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

The company's principal activity is the distribution of industrial tooling and equipment. The primary focus is on serving the industrial and manufacturing sectors. The products offered include hand tools, power tools, workshop supplies, and personal protective equipment, all sourced from a wide variety of manufacturers both in the UK and abroad.

The company operates a dual warehousing and distribution strategy designed to optimise the supply chain and ensure efficient delivery of products to customers. Central to this approach is the utilisation of our European logistics hub, Logistics City, which services Hoffmann customers globally. This is supplemented by a local in-country warehouse for specific contracts or customer needs, allowing for greater flexibility and responsiveness to local market needs.

Value for customers is created by focus on helping them improve productivity and simplify procurement of industrial tooling and equipment, predominantly by:

• Product availability and range depth

• Speed and accuracy of order fulfilment

• Technical product knowledge and customer support

• Process improvement

• Long standing supplier and customer relationships

The business model is focused on repeat custom, operational efficiency, and disciplined stock management.

There was no change in the nature of the company’s activities during the year.

The directors consider that the results for the year are strong given the underlying market conditions. The company outperformed market growth and gained significant market share compared to the prior year.

The directors are pleased to report the financial statements for the year ended 31 December 2025 during which sales grew by 15.7% (2024: growth of 18.2%). Revenue for the year ended 31 December 2025 was £11.63m, an increase from £10.06m for the year ended 31 December 2024. The company reported a profit before tax of £271,617 (2024: £329,857).

The directors consider that revenue and profitability are the financial key performance indicators of the company. The company made a pre-tax profit of £271,617 (2024: £329,857) from revenues of £11.63m (2024: £10.06m).

The growth in sales was driven by the following key developments:

• New long term customer contracts and increased market visibility

• Award of several large investment projects in the aerospace and defence sector

While the company currently has a small market share, the directors see a large growth opportunity in the UK due to the strength of its value proposition and clear differentiation from the competition.

Additionally, the company invested in a new office and customer experience facility to further enhance customer value and create capacity for future growth.

The company's principal financial instruments comprise cash balances, trade debtors, trade creditors, and working capital provided by parent undertakings that arise directly from its operations. The primary purpose of these financial instruments is to fund the company's operations and to manage working capital and liquidity.

The company's approach to managing risks applicable to the financial instruments is set out below:

Price risk:

• The risk of rising costs is mitigated by centralised purchasing policy for resale goods and careful cost control where practicable.

• Regular reviews of gross margins and where appropriate adjustments to selling prices are used to protect margin while maintaining competitive.

Interest rate risk:

• The company's principal borrowing is represented by a loan facility granted by its parent company. This risk is limited as funding is provided at agreed interest rates not directly linked to short-term market fluctuations. Other than the advances by group entities the company's financial assets are not exposed to interest rate risk.

Credit risk:

• Trade debtors are managed to minimise credit and cash flow risk through stringent controls and carefully monitored credit limits. Credit is granted only after customers have demonstrated an appropriate credit history and based on external agencies advice.

Liquidity risk:

• The company manages liquidity risk by the careful monitoring of cashflows and matching the maturity of its debtors and creditors.

• The liquidity risk associated with trade debtors and creditors is seen to be the most significant. This risk is managed by ensuring sufficient funds are available to meet liabilities as they fall due, supported by strict credit control.

Currency risk:

• The company is exposed to foreign currency risk as a large proportion of resale goods, which are purchased in Euros from our central logistics warehouse in Germany, and intercompany loans are denominated in Euros.

• As the company's functional currency is GBP, fluctuations in exchange rates can lead to revaluation gains or losses on these balances. This exposure is considered unavoidable in the short term due to the structure of group financing arrangements.

Future Developments

The directors believe the company is well positioned to continue trading successfully and to pursue sustainable growth over the medium term. Demand within the company’s core markets is expected to remain stable, albeit sensitive to broader economic conditions.

The focus for the forthcoming year will be on:

• Increasing market presence through continued communication of its value proposition

• Further strengthening customer relationships

• Continuing improvements in stock efficiency and cash management

• Reviewing system and process enhancements to support long term growth

The directors expect the company to grow at a similar rate over the next year. Focus will be placed on:

• Revenue growth

• Maintaining margins

• Operational efficiency

Employees

The company recognises that its employees are fundamental to its success and in delivering service quality and operational performance.

The company aims to provide a positive working environment with a supportive and inclusive working culture.

