Limited Liability Partnership registration number OC334054 (England and Wales)
M & G SOLID FUELS LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
M & G SOLID FUELS LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
Mr W J Mallabar
Mr J Grand
LLP registration number
OC334054
Registered office
Sandgate Industrial Estate
Mainsforth Terrace
Hartlepool
United Kingdom
TS25 1TZ
Auditor
Azets Audit Services
Wynyard Park House
Wynyard Avenue
Wynyard
United Kingdom
TS22 5TB
Bankers
National Westminster Bank PLC
4th Floor
The Lumen
St James Boulevard
Newcastle
NE4 5BZ
M & G SOLID FUELS LLP
CONTENTS
Page
Members' report
1 - 2
Members' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Reconciliation of members' interests
9 - 10
Statement of cash flows
11
Notes to the financial statements
12 - 22
M & G SOLID FUELS LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2026
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2026.

Principal activities

The principal activities of the LLP continued to be that of manufacturing briquettes, solid fuel wholesalers and retailers, handling and storage of solid fuels and plant hire operators.

Fair review of the business

Demand continues to remain steady despite the demand for raw materials resulting in increased prices of cargoes. As a result, we had to implement price increases but this has not reduced demand as this also seems to be the case for other competitors.

The treasury function is managed and closely monitored by the partners. Significant purchases of materials are assessed for risks in terms of exchange rate fluctuations prior to any commitments being made.

Cash flow is carefully monitored on a daily basis.

Trade debtors are regularly reviewed and outstanding debts are pursued vigorously. Where necessary, provisions are made for doubtful debts. The partners are satisfied that the systems in place to control debtors are effective and that all debtors at the period end are good.

Principal risks and uncertainties

The main risks and uncertainties facing the business are smokeless fuel legislation changes that may come into force into the rest of the UK, product availability and price volatility, volatile dollar / sterling exchange rate movements, general competition and trading risks. The members address all risks and uncertainties through reviewing external and internal conditions on a daily basis and, using their knowledge of the markets, customers and other factors to take effective decisions to mitigate risk where possible.

Members' drawings, contributions and repayments

In accordance with the LLP agreement members are permitted to make drawings according to their allocated profit share from the previous accounting period, taking into account the anticipated cash needs of the LLP.

All members are required to subscribe a minimum level of capital. This amount, along with any undrawn balance of the member’s profit share, is repayable to them upon leaving the LLP.

Designated members

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

Mr W J Mallabar
Mr J Grand
Financial instruments
Credit risk

Credit risk is minimised by ensuring, as far as possible, that all new business is vetted in terms of the credit worthiness of the customer involved and, in some cases, by seeking references from their creditors and bankers.

Market value of land and buildings

In the opinion of the partners the market value of leasehold land and buildings was not significantly different from book value.

Future developments

Because of smokeless fuel legislation changes reducing the sulphur content of our products with effect from May 2021 we continually need to source a large quantity of low sulphur material. We are actively involved in doing this and have continued to make good progress so far, whilst also being aware of price volatility.

M & G SOLID FUELS LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 2 -
Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

- so far as the members are aware, there is no relevant audit information of which the limited liability partnership's auditor is unaware, and

- the members have taken all the steps that they o ught to have taken as members in order to make themselves aware of any relevant audit information and to establish that the limited liability partnership's auditor is aware of that information.

Approved by the members on 17 August 2026 and signed on behalf by:
17 August 2026
Mr W J Mallabar
Mr J Grand
Designated Member
Designated Member
M & G SOLID FUELS LLP
MEMBERS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2026
- 3 -

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

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members 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;

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

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

M & G SOLID FUELS LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M & G SOLID FUELS LLP
- 4 -
Opinion

We have audited the financial statements of M & G Solid Fuels LLP (the 'limited liability partnership') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, 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 limited liability partnership's affairs as at 31 March 2026 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 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

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 limited liability partnership 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 members' 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 limited liability partnership’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 members 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 members 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.

