REGISTERED NUMBER: 08707716 (England and Wales)

Granarolo UK Limited

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

A G Bosco

F Marchi

E Rizzoli

REGISTERED OFFICE:

Stringes Lane

Willenhall

West Midlands

WV13 1LX

REGISTERED NUMBER:

08707716 (England and Wales)

AUDITORS:

TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

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

The principal activity of the company in the year under review was that of the retail and wholesale marketing of a wide range of Italian Cheeses including our own "Granarolo" range of produce.

Key financial highlights are as follows:

2025

2024

2023

2022

2021

Turnover (£   's)

34,529

31,404

25,475

20,520

14,496

Turnover growth (£   's)

3,125

5,929

4,955

6,024

2,193

Gross profit margin

8.65%

8.98%

5.18%

5.43%

6.44%

REVIEW OF BUSINESS

In the UK, in 2025, the Granarolo Group accounts for 12.5% of Italian export volumes. The Group is a leading player in the private label category as the producer of Italian fresh and hard cheeses for several retail chains. Significant investment in our production capacity in Italy has allowed us to grow volumes in the UK.

This growth is complimented by utilising and leveraging the distribution and warehousing of our subsidiary Midland Chilled Foods Limited.

Our philosophy of continued monitoring the right price-volume ratio is a key factor in maintaining good turnover and ensuring adequate profit levels.

The companies strategic objectives for 2026 are:

- Increase our volumes within the UK market via continued digital transformation and supply chain innovation;

- Innovate with a view to providing new product solutions in an ever changing market;

- Further develop the Granarolo brand in the UK by leveraging our farm to fork credentials in line with consumer

demand and expectations

The 2026 operating profit target is expected to grow due to the maintenance of good prices, together with a stable market and good growth prospects in our market.

Sources: CLAL/ ISTAT data, December 2025, total cheese and dairy products, milk and cream butter, infant formula.

PRINCIPAL RISKS AND UNCERTAINTIES

The company aims to manage the uncertainty of future revenue streams by focusing on its proven market leading service whilst maintaining strong relationships with all of its customers.

The principal credit risk arises from the trade debtors and is managed by credit reference and credit insurance together with robust procedures for the collection of monies due to the company.

SECTION 172(1) STATEMENT

Our Section 172 statement summarises how the directors have had regard to the matters set out in Section 172(1) of the Companies Act 2006 when carrying out their duties and making decisions during the year.

Section 172 of the Companies Act 2006 requires directors to act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, whilst having regard to the likely long-term consequences of decisions, the interests of stakeholders, the need to foster business relationships, the impact of the Company's operations on the community and the environment, and the desirability of maintaining a reputation for high standards of business conduct.

The directors recognise that the long-term success of the Company is dependent upon maintaining strong relationships with its stakeholders and carefully considering the impact of decisions on those stakeholders. The Company's key stakeholders include its shareholders, customers, suppliers, subsidiary undertakings, employees of the wider group, professional advisers, lenders, regulators and the communities in which it operates. The directors seek to understand stakeholder interests through regular engagement and consider these interests when making decisions.

During the year, the directors continued to focus on the growth of the Company's UK operations and the development of its market position. In making strategic and operational decisions, the directors considered the long-term interests of shareholders, customers, suppliers and subsidiary undertakings, together with the Company's reputation for high standards of business conduct.

The directors believe that they have acted in a manner most likely to promote the success of the Company for the benefit of its members as a whole, having regard to the interests of all key stakeholders and the matters set out in Section 172(1) of the Companies Act 2006.

Long-Term Decision Making

The Company operates within the governance framework established by the wider Granarolo Group. Scheduled Board meetings, management reporting, budgeting processes and regular forecasting enable the directors to assess both short and long-term opportunities, risks and strategic priorities.

During the year, the directors continued to focus on growing the Company's market presence within the UK dairy sector whilst maintaining profitability and strengthening customer relationships. Strategic decisions are considered within the context of the wider UK group structure and the long-term objectives of the Granarolo Group.

The directors believe that maintaining a sustainable and commercially successful business supports the interests of shareholders, customers, suppliers and other stakeholders alike.

Business Conduct

The directors are committed to maintaining high standards of business conduct and integrity. The Company operates in accordance with the values and governance principles established by the wider Granarolo Group and seeks to act fairly and responsibly in all of its business dealings.

The directors recognise the importance of maintaining the trust of customers, suppliers, shareholders and regulatory bodies. Compliance with legal and regulatory requirements forms an integral part of decision-making processes and business operations.

STAKEHOLDER ENGAGEMENT

Shareholders

The Company maintains regular dialogue with its immediate parent company, Granarolo S.p.A., regarding business performance, strategy, financing and future growth opportunities. The directors consider shareholder interests when evaluating significant transactions, investments and strategic initiatives.

Regular financial reporting and board communications ensure shareholders remain informed of the Company's performance and prospects.

Customers

The Company supplies and markets a wide range of Italian dairy products throughout the United Kingdom. Maintaining strong relationships with customers is fundamental to the long-term success of the business.

