REGISTERED NUMBER: 13624537 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2026

for

The Business Supplies Group Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

9

Report of the Independent Auditors

10

Statement of Income and Retained Earnings

14

Statement of Financial Position

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

18

DIRECTORS:

R Whittal

N J Weston

S J Clare

SECRETARY:

Mrs R Prideaux

REGISTERED OFFICE:

107 Longmead Road

Emerald Park

Emersons Green

Bristol

South Glos

BS16 7FG

REGISTERED NUMBER:

13624537 (England and Wales)

SENIOR STATUTORY AUDITOR:

Matthew Dobbins FCA

AUDITORS:

Dunkley's,

Statutory Auditor

Chartered Certified Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

The directors present their strategic report for the year ended 31st March 2026.

The company operates within the business supplies and services industry which comprises the supply of office products, office interiors, and branded products alongside the manufacturing of our customers' print and workwear requirements and the management of their in-house printer fleets. The customers range from blue chip corporate customers and large public sector organisations to SME businesses.

Our dedicated team provide a single solution for the business needs of companies and organisations nationally. With in house experts in Office Products, Interiors, Print, Workwear, Managed Print Solutions and more, we are committed to delighting our customers ethically, sustainably, and professionally.

REVIEW OF BUSINESS

The company has continued to grow over the last 12 months, through a combination of strategic acquisitions and strong organic growth, particularly across specialist product categories. The company continued its strategic journey with a key acquisition in the West London area at the beginning of the financial year to enhance our ability to establish a presence in the London market, and also diversify our existing product categories further. The company also made two further smaller acquisitions that bolstered our presence in pre-existing geographic areas. Since the year-end, we are also delighted to have made a significant acquisition in the South East London area, with an additional site in the middle of the country, that will bolster our presence in those geographic markets.

The acquisitions made in the year were fully integrated into the company during the year and so as at 31 March 2026 the company operated out of 10 sites, servicing both local and national customers. The company achieved underlying sales growth of almost 28% with a turnover of £40m. Overheads increased as a result of the additional costs undertaken after the acquisitions during the year, along with continued inflationary overhead cost increases that require ongoing mitigation.

Whilst the business remains focused on achieving strong organic growth through both new business wins and growing the number of categories that its customers buy, acquisitions that fit with our future growth plans remain a key focus of our growth strategy. The Directors anticipate making additional, aligned acquisitions in support of their growth strategy.

The business continues to enjoy good relationships with its customers retaining all key customers and has also been successful in winning new tenders and increasing its customer base during the year.

The business is well funded with limited reliance on external funding. Where funding is utilised it is either at a pre-agreed flat rate of interest, or linked to the Bank of England base rate. The Directors are continuing to reduce exposure to non-fixed interest rate funding.

Management accounts are prepared on a monthly basis with the Directors reviewing these and a number of other reports to review the company's key performance indicators.

PRINCIPAL RISKS AND UNCERTAINTIES

Customer purchasing behaviour has continued to reflect the long-term shift towards hybrid and remote working models, however there has been a continued stabilisation in the number of people returning to work from offices. There has also been continued increased cost pressures for both the company and our customers which have been felt across the whole overhead cost base. This includes continued impact of National Insurance contributions increases, business rate increases, and general inflationary increases applied by suppliers. However, due to the company's dynamic procurement and distribution infrastructure we have been able to continue to adapt to evolving market conditions and identify key opportunities for growth to mitigate these.

Whilst the economic environment remains challenging the company is well placed to mitigate any risk to the business and the directors believe that there are significant opportunities for the business to continue to increase its market share.

With these risks and uncertainties we are constantly aware of the need to review our future development plans for the business and these can be subject to unforeseen future events outside of our control.

However, the directors are confident of maintaining the gross profit margins and increasing market share. They are optimistic about the long term future of the company due to the following:-

1. Large loyal customer base and increasing market share across all segments of the business.

2. Benefits from the efficiencies and economies of scale as a result of the continued growth of the company

3. Continual ongoing review of the business strategy regularly to suit changing market conditions

4. Continuing to be pro-active in assessing further complimentary business acquisitions

5. Strong and long established relationships with its customers

6. Efficient well established distribution network and logistics systems

SECTION 172(1) STATEMENT

The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The company has considered the long-term strategy of the business below and consider that this strategy will continue to deliver long term success to the business and its stakeholders.

