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

Ritrama UK Limited is a fully owned subsidiary of the Fedrigoni Group, since the Group’s acquisition of the Ritrama Group on 31st January 2020. The Fedrigoni Group is the European leader for the production and sales of special papers for graphic use and self-adhesive products for labels and is the global leader in the production of self-adhesive labels for the wine sector.

Turnover has decreased to £49.8m 2025 (2024: £62.3m). Operating profit has also decreased to a £3.4m loss in 2025 (2024: £4.7m profit). We are continuing with the tax compliant group transfer pricing policy.

In 2025, the Group reorganised the Graphic business by reallocating the coating production from Ritrama (U.K.) Limited to other Fedrigoni facilities in Italy. This decision aimed to enhance the Group's efficiency and effectiveness in serving customers, as the UK coater has surpassed its operational lifespan, causing significant downtimes and increasing operational complexity.

The reduction in turnover and profits noted above is primarily as a result of this reorganisation and associated change in product and procurement mix. It should be noted that the Group measures the performance of the Fedrigoni Self-Adhesives (FSA) division, of which the Company is a component part, as a collective rather than on an individual legal entity basis

The company will continue to operate within its existing markets, and will actively seek new customer business to complement the result that was achieved in 2025.

The company's operations expose it to a variety of financial risks that include the effects of changes in market prices, economic slowdown, currency risk, credit risk and liquidity risk.

The company aims to mitigate economic risk by operating in a number of different market sectors and by concentrating efforts to expand the customer base both locally and internationally.

Raw Materials

The cost of raw materials represent an important portion of the company’s operating costs. In common with other companies in the industry, the company’s profitability can be affected by price and supply fluctuations of raw materials. The company takes measures to protect against fluctuations, however, failure to recover higher costs due to customer arrangements or the competitiveness in the market could have a negative impact upon the profitability of the company. The company seeks to mitigate these risks through the purchasing capabilities of the Fedrigoni group including maintaining strong, long term arrangements with suppliers.

Market competition

The company faces significant competition within the markets it serves. To achieve expected profitability levels, the company must, amongst other things, maintain service levels, product quality and performance and competitive pricing necessary to retain current customers and attract new customers.

Foreign currency and liquidity risks

A significant proportion of the company’s purchases are Euro denominated and these costs are impacted by the movement of the Sterling exchange rate against the Euro. The company also purchases and sells in other currencies. Sales prices are adjusted in line with FX movements. The company facilitates it’s working capital requirement through an invoicing factoring arrangement maintained by the Fedrigoni group.

Geopolitical risks

Recent developments in the Middle East have increased geopolitical uncertainty following the escalation of an armed conflict involving Iran and other countries in the region. The conflict, which intensified from late February 2026 with coordinated military actions and subsequent retaliatory measures, has led to disruptions in regional stability and heightened risks for global energy markets. In particular, the situation further escalated in March 2026 with attacks targeting energy infrastructure and increased tensions around the Strait of Hormuz, a key global shipping route for oil and gas, raising concerns over potential supply disruptions and price volatility. As a result, while the conflict remains ongoing and highly uncertain, it may lead to increased volatility in energy prices and broader macroeconomic conditions, with potential indirect effects on supply chains, production costs and demand. The company is closely monitoring these developments and assessing their potential impact on its operations; however before the start of the conflict the company had previously hedged approximately 65% of its expected energy purchases for 2026 prior to the escalation of the conflict, mitigating its exposure to short-term price volatility.

The key financial reporting figures for the company are:

2025 2024

£m £m

Turnover 49.84 62.34

Profit/(loss) before tax (5.76) 8.27

Net assets 21.61 26.66

The reduction in turnover and profits above is primarily as a result of the reorganisation which took place during the year as noted previously in this report.

The directors use a number of daily key performance indicators ("KPIs") to monitor the business. These include:

• Daily sales order intake;

• OTIF data for customer service levels;

• Fixed costs

• Waste in the production areas

The directors of the company must act in accordance with a set of general duties. These duties are detailed in section 172 of the Companies Act 2006. It aims to address the responsibility of directors of a company acting in a way they consider, in good faith, to be promoting the success of a company for the benefit of its members as its whole. The directors and senior management team of Ritrama (U.K.) Limited give careful consideration to the factors set out below in discharging their duties.

