REGISTERED NUMBER: 06116408 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2026

FOR

EXTRACT COFFEE ROASTERS LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

S J Faulkner

M R Richards

L J Bolam

D J Faulkner

SECRETARIES:

S J Faulkner

C N Veitch

K S Bolam

REGISTERED OFFICE:

Unit 1 Gatton Road

Bristol

BS2 9SH

REGISTERED NUMBER:

06116408 (England and Wales)

AUDITORS:

Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

The directors present their strategic report for the year ended 28 February 2026.

REVIEW OF BUSINESS

Extract Coffee Roasters' purpose of "Making Coffee Better" is alive and well within the business. This purpose drives quality decision making from team level up, creating a focus on the total arc of what makes coffee better both in the cup and for the entire supply chain.

Extract Coffee Roasters sales increased in the year by 13.5% (2025 - 5.6%) continuing to successfully fulfill the objective of retaining the large increase in revenue made in the previous year and building on it organically.

The overall net profit for the year was £1.0m (2025 - £1.2m). At the year end, the company had net assets of £2.5m (2025 - £2.6m). The Directors have forecast that there are sufficient resources in the company to continue with its current strategy and that the company is set to continue to strengthen its position in the year to come.

PRINCIPAL RISKS AND UNCERTAINTIES

The biggest risk facing Extract Coffee Roasters is the sustained infliction of domestically driven business cost inflation coupled with the international coffee price and global instability. Our focus is to continue to provide award-winning speciality coffee to retain existing customers, as well as attract new ones. Our risk mitigation strategy is multi-faceted and requires constant review to ensure a platform is created for continual growth and development.

KEY PERFORMANCE INDICATORS (KPIS)

The board monitors and reports on financial KPIs: sales, gross profit margins and net cash flow. It also monitors non-financial KPIs across a range of business functions.

2026

2025

Sales

£14.7m

£13m

GPM

32%

40%

During the year, the company put focus on combating inflation, keeping costs down, whilst retaining the increase in revenue from the prior financial year. The strategies implemented by the business proved successful.

GOING CONCERN

Extract Coffee Roasters has produced budgets and forecasts that match the company's ability and ambitions for the next 12 months.

The directors have considered the company's financial position at the date of approving this financial statement, including considering the current inflationary environment and challenges in the wider supply chain. The company is in a good cash position and has the reserves and cash flow to deliver on the upcoming budgets.

The shareholders have confidence on the forward budget and cash position and are in full support of the current management team and their objectives.

ON BEHALF OF THE BOARD:

M R Richards - Director

21 August 2026

The directors present their report with the financial statements of the company for the year ended 28 February 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the production of coffee.

DIVIDENDS

The total distribution of dividends for the year ended 28 February 2026 will be £1,006,300 (2025 - £804,826).

DIRECTORS

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

S J Faulkner

M R Richards

L J Bolam

D J Faulkner

POLITICAL DONATIONS AND EXPENDITURE

Charitable donations made during the financial year of £5,016.

- Healthcare and medical research £583

- Food poverty / food banks £1,971

- Youth and community support £1,980

- Education and training £460

- Other charitable donations £22

RESEARCH AND DEVELOPMENT

During the year, the company continued to undertake research and development activities in relation to the development and improvement of its products and processes. The company has claimed applicable research and development tax relief in respect of qualifying expenditure incurred during the year.

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 he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Lawes & Co UK Limited (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M R Richards - Director

21 August 2026

Opinion

We have audited the financial statements of Extract Coffee Roasters Ltd (the 'company') for the year ended 28 February 2026 which comprise the Income Statement, Other Comprehensive Income, 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 28 February 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.

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 three, 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:

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and indirect taxes impacting the different territories, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to achieve desired financial results and the manipulation of stock values and management bias in accounting estimates. Audit procedures performed by the engagement team included, but were not limited to:

- enquiries with management, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations and examining supporting calculations where a provision has been made in respect of these;

- understanding and evaluating the design and implementation of management's controls designed to prevent and detect irregularities;

- challenging assumptions and judgements made by management in their significant accounting estimates, in particular, in relation to stock values and stock provisions;

- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and postings by unusual users.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Paul Freeman BA FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lawes & Co UK Limited (Statutory Auditors)

Boyce's Building

40-42 Regent Street

Clifton

Bristol

BS8 4HU

21 August 2026

TURNOVER

14,728,761

12,980,448

Cost of sales

9,964,376

7,805,629

GROSS PROFIT

4,764,385

5,174,819

Administrative expenses

3,452,179

3,609,682

OPERATING PROFIT

4

1,312,206

1,565,137

Interest receivable and similar income

25,063

30,375

1,337,269

1,595,512

Interest payable and similar expenses

5

25,253

21,827

PROFIT BEFORE TAXATION

1,312,016

1,573,685

Tax on profit

6

346,406

377,738

PROFIT FOR THE FINANCIAL YEAR

965,610

1,195,947

PROFIT FOR THE YEAR

965,610

1,195,947

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

965,610

1,195,947

FIXED ASSETS

Tangible assets

8

801,048

899,745

CURRENT ASSETS

Stocks

9

1,260,907

864,541

Debtors

10

1,755,792

1,682,728

Cash at bank and in hand

1,497,872

1,477,129

4,514,571

4,024,398

CREDITORS

Amounts falling due within one year

11

2,522,683

2,015,346

NET CURRENT ASSETS

1,991,888

2,009,052

TOTAL ASSETS LESS CURRENT LIABILITIES

2,792,936

2,908,797

CREDITORS

Amounts falling due after more than one year

12

(105,359

)

(168,328

)