M & G SOLID FUELS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M & G SOLID FUELS LLP
- 5 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships 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

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

Responsibilities of members

As explained more fully in the members' r esponsibilities s tatement, the members 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 members 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

M & G SOLID FUELS LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M & G SOLID FUELS LLP
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Angela Ingham FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services, Statutory Auditor
Chartered Accountants
Wynyard Park House
Wynyard Avenue
Wynyard
TS22 5TB
19 August 2026
M & G SOLID FUELS LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2026
- 7 -
2026
2025
Notes
£
£
Turnover
3
29,982,704
31,232,422
Cost of sales
(22,018,784)
(24,995,101)
Gross profit
7,963,920
6,237,321
Administrative expenses
(1,263,190)
(1,072,893)
Operating profit
4
6,700,730
5,164,428
Interest receivable and similar income
7
207,471
369,258
Interest payable and similar expenses
8
(271,108)
(305,970)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
6,637,093
5,227,716
M & G SOLID FUELS LLP
BALANCE SHEET
AS AT
31 MARCH 2026
31 March 2026
- 8 -
2026
2025
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,412,408
3,758,969
Current assets
Stocks
11
8,126,176
13,385,212
Debtors
12
3,661,685
2,829,462
Investments
13
4,000,000
4,000,000
Cash at bank and in hand
15,128,516
10,693,098
30,916,377
30,907,772
Creditors: amounts falling due within one year
15
(3,194,094)
(7,025,822)
Net current assets
27,722,283
23,881,950
Total assets less current liabilities and net assets attributable to members
31,134,691
27,640,919
Represented by:
Loans and other debts due to members within one year
Amounts due in respect of profits
24,797,598
22,713,203
Members' other interests
Other reserves classified as equity
6,337,093
4,927,716
31,134,691
27,640,919
The financial statements were approved by the members and authorised for issue on 17 August 2026 and are signed on their behalf by:
17 August 2026
Mr J Grand
Designated member
Limited Liability Partnership registration number OC334054 (England and Wales)
M & G SOLID FUELS LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2026
- 9 -
Current financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Other amounts
Total
Total
2026
£
£
£
£
Members' interests at 1 April 2025
4,927,716
22,713,203
22,713,203
27,640,919
Profit for the financial year available for discretionary division among members
6,637,093
-
-
6,637,093
Members' interests after profit for the year
11,564,809
22,713,203
22,713,203
34,278,012
Other divisions of profits
(300,000)
300,000
300,000
-
Drawings on account and distributions of profit
-
(3,143,321)
(3,143,321)
(3,143,321)
Other movements
(4,927,716)
4,927,716
4,927,716
-
Members' interests at 31 March 2026
6,337,093
24,797,598
24,797,598
31,134,691
M & G SOLID FUELS LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 10 -
Prior financial year
EQUITY
DEBT
TOTAL
Members' other interests
Loans and other debts due to members less any amounts due from members in debtors
MEMBERS'
INTERESTS
Other reserves
Other amounts
Total
Total
2025
£
£
£
£
Members' interests at 1 April 2024
5,647,511
20,052,388
20,052,388
25,699,899
Profit for the financial year available for discretionary division among members
5,227,716
-
-
5,227,716
Members' interests after profit for the year
10,875,227
20,052,388
20,052,388
30,927,615
Other divisions of profits
(300,000)
300,000
300,000
-
Drawings on account and distributions of profit
-
(3,286,696)
(3,286,696)
(3,286,696)
Other movements
(5,647,511)
5,647,511
5,647,511
-
Members' interests at 31 March 2025
4,927,716
22,713,203
22,713,203
27,640,919
M & G SOLID FUELS LLP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2026
- 11 -
2026
2025
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
11,539,337
2,480,781
Interest paid
(271,108)
(305,970)
Net cash inflow from operating activities
11,268,229
2,174,811
Investing activities
Purchase of tangible fixed assets
(180,397)
(772,959)
Proceeds from disposal of tangible fixed assets
133,436
83,492
Proceeds from disposal of investments
-
(4,000,000)
Interest received
207,471
369,258
Net cash generated from/(used in) investing activities
160,510
(4,320,209)
Financing activities
Capital introduced by members (classified as debt or equity)
4,927,716
5,647,511
Payments to members
(8,071,037)
(8,934,207)
Repayment of borrowings
(3,850,000)
-
Net cash used in financing activities
(6,993,321)
(3,286,696)
Net increase/(decrease) in cash and cash equivalents
4,435,418
(5,432,094)
Cash and cash equivalents at beginning of year
10,693,098
16,125,192
Cash and cash equivalents at end of year
15,128,516
10,693,098
M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
- 12 -
1
Accounting policies
Limited liability partnership information

M & G Solid Fuels LLP is a limited liability partnership incorporated in England and Wales. The registered office is Sandgate Industrial Estate, Mainsforth Terrace, Hartlepool, United Kingdom, TS25 1TZ.

