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

The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider,

in good faith, would be most likely to promote the success of the Company for the benefit of its stakeholders, and in doing so have regard to a range of matters when making decisions for the long term. Through an open and transparent dialogue with our key stakeholders, the Board have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture. At all times the principle that guides the Board’s decision making is that the outcome of each decision supports the delivery of the Company’s strategy and its long-term success.

As part of the decision-making process, the Board considers the potential impact of decisions on relevant

stakeholders whilst also having regard to a number of broader factors, including the impact of the Company’s

operations on the community and environment, responsible business practices and the likely consequences of

decisions in the long term. Ahead of all Board meetings, the Directors are supplied with detailed papers which

highlight relevant stakeholder considerations and other factors considered relevant to the matter under

consideration. The Board’s significant experience and diverse set of skills ensure that debate is well-informed,

challenging and constructive. The Board monitors any follow up actions and receives regular updates on the

outcomes of decisions made, including any impact on stakeholders. The Company’s key stakeholders are our

employees, customers, distributors and suppliers, and sub-contractors.

Section 172 (1) of the Companies Act 2006 requires that businesses and their Directors report on their duty to

promote the success of the company with regards the following matters:

a.    Long-term sustainability

The Company is focused on ensuring our customers and clients have the highest quality products and receive first class customer service. We are continually looking at ways to enhance our overall product range by means of innovation and the incorporation of new processes and procedures. As a 4th generation family-owned business, and while ongoing success is important, it is the long-term security and success which is of paramount importance for future generations.

b.    Interests of the Company’s employees

The Directors value our employees and their commitment and we consider their health, safety, and wellbeing to be fundamental to our success. Communication with our staff is important and we have structures and mechanisms in place to facilitate this so that our staff are kept fully informed on all relevant developments.

c.    Interests of other stakeholders

Customer service is one of our top priorities and understanding the needs of our customers is at the forefront of strategy. We provide our customers with a quality service for every product we supply. As a business of some 90 years, and with the Company’s long-term approach, the relationships we foster throughout our supply chain have always been of vital importance. Many of the relationships we have with key suppliers have spanned generations of the same families. We work with like-minded businesses who share our core values and this in turn enables us to maintain the high quality in our products and services.

d.    Impact on community and environment

We are always looking to promote community engagement amongst our workforce and our customers and suppliers. Over the years the Company has supported numerous charities. In addition, we offer a charity fund-matching scheme for all employees who take part in raising money for charity. We understand that climate change is an urgent global crisis. Where possible our designs utilise materials to reduce waste before manufacturing has begun. The majority of materials employed can all be recycled. Our buildings are produced in a controlled factory environment, allowing far greater control of waste. Different materials can be segregated easily to allow for safe and efficient recycling or disposal; ensuring the amount that goes to landfill is negligible. Factory production also has the benefit of being able to source all labour locally, reducing the need for travel and associated costs to the environment. Modular units can constitute permanent or temporary buildings and are also able to be re-sited if necessary, allowing them to be reused for a variety of purposes. Coupled with a long lifespan, this means a correctly maintained building can retain its utility for many years.

e. High standards of business conduct

The Company is held in regard locally and nationally. Our reputation is of paramount importance and the Directors, and our staff work hard to maintain this. The Company operates to high standards of business behaviour and is committed to acting ethically and with integrity across all business relationships. It is the view of the Directors that they continue to run the business in the best long-term interest of all relevant stakeholders.

The Board of Directors were satisfied with the performance and year end financial position of the company.

Whilst 2025 was not year in which the property portfolio was revalued (last revalued in 2023, in line with policy of every 3 years), the value of the Company’s freehold properties increased to £121.6m (2024 - £115.3m).

Shareholders’ Funds stayed level on the year at £54.2m (2024 - £54.3m) as the company continued seeking freehold opportunities and continuing with planned refurbishment works across the current portfolio for the Wernick Group’s range of business activities.

The company is a member of the Wernick Group of Companies ("group").  Cash and liquidity remain stable for the group, and combined with available banking facilities, the group is positioned to invest reasonably, support ongoing growth, and deliver steady financial performance for its stakeholders. The Board extends its sincere gratitude to our workforce, whose professional commitment and unwavering focus remain fundamental to our ongoing success and operational resilience.

The group operates a centralised treasury function which is responsible for managing the liquidity risk, interest risk and credit risk associated with the group's activities.

The main source of funding of the group's operations are through bank overdrafts and loans. in addition, the group has various other financial assets and liabilities such as trade debtors and creditors arising directly from its operations. In accordance with the group's treasury policy, derivative instruments are not entered into for speculative purposes.

The main risks arising from the group's financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense whilst ensuring the company has sufficient liquid resources to meet the operating need of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on its overdraft.

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies approved by the board.

The Company’s key performance indicator is the carrying value of its tangible fixed assets which stood at £121.6m (2024 - £115.3m), an increase of 5.46% (2024 – 15.4%) at the year end.

On behalf of the board

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

The principal activity of the company continued to be that of the holding of the Group's trading premises and management of Group costs.

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

Ordinary dividends were paid amounting to £5,000,000. The directors do not recommend payment of a final dividend.

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

The company operates a framework for employee information and consultation. During the year under review the policy of providing employees with information about the company has continued through a variety of methods to include: the periodic production of our newsletter; the use of our extensive intranet; our website; and various social media platforms we are active upon. Our employees are encouraged to present their suggestions and views on the company's performance and processes. Regular meetings are held between management and employees to allow a free flow of information and ideas. Where a suggestion or idea is implemented, which adds value to the company, the employee is rewarded accordingly. Despite being part of the largest independently owned portable accommodation provider, modular building manufacturer and power generator specialist in Britain, the Directors have retained the welcoming and stimulating work environment that can only come from being in a paternalistic family business.

