REGISTERED NUMBER: SC104728 (Scotland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements For The Year Ended 31 December 2025

for

Alexander Ross Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Statement of Comprehensive Income

11

Consolidated Statement of Financial Position

12

Company Statement of Financial Position

13

Consolidated Statement of Changes in Equity

14

Company Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Consolidated Statement of Cash Flows

17

Notes to the Consolidated Financial Statements

19

DIRECTORS:

D B Ross

R C Ross

W J D McMartin

SECRETARY:

W J D McMartin

REGISTERED OFFICE:

North Main Street

Carronshore

Falkirk

FK2 8HT

REGISTERED NUMBER:

SC104728 (Scotland)

INDEPENDENT AUDITORS:

Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

SOLICITORS:

Shepherd & Wedderburn LLP

9 Haymarket Square

Edinburgh

EH3 8FY

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

During the year the group continued to invest its profits to ensure that it is well placed to take advantage of future business opportunities that are in line with wider group strategy.

The focus for the forthcoming year will be around continuing to improve operational efficiencies, strong purchasing and overhead reduction where possible. The group will continue our organic growth strategy across the business.

The group has key performance indicators focusing on growth and gross margin achieved which are monitored closely. Group turnover increased to £29.86m from £28.42m an increase of 5.07%. This was in part to the successful business acquisition of Dawn Direct Limited, in 2024 with a full years revenue. Other group companies also showed growth in revenue, however gross profit fell slightly from 35.4% to 35.2% due to increased competition mixed with inflationary pressures. This resulted in profit before tax decreasing to £950k from £1.76m. Total business costs increased in line with growth in turnover and inflationary pressures on the business.

Net cash generation remained constant however the group has continued to invest in further acquisitions and assets to maintain our position in the market and to best serve our customers. In 2025 The group was proud to complete the investment and completion of our new warehouse extension to continue it's growth. This result has been achieved despite a difficult economic climate in the UK, inflationary pressures and a low level of wider business confidence.

Early indications for 2026 show the revenue continuing to grow over 2025, this was despite the impact of the war in the Middle East and some wider supply chain impacts. We are confident that the overall group performance will continue to show positive growth for the year.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's principal risks and uncertainties include:

Competitive risk - the group operates in a highly competitive market. Product ranges held and pricing by competitors can adversely impact the business as customer contracts continue to be tendered. We continue to monitor and review our product offering and the value we provide to our customers.

Exchange rate - the group buys goods in various currencies. The group has systems and procedures in place to minimise the risk of currency exposure and manages this position on an ongoing basis. Recent financial volatility brought on by USA tariffs and market fluctuations has ensured we are positioned well to mitigate this risk.

Liquidity risk - the cash generated from operations is forecast and monitored, expenditure including capital investment is controlled and the overall cash position monitored.

Inflation risk - Recent international events have resulted in inflationary pressures across most industries. The group has sought to mitigate it's risk by reviewing the stock holding and looking to forward purchase stock where possible.

Supply chain risk - international shipping crises & Inflationary events have meant many suppliers & our supply chain have struggled with demand volatility. The group looks to offset this by reviewing the stock holding and looking to increase critical stock levels for core product ranges.

Legislation and other regulatory changes - the group monitors forthcoming and current legislation changes to assess the impact on operational and other requirements.

Credit risk - the group is exposed to credit risk across a wide range of customers. Appropriate credit monitoring and review systems are in place across the business to manage this risk.

KEY PERFORMANCE INDICATORS

Monthly Management Information reviewed by the directors, focuses on sales & revenue stream by company, margins, operational costs and most importantly cash flow & working capital. The group has also adopted a series of Non-financial KPIs to ensure its operations remain efficient, safe and compliant. These include delivery performance, customer satisfaction, employee training compliance and environmental impact metrics. These are considered to be imperative for maintaining a strong balance sheet alongside wider business performance.

ENERGY AND CARBON REPORT

Alexander Ross Holdings and our subsidiary companies recognise our obligation to manage the environmental impact of our business operations and comply with all relevant environmental legislation. We are committed to achieving Net Zero emissions by 2040, ten years ahead of the government target. The group is committed to using zero carbon energy where possible.

We are currently working to develop a full implementation plan which will allow us to bring this target further forward. All emissions reported and future plans include the entities under groups operational controls.

Baseline emissions footprint

Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured.

Additional details relating to the baseline emissions calculations

Alexander Ross Holdings continue to engage with Climate Partner to undergo a full Corporate carbon footprint for our Scope 1, 2 & 3 emissions review using all available sources of data. Climate partner based their calculations on Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol).