We have continued to secure contract tenders at competitive rates and continue to gain new customers. We have also invested heavily in our supply chain and delivery network.

The company is committed to maintaining an excellent reputation and strives to achieve high standards. We are highly selective about which suppliers are used to deliver best value while maintaining an awareness of the environmental impact of the work that they do and strive to reduce their carbon footprint.

The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the business. The main stakeholders in the company are considered to be the employees, suppliers and customers. Their importance to the business is considered below.

In ensuring that all our stakeholders are considered as part of every decision process we believe we act fairly between all members of the company.

Our highest key objective remains the preservation of our workforce. The Health Safety and Wellbeing of our workforce is paramount.

Our supply chain remains robust and we continue to nurture and maintain strong relations. We are constantly monitoring purchase prices and margins in an environment where inflation affects the prices of our products across the board.

We continue to focus on our impact to the environment and this is even more pertinent with the increase in cost for energy supply across the company. Vehicles and vans have been updated and we have continued to introduce both fully electric and hybrid vehicles into the fleet during the year.

Our business has a strong reputation in the market and we will look to protect this and build on this in tandem with our workforce who are key in achieving this objective.

Acting in a fair and reasonable way is also key when we need to protect our workforce and act fairly between all members of the company. We must aspire to be the preferred supplier in the markets in which we operate and our staff are key to us achieving and maintaining this.

COMPETITION

Competition is high and is always a threat to winning new customers. The company manages these risks by maintaining and developing very good working relationships with its clients and continuing to provide a market leading service level at a competitive price whilst maintaining margins due to its relationships with its principal suppliers and proactive purchasing policies.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

Streamlined Energy & Carbon Reporting

Inventory Analysis

The Business Supplies Group's total greenhouse gas inventory for 2025-26 stands at 2,384.68 tCO2e, excluding Scope 3-1 Purchased Goods and Services. We have expanded the scope to include Scope 3 categories, Capital Goods, Fuel and Energy Related Activities, and Upstream and Downstream Transportation and Distribution, calculated for the first time.

Scope 1: Direct Emissions

Scope 1 total 1,568.68 tCO2e, and remains the largest single scope in the Group's inventory. Natural gas consumption was 301,625 kWh, partly reflecting a new site in Colchester, inclusion this year with a full year of recorded consumption. Delivery fleet diesel rose to 580,983 litres, and is the largest single contributor to the increase in Scope 1, reflecting the scale of the Group's growing delivery operation across its now ten regional sites. Delivery fleet petrol contributes a further 2.12 tCO2e. The company car scheme contributes an additional 11.82 tCO2e, calculated from mileage using DEFRA's average car factors by fuel type, split across diesel, petrol and electric vehicles within the scheme. Taken together, these sources reflect the fuel and energy directly combusted or consumed by the Group's own fleet and premises during the reporting period, spanning natural gas fired heating at seven of the Group's sites and diesel and petrol used by the delivery fleet operating out of its regional distribution network.

Scope 2: Purchased Electricity

Purchased electricity is reported on both a location based and a market based approach, consistent with dual reporting requirements. On a location based approach, consumption rose from 56.29 to 72.73 tCO2e, reflecting genuine increases in metered electricity use across the Group's estate, including at Bristol, the Group's largest single site by consumption. On a market based approach, the comparable figures are 3.45 and 15.58 tCO2e. Bristol, Colchester and Hayes are supplied under renewable tariffs this year, alongside Bournemouth, Brighton and Rowley Regis, which are supplied by Opus Energy. The market based increase reflects Portsmouth's inclusion in the boundary this year, together with increases in consumption at the Group's other sites, with Portsmouth itself, supplied by Drax, accounting for 11.54 tCO2e of this year's market based total. Across all ten sites, total electricity consumption for the year was 410,919 kWh, up from 318,026 kWh in 2024-25.