The directors regularly review customer feedback, sales performance and market developments. Through ongoing engagement with customers and monitoring of changing market conditions, the directors seek to ensure that the Company's product offering, service levels and commercial strategy continue to meet customer requirements.

The Company aims to build long-term customer relationships based on product quality, service reliability and commercial integrity.

Suppliers and Business Partners

The Company works closely with suppliers throughout the Granarolo Group and with third-party suppliers and service providers to ensure continuity of product supply and high standards of quality.

The directors recognise the importance of maintaining fair and constructive relationships with suppliers and seek to ensure that contractual arrangements are operated in a transparent and professional manner. Supplier relationships are considered when making operational and strategic decisions to support the long-term resilience of the business.

Subsidiary Undertakings

As the parent company of Midland Chilled Foods Limited and West Horsley Dairy Limited, the directors receive regular updates regarding the performance, financial position and strategic development of these businesses.

The directors consider the impact of decisions on the wider UK group and seek to support the continued success and sustainability of the subsidiary undertakings. Decisions relating to investment, funding and business development are assessed with regard to the long-term interests of the wider group.

Employees

The Company does not directly employ staff. Operational activities are supported by employees within other group entities. The directors recognise the importance of those employees to the success of the wider group and receive updates regarding operational performance, workforce matters and business activities through regular management reporting.

Professional Advisers, Lenders and Regulators

The Company engages with its professional advisers, auditors, lenders and regulatory authorities as appropriate to ensure compliance with applicable laws and regulations and to support effective decision making.

The directors value these relationships and seek to maintain open and constructive dialogue with all relevant parties. Such engagement assists the directors in understanding risks, meeting regulatory obligations and maintaining good governance practices.

Community, Environment and Governance

The directors recognise the importance of operating the business responsibly and maintaining high standards of corporate governance. Environmental and sustainability considerations are taken into account when making strategic decisions and the Company supports the wider sustainability objectives of the Granarolo Group. Whilst the Company has a limited direct environmental footprint, the directors consider the environmental impact of the wider group’s operations and support initiatives aimed at improving operational efficiency and reducing environmental impact. The directors are committed to maintaining high standards of business conduct and ensuring compliance with applicable laws and regulations.

The directors also recognise the importance of contributing positively to the communities in which the wider group operates.

ON BEHALF OF THE BOARD:

A G Bosco - Director

9 July 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the retail and wholesale marketing of a wide range of Italian Cheeses including our own "Granarolo" range of produce.

DIVIDENDS

No dividends were voted in the year (2024: £4,500,000).

Subsequent to the year end, the directors recommended and the shareholders approved a dividend of £1,498,000. (2024:£Nil)

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

A G Bosco

F Marchi

Other changes in directors holding office are as follows:

F Fanetti - resigned 1 March 2025

E Rizzoli - appointed 1 March 2025

STREAMLINED ENERGY AND CARBON REPORTING

The Company has assessed its energy consumption for the year ended 31 December 2025 and has concluded that it qualifies as a low energy user in accordance with the Streamlined Energy and Carbon Reporting Regulations, as its total energy consumption was less than 40,000 kWh during the year.

The Company does not directly employ staff and does not own or operate any vehicles or operational premises. Warehousing, distribution and other operational activities are undertaken by subsidiary undertaking, Midland Chilled Foods Limited, which reports the associated energy consumption and greenhouse gas emissions within their own statutory financial statements. The Company utilises the warehousing and distribution infrastructure of its subsidiary undertakings in support of its trading activities.

During the year, the Company incurred a limited amount of recharged employee travel costs relating to activities undertaken on its behalf. The directors have considered these costs in assessing the Company's energy consumption and remain satisfied that the Company qualifies for the low energy user exemption.

Accordingly, the Company has not provided the detailed energy and carbon disclosures otherwise required under the Streamlined Energy and Carbon Reporting framework.

The methodology and reporting boundaries applied are consistent with the prior year.

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A G Bosco - Director

9 July 2026

Opinion

We have audited the financial statements of Granarolo UK Limited (the 'company') for the year 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 year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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 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 pages five and six, 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations.

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

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- we identified areas of laws and regulations that could reasonably be expected to have a material effect on the

financial statements from our general commercial and sector experience, and through discussion with the directors

and other management (as required by auditing standards), and discussed with the directors and other

management the policies and procedures regarding compliance with laws and regulations;

- we considered the legal and regulatory frameworks directly applicable to the financial statements reporting

framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- we considered the nature of the industry, the control environment and business performance, including the key

drivers for management’s remuneration;

- we communicated identified laws and regulations throughout our team and remained alert to any indications of

non-compliance throughout the audit, also all areas where fraud might occur in the financial statements and how;

- we considered the procedures and controls that the company has established to address risks identified, or that

otherwise prevent, deter and detect fraud; and how senior management monitors these programmes and controls;

- we considered how the directors and management respond to risks of fraud and whether they have knowledge of

any actual, suspected or alleged fraud;

- we performed detailed analytical procedures to identify and unusual or unexpected relationships that may indicate

risks of material misstatement due to fraud;