Decision making

From director and senior management level, to all employees within the company, decision making within the business is always taken with promoting the success of the business in mind. Performance of the company is reviewed internally by directors, via financial reporting and non-financial metrics as part of corporate business reviews which take place monthly. All of this is done in line with the Fedrigoni Group’s corporate management team to ensure the achievement of the company's objectives. Risks are identified and mitigated throughout the business using a number of reporting and communication channels. Decisions are weighed carefully by senior management, particularly those where conflicts arise between the short term and long-term consequences of such decision.

Employees are central to the long-term success of Ritrama (U.K.) Limited. We have a diverse skill base and range of experience across the business, and recognise that maintaining and growing this is key to the company's future.We work every day to create a network where each person, with their own unique characteristics and individuality, feels confident in taking responsibility, growing and making a difference. Where our people can change and become better versions of themselves, to contribute to something bigger. Where they can work together, in an international environment, and where everybody is willing to help.

The Fedrigoni Group places considerable value on the involvement of its employees. Conversations with employees about performance take place regularly and appropriate training is provided. Periodic surveys are undertaken to gauge progress and invite input from every colleague. The surveys alongside the regular performance reviews foster a culture of continuous improvement and maintain strong morale.

Creating and maintaining relationships with our supplier and customer base is key to the company’s success. We are strongly committed to the transformation process that involves the entire organization. We adapt to an ever-changing environment, working flexibly and managing growing complexity. We collaborate with our customers and suppliers to strengthen our competitiveness through knowledge and cost optimization, innovation and a proactive approach to risk management. We want to be an encouragement and inspiration for our partners, through transparent dialogues, offering new challenges to continue growing together.

For us, value is delivering quality results in a responsible, reliable and sustainable way. This means choosing to use paper where possible and plastic when necessary and avoiding the use of “single use” materials. We are committed to working on our waste production by creating an ecosystem that allows more and more businesses to choose linerless solutions and reducing thickness and making sure removal is easy. It means aiming for the use of 100% recycled packaging. When it comes to our energy, we apply green sourcing policies so where possible our supplies are from renewable sources. We have defined a clear direction for the next 9 years, with the aim of reducing our CO2 emissions, improving the management and recovery of waste and water, and selecting suppliers carefully, to demonstrate our compliance with best sustainability practices.

Reputation

Ritrama (U.K.) Limited is part of the Fedrigoni Group, a European leader for the production and sales of special papers for graphic use and self-​adhesive products for labels and is the global leader in the production of self-​adhesive labels for the wine sector. Part of establishing and maintaining this reputation involves having a highly collaborative culture and values within the company. This comes from targeting high standards of quality in all business activities and processes; whilst working towards this in line with the Fedrigoni Group’s code of ethics

On behalf of the board

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

The principal activities of the company are the purchase, manufacture and distribution of self-adhesive roll label products for the printing industry and other products for the graphic industry. The two main areas of the market remain as the competitive commodity market, where price and service are paramount and the more specialised market, where product quality and performance are recognised and specified.

The results for the year are set out on pages 12 to 13.

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:

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the reporting date.

Research and development activities principally comprise product development, enhancing products to meet changing market needs. Development costs are capitalised where there is a clearly defined project which is commercially viable and technically feasible. Otherwise the costs are expensed to the profit and loss account as they are incurred.

The directors confirm there are no events after the reporting period affecting the company.

The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

This section of the report sets out the company's report on emissions, energy consumption and energy efficiency activities.

We have followed the 2019 HM Government Environmental Reporting Guidelines.

We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2025 UK Government's Conversion Factors for Company Reporting.

Electricity and gas usage figures in kWh have been taken from utility supplier invoices for the reporting period, transport mileage has been collated from expense reports. All raw energy and gas usage data is converted in to tCO2e using the Defra published emissions factors for the reporting year using the location-based calculation methodology. Transport mileage is converted to kWh and tCO2e using the Defra conversion factors for the reporting year, using vehicle fuel type and model to identify the relevant conversions.

2024 Business travel restated as scope 3 (previously reported as scope 1). The kWh figures have also been restated now that more accurate information has come to light.

The chosen intensity measurement ratio is total gross emissions in tonnes of CO2e per £1,000 turnover.

Great effort has been made with planning efficiencies and the management of our energy sources.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, events after the balance sheet date and financial risk management objectives and policies.

