REGISTERED NUMBER: 08281995 (England and Wales)

JR PET PRODUCTS LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD

1 FEBRUARY 2025 TO 31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

J P Davies

R J Davies

M J Williams

M Hierling

K Jeswani Jeswani

REGISTERED OFFICE:

JR Pet Products

Church Bank

Llandovery

SA20 0BA

REGISTERED NUMBER:

08281995 (England and Wales)

AUDITORS:

Bevan Buckland Audit Ltd

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The directors present their strategic report for the period 1 February 2025 to 31 December 2025.

REVIEW OF BUSINESS

JR Pet Products Ltd has delivered another solid performance, achieving sales of £14.59 million across the eleven-month period to 31 December 2025 - reflecting a change in our financial year end. Our unwavering commitment to producing high-quality, unique natural dog treats, coupled with exceptional customer service, remains at the core of everything we do. With over 13,500 Trustpilot reviews and a rating of 4.9 out of 5, we are immensely proud of the reputation we continue to build.

Our strategic focus remains on doing the simple things exceptionally well - speed of delivery, outstanding customer service and above all, unique, high-quality products. This approach continues to resonate strongly with both our retail partners and our growing base of direct consumers.

Independent pet specialist retailers remain the cornerstone of our business, and we are deeply committed to supporting this channel. We believe these partnerships are fundamental to the long-term health of the industry and will continue to invest time and resources into helping them thrive. Alongside this, our direct-to-consumer platform continues to grow, providing not only a significant revenue stream but also invaluable real-time insight into consumer trends and preferences - insight that directly informs our product development and brand strategy.

New product development remained a key area of focus throughout the period. Our procurement team continues to deliver outstanding results and we are pleased with the progress made in expanding our product range with innovative, on-trend offerings that meet the evolving demands of today's pet owner.

We have also continued to develop our in-house systems, particularly on the distribution side, driving further operational efficiencies that will help offset rising input costs - including the increase in employer National Insurance contributions.

The business remains in a strong financial position, with zero debt and healthy retained profits. Maintaining financial discipline has always been central to our strategy, providing the stability to navigate challenges and the agility to pursue new opportunities as they arise.

We would like to thank the entire JR team for their hard work and dedication throughout the period. It is their commitment across every area of the business that underpins our continued success.

Key Performance Indicators

- Net profit margin: 35% (FY24: 37%)

- Gross margin: 54% (FY24: 54%)

- Cash and cash equivalents: £2.97 million

- 754 new B2B customers

- 18,203 new D2C customers

PRINCIPAL RISKS AND UNCERTAINTIES

We remain vigilant in managing key risks, including currency fluctuations, stock shortages, and price volatility. We continue to implement measures to hedge against foreign exchange risks during specific periods and work closely with suppliers to ensure consistent and competitive procurement terms.

ON BEHALF OF THE BOARD:

J P Davies - Director

26 June 2026

The directors present their report with the financial statements of the company for the period 1 February 2025 to 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of selling premium, natural chews and treats for dogs.

DIVIDENDS

A dividend of £1,150,000 was issued to the parent company on 7th July 2025, AlphaPet UK Ventures Limited. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31st December 2025 will be £13,598,883.

DIRECTORS

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

J P Davies

R J Davies

M J Williams

M Hierling

K Jeswani Jeswani

POLITICAL DONATIONS AND EXPENDITURE

During the year, the company made non-political donations totalling £18,111, supporting various local charitable organisations and community initiatives.

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). 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Bevan Buckland Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Davies - Director

26 June 2026

Opinion

We have audited the financial statements of Jr Pet Products Ltd (the 'company') for the period ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 December 2025 and of its profit for the period 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 three, 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:

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.

We discussed our audit independence complying with the Revised Ethical Standard 2024 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

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

- enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to;

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

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

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

- discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; Indication of impairment and valuation estimates; and Revenue recognition;

- obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

- 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;

- reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

- 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.