We have used the data for the year ending 31st December 2022 as a baseline for Scope 1 and 2 as our operations including the required Scope 3 categories of emissions. We will use an intensity matrix of CO2 per £ sales to monitor our overall emission reductions.

Emissions reduction targets

To continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets. We will reduce our carbon emissions from Scope 1,2 and selected Scope 3 emissions to achieve Net Zero by 2040 and will put in place interim targets to ensure sufficient progress is made. In the interim these will be offset using Verified Carbon Credit's to achieve net zero by offsetting. In 2025 we purchased sufficient Carbon Credit to offset our total Scope 1, 2 and selected Scope 3 emissions.

Green investment

The company has committed to several Carbon reduction initiatives, including being fully accredited to ISO14001, reducing energy consumption and the procurement of fully electric delivery vehicles. We aim to set further carbon reduction projects supported by interim targets on our Net Zero.

Corporate Environmental & Social Governance

Alexander Ross Holdings recognises its importance to wider Corporate & ESG. We have fully accredited ISO14001, ISO9001 & ISO45001.

The directors regularly review all risks to which the group is exposed and the system of internal controls within the group to ensure that risks are identified, evaluated and managed.

ON BEHALF OF THE BOARD:

R C Ross - Director

28 August 2026

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

PRINCIPAL ACTIVITY

The principal activity of the group during the year continued to be the supply and distribution of janitorial supplies, soaps, toiletries and amenity products.

DIVIDENDS

Interim dividends per share on the below share types were paid as follows:

A1 Ordinary

Dividend per Share

Date

£2.08

01/02/2025

£1.87

24/10/2025

C Ordinary

Dividend per share

Date

£0.70

10/09/2025

£0.87

24/10/2025

D Ordinary

Dividend per share

Date

£2.11

10/09/2025

£5.14

24/10/2025

The total distribution of dividends for the year ended 31 December 2025 will be £536,239 (£536,195).

FUTURE DEVELOPMENTS

The group will continue to seek sales growth, both organically and by strategic acquisition.

The recent investment in a new modern warehouse extension ensures that we are placed to take full advantage of business growth.

DIRECTORS

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

D B Ross

R C Ross

W J D McMartin

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

- So far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

- The director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

ON BEHALF OF THE BOARD:

R C Ross - Director

28 August 2026

Opinion

We have audited the financial statements of Alexander Ross Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 December 2025 and of the group's 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 group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- 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;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our wider knowledge and experience;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102 and

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- Considering the internal controls in place, including banking controls, to mitigate risks of fraud and non-compliance with laws and regulations.

Audit response to risks identified

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

- Management override of controls;

- Occurrence, completeness and timing of revenue recognition;

- Valuation of stock;

- Valuation of investments;

- Management judgement applied in calculating estimates and provisions; and

- Compliance with relevant laws and regulations which directly impact the financial statements and those the company needs to comply with for the purpose of trading.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Tested a sample of revenue transactions substantively to ensure occurrence, completeness, and timing of recognition;

- Tested a sample of stock items to ensure they are being carried at the lower of cost and net realisable value and reviewing the stock provision to ensure it is appropriate;

- Performed an impairment review to ensure the investment valuation is appropriately stated;

- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and

- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- Agreeing financial statement disclosures to underlying supporting documentation;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims; and

- Reviewing correspondence with HMRC, Companies House and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Alex Webb BAcc FCCA (Senior Statutory Auditor)

for and on behalf of Robb Ferguson

Chartered Accountants & Statutory Auditors

Regent Court

70 West Regent Street

Glasgow

G2 2QZ

28 August 2026

TURNOVER

4

29,861,900

28,420,600

Cost of sales

19,341,518

18,352,731

GROSS PROFIT

10,520,382

10,067,869

Distribution costs

5,673,913

5,378,589

Administrative expenses

3,950,947

3,130,418

9,624,860

8,509,007

895,522

1,558,862

Other operating income

61,725

34,855

OPERATING PROFIT

6

957,247

1,593,717

Interest receivable and similar income

59,282

186,143

1,016,529

1,779,860

Interest payable and similar expenses

7

66,051

73,235

PROFIT BEFORE TAXATION

950,478

1,706,625

Tax on profit

8

433,726

545,747

PROFIT FOR THE FINANCIAL YEAR

516,752

1,160,878

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

516,752

1,160,878

Profit attributable to:

Owners of the parent

516,752

1,160,878

Total comprehensive income attributable to:

