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

This strategic report describes the financial statements and overall strategic direction of WCL (UK) Ltd.

WCL (UK) is a successful procurement management organisation operating the Public Sector Everything ICT Framework. With a turnover in 2025 of £88m, WCL (UK) specialises in providing ICT equipment and services, including hardware, software, and support, primarily to the education sector.

This report highlights key financial performance indicators, strategic objectives, market analysis, and risk management practices, aiming to ensure continued growth and financial stability.

The company has established a robust network of over 300 suppliers and 4,000 education customers, ensuring high-quality, cost-effective solutions for schools and MATs. The company's mission is to provide a knowledgeable, expert supply chain service for education and wider public sector organisations to achieve cost effective procurement of ICT equipment and services. WCL (UK) Ltd manages this Department for Education (DfE) recommended Framework that offers customers compliant procurement, value for money and trusted personal service.

WCL (UK) Ltd recognises the growing importance of environmental, social and governance considerations in procurement and supply chain management. The company is committed to working with suppliers that share its standards for responsible business practice, ethical conduct and compliance, while also seeking opportunities to reduce the environmental impact of its operations and procurement activities. This includes supporting efficient purchasing decisions, encouraging responsible sourcing, and maintaining high standards across its supplier network.

Financial Performance

For the financial year, the company reported a turnover of £88m, reflecting a strong market position and efficient operations. Key financial performance indicators include:

Revenue: Revenue growth was 16%. This growth was driven by an increase in the number of customers and an increase in the average income from each customer. Growth was evident in each of our three product category areas, Equipment and Hardware, Core ICT Services, and Information Management Software.

Profit Margins: The gross profit margin was held at 3%, indicating effective cost procurement management and marketing strategies. The Framework owner, E2BN, took a 0.3% fee.

Operating Expenses: Operating expenses fell from 2.3% of turnover 2024 to 2.2% in 2025.

Net Profit: The net profit before tax for the year was £925k, equivalent to a net profit margin of 1.0%. This was in line with expectations. The company prides itself on delivering value for money to its education customers.

The company's strategic objectives focus on sustaining growth and enhancing market share across the education sector. Key objectives include:

Market Expansion: Expand market reach by targeting new educational institutions, growing MATs, and leveraging the need for integrated advanced ICT solutions.

Product Innovation: Invest in developments to introduce innovative ICT products and services that cater to evolving educational needs.

Operational Efficiency: Broaden procurement route options, optimise procurement processes, enhance supply chain management and back-office systems and processes to reduce costs and improve service delivery.

Customer Engagement: Enhance customer relationships through superior service, account management support, and tailored account solutions.

The education sector is increasingly reliant on ICT equipment and services to facilitate digital learning, administration, and communication. The DfE estimate that schools in England and Wales spend over £1.2bn annually on ICT products and services. Key market trends include:

Digital Transformation: Schools and MATs are investing in digital infrastructure to support remote learning and digital classrooms.

Technological Advancements: Innovations in ICT, such as AI and cloud computing, are creating new opportunities for educational applications.

Market Expansion

• Broader category and supplier coverage: Engage with new suppliers in targeted educational segments to broaden the offer to the customer base and increase market penetration.

• Strategic Partnerships: Forge alliances with regional suppliers and educational bodies to facilitate market entry and growth.

Product Innovation

• R&D Investments: Develop cutting-edge procurement processes tailored to educational needs.

• Professionalised Solutions: Develop professional bespoke solutions that address specific requirements of different educational institutions.

Operational Efficiency

• Supply Chain Optimisation: Enhance procurement processes and enhance relationships with suppliers to secure a wider supplier base, value for money pricing and improved implementation and to-site delivery.

• Automation and Technology: Implement automation tools, using AI and other tools, and advanced technologies to improve operational workflows and reduce manual errors.

Customer Engagement

• Enhanced Support Services: Provide comprehensive account management support services to ensure customer satisfaction.

• Feedback Mechanisms: Establish robust feedback systems from suppliers and customers to gather insights and continuously improve product offerings and service quality.