Greenhouse Gas Inventory

Category

2025-26

Scope 1

1,568.67

Scope 2 LB

72.73

Scope 2 MB

15.58

Scope 3-1 PG&S

1,956.47

Scope 3-2 CG

85.65

Scope 3-3 FERA

393.78

Scope 3-4 UTAD

31.46

Scope 3-5 W

1.18

Scope 3-6 BT

28.09

Scope 3-7 EC

120.70

Scope 3-8 ULA

Immaterial

Scope 3-9 DTAD

139.59

Scope 3-10 PSP

Immaterial

Scope 3-11 USP

Immaterial

Scope 3-12 ELTSP

Immaterial

Scope 3-13 DLA

Immaterial

Scope 3-14 F

Immaterial

Scope 3-15 I

Immaterial

Total

2,384.68

* Scope 3, Category 1 (Purchased Goods and Services) emissions are excluded from the total

Energy Efficiency, Emissions Management and Reduction Targets

Net Zero

The Business Supplies Group is formally targeting Net Zero by 2045. This inventory provides the updated baseline against which future progress will now be measured, bringing together, for the first time, the fuller range of Scope 3 categories alongside the Group's direct emissions. As this baseline is refined further, reported emissions may rise simply because more of the footprint is being captured, rather than because underlying performance has worsened, a natural consequence of strengthening data collection that should be read alongside any headline trend. It is important that this distinction is understood clearly by anyone reviewing the Group's progress, since a rising total figure in isolation, without reference to the widening boundary behind it, would give a misleading impression of the direction the business is actually travelling in.

Energy Efficiency Actions

Comparing the two reporting years for which energy consumption has now been calculated gives an early, if partial, picture of how the Group's energy use is developing across its regional sites and delivery fleet.

Purchased electricity consumption rose from 318,026 kWh in 2024-25 to 410,919 kWh in 2025-26, reflecting genuine increases at existing sites and the inclusion of Portsmouth within the reporting boundary for the first time this year. Natural gas consumption rose from 168,157 kWh to 301,625 kWh, an increase partly attributable to Colchester's inclusion this year with a full year of recorded consumption, alongside genuine variation in heating demand across the Group's other sites.

Delivery fleet diesel rose substantially between the two years and remains the largest single component of the Group's direct energy consumption. Part of the increase in Scope 1 reflects the company car scheme, previously recorded within business travel, now attributed to Scope 1 in line with the ownership of these vehicles. With this reclassification applied consistently, future reporting years, built on the same classification basis, will give a clearer measure of whether fleet efficiency is improving from one period to the next. This is precisely why a stable, consistently applied reporting boundary matters so much going forward, since without it, genuine gains in fleet efficiency risk being obscured by movements that are really just a matter of where an existing emission source happens to be recorded.

Going forward, continued monitoring of electricity, gas and fuel consumption across the Group's regional offices, distribution centres and delivery fleet, alongside closer attention to route planning, vehicle specification and driver behaviour, will help ensure that any future changes in activity are met with corresponding gains in efficiency rather than simply higher consumption. Particular attention should be paid to the delivery fleet given its scale within the Group's direct footprint, with route optimisation and a gradual transition towards electric and hybrid vehicles likely to offer the greatest scope for reduction over time, building on the electric van already introduced at Colchester.

The Group has heavily invested in route optimisation software, which has improved delivery planning, helping to reduce unnecessary mileage, provide more reliable deliveries and lower fuel use and emissions.

Carbon Offsetting

Working in partnership with the Carbon Footprint company to measure and offset our annual tonnage of carbon emissions by financially supporting projects around the world that help provide solutions towards climate change (i.e. decarbonising electricity grids, reducing deforestation, improving energy efficiency, sequestering carbon etc.) and supporting local communities in developing countries.