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

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

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

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

• select suitable accounting policies and then apply them consistently;

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

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

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

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

We have audited the financial statements of Ritrama (U.K.) Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including material 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 101 Reduced Disclosure Framework (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 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 ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

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

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

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

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

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

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; and

• Auditing the risk of fraud in revenue through transaction testing on a sample basis, ensuring there is evidence supporting occurrence of revenue.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the financial statements is located on the FRC’s website at: 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.

Ritrama (U.K.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 2, Fifth Avenue, Dukinfield, Manchester, SK16 4PP. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As is permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard in relation to financial instruments, presentation of comparative information in respect of certain assets, standards not yet effective, impairment of assets, intergroup related party transactions, presentation of a cash flow statement and certain disclosure requirements in respect of leases.

Where required, equivalent disclosures are given in the group accounts of Fedrigoni S.p.A. The group accounts of Fedrigoni S.p.A. are available to the public and can be obtained as set out in note 24.

In January 2025, the Group announced a reorganisation of its Graphic business, reallocating coating production from Ritrama (U.K.) Limited to facilities in Italy. This move addresses operational inefficiencies as the UK facility has reached the end of its lifespan. Warehousing and roll slitting operations will remain in the UK to ensure customer support continuity. The reorganisation aims to enhance efficiency and does not impact the company’s going concern status.true

Despite a challenging market and rising costs, the company manages its day to day working capital requirements through cash generation from sales and an invoice factoring facility (see note 15).

The company relies significantly on supplies from entities within the Fedrigoni group, which the directors are confident will continue uninterrupted for the foreseeable future. As an integral part of the Fedrigoni Group, which is projected to maintain strong positive cash flow generation over the coming years, the company benefits from a highly stable financial ecosystem. This Group-wide growth trajectory, coupled with the company’s own operational liquidity and invoice factoring facility, allows the directors to remain entirely confident in the entity’s long-term solvency. Cash balances at 31 December 2025 amounted to £0.70m (2024: £0.70m).

The directors of the company have received confirmation of ongoing support from its Parent Companies, ensuring stability and confidence in the company's future operations. So in the event of any deterioration in the financial position of the company after the reorganisation, such that financial support is required, the directors remain confident of the company's ability to meet its obligations as they fall due.

Therefore, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future and so they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Turnover is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control of a product or service to a customer (a point in time).

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Intangible assets acquired separately are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation on computer software which is included in administrative expenses in profit and loss, is charged based on the expected useful life of the asset being 5 years.

Development costs are capitalised where there is a clearly defined project which is commercially viable and technically feasible.

Amortisation on development costs which is included in administrative expenses in profit and loss, is charged based on the expected useful life of the asset being 5 years.

Tangible fixed assets 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 recognised in the profit and loss account.

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 any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Impairment of tangible and intangible assets (continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks 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 stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. An allowance is made for slow moving items.

Cash and cash equivalents include cash in hand and deposits held at call with banks.

Financial assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

The company has no financial assets recognised at fair value through profit and loss.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Financial assets held at amortised cost (continued)

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets, 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 of the investment have been affected.

The company recognises a loss allowance for expected credit losses ("ECL") on investments in debt instruments that are measured at amortised cost and trade debtors. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The company always recognises lifetime ECL for trade debtors. The expected credit losses on these financial assets are estimated using a provision matrix based on the company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction at the reporting date, including time value of money where appropriate.

For all other financial instruments, the company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition.

Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

(i) Significant increase in credit risk

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the company compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument at the date of initial recognition. In making this assessment, the company considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. Forward-looking information considered includes the future prospects of the industries in which the company's debtors operate, obtained from economic expert reports, financial analysts, governmental bodies, relevant think-tanks and other similar organisations, as well as consideration of various external sources of actual and forecast economic information that relate to the company's core operations.

Impairment of financial assets (continued)

(i) Significant increase in credit risk (continued)

In particular, the following information is taken into account when assessing whether credit risk has increased significantly since initial recognition:

• an actual or expected significant deterioration in the financial instrument's external (if available) or internal credit rating;

• significant deterioration in external market indicators of credit risk for a particular financial instrument, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor, or the length of time or the extent to which the fair value of a financial asset has been less than its amortised cost;

• existing or forecast adverse changes in business, financial or economic conditions that are expected to cause a significant decrease in the debtor's ability to meet its debt obligations;

• an actual or expected significant deterioration in the operating results of the debtor;

• significant increases in credit risk on other financial instruments of the same debtor; and

• an actual or expected significant adverse change in the regulatory, economic, or technological environment of the debtor that results in a significant decrease in the debtor's ability to meet its debt obligations.

