REGISTERED NUMBER: 01806502 (England and Wales)

Suncream Dairies Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Profit and loss account

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mrs S M Manfredi

Mrs S R Manfredi

Mrs S D Thirlby

SECRETARY:

Mrs S M Manfredi

REGISTERED OFFICE:

Unit 7

Claymore Tame Valley Industrial Estate

Wilnecote

Tamworth

Staffordshire

B77 5DQ

REGISTERED NUMBER:

01806502 (England and Wales)

AUDITORS:

UHY Hacker Young (Birmingham) LLP,

Statutory Auditor

9-11 Vittoria Street

Birmingham

B1 3ND

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

REVIEW OF BUSINESS

The business model stayed largely unchanged during 2025 and is expected to continue during 2026. Raw materials are mixed and pasteurised on site, the mix is sent to age in vats and packed down five possible production lines into pack sizes ranging from 90ml to 10 litres. The packed goods are stored in a 1500 pallet space cold storage facility where goods are either sent out as full pallets or are picked as multi sku pallets for smaller accounts. Two routes to market are employed, either direct haulage or via the backhaul operations of customers.

Turnover remained largely similar to the previous year with a marginal increase in GP. Wholesale and Foodservice continued to form the majority of the client base, but has continued decline due to a struggling hospitality sector.

The continued increase in the National Minimum Wage during 2025 increased the production operative labour cost and this again put pressure on the tiers above. Tamworth is an area of high employment and Suncream have as usual invested early in staff salaries, ahead of the national move, in order to retain skill and stay ahead of local labour pool pressures. There is a firm view that well paid employees lead to a better product and better customer service.

2025 saw investment in an additional automatic filling machine as well as new larger ageing vats in order to increase production capability ahead of a significant contract awarded for start 2026.

Work towards ESG continued in 2025 with the retention of a two pillar Smeta accreditation. In addition, the membership of the Rainforest Alliance continues with ethically sourced cocoa powder and 2025 saw the first RSPO accreditation for responsibly sourced palm oil.

A "Customer Comes First" initiative which was launched in 2023 continued through 2025 as the bedrock of all that is central to Suncream's ethos.

2025 saw the retention of a BRCGS AA factory accreditation.

PRINCIPAL RISKS AND UNCERTAINTIES

The economic climate remains unsettled, and the Labour government continues to exacerbate this. The decline of hospitality is a serious concern and the government support for this industry is yet to be clearly defined, meanwhile pubs continue to close at an alarming rate. Suncream still remains cautious to make major changes to their business model, although there are now 4 new Field Sales Executives employed to drive growth at grass roots level. The conflicts in Ukraine and the Middle East continue to bring challenges in terms of supply reliability and price stability, although Suncream are mitigating this where possible with contracts for raw materials. The impact of the US tariffs is yet to manifest.

Recruitment and the local labour pool is being closely monitored as any reduction in staff numbers will put the business under undue pressure. A new contract for 2026 has been achieved and this will put pressure on staffing. Recruiting new long serving, reliable employees continues to be difficult despite benchmarking salaries, buddies for new employees and good scores on employee engagement questionnaires.

There are still changes required as a result of the F gas legislation and plans are being made to ensure all refrigeration equipment is compliant well ahead of the cut off date of 2030.

More recent uncertainties concern the Extended Producer Responsibility and the amounts due under this scheme, particularly in light of recent announcements of a shortfall in required revenue and how that will impact future years. In addition, the Employment Rights Act also continues to pile pressure on recruitment and retention of staff, with impositions upon managers to deal with sick pay from day one and other significant restrictive requirements.

FINANCIAL PERFORMANCE AND KEY PERFORMANCE INDICATORS

The company uses turnover and gross profit margin to monitor ongoing results and performance targets.

2025

2024

Turnover

£13,310,866

£13,480,195

Gross profit margin

29.1%

28.9%

Current assets ratio

3.87:1

4.35:1

ON BEHALF OF THE BOARD:

Mrs S R Manfredi - Director

31 March 2026

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

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

Mrs S M Manfredi

Mrs S R Manfredi

Mrs S D Thirlby

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;

-	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.

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 company's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, UHY Hacker Young (Birmingham) LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs S R Manfredi - Director

31 March 2026

Opinion

We have audited the financial statements of Suncream Dairies Limited (the 'company') for the year ended 31 December 2025 which comprise the Profit and loss account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

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:

- 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 an appropriate to provide a basis for our opinion. 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.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness

of the internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based

on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that

may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a

material uncertainty exists, we are required to draw attention in our auditor's report to the related

disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence obtained up to the date of our auditor's report. However,

future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and events in a

manner that achieves fair presentation.

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.

Jack Wilkinson, (Senior Statutory Auditor)

for and on behalf of UHY Hacker Young (Birmingham) LLP,

Statutory Auditor

9-11 Vittoria Street

Birmingham

B1 3ND

31 March 2026

TURNOVER

13,310,866

13,480,195

Cost of sales

9,437,320

9,581,192

GROSS PROFIT

3,873,546

3,899,003

Administrative expenses

3,207,833

3,180,974

665,713

718,029

Other operating income

750

-

OPERATING PROFIT

4

666,463

718,029

Interest receivable and similar income

7,821

6,034

PROFIT BEFORE TAXATION

674,284

724,063

Tax on profit

5

170,400

183,315

PROFIT FOR THE FINANCIAL YEAR

503,884

540,748

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

503,884

540,748

CURRENT ASSETS

Stocks

6

1,417,709

1,553,400

Debtors

7

4,263,693

3,455,343

Cash at bank

452,728

242,514

6,134,130

5,251,257

CREDITORS

Amounts falling due within one year

8

1,587,036

1,208,047

NET CURRENT ASSETS

4,547,094

4,043,210

TOTAL ASSETS LESS CURRENT LIABILITIES

4,547,094

4,043,210

CAPITAL AND RESERVES

Called up share capital

10

40,000

40,000

Retained earnings

11

4,507,094

4,003,210

SHAREHOLDERS' FUNDS

4,547,094

4,043,210

The financial statements were approved by the Board of Directors and authorised for issue on 31 March 2026 and were signed on its behalf by:

Mrs S R Manfredi - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

40,000

3,462,462

3,502,462

Changes in equity

Total comprehensive income

-

540,748

540,748

Balance at 31 December 2024

40,000

4,003,210

4,043,210

Changes in equity

Total comprehensive income

-

503,884

503,884

Balance at 31 December 2025

40,000

4,507,094

4,547,094

Cash flows from operating activities

Cash generated from operations

1

385,708

(212,307

)

Tax paid

(183,315

)

(174,057

)

Net cash from operating activities

202,393

(386,364

)

Cash flows from investing activities

Interest received

7,821

6,034

Net cash from investing activities

7,821

6,034

Increase/(decrease) in cash and cash equivalents

210,214

(380,330

)

Cash and cash equivalents at beginning of year

2

242,514

622,844

Cash and cash equivalents at end of year

2

452,728

242,514

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

2025

2024

£

£

Profit before taxation

674,284

724,063

Increase in amounts owed from group

(862,045

)

(592,797

)

Finance income

(7,821

)

(6,034

)

(195,582

)

125,232

Decrease/(increase) in stocks

135,691

(108,442

)

Decrease in trade and other debtors

53,695

146,689

Increase/(decrease) in trade and other creditors

391,904

(375,786

)

Cash generated from operations

385,708

(212,307

)

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

452,728

242,514

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

242,514

622,844

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

242,514

210,214

452,728

242,514

210,214

452,728

Total

242,514

210,214

452,728

1.	STATUTORY INFORMATION

Suncream Dairies Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

Estimation Uncertainty - Stock Overhead Percentage Allocation

The allocation of overhead costs to inventory involves significant judgement and estimation. Overhead costs are apportioned to stock based on a percentage allocation, which requires an assessment of various factors, including production activities, labour costs, and other indirect expenses.

The determination of the overhead percentage involves inherent uncertainty, as it is influenced by variable factors such as changes in production levels, efficiency rates, and cost structures. Consequently, these estimates may differ from the actual outcomes, resulting in adjustments to the valuation of stock and, potentially, to cost of sales in future periods.

Management regularly reviews the basis of overhead allocation, ensuring that estimates remain reasonable and reflective of current conditions. Any significant changes to estimation methods or assumptions are disclosed accordingly. Overhead % allocation has remained at 45%.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Government grants

Government grants are recognised when there is reasonable assurance that the company will comply with the conditions attached to the grant and that the grants will be received.

Grants relating to capital expenditure are recognised within deferred income and released to the profit and loss account over the useful economic life of the related asset.

Stocks

Stocks are valued at the lower of cost and net realisable value, with cost comprising all costs of purchase and all costs incurred in bringing the stock to its present location and condition, including raw materials, direct labour and manufacturing overheads.

Net realisable value represents the estimated selling price less the costs required to complete and sell the goods, and appropriate allowances are made for obsolete or slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,471,886

2,181,188

Social security costs

264,614

194,339

Other pension costs

93,690

99,255

2,830,190

2,474,782

The average number of employees during the year was as follows:

2025

2024

Employees

84

72

Costs for employees and directors are excluding agency costs of £39,236 (2024: £167,245).

During the year key management personnel remuneration totalled £576,993 (2024: £544,228).

2025

2024

£

£

Directors' remuneration

169,500

168,000

Directors' pension contributions to money purchase schemes

45,400

65,400

Directors' benefits

17,623

18,954

2025

2024

No

No

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2025

2024

£

£

Directors' remuneration

169,500

168,000

Directors' pension contributions to money purchase schemes

45,400

65,400

Directors' benefits

17,623

18,954

4.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Hire of plant and machinery

24,462

27,559

Plant repairs

734,849

654,107

Auditors' remuneration

6,850

5,100

Operating lease payments

28,380

28,736

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

170,400

183,315

Tax on profit

170,400

183,315

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

674,284

724,063

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

168,571

181,016

Effects of:

Expenses not deductible for tax purposes

1,829

2,299

Total tax charge

170,400

183,315

6.

STOCKS

2025

2024

£

£

Raw materials

767,240

818,056

Finished goods

650,469

735,344

1,417,709

1,553,400

7.

DEBTORS

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

1,529,683

1,604,626

Prepayments

24,923

3,675

1,554,606

1,608,301

Amounts falling due after more than one year:

Amounts owed by group undertakings

2,709,087

1,847,042

Aggregate amounts

4,263,693

3,455,343

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

888,259

494,856

Corporation tax

170,400

183,315

Social security and other taxes

75,277

77,286

VAT

274,268

287,729

Accruals and deferred income

178,832

164,861

1,587,036

1,208,047

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

35,640

22,305

Between one and five years

45,928

43,934

81,568

66,239

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

40,000

A

1

40,000

40,000

11.

RESERVES

Retained

earnings

£

At 1 January 2025

4,003,210

Profit for the year

503,884

At 31 December 2025

4,507,094

12.	ULTIMATE CONTROLLING PARTY

Suncream Holdings Limited owns 100% of the share capital and is the ultimate controlling party.