We have engaged in three projects that support a large scope of the United Nations' Sustainability goals, including climate action, gender equality, good health and well-being, life on land, and affordable and clean energy:

Improved Cookstove Distribution in Kayonza, Bugesera and Nyamasheke

This project involves the distribution and installation of fuel-efficient improved cookstoves (ICS) to households across the Kayonza, Bugesera, and Nyamasheke Districts of Rwanda. The project is composed of three distinct Gold Standard project IDs (GS11205, GS12227, GS12228) which are managed as a single initiative. The primary goal is to reduce greenhouse gas emissions by replacing traditional, inefficient three-stone open fires with the locally produced 'Canarumwe' ceramic stove, which is built into a mud hearth in the users' kitchens. Environmental Benefits: The project directly addresses climate change by reducing the consumption of non-renewable biomass (firewood) for daily cooking. In Rwanda, where over 98% of rural households rely on wood for cooking, this leads to a significant decrease in CO2 emissions and helps to alleviate pressure on local forests, contributing to conservation efforts. Social and Community Benefits: The project delivers substantial co-benefits to the recipient communities. By burning less wood more efficiently, the stoves reduce exposure to harmful indoor air pollution, a major cause of respiratory illness, particularly for women and children. The increased efficiency also means households, and specifically women who are traditionally responsible for cooking and fuel collection, spend significantly less time and effort gathering firewood. This time can be redirected to other economic or educational activities. Furthermore, for households that purchase fuel, the project reduces household expenditure, freeing up income for other essential needs.

Northern Uganda Safe Water Project

The Borehole project is a micro project in Uganda, providing a source of clean drinking water to a local community The most basic requirement to sustain life is clean water. For many rural communities across Sub-Saharan Africa the struggle to find clean safe drinking water can take a major part of a family's resource. More often than not the burden falls to women and children to collect water often walking a great distance from home. Even then water drawn from pools or rivers is often contaminated with pollutants and potentially lethal bacteria that cause illness and infections, and so to make the water palatable and safe to drink it needs to be boiled. The project works with local communities to identify and repair the many broken boreholes in Uganda. As well as the natural health benefits it means that families no longer have to boil the water, saving firewood and thereby preventing carbon emissions from being released. The project is located primarily in the North Region of Uganda, within the Districts of Alebtong, Kole and Dokolo. Approximately 60% of the people in the Districts do not have access to clean water and rely exclusively on open wells, lakes and other unprotected sources. Many existing boreholes in the District are owned by community groups or community based organisations and have fallen into disrepair because maintenance programmes have been poorly managed, or proven too expensive. This project works with community groups in the Districts to identify broken down boreholes, renovate them and supply a maintenance programme to ensure that clean, safe water is delivered as a result.

Katingan Peatland Restoration and Conservation Project

The Katingan Restoration and Conservation Project protects and restores 149,800 hectares of peatland ecosystems, to offer local communities sustainable sources of income, and to tackle global climate change. The project lies within the districts of Katingan and Kotawaringin Timur in Central Kalimantan Province and covers one of the largest remaining intact peat swamp forests in Indonesia. Objectives of the project includes: GHG emission reductions through avoided deforestation and forest degradation, prevention of peat drainage and fires. Enhance quality of life and reduce poverty of the project-zone communities by creating sustainable livelihood options and economic opportunities. To strengthen community resilience by increasing capacity to cope with socio-ecological risks.

Employment & Skills

Hiring Locally - Supporting Communities

At BSG, we're on an ambitious growth journey. Following a series of acquisitions, we now operate from 10 locations across the South Coast- from Devon to Essex, London through to the Midlands. Each acquisition has allowed us to create and secure jobs for local people, directly supporting the UK economy.

Unlike many large suppliers, we've chosen not to centralise operations or move support functions overseas. Instead, we maintain a strong local presence, where our people support local customers by delivering vital administration and logistics services.

This approach keeps money in local economies and ensures that prosperity stays within the communities we serve. Our strategy is also backed by the LM3 (Local Multiplier 3) economic theory, which demonstrates how spending with local suppliers has a powerful ripple effect - strengthening communities and preventing money from leaking out of the region.

