Bower Collective Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—7

1. General Information

Bower Collective Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 11710324 . The registered office is The Court, Alhampton, Shepton Mallet, BA4 6PZ.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The company’s financial statements have been prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the company’s needs. In assessing going concern, the directors have a reasonable expectation that the company will continue as a going concern and is able to meet all of its obligations as they fall due for a minimum of 12 months from the date of approval of these financial statements.

2.3. Turnover

Revenue is recognised to the extent that it is probable economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of the ownership of the goods have passed to the buyer, usually on delivery of the goods and the costs incurred or to be incurred in respect of the transaction be measured reliably.

2.4. Research and Development

Expenditure on research and development is written off in the year it is incurred.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	over 4 years on a reducing balance basis
Equipment	over 3 years on a straight line basis
Computer Equipment	over 3 years on a straight line basis

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Repairs and maintenance costs are charged to profit or loss during the period in which they are incurred.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined, which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within the profit or loss.

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Bower Collective Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.6. Leasing and Hire Purchase Contracts

Leases in which the company assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. All other leases are classified as operating leases.

Leased assets acquired by way of finance lease are stated on initial recognition at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, including any incremental costs directly attributable to negotiating and arranging the lease. At initial recognition a finance lease liability is recognised equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, calculated using the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability using the rate implicit in the lease. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. Contingent rents are charged as expenses in the periods in which they are incurred.

Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation; in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expenses.

2.7. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Work-in-progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

2.8. Financial Instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction prices less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset’s carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

2.9. Foreign Currencies

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

2.10. Pensions

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions in a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss in the periods during which services are rendered by employees.

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Bower Collective Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.11. Share Based Payment

The grant date fair value of share-based payments awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the awards. The fair value of the awards granted is measured using an option valuation model, taking in to account the terms and conditions upon which the awards were granted. The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that do not meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

3. Average Number of Employees

Average number of employees during the year was as follows: 21 (2024: 14)

4. Tangible Assets

	Plant & Machinery	Equipment	Computer Equipment	Total
	£	£	£	£
Cost
As at 1 January 2025	65,311	8,117	6,681	80,109
Additions	614	-	1,409	2,023

As at 31 December 2025	65,925	8,117	8,090	82,132

Depreciation
As at 1 January 2025	32,064	3,318	4,882	40,264
Provided during the period	8,854	2,706	1,442	13,002

As at 31 December 2025	40,918	6,024	6,324	53,266

Net Book Value
As at 31 December 2025	25,007	2,093	1,766	28,866

As at 1 January 2025	33,247	4,799	1,799	39,845

Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:

	2025	2024
	£	£
Plant & Machinery	17,428	23,238

5. Stocks

	2025	2024
	£	£
Stock	215,339	171,842
Finished goods	210,550	114,478

	425,889	286,320

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Bower Collective Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

6. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	2,254	4,702
Other debtors	186,407	139,628

	188,661	144,330

7. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	7,371	7,371
Trade creditors	450,627	330,395
Bank loans and overdrafts	7,233	7,233
Other loans	-	79,743
Other creditors	202,168	109,721
Taxation and social security	155,630	38,435

	823,029	572,898

Included within other creditors are outstanding pension contributions of £6,627 (2024: £7,314)

8. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	8,600	15,971
Bank loans	24,715	31,948
Other creditors	-	13,494

	33,315	61,413

9. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	8,922	8,922
Later than one year and not later than five years	10,409	19,331

	19,331	28,253
Less: Finance charges allocated to future periods	3,360	4,911

	15,971	23,342

10. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	31	26

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Bower Collective Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

11. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	111,561	115,797
Later than one year and not later than five years	243,406	354,967

	354,967	470,764

12. Share Based Payment

The company operates an equity based share option scheme to certain employees and board members which provides additional remuneration for those who are key to the company. The options are granted under an approved EMI and unapproved option plan, with the exercise price of £2.52, £1.38, £0.239 or £0.00001. The options expire ten years after the date of the grant. Option holders are not entitled to dividends until the shares are exercised. All EMI options granted have performance conditions relating to the relevant employee remaining in the employment of the company at exercise.

A reconciliation of share option movements during the year ended 31 December 2025 is shown below:

Number of options - Weighted average exercise price

Outstanding as at 1 January 2025: 61,218 - £1.17 (2024: 41,967 - £0.14)

Granted during the year: 497,755 - £0.09 (2024: 26,751 - £2.52)

Forfeited during the year: (12,372) - (£2.52) (2024: Nil - £Nil)

Exercised during the year: Nil - £Nil (2024: (7500) - (£0.24))

Outstanding as at 31 December 2025: 546,601 - £0.15 (2024: 61,218 - £1.17)

Equity settled schemes - charges arising: £467,593 (2024: £49,340)

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		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		28,866		39,845

			28,866		39,845
CURRENT ASSETS
Stocks	5	425,889		286,320
Debtors	6	188,661		144,330
Cash at bank and in hand		534,120		546,007

		1,148,670		976,657
Creditors: Amounts Falling Due Within One Year	7	(823,029 )		(572,898 )

NET CURRENT ASSETS (LIABILITIES)			325,641		403,759

TOTAL ASSETS LESS CURRENT LIABILITIES			354,507		443,604

Creditors: Amounts Falling Due After More Than One Year	8		(33,315 )		(61,413 )

NET ASSETS			321,192		382,191

CAPITAL AND RESERVES
Called up share capital	10		31		26
Share premium account			6,534,600		5,848,116
Share options reserve			554,651		104,352
Profit and Loss Account			(6,768,090 )		(5,570,303 )

SHAREHOLDERS' FUNDS			321,192		382,191