PROVISIONS FOR LIABILITIES

16

(165,863

)

(178,065

)

NET ASSETS

2,521,714

2,562,404

CAPITAL AND RESERVES

Called up share capital

17

133

133

Share premium

44,967

44,967

Retained earnings

2,476,614

2,517,304

2,521,714

2,562,404

The financial statements were approved by the Board of Directors and authorised for issue on 21 August 2026 and were signed on its behalf by:

M R Richards - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 March 2024

133

2,126,183

44,967

2,171,283

Changes in equity

Dividends

-

(804,826

)

-

(804,826

)

Total comprehensive income

-

1,195,947

-

1,195,947

Balance at 28 February 2025

133

2,517,304

44,967

2,562,404

Changes in equity

Dividends

-

(1,006,300

)

-

(1,006,300

)

Total comprehensive income

-

965,610

-

965,610

Balance at 28 February 2026

133

2,476,614

44,967

2,521,714

Cash flows from operating activities

Cash generated from operations

1

1,592,841

917,106

Interest element of hire purchase payments paid

(25,253

)

(21,827

)

Tax paid

(566,114

)

(280,763

)

Net cash from operating activities

1,001,474

614,516

Cash flows from investing activities

Purchase of tangible fixed assets

(99,937

)

(225,380

)

Sale of tangible fixed assets

-

2,412

Interest received

25,063

30,375

Net cash from investing activities

(74,874

)

(192,593

)

Cash flows from financing activities

Loan repayments in year

(50,332

)

(49,943

)

Capital repayments in year

(33,225

)

(48,500

)

Equity dividends paid

(822,300

)

(804,826

)

Net cash from financing activities

(905,857

)

(903,269

)

Increase/(decrease) in cash and cash equivalents

20,743

(481,346

)

Cash and cash equivalents at beginning of year

2

1,477,129

1,958,475

Cash and cash equivalents at end of year

2

1,497,872

1,477,129

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

28.2.26

28.2.25

£

£

Profit before taxation

1,312,016

1,573,685

Depreciation charges

216,737

238,144

Loss on disposal of fixed assets

31

5,143

Finance costs

25,253

21,827

Finance income

(25,063

)

(30,375

)

1,528,974

1,808,424

Increase in stocks

(396,366

)

(445,146

)

Increase in trade and other debtors

(73,064

)

(286,669

)

Increase/(decrease) in trade and other creditors

533,297

(159,503

)

Cash generated from operations

1,592,841

917,106

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 28 February 2026

28.2.26

1.3.25

£

£

Cash and cash equivalents

1,497,872

1,477,129

Year ended 28 February 2025

28.2.25

1.3.24

£

£

Cash and cash equivalents

1,477,129

1,958,475

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.3.25

Cash flow

changes

At 28.2.26

£

£

£

£

Net cash

Cash at bank

and in hand

1,477,129

20,743

1,497,872

1,477,129

20,743

1,497,872

Debt

Finance leases

(160,484

)

15,091

(18,134

)

(145,393

)

Debts falling due

within 1 year

(50,057

)

12,532

-

(37,525

)

Debts falling due

after 1 year

(37,500

)

37,500

-

-

(248,041

)

65,123

(18,134

)

(182,918

)

Total

1,229,088

85,866

(18,134

)

1,314,954

1.	STATUTORY INFORMATION

Extract Coffee Roasters Ltd 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.

Turnover

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

10% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

3.	EMPLOYEES AND DIRECTORS

28.2.26

28.2.25

£

£

Wages and salaries

1,881,402

2,069,680

Social security costs

204,786

190,453

Other pension costs

47,048

54,554

2,133,236

2,314,687

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

28.2.26

28.2.25

Directors

4

4

Staff

50

55

54

59

28.2.26

28.2.25

£

£

Directors' remuneration

27,456

27,456

4.	OPERATING PROFIT

The operating profit is stated after charging:

28.2.26

28.2.25

£

£

Depreciation - owned assets

173,165

187,085

Depreciation - assets on hire purchase contracts

43,572

51,059

Loss on disposal of fixed assets

31

5,143

Auditors' remuneration

17,450

17,950

Foreign exchange differences

113

404

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.26

28.2.25

£

£

Hire purchase

25,253

21,827

6.

TAXATION

Analysis of the tax charge

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

28.2.26

28.2.25

£

£

Current tax:

UK corporation tax

358,608

391,296

Deferred tax

(12,202

)

(13,558

)

Tax on profit

346,406

377,738

7.

DIVIDENDS

28.2.26

28.2.25

£

£

Ordinary A shares of £0.01 each

-

-

Ordinary B shares of £0.01 each

183,150

92,200

Ordinary C shares of £0.01 each

320,000

218,013

Ordinary D shares of £0.01 each

320,000

218,013

Ordinary E shares of £0.01 each

183,150

92,200

Ordinary F shares of £0.01 each

-

92,200

Ordinary G shares of £0.01 each

-

92,200

1,006,300

804,826

8.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 March 2025

336,114

1,300,855

523,471

2,160,440

Additions

21,664

78,273

18,134

118,071

Disposals

-

(556

)

-

(556

)

At 28 February 2026

357,778

1,378,572

541,605

2,277,955

DEPRECIATION

At 1 March 2025

106,824

865,045

288,826

1,260,695

Charge for year

34,592

119,328

62,817

216,737

Eliminated on disposal

-

(525

)

-

(525

)

At 28 February 2026

141,416

983,848

351,643

1,476,907

NET BOOK VALUE

At 28 February 2026

216,362

394,724

189,962

801,048

At 28 February 2025

229,290

435,810

234,645

899,745