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

The company has maintained high levels of asset utilisation across the majority of the business. Where leases have reached maturity the company continues to explore all remarketing and disposal opportunities. The company has successfully redeployed assets from other parts of the Akiem Group and will continue to do so in years to come.

The operating profit for the year ended 31 December 2025 was £1,719,682 (2024: £8,905,400).

The net assets at the year ended 31 December 2025 was £16,007,672 (2024: £16,351,477).

Credit Risk

Lessee credit exposures are managed as part of the Akiem Group's (the ultimate parent undertaking) Credit Management procedures and the company's participation in the Group Credit Management Committee.

Market Risk

Exposure to the changing value of the company's rolling stock through its leasing activities is managed through participation in Akiem Group's management processes.

Liquidity Risk

The company ensures it can best meet future financial obligations through participation in Akiem Group's budgetary, cash flow and profitability oversight processes.

Interest Rate Risk

The company has limited exposure to interest rates on interest bearing assets or liabilities, owing to its funding coming from the Akiem Group at fixed rates of interest.

Foreign Exchange Risk

The company has limited foreign exchange risk, as substantially all of its trade is in its functional currency.

The company routinely monitors revenue and EBITDA generated by each class of rolling stock as well as net income and future cash projections.

During the year, the company generated revenues of £9,592,072 (2024: £9,219,564). and EBITDA of £8,123,914 (2024: £4,474,559) being operating profit plus depreciation, amortisation and impairment.

The company closely tracks the projected utilisation of its rolling stock as well as any future capital expenditure required to maintain the marketability of the rolling stock over its remaining useful life.

The company will continue to pursue rolling stock operating lease opportunities in the UK in both freight and passenger markets.

The company continues to monitor the implementation of the Department for Transport’s decarbonisation plan both in terms of current fleet requirements and future rolling stock acquisitions.

On behalf of the board

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

The principal activity of the company is to lease freight and passenger rolling stock in the UK under operating leases.

The results for the year are set out on page 8.

No ordinary dividends were paid (2024: £nil). The directors do not recommend payment of a final dividend (2024: £nil).

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

There were no material events affecting the company after the reporting date.

As permitted by paragraph 1A of schedule 7 to the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008, certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report. The matters disclosed as such are in respect of financial instrument risks and future developments of the company.

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

Each director in office at the date of approval of this annual report confirms that:

• so far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware, and

• the directors have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

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, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

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 A Locomotive Pool Structure 3 Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards.

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 UK-adopted international accounting standards; and

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

Basis for opinion

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

Conclusions relating to going concern

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 included in the annual report, other than the financial statements and our auditor’s report 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.

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 the 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 and 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 set out on page 4, 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 are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

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

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

A Locomotive Pool Structure 3 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Baker Street, London, W1U 7EU. 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 International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

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

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

Part of the company's revenue is derived from payments arising from operating lease contracts. Therefore, the payments are credited to the statement of comprehensive income on a straight-line basis over the term of the relevant lease. This is representative of the pattern in which benefit from the use of the underlying asset is diminished.

The remainder of the revenue derived by the company relates to maintenance income which is credited to the statement of comprehensive income on a straight-line basis over the term of the relevant lease, as this is reflective of the pattern of satisfaction of the performance obligations.

Goodwill represents the excess of the cost of a business combination over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.

Customer contracts

The useful economic life of the customer contracts is assessed on an individual basis and has been determined to be 10 to 20 years, with due consideration having been given to current contract terms and the likelihood, length and potential earnings from expected renewals.

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

In determining the depreciation charge on Rolling Stock, the Directors allocate 20% of each asset's historical cost to maintenance components. These components have a shorter useful economic life and are replaced at overhauls that take place during the asset's useful economic life.

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.

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.

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Financial assets are recognised in the company's statement of financial position 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.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Under IFRS 9, for receivables, the company elected to apply the simplified approach. Under the simplified approach the requirement is to always recognise lifetime expected credit losses ('ECL's'). Under the simplified approach, practical expedients are available to measure lifetime ECL's but forward looking information must still be incorporated. Under this approach there is no need to monitor significant increases in credit risk and entities will be required to measure lifetime ECL's at all times.

As at 31 December 2024, the company has concluded that any ECL on receivables would be entirely immaterial to the financial statements due to the low credit risk of the relevant counterparties. Accordingly there have been no ECL's raised in the current period.

Financial assets are derecognised 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 to another entity.

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'.

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

• it has been incurred principally for the purpose of selling or repurchasing it in the near term, or

• on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or

• it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in 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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax 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 income statement, except when it relates to items charged or credited directly to 'other comprehensive income', in which case the deferred tax is also dealt with in 'other comprehensive income'. 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 or non-current assets.

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

A termination benefit liability is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

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.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

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 judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below:

Impairment of property, plant and equipment

Determining whether there are indicators of impairment of the company's property, plant and equipment requires consideration of events which may indicate an asset is impaired. These may include but are not limited to events such as changes in government policy, regulation or legislation, reduction in demand for rolling stock or obsolescence through technological change.

Where indicators of impairment are identified, an estimate of recoverable amount is required. Consideration and determination of fair value less costs to sell and value in use involves a degree of estimation uncertainty. The impairment of rolling stock in 2025 was nil (2024: nil).

Measurement of customer contracts

The recoverable value of customer contract intangibles is determined by reference to the expected future cash flows generated by each of the company's customers after deducting asset carrying costs, operating expenses and tax. Judgement is exercised in determining the likelihood, length and earnings from each renewal, and this is of consequence to the continual evaluation of useful economic life. The carrying value of the customer contracts is £13,169,025 at year end.