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

The company has elected to take advantage of the group exemption from reporting on its emissions, energy consumption or energy efficiency activities.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of S Wernick and Sons (Holdings) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company’s regulatory and legal correspondence.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; legislation relevant to the commercial property rental environment; data protection legislation; and anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

• Challenging assumptions made by management in its significant accounting estimates in particular: the carrying values of properties and associated depreciation rates;

• Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account, or journal entries posted by senior management;

• Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;

• Ensuring that testing undertaken on both the Statement of Comprehensive Income and the Balance Sheet includes a number of items selected on a random basis.

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

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

S Wernick and Sons (Holdings) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Molineux House, Russell Gardens, Wickford, Essex, SS11 8QG.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

S Wernick and Sons (Holdings) Limited is a wholly owned subsidiary of Wernick Group (Holdings) Limited and the results of S Wernick and Sons (Holdings) Limited are included in the consolidated financial statements of Wernick Group (Holdings) Limited which are available from Companies House.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

As at 31 December 2025, the company held net current liabilities of £67,124k (2024: £60,206k) which is caused by group company balances. The company envisages continued group support and the group has the sufficient facilities to provide this.

Turnover is recognised based on the recharge of certain overheads incurred by the company which are apportioned to group companies to reflect an appropriate allocation of costs based on usage. Management fees are recognised as the costs relating to the group companies fall due.

Other income reflects rents receivable on freehold property. Rents are recognised for the period of occupation as it occurs.

Tangible fixed assets, with the exception of freehold property, are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Freehold property is stated in the balance sheet at revalued amounts, being the fair value on the date of revaluation less any subsequent depreciation and impairment losses. Revaluations are performed with sufficient regularity such that the carrying amount does not differ materially from that which could be determined using fair values at the reporting end date.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company 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 company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Defined contribution pension plan

The company participates in a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the Profit and Loss account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension plan

The company participates in a defined benefits pension scheme. The scheme is a group scheme where it is not possible, in the normal course of events, to identify on a consistent and reasonable basis, the share of underlying assets and liabilities belonging to individual participating group companies. Therefore, as required by FRS 102 the company accounts for this scheme as if it were a defined contribution scheme. The amount charged to the Profit and Loss represents contributions payable to the scheme in respect of the accounting period.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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

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

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

Properties are carried at fair value. Fair value is determined by the directors with reference to periodic professional valuations obtained. The directors have considered the carrying value of the properties with reference to market conditions and with reference to improvement works made throughout the period. Like for like comparisons in the local market are limited and therefore there is a degree of subjectivity involved in this.

The whole of the turnover is attributable to the principal activity of the company in the current and prior year.

All turnover arose within the United Kingdom in the current and prior year.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 1 (2024 - 1).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Freehold land and buildings were revalued at 31 December 2023 by independent valuers not connected with the company, on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The directors have considered the valuation as at 31 December 2025 and believe it continues to represent a materially correct position.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £58,374k (2024 - £73,642k).

Details of the company's subsidiaries at 31 December 2025 are as follows:

During the year, the subsidiary undertaking of Anderson Engineering (Generator Specialists) Limited was struck off.

The registered office address of the company's subsidiaries is Molineux House, Russell Gardens, Wickford, Essex, England, SS11 8QG.

The bank holds a legal charge over the group's freehold properties and unlimited composite cross guarantees for all advances in respect of companies within the Wernick Group.

A separate charge is held in relation to a bank loan taken out against a specific property included in tangible fixed assets.

Of the bank loans due in over one year; £7,250k (2024: £8,250k) is repayable in quarterly instalments to 2033 with interest charged at 1.85% above the bank's base rate; £1,300k (2024: £Nil) is repayable in quarterly instalments to 2030 with interest charged at 5.42%.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability set out above is expected to reverse within 12 months and relates to revaluations.

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

All contributions payable in the year were in respect of the company's defined contribution scheme. No contributions were payable in the year to the group defined benefit scheme.

With the exception of cumulative convertible shares, which do not carry voting rights, all other shares carry such rights and rank pari passu.

The operating leases relate to properties leased to third parties that were acquired as part of the Group’s depot expansion strategy, where acquired sites included existing depot operations. The leases are negotiated over terms of 1 to 7 years and rentals are fixed for the term of the lease (subject to any predetermined rent reviews).

At the reporting date the company had contracted with tenants for the following minimum lease payments:

The company is party to unlimited intercompany financial guarantees in respect of group borrowings of £Nil (2024: £2,500k) created by various legal charges over group assets. Additionally, there is an unlimited financial guarantee in respect of select group finance leases of £97,391k (2024: £100,813k).

Wernick Group (Holdings) Limited is the company's immediate and ultimate parent undertaking. The registered address for the parent company is Molineux House, Russell Gardens, Wickford, Essex, SS11 8QG. The consolidated accounts of Wernick Group (Holdings) Limited are publicly available from Companies House. There is no ultimate controlling party in the current year. In the prior year, the ultimate controlling party was David Wernick due to his majority shareholding in the group.

The company has taken advantage of the exemption allowed under FRS 102 from disclosing transactions with other wholly owned members of the group headed by Wernick Group (Holdings) Limited.