At BSG, hiring locally isn't just good business. It's the right thing to do.

Addressing Equality and Diversity

We are proud to be a Disability Confident- Committed employer and committed to the principle of equal opportunity in employment. Accordingly, management will ensure that recruitment, selection, training, development and promotion procedures result in no job applicant or employee receiving less favourable treatment because of a protected characteristic i.e. race, colour, nationality, ethnic or national origin, religion or belief, disability, trade union membership or non-membership, sex, sexual orientation, pregnancy and maternity, gender reassignment, marriage/civil partnership, age, or on the basis of being a part time or fixed term worker. Our objective is to ensure that individuals are selected, promoted and otherwise treated solely on the basis of their relevant aptitudes, skills and abilities.

Internal promotion & opportunity

At BSG, we believe our people are our greatest strength. That's why we invest in training and development to ensure every team member has the skills and confidence to succeed- both in delivering exceptional service to our clients and in achieving their own career goals.

Our managers take part in the Empowering Leader Programme, designed to build leadership skills, encourage collaborative teamwork, and focus on doing the right things in the right order to deliver the best results. In addition, all employees complete mandatory iAM Learning modules to support continuous professional growth.

We are committed to developing talent from within. Through our succession planning, we actively promote internal opportunities, helping our people take the next step in their careers. We also recognise that career paths aren't one-size-fits-all- so we encourage team members to explore alternative roles within the organisation, supporting personal development alongside business needs.

Alongside this, we're proud to run a successful apprenticeship programme, creating pathways for the next generation to grow and thrive with BSG.

Well-being & mental health

Employees receive private healthcare cashback for treatments plus access to rewards and discounts. Wellness initiatives include gym memberships and lifestyle programs and trained mental health first aiders support staff.

Community engagement - School in a Bag

We're proud to be partnering with School in a Bag, a remarkable charity that delivers school bags filled with essential educational resources to disadvantaged children around the world.

This organisation supports children in need regardless of race, religion, or political background by equipping them with tools that enhance their learning, inspire hope, and offer a vital pathway out of poverty. On a global scale, educating the next generation is fundamental to human progress and long-term stability.

The concept is simple yet powerful: each SchoolBag contains the basic items a child needs to learn, grow, and thrive, including pens, pencil case, exercise books, ruler, water bottle and a lunchbox with a spork, face mask, small towel, bar of soap, toothbrush, and toothpaste.

As part of our commitment, BSG is supplying all the office supplies and water bottles included in the bags and we're excited to be packing some of them right here at our Bristol head office.

Through this partnership, we're not only supporting a powerful cause, but also contributing to several key United Nations Sustainable Development Goals:-

- Zero Hunger

- Clean Water and Sanitation

- Quality Education

ON BEHALF OF THE BOARD:

R Whittal - Director

27th August 2026

The directors present their report with the financial statements of the company for the year ended 31st March 2026.

DIVIDENDS

The total distributions for the year ended 31 March 2026 will be £1,703,791 (£1,474,501 - 2025).

DIRECTORS

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

R Whittal

N J Weston

S J Clare

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Dunkley's, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R Whittal - Director

27th August 2026

Opinion

We have audited the financial statements of The Business Supplies Group Limited (the 'company') for the year ended 31st March 2026 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2026 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page nine, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, bonus levels and performance targets;

- any matters we identified, having obtained and reviewed the company's documentation of their policies and procedures relating to:

o identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

o detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

o the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override of controls, and revenue recognition.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- enquiring of management, concerning actual and potential litigation and claims;

- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Matthew Dobbins FCA (Senior Statutory Auditor)

for and on behalf of Dunkley's,

Statutory Auditor

Chartered Certified Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

28th August 2026

TURNOVER

39,967,664

31,228,762

Cost of sales

(24,297,201

)

(18,485,126

)

GROSS PROFIT

15,670,463

12,743,636

Distribution costs

(1,209,161

)

(1,032,704

)

Administrative expenses

(12,236,174

)

(10,136,845

)

