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

Principal Activity

The principal activity of the Company is the supply of high-end technical and decorative lighting.

Fair review of the business

Atrium’s core proposition continues to centre on the quality of its lighting solutions, technical expertise, and customer service. The Company operates within a competitive market which has become increasingly commoditised in recent years. The directors believe Atrium differentiates itself through its independent market position, longstanding supplier relationships, technical knowledge, and customer service offering.

The business maintains established relationships with a number of premium lighting brands whose products and values align with those of the Company. As an independent business, Atrium is able to respond quickly to customer and market requirements, which the directors consider to be an important competitive advantage.

The Company continues to benefit from significant industry experience, strong product knowledge, and an established customer network developed over many years of trading.

A key strategic development following the year end has been the further strengthening of the Company’s long-standing partnership with Flos. Effective 1 July 2026, Atrium has regained exclusive responsibility for the Flos Decorative collections across the UK dealer network, in addition to its existing representation of Flos Architectural and Outdoor ranges.

This enhanced agreement re-establishes a fully integrated and exclusive route to market for Flos products in the UK, aligning closely with Atrium’s long-standing strategy of representing leading design brands on an exclusive basis. The arrangement includes responsibility for the established UK retail dealer network, which has historically generated revenues in excess of £3m per annum, and is expected to provide a meaningful platform for future growth.

The directors believe that exclusivity remains a core mode of operation and a key differentiator for the business, enabling greater control over brand positioning, pricing integrity, customer relationships and service standards. The strengthened partnership with Flos reinforces Atrium’s position as a trusted and specialist partner to premium international lighting brands, while also enhancing its offering across both retail and specification channels.

The Company has established a dedicated retail sales structure to support this channel and is investing further in product expertise, stock availability and partner engagement. The directors consider this development to be a significant opportunity to rebuild momentum within the retail segment, deepen relationships across the UK dealer network and drive sustainable revenue growth in the medium term.

A proforma profit and loss account has been included below:

Revenue for the year decreased to £11.8m (2024: £13.6m) reflecting challenging market conditions and reduced activity levels within parts of the commercial construction and fit-out sectors. Despite the reduction in revenue, gross profit margin increased to 38.65% (2024: 35.16%), resulting in gross profit decreasing by only £218k year-on-year.

During the year, the Company undertook a number of measures to reduce its ongoing cost base and improve operational efficiency. This included the early exit from the lease at 28 Leonard Street, which resulted in one-off costs during the year which have been recognised as exceptional, but is expected to reduce future overhead costs and improve the operational flexibility of the business.

The Company has continued to operate against a backdrop of prolonged economic uncertainty and market disruption in recent years, including the impacts of COVID-19, Brexit, and wider geopolitical instability. In response to these conditions, the directors have focused on strengthening the operational and leadership structure of the business to support future performance and long-term sustainability.

During the year, the Company appointed a Chief Operating Officer and Chief Financial Officer as part of a broader leadership restructuring programme. These appointments are intended to strengthen day-to-day operational and financial management and allow greater focus on strategic development and growth initiatives. The directors believe these changes position the business more effectively for future growth opportunities, and early progress has been encouraging during 2026.

In 2026, the Company celebrates its 50th year of trading. The directors believe the business remains well positioned within its sector due to its established reputation, technical expertise, and longstanding customer and supplier relationships.

Following the exit from 28 Leonard Street, the Company is actively seeking a new long-term showroom location during 2026 which reflects the next phase of the business and supports its future strategic direction. The directors believe a new showroom environment will provide an important platform for client engagement, brand development, and the presentation of the Company’s expanding product and solutions offering.

Fair Review of the Business (continued)

The Company continues to develop its offering beyond traditional lighting solutions into the wider area of wellbeing within the built environment, including acoustic and acoustic-lighting solutions. The directors believe demand for solutions that improve occupant wellbeing and workplace environments will continue to support the Company’s long-term strategic objectives.