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Darren Barlow (Senior Statutory Auditor)

for and on behalf of TC Group

Statutory Auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

9 July 2026

TURNOVER

3

34,528,884

31,403,952

Cost of sales

31,540,560

28,585,385

GROSS PROFIT

2,988,324

2,818,567

Administrative expenses

1,590,338

1,415,673

OPERATING PROFIT

5

1,397,986

1,402,894

Interest payable and similar expenses

6

597,186

507,463

PROFIT BEFORE TAXATION

800,800

895,431

Tax on profit

7

111,599

236,361

PROFIT FOR THE FINANCIAL YEAR

689,201

659,070

PROFIT FOR THE YEAR

689,201

659,070

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

689,201

659,070

FIXED ASSETS

Intangible assets

9

162,000

182,250

Investments

10

18,139,119

8,942,923

18,301,119

9,125,173

CURRENT ASSETS

Stocks

11

1,878,972

1,061,580

Debtors

12

16,609,839

14,583,744

Cash at bank

212,897

67,657

18,701,708

15,712,981

CREDITORS

Amounts falling due within one year

13

11,293,351

10,718,813

NET CURRENT ASSETS

7,408,357

4,994,168

TOTAL ASSETS LESS CURRENT LIABILITIES

25,709,476

14,119,341

CREDITORS

Amounts falling due after more than one year

14

23,604,426

12,703,492

NET ASSETS

2,105,050

1,415,849

CAPITAL AND RESERVES

Called up share capital

15

100

100

Share premium

16

499,900

499,900

Retained earnings

16

1,605,050

915,849

SHAREHOLDERS' FUNDS

2,105,050

1,415,849

The financial statements were approved by the Board of Directors and authorised for issue on 9 July 2026 and were signed on its behalf by:

A G Bosco - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2024

100

4,756,779

499,900

5,256,779

Changes in equity

Dividends

-

(4,500,000

)

-

(4,500,000

)

Total comprehensive income

-

659,070

-

659,070

Balance at 31 December 2024

100

915,849

499,900

1,415,849

Changes in equity

Total comprehensive income

-

689,201

-

689,201

Balance at 31 December 2025

100

1,605,050

499,900

2,105,050

Cash flows from operating activities

Cash generated from operations

1

10,162,480

4,974,959

Interest paid

(597,186

)

(507,463

)

Tax paid

(223,858

)

(16,975

)

Net cash from operating activities

9,341,436

4,450,521

Cash flows from investing activities

Purchase of fixed asset investments

(9,196,196

)

-

Net cash from investing activities

(9,196,196

)

-

Cash flows from financing activities

Equity dividends paid

-

(4,500,000

)

Net cash from financing activities

-

(4,500,000

)

Increase/(decrease) in cash and cash equivalents

145,240

(49,479

)

Cash and cash equivalents at beginning of year

2

67,657

117,136

Cash and cash equivalents at end of year

2

212,897

67,657

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

2025

2024

£

£

Profit before taxation

800,800

895,431

Depreciation charges

20,250

20,250

Finance costs

597,186

507,463

1,418,236

1,423,144

Increase in stocks

(817,392

)

(289,226

)

Increase in trade and other debtors

(1,612,010

)

(1,827,652

)

Increase in trade and other creditors

11,173,646

5,668,693

Cash generated from operations

10,162,480

4,974,959

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:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

212,897

67,657

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

67,657

117,136

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

67,657

145,240

212,897

67,657

145,240

212,897

Total

67,657

145,240

212,897

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about Granarolo UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Granarolo S.P.A., Via Cadriano 27/2,40127 Bologna, Emilia Romagna, Italy.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgement, estimates and assumptions about carrying amounts 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 where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

In preparing these financial statements the directors have made judgements including:

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Sales ledger bad debt provisions

Management review debts on a case by case basis to highlight deviation from terms and therefore possible provision requirement.

Stock provisions

Through experience over time, the management have formulated a standard policy of provisioning based on stock movement. This is monitored on an ongoing basis and judgement used on a line by line basis should trends change significantly.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of twenty years.

Intangible assets

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

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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 year end and that are expected to apply to the reversal of the timing difference.

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

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:

2025

2024

£

£

United Kingdom

34,528,884

31,403,952

34,528,884

31,403,952

4.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 December 2025 nor for the year ended 31 December 2024.

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Goodwill amortisation

20,250

20,250

Auditors' remuneration

20,400

14,400

Taxation compliance services

5,100

3,600

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Loan

597,186

507,463

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

111,599

223,858

Corporation tax prior year adj

-

12,503

Tax on profit

111,599

236,361

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

800,800

895,431

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

200,200

223,858

Effects of:

Expenses not deductible for tax purposes

19,677

-

Adjustments to tax charge in respect of previous periods

-

12,503

Group relief

(108,278

)

-

Total tax charge

111,599

236,361

8.

DIVIDENDS

2025

2024

£

£

Ordinary shares of £1 each

Final

-

4,500,000

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2025

and 31 December 2025

405,000

AMORTISATION

At 1 January 2025

222,750

Amortisation for year

20,250

At 31 December 2025

243,000

NET BOOK VALUE

At 31 December 2025

162,000

At 31 December 2024

182,250