2,225,128

1,574,087

Other operating income

54,179

60,849

OPERATING PROFIT

4

2,279,307

1,634,936

Interest payable and similar expenses

5

(188,936

)

(131,380

)

PROFIT BEFORE TAXATION

2,090,371

1,503,556

Tax on profit

6

(503,293

)

(429,087

)

PROFIT FOR THE FINANCIAL YEAR

1,587,078

1,074,469

Retained earnings at beginning of year

1,865,633

2,265,665

Dividends

7

(1,703,791

)

(1,474,501

)

RETAINED EARNINGS AT END OF YEAR

1,748,920

1,865,633

FIXED ASSETS

Intangible assets

8

1,373,348

1,227,077

Tangible assets

9

1,868,877

1,892,050

3,242,225

3,119,127

CURRENT ASSETS

Stocks

10

1,313,901

1,209,802

Debtors

11

8,362,293

7,172,191

Cash at bank and in hand

642,762

999,183

10,318,956

9,381,176

CREDITORS

Amounts falling due within one year

12

9,522,911

9,222,200

NET CURRENT ASSETS

796,045

158,976

TOTAL ASSETS LESS CURRENT LIABILITIES

4,038,270

3,278,103

CREDITORS

Amounts falling due after more than one year

13

(1,933,072

)

(994,933

)

PROVISIONS FOR LIABILITIES

17

(356,277

)

(417,536

)

NET ASSETS

1,748,921

1,865,634

CAPITAL AND RESERVES

Called up share capital

18

1

1

Retained earnings

19

1,748,920

1,865,633

SHAREHOLDERS' FUNDS

1,748,921

1,865,634

The financial statements were approved by the Board of Directors and authorised for issue on 27th August 2026 and were signed on its behalf by:

R Whittal - Director

Cash flows from operating activities

Cash generated from operations

1

3,491,623

2,304,156

Interest paid

(124,101

)

(80,441

)

Interest element of hire purchase payments paid

(64,835

)

(50,939

)

Tax paid

(497,260

)

(564,502

)

Net cash from operating activities

2,805,427

1,608,274

Cash flows from investing activities

Purchase of intangible fixed assets

(25,000

)

-

Purchase of tangible fixed assets

(662,536

)

(391,859

)

Sale of tangible fixed assets

64,230

-

Hive up on fixed asset investments

-

1,004

Net cash from investing activities

(623,306

)

(390,855

)

Cash flows from financing activities

Connected parties

(1,070,589

)

(1,027,826

)

HP borrowings

112,964

91,583

Invoice discounting borrowings

122,874

2,051,543

Equity dividends paid

(1,703,791

)

(1,474,501

)

Net cash from financing activities

(2,538,542

)

(359,201

)

(Decrease)/increase in cash and cash equivalents

(356,421

)

858,218

Cash and cash equivalents at beginning of year

2

999,183

140,965

Cash and cash equivalents at end of year

2

642,762

999,183

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

31.3.26

31.3.25

£

£

Profit before taxation

2,090,371

1,503,556

Depreciation charges

874,161

867,798

Loss on disposal of fixed assets

26,045

-

Finance costs

188,936

131,380

3,179,513

2,502,734

Increase in stocks

(215,482

)

(564,504

)

Increase in trade and other debtors

(487,782

)

(15,454

)

Increase in trade and other creditors

1,015,374

381,380

Cash generated from operations

3,491,623

2,304,156

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st March 2026

31/3/26

1/4/25

£

£

Cash and cash equivalents

642,762

999,183

Year ended 31st March 2025

31/3/25

1/4/24

£

£

Cash and cash equivalents

999,183

140,965

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/4/25

Cash flow

At 31/3/26

£

£

£

Net cash

Cash at bank and in hand

999,183

(356,421

)

642,762

999,183

(356,421

)

642,762

Debt

Finance leases

(820,439

)

(112,964

)

(933,403

)

(820,439

)

(112,964

)

(933,403

)

Total

178,744

(469,385

)

(290,641

)

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about The Business Supplies Group Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, The Business Supplies Group Holdings Limited, 107 Longmead Road, Emerald Park East, Emersons Green, Bristol, South Gloucs, BS16 7FG.