Irrespective of the outcome of the above assessment, the company presumes that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the company has reasonable and supportable information that demonstrates otherwise.

Despite the foregoing, the company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if:

1. the financial instrument has a low risk of default;

2. the debtor has a strong capacity to meet its contractual cash flow obligations in the near term; and

3. adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations.

The company considers a financial asset to have low credit risk when the asset has external credit rating of 'investment grade' in accordance with the globally understood definition or if an external rating is not available, the asset has an internal rating of 'performing'. Performing means that the counterparty has a strong financial position and there is no past due amounts. The company regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in credit risk and revises them as appropriate to ensure that the criteria are capable of identifying significant increase in credit risk before the amount becomes past due.

(ii) Definition of default

The company considers the following as constituting an event of default for internal credit risk management purposes as historical experience indicates that financial assets that meet either of the following criteria are generally not recoverable:

• when there is a breach of financial covenants by the debtor; or

• information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the company, in full (without taking into account any collateral held by the company).

Irrespective of the above analysis, the company considers that default has occurred when a financial asset is more than 90 days past due unless the company has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

Impairment of financial assets (continued)

(iii) Credit-impaired financial assets

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events:

1. significant financial difficulty of the issuer or the borrower;

2. a breach of contract, such as a default or past due event (see (ii) above);

3. the lender(s) of the borrower, (or economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;

4. it is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or

5. the disappearance of an active market for that financial asset because of financial difficulties.

(iv) Write-off policy

The company writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings, or in the case of trade debtors, when the amounts are over two years past due, whichever occurs sooner. Financial assets written off may still subject to enforcement activities under the company's recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in the profit and loss Account.

(v) Measurement and recognition of expected credit losses

The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward-looking information as described above. As for the exposure at default, for financial assets, this is represented by the assets' gross carrying amount at the reporting date.

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the company retains substantially all the risks and rewards of ownership· of a transferred financial asset, the company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in the profit and loss account.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

The company has no financial liabilities at fair value through profit or loss.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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

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

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

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 profit and loss account, 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 inventories.

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.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss 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, if the revision affects only that period, or in the period of the revision and future periods if 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 outlined below.

In order to adhere to the criteria of IAS 19 'Employee benefits', the company uses the services of an independent external actuary to deliver the calculation of the defined benefit scheme deficit as at the reporting date.

The valuation is dependant upon, and highly sensitive to, a number of key actuarial assumptions including the life expectancy, discount rate, price inflation rate, and deferred pension increase rate. Further details of the actuarial assumptions used in respect of the 2025 valuation are provided in note 20.

Their aggregate remuneration comprised:

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

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

The charge for the year can be reconciled to the (loss)/profit per the profit and loss account as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The deferred tax balance was calculated through applying a corporation tax rate of 25% (2024: 25%) by reference to future taxation rates which are substantially enacted at the balance sheet date, the expectation as to when the various timing differences may unwind and with due regard to prudence.

International Tax Reform

Legislation was enacted with effect from the accounting period ended 31 December 2024 to implement the Pillar Two Model Rules on published by the OECD. Ritrama. Ltd is within the scope of Pillar Two. Tax chargeable under Pillar Two is £nil in the period (2024: £nil).

Ritrama has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.

In 2025, the Group reorganised the Graphic business by reallocating the coating production from Ritrama (U.K.) Limited to other Fedrigoni facilities in Italy. This decision aimed to enhance the Group's efficiency and effectiveness in serving customers, as the UK coater has surpassed its operational lifespan, causing significant downtimes and increasing operational complexity.

The effect of transfer pricing adjustments within the group could not be accurately apportioned between the continuing and discontinued operations in this entity, so the above figures are not entirely comparable year on year

Tangible fixed assets includes right-of-use assets, as follows:

The right of use assets balances brought forward has been restated to reflect the lease renewal in the prior period. The adjustment is in regards to both brought forward cost and brought forward depreciation, and therefore the net impact is £nil.