The strategic initiatives are projected to yield financial improvements over the next years. Key projections include:

Revenue Growth: Expected annual revenue growth from education sector, reaching £100m by the end of 2026.

Profit Margins: Maintain gross profit margins, despite pressure from supply chain, through cost optimisation and value-added services, targeting a gross profit margin of 3.0%.

Effective risk management practices are essential to safeguard the company’s financial health and strategic objectives. Key risks and mitigation strategies include:

Market Competition:

• Position WCL (UK) Ltd to tender for future ICT Framework opportunities.

• Position WCL (UK) Ltd to consider tendering for future Framework opportunities in the education sector.

• Invest in unique product features and superior customer service, investing in employee training and development.

Supply Chain Disruption: Develop a diversified supplier network to mitigate risks of supply chain disruptions. Implement robust contingency plans.

Procurement Challenge: Invest in staffing, standards, processes, systems, and professional training to significantly reduce the risk of supplier challenge to any procurement.

Conclusion

This strategic report underscores the company's strong financial performance and outlines a clear path for sustained growth in providing ICT equipment and services through a DfE recommended, compliant, value for money Framework to the education sector. By focusing on market expansion, product innovation, operational efficiency, and customer engagement, the company is well-positioned to capitalise on emerging opportunities and deliver long-term value to stakeholders.

This section sets out an overview of how the directors have fulfilled their duties under s172 of the Companies Act 2006. S172 requires that the directors act in a way that is most likely to promote the success of the company for the benefit of its members as a whole. The specific requirements of s172 are that directors have regard to:

• The likely long-term consequences of their decisions;

• The interests of the company's employees;

• The need to maintain business relationships with suppliers, customers and others;

• The impact of the company's operations on the community and environment;

• The desirability of maintaining a reputation for good business ethics; and 

• The need to act fairly between members of the company.

The directors are involved in the day-to-day management of business strategy and other related policies and will review financial and operational performance and other stakeholder-related matters where relevant on a regular basis.

The company operations specialise in providing ICT equipment and services primarily to the education sector. The company has developed a robust network of trusted suppliers to enable it to help deliver procurement solutions.

Due to the scope of our stakeholders, it is generally more effective for stakeholder engagement to take place at an operational level.

The management board continually engage with our employees and this directly influences decision making. The success of the company is based on the excellence of the people who make up the company.

The development and career progression of the company's employees is a fundamental element of growing the company with this being a regular area of review for the management board.

The majority of business relationships with our suppliers are built on long term partnerships with the company working with pre-approved, trusted suppliers. The capability and performance of the company's suppliers and other partners are required for the company's operations and are key to helping the company to deliver its services.

The company seeks to maintain a reputation for high standards of business conduct with the experienced management board directing the company's operations and interacting with our employees ensuring that high standards are maintained. Management have a strategy which seeks to ensure that customers are offered a compliant procurement, value for money and trusted personal service with management implementing all necessary measures to mitigate risks related to the company's activities.

On behalf of the board

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

The principal activity of the company continued to be that of procurement management and supply of ICT equipment and services to the public sector, primarily within the education sector.

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

Ordinary dividends were paid amounting to £400,000. The directors do not recommend payment of a final dividend.

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

The directors confirm that there have been no material events after the reporting date of 31 December 2025 that would require adjustment to, or disclosure in, the financial statements.

The directors intend to continue with the current business strategies undertaken by the company for the foreseeable future.

In accordance with the company's articles, a resolution proposing that Nunn Hayward LLP be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report exemption

An energy and carbon report is not required because the company's energy consumption is less than 40,000 kWh which is below the reporting threshold for mandatory energy reporting and so the company is exempt from this reporting obligation.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period.

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

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK 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 company will continue in business.

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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 company’s auditor 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 company’s auditor is aware of that information.

We have audited the financial statements of WCL (UK) Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

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

The objectives of our audit in respect of fraud are to; identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rest with those charged with governance and management.

