763

700,763

Cash at bank

5,418

5,496

706,181

706,259

NET CURRENT ASSETS

706,181

706,259

TOTAL ASSETS LESS CURRENT LIABILITIES

1,330,181

1,330,259

CAPITAL AND RESERVES

Called up share capital

23

1,200

1,200

Share premium

24

623,000

623,000

Retained earnings

24

705,981

706,059

SHAREHOLDERS' FUNDS

1,330,181

1,330,259

Company's loss for the financial year

(78

)

(7

)

The financial statements were approved by the Board of Directors and authorised for issue on 20 July 2026 and were signed on its behalf by:

Mr M Durrani - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

1,200

4,217,035

623,000

3,900,598

8,741,833

Changes in equity

Total comprehensive income

-

4,354,251

-

(3,900,598

)

453,653

Balance at 31 December 2024

1,200

8,571,286

623,000

-

9,195,486

Changes in equity

Total comprehensive income

-

(13,768

)

-

-

(13,768

)

Balance at 31 December 2025

1,200

8,557,518

623,000

-

9,181,718

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

1,200

706,066

623,000

1,330,266

Changes in equity

Total comprehensive income

-

(7

)

-

(7

)

Balance at 31 December 2024

1,200

706,059

623,000

1,330,259

Changes in equity

Total comprehensive income

-

(78

)

-

(78

)

Balance at 31 December 2025

1,200

705,981

623,000

1,330,181

Cash flows from operating activities

Cash generated from operations

1

(906,242

)

(933,125

)

Interest paid

(152,751

)

(264,665

)

Interest element of hire purchase payments paid

(14,623

)

(22,574

)

Tax paid

(80,833

)

(151,511

)

Net cash from operating activities

(1,154,449

)

(1,371,875

)

Cash flows from investing activities

Purchase of tangible fixed assets

(854,855

)

(306,325

)

Sale of investment property

-

13,000,000

Interest received

178,436

153,529

Net cash from investing activities

(676,419

)

12,847,204

Cash flows from financing activities

Loan repayments in year

-

(3,898,510

)

Capital repayments in year

(154,563

)

(224,273

)

Amount introduced by directors

2,197

1,175,367

Amount withdrawn by directors

(432,371

)

(1,866,491

)

Net cash from financing activities

(584,737

)

(4,813,907

)

(Decrease)/increase in cash and cash equivalents

(2,415,605

)

6,661,422

Cash and cash equivalents at beginning of year

2

6,028,891

(632,531

)

Cash and cash equivalents at end of year

2

3,613,286

6,028,891

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

61,127

434,251

Depreciation charges

380,631

382,975

Loss/(profit) on disposal of fixed assets

26,746

(302,341

)

Finance costs

167,374

287,239

Finance income

(178,436

)

(153,529

)

457,442

648,595

Decrease/(increase) in stocks

317,897

(337,771

)

Increase in trade and other debtors

(2,051,815

)

(867,093

)

Increase/(decrease) in trade and other creditors

370,234

(376,856

)

Cash generated from operations

(906,242

)

(933,125

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

3,613,286

6,028,891

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

6,028,891

-

Bank overdrafts

-

(632,531

)

6,028,891

(632,531

)

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

6,028,891

(2,415,605

)

3,613,286

6,028,891

(2,415,605

)

3,613,286

Debt

Finance leases

(292,629

)

154,563

(138,066

)

(292,629

)

154,563

(138,066

)

Total

5,736,262

(2,261,042

)

3,475,220