Significant judgements and estimates

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.

The key judgements and estimates are as follows:

Revenue recognition

Judgement is applied in determining the timing of revenue recognition, particularly in respect of contracts involving multiple goods and services and determining whether revenue should be recognised at a point in time or over time.

Capitalisation of intangible assets (goodwill)

Judgement is required in determining the appropriate useful economic life of goodwill arising on acquisitions, taking into account the expected period over which economic benefits will be realised.

The key sources of estimation uncertainty are as follows:

Impairment of goodwill

Judgement is applied in assessing whether there are indicators of impairment in respect of goodwill. The directors consider the trading performance of the acquired businesses and whether any events or circumstances have arisen that would indicate the carrying value of goodwill may not be recoverable.

Trade debtors recoverability

The company makes estimates regarding the recoverability of trade receivables based on historical default rates and current economic conditions.

Inventory valuation

Estimation is required in determining provisions for slow-moving or obsolete stock, taking into account future sales expectations and historic usage patterns.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from the provision of services is recognised when the service has been delivered to the customer and the company has a right to consideration.

All revenue arises from activities within the United Kingdom and relates to a single business segment and geographical market.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of various businesses over a number of years is being amortised evenly over its estimated useful life of between 5 and 10 years.The directors have assessed that the acquisitions are expected to generate economic benefits over a period exceeding five years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Improvements to property

-

over remaining period of lease

Plant and machinery

-

at variable rates on cost

Fixtures and fittings

-

at variable rates on cost

Motor vehicles

-

25% on cost

Computer equipment & MPS printer assets

-

33.33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

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 items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Financial instruments

Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Trade debtors, other debtors, cash and bank balances are initially measured at transaction price. They are subsequently measured at amortised cost, using the effective interest method, except where amounts fall due within one year, in which case they remain at the transaction price as discounting is not required for short term balances

Where payment terms extend beyond normal business terms, or the arrangement includes a financing element, the financial asset is measured at the present value of future cash flows, discounted at a market rate of interest.

Trade creditors, loans and accruals are initially recognised at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction, in which case liabilities are measured at the present value of future payments discounted at a market rate of interest.

Financial assets measured at cost or amortised cost are assessed for impairment at the reporting date. Any impairment loss is recognised in the profit and loss account. Reversals of impairment are recognised immediately when the estimated recoverable amount increases, provided the revised carrying value does not exceed the original carrying amount had no impairment occurred.

Financial assets and financial liabilities are only offset when the company has a legally enforceable right to set off the recognised amounts and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Functional and presentation currency

The financial statements are presented in £ sterling, which is the company's functional and presentation currency.

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash and cash equivalents consist solely of the balance held in the company's bank current account. Cash is defined as cash on hand and demand deposits, while cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. The company does not hold any short term investments and does not operate an overdraft facility.

Going concern

The financial statements have been prepared on the going concern basis.

The directors have prepared forecasts and cash flow projections for a period of at least twelve months from the date of approval of these financial statements, which take into account current trading performance, expected future developments and the continued support of the company’s financing arrangements.

Based on the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

3.	EMPLOYEES AND DIRECTORS

31.3.26

31.3.25

£

£

Wages and salaries

7,001,675

5,884,924

Social security costs

888,735

586,728

Other pension costs

327,335

355,326

8,217,745

6,826,978

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

31.3.26

31.3.25

Admin, Sales, Management & Distribution

182

173

31.3.26

31.3.25

£

£

Directors' remuneration

79,643

198,900

Directors' pension contributions to money purchase schemes

130,357

189,750

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.26

31.3.25

£

£

Hire of plant and machinery

876

5,255

Other operating leases

697,038

474,379

Depreciation - owned assets

419,230

374,356

Depreciation - assets on hire purchase contracts

176,204

224,126

Loss on disposal of fixed assets

20,780

-

Goodwill amortisation

278,729

269,314

Auditors' remuneration

26,325

25,500