Goodwill impairment

The company under IFRS does not amortise goodwill. Each year an impairment exercise is undertaken to consider if the goodwill is recoverable. The carrying value of the goodwill at £6,480,116 is considered recoverable.

Measurement of plant and machinery

The useful economic life of plant and machinery is assessed annually by the company. External valuations have been sought to support the process of determining and validating rolling stock life.

Maintenance income

Determining whether IFRS15 applies to maintenance reserve revenues requires the company to consider the specific maintenance obligations of each lease contract on a contract-by-contract basis. Where specific maintenance reserve revenue can be separately identified and accurately assessed it is allocated over the period of the lease on a straight line basis. Judgement is exercised in determining the performance obligation and the period over which the obligation is satisfied, as well as the transaction price allocated. At the balance sheet date there were £823,919 of revenues that had been deferred.

All revenue (including maintenance income) arose within the United Kingdom.

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

Their aggregate remuneration comprised:

During the financial year ended 31 December 2025, 2 Directors (2024: 2) were employed by the company and 1 Director (2024: 1) was employed by Akiem Group SAS.

The remuneration of the Director employed by Akiem Group SAS was borne by that entity and recharged to the company. £45,830 (2024: £38,149) was recharged to the company for Director's services.

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

Customer contracts are amortised over their determined useful economic life of 10 to 20 years.

As at the reporting date, the carrying value of goodwill was £6,480,116 based on its value in use.

Property, plant and equipment with a net book value of £57,541,055 (2024: £48,020,937) had operating leases attached to them as at 31 December 2025.

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

Amounts owed to group undertakings relate to loans, the details of which are disclosed in note 22.

The balance of social security and other taxation in the previous year contains £11,520,000 of VAT due which relates to the disposal of property, plant and equipment.

Amounts owed to group undertakings includes:

£10,364,000 (2024: £10,364,000) at an interest rate the higher of 5% per annum and EURIBOR + 3.35%, repayable on 30 June 2031.

£64,179,900 (2024: £69,423,143) at an interest rate of 4.1172% per annum repayable on 5 September 2039.

The Directors have agreed a repayment pattern from excess cash flows with Akiem Holding SAS, being the lender, and this is reflected in the ageing of the liability in the financial statements.

The loans of £10,364,000 (2024: £10,364,000) and £64,179,900 (2024: £69,423,143) are secured by way of fixed charge over the assets of the company, granted in favour of Credit Agricole Corporate and Investment Bank as Intercreditor and Security Agent.

The company's key financial risks arising from its operating activities and its financial statements are:

• Credit risk

• Liquidity risk

• Interest rate risk

In common with all other businesses, the company is exposed to risks that arise from its use of financial instruments. This note describes the company's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

The key management of the company have overall responsibility for the establishment and oversight of the risk management framework.

Principal financial instruments

The principal financial instruments used by the company, from which financial instrument risk arises, are as follows:

• Trade and other receivables

• Cash and cash equivalents

• Trade and other payables

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the company. The exposure to credit risk is managed through assessment of customer credit worthiness, active credit control and robust payment terms.

Liquidity risk

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company aims to mitigate liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Interest rate risk

The board consider the exposure of the company to interest rate risk is not significant.

Capital Management

The company's objectives when managing capital are:

• to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for the shareholder and benefit for other stakeholders; and

• to provide an adequate return to the shareholder by pricing products and services commensurately with the level of risk.

The board consider that the company is currently meeting its capital management objectives.

There are no externally imposed capital requirements.

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.

Retained earnings

Retained earnings represents cumulative profit and losses, net of dividends paid.

The operating leases represent leases of locomotives to third parties.

The following lease table sets out a maturity analysis of lease receipts, showing the undiscounted lease payments to be received after the reporting date.

The immediate parent undertaking at 31 December 2025 is Akiem Holding SAS, a company incorporated in France.

The company is controlled by Caisse de dépôt et placement du Québec (“CDPQ”).

The parent company does not prepare financial statements which are publicly available.

There were no events after the reporting date requiring disclosure.

As at 31 December 2025, the Company had a loan outstanding to Akiem Holding SAS, its parent company, amounting to £66,789,900 (2024: £69,423,143) This loan is secured, accrues at a rate of 4.1172% per annum and falls due for repayment on 5 September 2039, although separate arrangements have been made by the Directors to make repayments from excess cash flows. During the year, principal repayments amounted to £2,610,000 (2024: £3,045,000) with interest charged of £2,830,394 (2024: £3,249,356). Accrued interest at the year end amounted to £15,068 (2024: £18,851) and is included in accruals.

As at 31 December 2025, the Company had a loan outstanding to Akiem Holding SAS amounting to £10,364,000 (2024: £10,364,000). This loan is secured, accrues at a rate of 5.0% per annum and falls due for repayment on 30 June 2031, although separate arrangements have been made by the Directors to make repayments from excess cash flows. During the year, principal repayments amounted to £nil (2024: £nil), with interest charged of £594,201 (2024: £755,093). Accrued interest at the year end amounted to £1,576 (2024: £nil) and is included in accruals.

As at 31 December 2025, the Company has a cashpooling balance with Akiem Holding SAS amounting to a debtor of £19,150,000 (2024: creditor of £14,000,000). This balance accrues interest monthly at the Euro monthly average rate, plus a 0.05% margin for advances. During the year, interest of £393,049 (2024: £585,643) was charged.

During the year, the Company received key management and other support services from Akiem Holding SAS amounting to £45,830 (2024: £38,149) and £684,550 (2024: £599,690) respectively. Outstanding liabilities at the year end in connection with these transactions amounted to £293,047 (2024: £545,181).

The company received support services from its parent company, Akiem Holdings, totalling £439,531. At the end of the year, the outstanding liabilities related to these transactions were £237,480.