Owners of the parent

516,752

1,160,878

FIXED ASSETS

Intangible assets

11

1,840,727

2,353,875

Tangible assets

12

3,136,258

2,663,808

Investments

13

140,100

140,100

5,117,085

5,157,783

CURRENT ASSETS

Stocks

14

4,516,362

4,316,967

Debtors

15

4,344,340

4,593,421

Cash at bank and in hand

2,566,233

2,752,606

11,426,935

11,662,994

CREDITORS

Amounts falling due within one year

16

3,531,143

3,394,618

NET CURRENT ASSETS

7,895,792

8,268,376

TOTAL ASSETS LESS CURRENT LIABILITIES

13,012,877

13,426,159

CREDITORS

Amounts falling due after more than one year

17

(358,772

)

(558,521

)

PROVISIONS FOR LIABILITIES

21

(666,414

)

(860,460

)

NET ASSETS

11,987,691

12,007,178

CAPITAL AND RESERVES

Called up share capital

22

2,291

2,291

Share premium

23

161,700

161,700

Capital redemption reserve

23

25,269

25,269

Retained earnings

23

11,798,431

11,817,918

11,987,691

12,007,178

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2026 and were signed on its behalf by:

R C Ross - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

1,119,831

1,144,554

Investments

13

3,302,489

3,302,489

4,422,320

4,447,043

CURRENT ASSETS

Debtors

15

434,130

403,691

Cash at bank

1,025,343

2,419,919

1,459,473

2,823,610

CREDITORS

Amounts falling due within one year

16

485,229

1,169,254

NET CURRENT ASSETS

974,244

1,654,356

TOTAL ASSETS LESS CURRENT LIABILITIES

5,396,564

6,101,399

CREDITORS

Amounts falling due after more than one year

17

358,772

489,521

NET ASSETS

5,037,792

5,611,878

CAPITAL AND RESERVES

Called up share capital

22

2,291

2,291

Share premium

23

161,700

161,700

Capital redemption reserve

23

25,269

25,269

Retained earnings

23

4,848,532

5,422,618

5,037,792

5,611,878

Company's (loss)/profit for the financial year

(37,847

)

836,304

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2026 and were signed on its behalf by:

R C Ross - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

2,291

11,193,235

161,700

25,269

11,382,495

Changes in equity

Dividends

-

(536,195

)

-

-

(536,195

)

Total comprehensive income

-

1,160,878

-

-

1,160,878

Balance at 31 December 2024

2,291

11,817,918

161,700

25,269

12,007,178

Changes in equity

Dividends

-

(536,239

)

-

-

(536,239

)

Total comprehensive income

-

516,752

-

-

516,752

Balance at 31 December 2025

2,291

11,798,431

161,700

25,269

11,987,691

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

2,291

5,122,509

161,700

25,269

5,311,769

Changes in equity

Dividends

-

(536,195

)

-

-

(536,195

)

Total comprehensive income

-

836,304

-

-

836,304

Balance at 31 December 2024

2,291

5,422,618

161,700

25,269

5,611,878

Changes in equity

Dividends

-

(536,239

)

-

-

(536,239

)

Total comprehensive loss

-

(37,847

)

-

-

(37,847

)

Balance at 31 December 2025

2,291

4,848,532

161,700

25,269

5,037,792

Cash flows from operating activities

Cash generated from operations

1

1,861,298

1,303,127

Interest paid

-

40

Tax paid

(480,910

)

(761,416

)

Net cash from operating activities

1,380,388

541,751

Cash flows from investing activities

Purchase of tangible fixed assets

(1,003,686

)

(607,189

)

Purchase of fixed asset investments

-

(1,056,132

)

Sale of tangible fixed assets

22,281

60,115

Interest received

59,282

186,143

Net cash from investing activities

(922,123

)

(1,417,063

)

Cash flows from financing activities

Loan repayments in year

(42,348

)

(37,757

)

Interest paid

(66,051

)

(73,235

)

Equity dividends paid

(536,239

)

(536,195

)

Net cash from financing activities

(644,638

)

(647,187

)

Decrease in cash and cash equivalents

(186,373

)

(1,522,499

)

Cash and cash equivalents at beginning of year

2

2,752,606

4,275,105

Cash and cash equivalents at end of year

2

2,566,233

2,752,606

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year

516,752

1,160,878

Depreciation charges

500,897

474,778

Amortisation charges

470,775

131,678

Payment of provisions

(222,305

)

(161,351

)

Release of provisions

-

10,483

Gain on disposal of tangible assets

(2,535

)

(8,423

)

Finance costs

66,051

73,235

Finance income

(59,282

)

(186,143

)

Taxation

433,726

545,747

1,704,079

2,040,882

Increase in stocks

(199,395

)

(277,981

)

Decrease/(increase) in trade and other debtors

261,481

(552,569

)

Increase in trade and other creditors

95,133

92,795

Cash generated from operations

1,861,298

1,303,127

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,566,233

2,752,606

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,752,606

4,275,105