Key Performance Indicators

The Directors’ views on KPIs are that these remain consistent with the prior year as turnover, gross margins, operating profit and EBITDA.

Principal risks and uncertainties

Atrium’s strategy takes account of both risks and opportunities that may affect the achievement of its long-term objectives. Effective risk management is fundamental to delivering sustainable growth, maintaining profitability, protecting the Company’s reputation and ensuring high standards of corporate governance. The Board regularly reviews the principal risks facing the business, together with the effectiveness of the controls and mitigating actions in place.

1) Brand and Reputational Risk

The strength of the Atrium brand, together with the reputation of the brands it represents, remains central to the Company’s success. Damage to the reputation of Atrium, its suppliers or its service standards could adversely affect customer confidence, project wins, revenue generation and long-term relationships with specifiers and contractors.

Atrium continues to differentiate itself as a carefully curated brand partner rather than a volume distributor. The Company selects brands not only on product quality and technical capability, but also on alignment with Atrium’s values, commitment to innovation, sustainability credentials and responsiveness to changing market demands. This selective approach supports the Company’s reputation for premium lighting solutions and technical expertise.

The UK architectural and commercial lighting market continues to evolve rapidly, driven by increasing demand for energy-efficient solutions, smart lighting integration and sustainability-led specifications. Atrium’s portfolio is regularly reviewed to ensure it remains aligned with these market trends and customer expectations.

The Company maintains close and collaborative relationships with its brand partners and actively monitors performance, product reliability and customer feedback. In addition, Atrium’s dedicated After Sales and technical support teams provide responsive customer service and rapid resolution of issues, helping to strengthen long-term customer relationships and protect the Company’s reputation.

Principal risks and uncertainties (continued)

2) Supply Chain

Atrium’s ability to deliver high-quality products on time is dependent upon the reliability and operational performance of its international supply chain and manufacturing partners. Disruption within the supply chain, including delays in manufacturing, transportation issues, shortages of components or geopolitical instability, could adversely affect project delivery, customer satisfaction and revenue.

Global supply chains have remained subject to volatility during the year, particularly in relation to shipping costs, lead times, energy prices and availability of electronic components used within lighting control systems. In addition, continued geopolitical tensions and inflationary pressures across Europe and Asia have increased operational uncertainty for manufacturers and distributors alike.

To mitigate these risks, Atrium works closely with a selected portfolio of established premium manufacturers with proven operational resilience and high product quality standards. The Company maintains regular dialogue with suppliers regarding production schedules, inventory management and logistics planning. Supplier performance is continually monitored to ensure quality, compliance and timely delivery.

Atrium also seeks to reduce concentration risk through maintaining relationships with multiple suppliers across different product categories and geographical regions where appropriate. This approach improves operational flexibility and supports continuity of supply.

3) Economic Activity in the UK

Economic conditions within the UK continue to present uncertainty for businesses operating within the construction and commercial interiors sectors. While UK GDP growth showed modest improvement during early 2025, economic activity has remained subdued, with continuing pressure on business investment, consumer confidence and construction output.

The UK construction sector has experienced weaker demand in certain commercial markets due to elevated borrowing costs, reduced investor confidence and delays in project commencements. Although inflation has moderated compared with peak levels experienced during 2022 and 2023, higher interest rates continue to impact financing costs and overall market activity.

The lighting industry also continues to experience structural change, including consolidation among manufacturers and distributors, with a growing number of independent businesses being acquired by larger international groups. Atrium believes its long-established reputation, independence, technical expertise and strong customer relationships remain important competitive advantages in this environment.

The Company continues to focus on maintaining operational flexibility, disciplined cost control and strong client relationships in order to respond effectively to changing market conditions. Atrium’s diversified customer base across commercial, architectural and specialist lighting sectors also helps reduce exposure to individual market segments.