In the opinion of the directors there is no material difference between the balance sheet value of the stock and the replacement cost.

No items of stock are pledged as security against liabilities owed.

Amounts owed by group undertakings are unsecured, interest free and repayable on demand except for loan receivables from Ritrama S.p.A which carry an interest rate of 3% p.a.

Ritrama (U.K) Limited factors most sales invoices effectively without recourse, up to the insured credit limit, as per the group facility agreement with Credit Agricole. However as the credit insurance is provided by a third party, the company retains the risk associated with default (under the terms with Credit Agricole), and therefore these balances remain within trade debtors. At the balance sheet, the company had factored trade debtors within insured credit limits totalling £6,897,226 (2024: £9,091,189). These are included within trade debtors above, along with a corresponding balance in other creditors.

Non-recourse trade debtors subject to factor are derecognised as trade debtors as the risks and rewards of ownership of the asset have been transferred from the company at the balance sheet date. Any balance above the insured credit limit is treated as with recourse and is not derecognised until received.

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

Other creditors includes £7,989,116 (2024: £10,413,336) of liabilities under the debt factoring arrangement as detailed in note 15. These amounts are secured on the debtors to which they relate.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The total cash outflow for leases in the year amounted to £808,552 (2024: £770,752).

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

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.

The company also operates a defined benefit scheme, which is now closed to new entrants. The directors have taken advice from Mercer to derive the assumptions for and to calculate the value of the net pension liability under IAS 19.

Assumed life expectations on retirement at age 65:

Amounts recognised in the profit and loss account

Amounts recognised in other comprehensive income

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Due to the Scheme rules, the company does not have an unconditional right to receive a refund of the surplus. Therefore in accordance with IFRIC 14, a defined benefit pension asset has not been recognised.

Movements in the present value of defined benefit obligations

Movements in the fair value of plan assets:

Scheme obligations would have been affected by changes in assumptions as follows:

The fair value of plan assets at the reporting period end was as follows:

Cross Guarantee Agreement

The debt factor facility owed to Credit Agricole is secured by way of a cross pledge agreement dated 20 December 2020 in respect of amounts owed by the company and fellow subsidiary, Fedrigoni U.K. Limited. Amounts guaranteed on behalf of Fedrigoni U.K. Limited amount to £6,070,922 (2024: £5,842,195).

Virgin Media Ltd v NTL Pension Trustees II

The Virgin Media Ltd v NTL Pension Trustees II decision, handed down by the High Court on 16 June 2023, considered the implications of section 37 of the Pension Schemes Act 1993. In a judgment delivered on 25 July 2024, the Court of Appeal unanimously upheld the decision of the High Court.

More recently, in June 2025, the Government announced its intention to introduce legislation to give affected pension schemes the ability to retrospectively obtain written actuarial confirmation that historic benefit changes met the necessary standards. Draft legislation has been put forward in Government amendments to the Pension Schemes Bill, but this is still subject to change and the Bill will not be enacted until at least spring 2026.

The case has the potential to cause significant issues in the pensions industry. The Trustee of the company's defined benefit pension scheme will investigate the possible implications with its advisers in due course.

Given a detailed review has not yet been commissioned, the directors cannot yet conclude on the probability of additional pension scheme liabilities, nor of the quantum if such liabilities arise as a result of this ruling.

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption permitted under FRS 101 from disclosing transactions with other wholly-owned group companies.

The ultimate controlling party of Ritrama (U.K.) Limited is Fiber JVCo S.p.A, a company incorporated in Italy. The registered office of Fiber JVCo S.p.A, is Via Alessandro, Manzoni 38 Cap 20121, Milano (MI), Italy.

The smallest group of which Ritrama (U.K.) Limited is a member and for which consolidated financial statements are produced is Fedrigoni S.p.A. The consolidated financial statements of Fedrigoni S.p.A may be obtained by writing to Fedrigoni S.p.A. at its registered office address, Via Enrico Fermi, 131F, 37135, Verona, Italy.

The largest group of which Ritrama (U.K.) Limited is a member and for which consolidated financial statements are produced is Fiber JVCo S.p.A. The consolidated financial statements of Fiber JVCo S.p.A may be obtained by writing to Fiber JVCo S.p.A at its registered office address, Via A. Manzoni n. 38, 20121 Milano (MI), pt. iva 12387610962.