Llinos Williams (Senior Statutory Auditor)

for and on behalf of Bevan Buckland Audit Ltd

Chartered Accountants

And Statutory Auditors

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

2 July 2026

TURNOVER

3

14,586,686

16,594,030

Cost of sales

6,641,677

7,720,736

GROSS PROFIT

7,945,009

8,873,294

Administrative expenses

2,811,689

3,441,864

OPERATING PROFIT

5

5,133,320

5,431,430

Income from fixed asset investments

-

26,679

Interest receivable and similar income

56,129

395,765

56,129

422,444

5,189,449

5,853,874

Gain/loss on revaluation of investments

-

353,834

5,189,449

6,207,708

Interest payable and similar expenses

6

9,245

35,375

PROFIT BEFORE TAXATION

5,180,204

6,172,333

Tax on profit

7

136,389

1,474,932

PROFIT FOR THE FINANCIAL PERIOD

5,043,815

4,697,401

PROFIT FOR THE PERIOD

5,043,815

4,697,401

OTHER COMPREHENSIVE INCOME

Revaluation reserve

-

(76,500

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX

-

(76,500

)

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

5,043,815

4,620,901

FIXED ASSETS

Intangible assets

9

254,320

292,642

Tangible assets

10

1,751,082

1,858,643

2,005,402

2,151,285

CURRENT ASSETS

Stocks

11

3,167,136

2,191,864

Debtors

12

2,138,150

13,326,081

Cash at bank and in hand

2,972,807

1,570,633

8,278,093

17,088,578

CREDITORS

Amounts falling due within one year

13

902,452

1,277,818

NET CURRENT ASSETS

7,375,641

15,810,760

TOTAL ASSETS LESS CURRENT LIABILITIES

9,381,043

17,962,045

PROVISIONS FOR LIABILITIES

15

90,698

116,632

NET ASSETS

9,290,345

17,845,413

CAPITAL AND RESERVES

Called up share capital

16

100

100

Share premium

17

49,970

49,970

Retained earnings

17

9,240,275

17,795,343

SHAREHOLDERS' FUNDS

9,290,345

17,845,413

The financial statements were approved by the Board of Directors and authorised for issue on 26 June 2026 and were signed on its behalf by:

R J Davies - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 February 2024

100

13,897,942

49,970

76,500

14,024,512

Changes in equity

Dividends

-

(800,000

)

-

-

(800,000

)

Total comprehensive income

-

4,697,401

-

(76,500

)

4,620,901

Balance at 31 January 2025

100

17,795,343

49,970

-

17,845,413

Changes in equity

Dividends

-

(13,598,883

)

-

-

(13,598,883

)

Total comprehensive income

-

5,043,815

-

-

5,043,815

Balance at 31 December 2025

100

9,240,275

49,970

-

9,290,345

Cash flows from operating activities

Cash generated from operations

1

4,147,179

5,162,345

Interest element of hire purchase or finance lease rental payments paid

-

(1,794

)

Finance costs paid

(9,245

)

(33,581

)

Tax paid

(1,625,000

)

(1,925,000

)

Net cash from operating activities

2,512,934

3,201,970

Cash flows from investing activities

Purchase of tangible fixed assets

(16,889

)

(104,836

)

Sale of tangible fixed assets

-

70,287

Sale of investment property

-

355,000

Cash paid into current asset investment

-

(650,000

)

Proceeds from current asset investment

-

9,522,248

Investment management fees

-

(6,705

)

Interest received

56,129

422,444

Net cash from investing activities

39,240

9,608,438

Cash flows from financing activities

Loan to parent company

-

(12,448,883

)

Capital repayments in year

-

(18,750

)

Amount introduced by directors

-

83,000

Equity dividends paid

(1,150,000

)

(800,000

)

Net cash from financing activities

(1,150,000

)

(13,184,633

)

Increase/(decrease) in cash and cash equivalents

1,402,174

(374,225

)