The company’s approach includes:

• Maintaining a safe and compliant working environment

• Providing role specific training, particularly in warehousing and sales functions

• Encouraging employee engagement and retention through fair employment practices

Management maintains regular oversight of staffing levels and skills requirements.

Environmental and Social Matters

The company seeks to minimise its environmental impact where practicable and operates in compliance with applicable environmental regulations.

While the company is not involved in heavy production, it recognises its responsibility to minimise environmental impact where practicable.

Actions taken include:

• Reducing energy consumption within warehouse operations and transport

• Minimising packaging and waste where possible

• Engaging with suppliers that meet recognised environmental and ethical standards

Environmental considerations are as part of operational decision making, proportionate to the size and

nature of the company.

Statement of Disclosure

The directors confirm that, so far as they are aware, there is no relevant audit information of which the company’s auditors are unaware.

On behalf of the board

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

The results for the year are set out on page 10.

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 auditor, TC Group, is deemed to be reappointed under section 487(2) 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 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, including FRS 102, 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Hoffmann UK Quality Tools 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 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 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 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'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 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006) and the relevant direct and indirect tax compliance regulation and health and safety legislation in the United Kingdom.

• We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation.

• We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal control and by designating revenue as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through controls tests, substantive tests, performed analytical review procedures and cut off tests on the revenue recognised.

The extent to which the audit was considered capable of detecting irregularities including fraud (continued)

• We identified a potential for fraud in the inventory valuation. Management may manipulate the inventory valuation to increase gross profit. We performed specific procedures to address this risk which included enquiry with management to understand key movements in inventory and the possibility for obsolescence. We recalculated management's inventory provision to ensure the calculation was in agreement with the wider group's policy, we tested the provision for reasonableness and carried out analytical procedures to assess the appropriateness of inventory valuations.

• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance and review of legal and professional expenses.

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

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.

The income statement has been prepared on the basis that all operations are continuing operations.

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

Hoffmann UK Quality Tools Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gee Business Center, Holborn Hill, Birmingham, England, B7 5JR.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 'Statement of Cash Flows': Presentation of a statement of cash flows and related notes and disclosures.

• Section 33 'Related Party Disclosures': Compensation for key management personnel.

Hoffmann UK Quality Tools Limited is a wholly owned subsidiary of SFS Group AG and the results of Hoffmann UK Quality Tools Limited are included in the consolidated financial statements of SFS Group AG which are available on their website https://www.sfs.com/ch/en/.

The immediate parent company, Hoffmann Auslands-Beteiligungs GmbH, has confirmed its intention and ability to provide financial support for at least one year after the audit report date.true

Revenue represents amounts receivable for selling tools and other goods, net of VAT (where applicable), directly into the UK market. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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. The point of sale is dictated by shipping terms agreed with the customer and is usually at the time of delivery when the control of products sold have been transferred to the buyer.

The company also earns revenue from the sale of consignment inventories. The revenue is recognised when the goods are transferred to the consignment stock customer.

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:

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Inventories 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 inventories to their present location and condition. Consignment stock remains inventory until sold to the end customer, with revenue and cost of sales recognised when control transfers on sale.

Inventories 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.

Cost is calculated using the average cost valuation method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables 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. Loans and receivables are measured at amortised cost, less any impairment.

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.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables and loans from fellow group companies, 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.

Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing 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 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 stock or non-current assets.

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate of ruling at the date of transaction. All differences are taken to the income statement.

An analysis of the company's revenue is as follows:

The average monthly number of persons (including directors) employed by the company during the year was 55 (2024: 55).

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The company has estimated losses for tax purposes of £2,860,000 (2024: £3,260,000) which may be available to carry forward and offset against future trading profits.

The potential deferred tax asset of £715,000 (2024: £815,000) has not been recognised in the accounts as the criteria for recognition has not been satisfied.

The company has €3,300,000 available in a loan facility from its parent. The amount represented in other borrowings shows the amounts drawn as at 31 December 2025. Interest is payable at a rate of 5% per annum on the amount drawn down. The loan is unsecured and repayable on demand.

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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

As at 31 December 2025, the company's immediate parent was Hoffmann Auslands-Beteiligungs GmbH, München, which is registered at Haberlandstraße 55, 81241 München, Germany, this is incorporated in Germany. This is the smallest group into which the company's results are consolidated. The ultimate parent company is SFS Group AG which is registered at Rosenbergsaustrasse 8, CH-9435 Heerbrugg, Switzerland, this is incorporated in Switzerland and is publically traded on the SIX Swiss Exchange.