Principal risks and uncertainties (continued)

4) Financial Risks

a) Liquidity Risk

Liquidity risk represents the possibility that the Company may be unable to meet its financial obligations as they fall due. Atrium manages this risk through careful monitoring of cash flow, prudent working capital management and regular forecasting of future funding requirements.

The Company maintains disciplined credit control procedures, closely monitors debtor collections and operates a prudent dividend policy designed to preserve financial stability. In addition, Atrium maintains access to committed banking facilities to provide operational flexibility should trading conditions weaken or working capital requirements increase unexpectedly.

The Board reviews cash flow performance and liquidity forecasts regularly to ensure the Company remains appropriately funded.

b) Credit Risk

Atrium is exposed to credit risk arising from the potential failure of customers to meet their financial obligations. This risk may increase during periods of economic uncertainty, particularly within the construction and property sectors.

The Company mitigates this risk through rigorous credit assessment procedures, ongoing monitoring of customer balances and maintaining strong commercial relationships with key customers. Deposits and staged payments are requested where appropriate, particularly on larger projects or bespoke orders.

Debtor balances and overdue accounts are reviewed regularly by management, enabling early identification of potential collection issues and supporting proactive recovery action where necessary.

c) Interest Rate Risk

Higher interest rates may increase borrowing costs, reduce customer investment activity and place pressure on profitability and cash flow. Although inflationary pressures have eased compared with prior years, UK interest rates remain materially above pre-2022 levels and continue to affect economic activity and business confidence.

The Company maintains regular dialogue with its banking partners and continues to monitor financing costs and available facilities carefully. Atrium’s focus on maintaining strong cash generation and disciplined cost management helps reduce exposure to interest rate volatility.

d) Foreign Exchange Risk

As Atrium sources a significant proportion of its products from overseas suppliers, the business is exposed to fluctuations in foreign exchange rates, particularly movements in Sterling against the Euro.

Currency volatility can impact product costs, gross margins and pricing competitiveness. The Board regularly reviews exchange rate exposure and, where appropriate, uses forward foreign exchange contracts and other financial instruments to mitigate short-term currency risks.

All derivative transactions are undertaken solely for hedging and risk management purposes. The Company does not engage in speculative foreign exchange activities.

Principal risks and uncertainties (continued)

5) Our People

Atrium’s continued success depends upon its ability to attract, develop and retain skilled employees across all areas of the business. Competition for experienced professionals within the lighting, technical sales and construction sectors remains strong, creating ongoing recruitment and retention challenges.

The Company also continues to monitor the longer-term impacts of labour market pressures, changes in immigration policy and skills shortages following Brexit. These factors have contributed to increased wage inflation and recruitment costs across the wider UK economy.

Atrium remains committed to maintaining a positive and inclusive working culture that supports employee wellbeing, professional development and long-term career progression. The Company invests in training, technical expertise and employee engagement in order to strengthen capability and retain talent.

The experience and knowledge of Atrium’s long-serving employees remain a key competitive strength, supporting high levels of customer service, technical expertise and operational continuity.

On behalf of the board

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

The results for the year are set out on page 14.

No ordinary dividends were paid. 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:

In accordance with section 485 of the Companies Act 2006, a resolution proposing that Arnold Hill & Co LLP be reappointed as auditor of the company will be put at a General Meeting.

A Strategic Report, which forms part of the Director's Report, is separately presented (see page 1). A Strategic Report is included in these financial statements in accordance with section 414C(II) of the Companies Act 2006. Further information regarding the company's principal risks and uncertainties and future developments can be found in the Strategic Report.

So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors 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 auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

During the current and preceding periods, the company has maintained adequate cover for its directors and officers under a director's and officer's liability insurance policy.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have undertaken a number of scenario projections to understand the potential impact on the business and remain satisfied that the company is able to meet its liabilities as they fall due over the next 12 months. Thus it has adopted the going concern basis in preparing the annual financial statements.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium companies exemption.