Cash and cash equivalents at beginning of period

2

1,570,633

1,944,858

Cash and cash equivalents at end of period

2

2,972,807

1,570,633

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

Period

1.2.25

to

Year Ended

31.12.25

31.1.25

£

£

Profit before taxation

5,180,204

6,172,333

Depreciation charges

162,773

207,321

Profit on disposal of fixed assets

-

(60,988

)

Gain on revaluation of fixed assets

-

(353,834

)

Finance costs

9,245

35,375

Finance income

(56,129

)

(422,444

)

5,296,093

5,577,763

(Increase)/decrease in stocks

(975,272

)

190,732

Increase in trade and other debtors

(238,693

)

(335,954

)

Increase/(decrease) in trade and other creditors

65,051

(270,196

)

Cash generated from operations

4,147,179

5,162,345

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2025

31.12.25

1.2.25

£

£

Cash and cash equivalents

2,972,807

1,570,633

Year ended 31 January 2025

31.1.25

1.2.24

£

£

Cash and cash equivalents

1,570,633

1,944,858

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.2.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,570,633

1,402,174

2,972,807

1,570,633

1,402,174

2,972,807

Total

1,570,633

1,402,174

2,972,807

1.	STATUTORY INFORMATION

Jr Pet Products Ltd 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The company is included in the consolidated financial statements of its parent company, AlphaPet UK Ventures Limited, who registered office is, Danworth House Jobs Lane, Sayers Common, Hassocks, England, BN6 9HE.

Due to non-coterminous year ends, the company's financial statements will be included in the consolidated financial statements of the parent company starting from 31 December 2025.

Going concern

The financial statements have been prepared on a going concern basis, which the directors consider to be the most appropriate basis of preparation. At the balance sheet date, the directors do not consider there to be any circumstances that affect the business' ability to trade for the foreseeable future.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:

- The amount of revenue can be reliably measured;

- It is probable that future economic benefits will flow to the entity;

- and specific criteria have been met for each of the company's activities.

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.

Patents and licences are being amortised evenly over their estimated useful life of 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and Machinery

-

20% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

20% on cost

All property, plant and equipment use the cost model and are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the income statement.

Impairment of fixed assets

The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset.

Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years.

A reversal of an impairment loss is recognised immediately as a credit to the income statement.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

The company recognises stock in its accounting system at the date the goods are physically received into the warehouse, rather than at the date of supplier invoicing. This reflects the point at which control of the goods transfers to the company and the associated obligations arise, in line with the company’s inventory recognition principles.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account.

Taxation

Taxation for the period 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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.

Foreign currencies

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

Leases

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

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 comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Financial Instruments

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

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

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

Basic financial assets

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

Impairment of financial assets

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

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

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

Derecognition of financial assets

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

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. There are no items in the financial statements where these judgments and estimates have been made.

Dividends

An amount of £13,598,883 (Jan-25: £800,000) was issued to the parent company during this financial year.

Dividends are recognised as a reduction in equity in the period in which they are appropriately authorised and are no longer at the Company’s discretion.

Final dividends are recognised when approved by shareholders; interim dividends are recognised when paid or unconditionally declared.

Dividends are measured at the amount approved and presented as distributions in the statement of changes in equity.

Where dividends are settled by set-off against amounts due from group undertakings, the distribution is measured at the dividend amount and the receivable is reduced on a gross basis where a legally enforceable right of set-off exists and settlement on a net basis is intended.

Dividends declared after the reporting date are not recognised as liabilities at that date and are disclosed as non-adjusting events where material. Dividends are declared only out of distributable profit.

Employee benefits

The cost of shore-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of he cost of stock of fixed asset.

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 employee or to provide termination benefits.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

Period

1.2.25

to

Year Ended

31.12.25

31.1.25

£

£

United Kingdom

14,255,290

16,161,712

Europe

206,727

288,708

International

124,669

143,610

14,586,686

16,594,030