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in May 2024, together 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 limited liability partnership. Monetary a mounts 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.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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.

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

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the m embers' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 13 -

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

Where profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense in the profit and loss account in the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities in the balance sheet.

Conversely, where profits are divided only after a decision by the LLP or its representatives, so that the LLP has an unconditional right to refuse payment, such profits are classed as an appropriation of equity rather than as an expense. They are therefore shown as a residual amount available discretionary division among members in the profit and loss account and are equity appropriations in the balance sheet.

Other amounts applied to members, for example remuneration paid under an employment contract and interest on capital balances, are treated in the same way as all other divisions of profits, as described above, according to whether the LLP has, in each case, an unconditional right to refuse payment.

1.5
Tangible fixed assets

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:

Leasehold land and buildings
2% per annum reducing balance
Leasehold improvements
4% per annum reducing balance
Plant and equipment
15% per annum reducing balance
Fixtures and fittings
20% per annum reducing balance
Motor vehicles
25% per annum reducing balance

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.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible 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 limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 14 -

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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 complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

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.

1.9
Financial instruments

The limited liability partnership 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 limited liability partnership's statement of financial position when the limited liability partnership 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

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.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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.

Classification of financial liabilities

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 limited liability partnership after deducting all of its liabilities.

Basic financial 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 paymen ts 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. A m ounts 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.10
Employee benefits

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 limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
1
Accounting policies
(Continued)
- 16 -
1.11
Retirement benefits and post retirement payments to members

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

1.12
Leases

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 lease d asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members 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.

Critical judgements

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

Stock provision

The LLP makes an estimate of the inventory provision after considering the nature and condition of the inventory as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. This includes information in relation to inventory counts, screening processes and environmental factors.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2026
2025
£
£
Turnover analysed by class of business
Sale of goods
29,982,704
31,232,422
2026
2025
£
£
Turnover analysed by geographical market
UK
29,982,704
31,232,422
M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
3
Turnover
(Continued)
- 17 -
2026
2025
£
£
Other significant revenue
Interest income
207,471
369,258
4
Operating profit
2026
2025
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
27,177
(86,866)
Depreciation of owned tangible fixed assets
475,921
489,407
Profit on disposal of tangible fixed assets
(82,399)
(24,878)
Operating lease charges
11,500
11,500
5
Auditor's remuneration
2026
2025
Fees payable to the LLP's auditor and associates:
£
£
For audit services
Audit of the financial statements of the LLP
24,050
22,750
6
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2026
2025
Number
Number
Production
21
22
Administration
5
5
Total
26
27

Their aggregate remuneration comprised:

2026
2025
£
£
Wages and salaries
1,541,264
1,532,035
Social security costs
199,519
174,313
Pension costs
31,527
30,337
1,772,310
1,736,685
M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 18 -
7
Interest receivable and similar income
2026
2025
£
£
Interest income
Interest on bank deposits
207,471
369,258
2026
2025
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
207,471
369,258
8
Interest payable and similar expenses
2026
2025
£
£
Interest on financial liabilities measured at amortised cost:
Other interest
271,108
305,970
9
Information in relation to members
2026
2025
Number
Number
Average number of members during the year
7
7
2026
2025
£
£
Profit attributable to the member with the highest entitlement
1,572,273
1,231,980