The directors are responsible for preparing the Strategic Report, Directors' 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; 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.

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its loss 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

• the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

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

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

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

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

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

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

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

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

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

Use of our report

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

The income statement has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Atrium Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT.

These financial statements have been prepared in accordance with FRS 102 and the requirements of the Companies Act 2006.

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

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

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.

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

Turnover represents the amounts earned by the company from the supply of goods exclusive of VAT and all other sales discounts. Turnover for goods supplied is recognised at the point of the despatch of the goods. From time to time, the company also earns commission from its suppliers, where the company has introduced a customer to its suppliers. Commissions turnover is immaterial and infrequent and as a result, has not been separately presented in these financial statements.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

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

Interests in subsidiaries and associates 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.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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 statement of financial position 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 trade and other receivables 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 trade and other payables, bank loans and loans from fellow group companies 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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 income statement 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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent

that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be

recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability

is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it

relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in

equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset

current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same

tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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.

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

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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock values can decrease due to deterioration, damage or obsolescence. Provisions for slow-moving and obsolete stock are based on management's judgement using their expertise and knowledge.

An analysis of the company's revenue is as follows:

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

Their aggregate remuneration comprised:

During the year, the company incurred exceptional non-operating expenditure of £443,970. This comprised legal and professional fees of £184,473 associated with a significant one-off matter, together with property-related costs of £259,497 arising from the relocation to new office premises.

The directors consider these costs to be exceptional due to their material value and non-recurring nature. Accordingly, they have been disclosed separately within the Statement of Comprehensive Income to assist users of the financial statements in understanding the underlying financial performance of the company.

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

These financial statements are separate company financial statements for Atrium Limited.

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

These financial statements are separate company financial statements for Atrium Limited.

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

Included in other debtors is an amount for £nil (2024: £437,115) in respect of a rent deposit for leased office space.

The bank loans are secured by first legal charges over the freehold property held by the group and fixed and floating charge over all assets of the company including book debts.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

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.

In 2021, the company issued 144,280 ordinary C shares with a nominal value of £0.01. The shares were issued at a average premium of £0.096 per share.

In 2022, the company cancelled 4,625 ordinary C shares with a nominal value of £0.01.

In 2023, the company cancelled 159,250 ordinary C shares with a nominal value of £0.01.

In 2024, the company cancelled 2,625 ordinary C shares with a nominal value of £0.01.

In 2025, the company cancelled 10,100 ordinary C shares with a nominal value of £0.01.

Operating leases represent the rental of office and warehouse space. The office lease has been negotiated over a term of 1 month on a rolling basis. The warehouse lease has been negotiated over a term of 10 years with rentals fixed to the end of the lease term.

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

As at 31 December 2025, Mr S Kelly, a former director of the company, owed the company £7,073 (2024: £28,287).

As at 31 December 2025, the company owed Mr P Dormoy, a former director of the company, £586,945 (2024: £586,945). The loan is interest free and repayable on demand.

The Directors are considered to be the key management personnel of the company and as such, their remuneration is disclosed in note 6 of these financial statements.

As at 31 December 2025, the company owed £2,092,993 (2024: the company was owed £31,822) to Atrium Group Holdings Limited, the company's immediate parent.

During the year, the company paid rent of £178,204 (2024: £163,216) to Acanthus Investments Limited, a related party.

The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102 33.1A from the requirements to disclose details of transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

Throughout the year, Atrium Group Holdings Limited was considered to be both the immediate undertaking and the ultimate controlling party by the directors. This is the largest and smallest group for which consolidated accounts are prepared.

The directors, Mr U Dormoy and Mrs H Dormoy, control the company as the ultimate shareholders.

The registered office of Atrium Group Holdings Limited is Sixth Floor, Capital Tower, 91 Waterloo Road, London, SE1 8RT, from which copies of its financial statements can be obtained.