Our approach was as follows:

• 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 policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 accounting standard and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

• We communicated identified laws and regulations to our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls;

• We tested revenue to ensure that it is fairly recognised within the financial year;

• We tested expenditure transactions to ensure that they exist and are accurately recorded;

• We reviewed related party transactions to ensure that they are adequately disclosed within the financial statements and are undertaken in the normal course of business;

• We reviewed journal entries in the nominal ledger for appropriateness.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WCL (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 124 City Road, London, EC1V 2NX.

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has 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 goods and services provided 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.

Sale of goods

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 delivery 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.

Sale of services

Revenue from framework-related services is recognised by reference to the stage of completion of the services at the reporting date, in accordance with FRS 102.23.14(a). The stage of completion is determined based on the period over which services are delivered rather than the date of invoice issuance or cash receipt.

Where invoices are issued in advance of the service period, revenue is deferred and recognised in the period to which the services relate. Where services are delivered but not yet invoiced, revenue is accrued based on the proportion of services delivered up to the reporting date

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is recognised as the contractual service is performed.

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 credited or charged to 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 company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 company 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 company 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.

Derivatives, including interest rate swaps and 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.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 company’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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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.

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.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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

As part of the preparation of these financial statements, management has exercised significant judgement in assessing whether WCL acts as principal or agent in relation to revenue earned under the E2BN procurement framework.

Judgement Applied

Under Section 23 of FRS 102 (Revenue), an entity acts as a principal when it controls the goods or services before they are transferred to the customer, bears the primary obligations under the contract, and recognises revenue on a gross basis. Conversely, an entity acts as an agent where it merely arranges for goods or services to be provided, recognising only the commission or margin as revenue.

Assessment under the E2BN Framework

Following a detailed review of the E2BN framework agreement and WCL’s standard terms and conditions with customers, management has concluded that WCL acts as principal in these arrangements, based on the following indicators:

Contractual responsibility: Under the framework T&Cs, WCL enters into direct contractual relationships with customers and bears the primary obligation to deliver the agreed services.

Control of delivery: WCL controls the service provision and manages suppliers directly, including selecting, contracting, and monitoring them to ensure service levels are met.

Pricing discretion: WCL retains the discretion to set customer pricing under the framework within agreed commercial parameters.

Financial exposure: In cases of supplier failure or non-performance, WCL remains responsible for fulfilling customer obligations and bears the associated financial risks.

These indicators demonstrate that WCL controls the services before they are transferred to the end customer, and thus acts as principal under FRS 102.23.14(a).

Conclusion

Accordingly, WCL recognises revenue on a gross basis, representing the full value of invoiced amounts to customers, with the associated supplier costs recognised separately within cost of sales.

The turnover and profit before taxation are attributable to the one principal activity of the company.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 3).

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:

At the balance sheet date, the financial assets measured at amortised cost totalled £12,897,005 (2024: £11,782,646) and financial liabilities measured at amortised cost totalled £8,500,295 (2024: £9,772,488).

Interest received on financial assets measured at amortised cost totalled £205,688 (2024: £69,512).

Supplier default reserves are recognised as provisions where the Company has identified a present obligation arising from supplier performance issues or defaults, and the estimated outflow of economic benefits is uncertain in amount or timing but is probable

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the company entered into transactions with Delivery Innovation Limited, a company under common control. The transactions comprised the recharge of costs incurred on behalf of the company.

At 31 December 2025, the amount due to Delivery Innovation Limited was £100,000 (2024: £350,000). The balance is unsecured, interest free and repayable on demand

The company's activities expose it to a variety of financial risks which include credit, liquidity and cash flow risk.

The company uses different methods to mitigate different types of risk which it is exposed to. Ageing analysis is used for credit and liquidity risk mitigation, as well as regular reviews of financial performance, budget and cash flow forecasting reviews in assessing potential cash flow risks.

Credit risk

The company does not generally offer credit terms to its customers which allow payment of the debt after goods have been supplied and services utilised.

Cash flow risk

Cash flow risk is the risk that inflows and outflows of cash and cash equivalents will not be sufficient to finance the day to day operations. The company manages cash flow risk by careful negotiation of terms with customers and suppliers.

Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation and cash collection.