The share of profit to the members with the largest entitlement relates to Mr D Grand. The previous year's entitlement relates to Mr D Grand. The remaining profit is split at the designated members discretion between the other members.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 19 -
10
Tangible fixed assets
Leasehold land and buildings
Leasehold improve-ments
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2025
885,465
293,703
5,760,559
120,097
241,835
7,301,659
Additions
-
-
89,545
916
89,936
180,397
Disposals
-
-
(194,404)
-
(56,413)
(250,817)
At 31 March 2026
885,465
293,703
5,655,700
121,013
275,358
7,231,239
Depreciation and impairment
At 1 April 2025
130,707
98,976
3,127,367
90,894
94,746
3,542,690
Depreciation charged in the year
15,095
7,789
402,268
6,019
44,750
475,921
Eliminated in respect of disposals
-
-
(156,799)
-
(42,981)
(199,780)
At 31 March 2026
145,802
106,765
3,372,836
96,913
96,515
3,818,831
Carrying amount
At 31 March 2026
739,663
186,938
2,282,864
24,100
178,843
3,412,408
At 31 March 2025
754,758
194,727
2,633,192
29,203
147,089
3,758,969
11
Stocks
2026
2025
£
£
Raw materials and consumables
6,268,512
10,662,607
Finished goods and goods for resale
1,857,664
2,722,605
8,126,176
13,385,212
12
Debtors
2026
2025
Amounts falling due within one year:
£
£
Trade debtors
3,567,606
2,586,962
Other debtors
1,766
500
Prepayments and accrued income
92,313
242,000
3,661,685
2,829,462
M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 20 -
13
Current asset investments
2026
2025
£
£
Short term deposits
4,000,000
4,000,000
14
Loans and overdrafts
2026
2025
£
£
Other loans
-
3,850,000
Payable within one year
-
3,850,000

The pension loans were fully repaid in the year.

15
Creditors: amounts falling due within one year
2026
2025
Notes
£
£
Other borrowings
14
-
3,850,000
Trade creditors
1,063,468
1,195,374
Other taxation and social security
1,246,181
977,599
Other creditors
140,475
3,809
Accruals and deferred income
743,970
999,040
3,194,094
7,025,822
16
Retirement benefit schemes
2026
2025
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,527
30,337

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

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 21 -
17
Loans and other debts due to members
2026
2025
£
£
Analysis of loans
Amounts falling due within one year
24,797,598
22,713,203

There are no restrictions or limitations on the ability of the members to reduce the amount of members other interests.

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

18
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2026
2025
£
£
Within one year
11,500
11,500
Between two and five years
46,000
46,000
In over five years
552,000
563,500
609,500
621,000

The operating lease represents the lease of land from a third party over a 99 year lease period. At 31 March 20 2 6 there are 5 3 years remaining and minimum lease payments of £11,500 per annum are expected, subject to any amendments as a result of rent reviews which take place every 5 years.

The LLP also has a long term commitment in relation to another land. The lease is for a period of 99 years from 4 November 2013, with a peppercorn rental due.

19
Capital commitments
2026
2025
£
£

At 31 March 2026 the limited liability partnership had capital commitments as follows:

Contracted for but not provided in the financial statements:
Acquisition of tangible fixed assets
-
83,416
20
Related party transactions

The total remuneration of the members of the LLP, who are considered to be the key management personnel of the LLP is disclosed in the reconciliation of members interests on page 9.

The LLP paid interest of £271,108 (2025 - £305,970) on a loan of £3,850,000 (2025 - £3,850,000) from the members' Funded Unapproved Retirement Benefit Scheme. No interest was outstanding at the year end and the loan was fully repaid in the year.

M & G SOLID FUELS LLP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2026
- 22 -
21
Cash generated from operations
2026
2025
£
£
Profit after taxation
6,637,093
5,227,716
Adjustments for:
Finance costs recognised in profit or loss
271,108
305,970
Investment income recognised in profit or loss
(207,471)
(369,258)
Gain on disposal of tangible fixed assets
(82,399)
(24,878)
Depreciation and impairment of tangible fixed assets
475,921
489,407
Movements in working capital:
Decrease/(increase) in stocks
5,259,036
(4,589,805)
(Increase)/decrease in debtors
(832,223)
1,497,117
Increase/(decrease) in creditors
18,272
(55,488)
Cash generated from operations
11,539,337
2,480,781
22
Analysis of changes in net funds
1 April 2025
Cash flows
31 March 2026
£
£
£
Cash at bank and in hand
10,693,098
4,435,418
15,128,516
Borrowings excluding overdrafts
(3,850,000)
3,850,000
-
Balances before members' debt
6,843,098
8,285,418
15,128,516
Loans and other debts due to members:
- Other amounts due to members
(22,713,203)
(2,084,395)
(24,797,598)
Balances including members' debt
(15,870,105)
6,201,023
(9,669,082)
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