REGISTERED NUMBER: 07734226 (England and Wales)

AAK NATURAL EMULSIFIERS 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

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

S Jaspers

C J A Gyllin

SECRETARY:

D Taylor

REGISTERED OFFICE:

King George Dock

Hull

HU9 5PX

REGISTERED NUMBER:

07734226 (England and Wales)

AUDITORS:

Clarke Nicklin LLP

Chartered Accountants and

Statutory Auditors

Clarke Nicklin House

Brooks Drive

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3TD

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

To comply with the Companies Act 2006, the Company has provided below a review of the performance of the business during the year, including key financial performance indicators and a description of the risks and uncertainties facing the Company.

The strategic review contains forward looking statements and opinions that involve risks and uncertainties. These risks and uncertainties could cause results to differ materially from expectations.

BUSINESS REVIEW

The results for the year show a decrease in turnover of 32.4% to £4.2m (2024: £6.3m). Despite the reduction in revenue, the company achieved a Gross Profit of £0.4m (9.6% margin), a significant recovery compared to the Gross Loss of £3.2m (-51.1% margin) reported in 2024.

The decrease in turnover was driven by a combination of lower global market prices for metric tonnage and a decline in sales volumes. The return to a positive gross margin and the reduction in the Operating Loss to £1.3m (2024: £4.9m) were primarily due to the stabilisation of the lecithin market and a significant reduction in stock impairment charges. Stock impairments for the year totalled £1.0m, compared to £3.1m in 2024, as the company focused on clearing historical distressed stock and restating inventory at the lower of net realisable value or the cost to re-work expired stock.

PRINCIPAL RISKS AND UNCERTAINTIES

The company operates in a rapidly changing economic environment subject to global raw material prices for soft oilseeds. This presents areas of risk which are driven by factors which we cannot control or predict. The business seeks to manage these risks as well as possible.

UKRAINE IMPACT

The conflict in the Ukraine remains a factor in disrupting the sunflower lecithin market supply and the wider lecithin market. Management believe the business is structurally resilient to the disruptions caused related to the Ukraine with respect to supplying the UK market.

TARIFFS

For the period year ended 31 December 2025, the changing landscape of global tariffs in North America, EU and UK coupled with other global jurisdictions presented an area of risk. Management believe the business is structurally resilient to the disruptions caused related to these government decisions in relation to the UK market.

FINANCIAL KEY PERFORMANCE INDICATORS

Key performance indicators for the business are turnover, gross profit, EBIT and operational efficiencies. There are not considered to be any non-financial key performance indicators that require disclosure.

KEY STRENGTHS

The business is well placed within its sector in that it can leverage on the UK sales resources of AAK and reach out to customers in the UK. Other key strengths include extensive technical product application know how to benefit customers in food, pharmaceutical and animal feed sectors.

POST BALANCE SHEET EVENTS

Subsequent to the year-end, AAK Group management decided to restructure the business in order to streamline ongoing costs. The Company is expected to continue to operate in the UK, supporting ongoing sales activities within the AAK Group. Accordingly, the directors have considered the impact of these events on the Company's ability to continue as a going concern and are satisfied that the going concern basis of preparation remains appropriate.

ON BEHALF OF THE BOARD:

D Taylor - Secretary

10 September 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 import and distribution of food ingredients.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

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

S Jaspers has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

P A J Malmunger - resigned 30 September 2025

C J A Gyllin - appointed 30 September 2025

GOING CONCERN

Subsequent to the year-end, AAK Group management decided to restructure the business in order to streamline ongoing costs. The Company is expected to continue to operate in the UK based from its registered office in hull, supporting ongoing sales activities within the AAK Group in the UK market with minimal sales overheads and consequently reduced operational costs. Accordingly, the directors have considered the impact of these events on the Company's ability to continue as a going concern and are satisfied that the going concern basis of preparation remains appropriate.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

D Taylor - Secretary

10 September 2026

Opinion

We have audited the financial statements of AAK Natural Emulsifiers Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 loss 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Procedures to identify risks:

-

enquiring of management concerning the company's procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: timing of recognition of sales and purchases and their related stock movements, posting of unusual journals; and

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation.

The procedures to respond to risks identified included:

-

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

-

enquiring of management, concerning actual and potential litigation and claims;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reviewing correspondence with HMRC;

-

testing the timing and matching of income and expense transactions relating to stock movements either side of the year end; and

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Andrew Baggott FCA (Senior Statutory Auditor)

for and on behalf of Clarke Nicklin LLP

Chartered Accountants and

Statutory Auditors

Clarke Nicklin House

Brooks Drive

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3TD

10 September 2026

TURNOVER

3

4,245,902

6,279,967

Cost of sales

3,839,367

9,486,714

GROSS PROFIT/(LOSS)

406,535

(3,206,747

)

Administrative expenses

1,665,437

1,648,971

OPERATING LOSS

5

(1,258,902

)

(4,855,718

)

Interest receivable and similar income

11,581

20,027

(1,247,321

)

(4,835,691

)

Interest payable and similar expenses

6

1,298,602

1,611,104

LOSS BEFORE TAXATION

(2,545,923

)

(6,446,795

)

Tax on loss

7

(1,127,879

)

-

LOSS FOR THE FINANCIAL YEAR

(1,418,044

)

(6,446,795

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(1,418,044

)

(6,446,795

)

FIXED ASSETS

Tangible assets

8

2,948

5,020

CURRENT ASSETS

Stocks

9

996,908

2,821,359

Debtors

10

1,762,776

858,013

Cash at bank

93,210

796,890

2,852,894

4,476,262

CREDITORS

Amounts falling due within one year

11

26,817,825

27,025,221

NET CURRENT LIABILITIES

(23,964,931

)

(22,548,959

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(23,961,983

)

(22,543,939

)

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

(23,962,083

)

(22,544,039

)

SHAREHOLDERS' FUNDS

(23,961,983

)

(22,543,939

)

The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2026 and were signed on its behalf by:

S Jaspers - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

(16,097,244

)

(16,097,144

)

Changes in equity

Total comprehensive income

-

(6,446,795

)

(6,446,795

)

Balance at 31 December 2024

100

(22,544,039

)

(22,543,939

)

Changes in equity

Total comprehensive income

-

(1,418,044

)

(1,418,044

)

Balance at 31 December 2025

100

(23,962,083

)

(23,961,983

)

1.	STATUTORY INFORMATION

AAK Natural Emulsifiers 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.

The financial statements are presented in Sterling (£).

Going Concern

The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.

Subsequent to the year-end, AAK Group management initiated a restructuring of the company’s operations to streamline overheads and reduce ongoing operating costs. Under this restructured model, the company will continue to operate from its registered office in Hull, supporting ongoing UK sales activities within the wider AAK Group with a significantly reduced cost base.

The directors have assessed the principal risks, cash flow forecasts, and operational plans for a period of at least 12 months from the date of approval of these financial statements. In performing this assessment, the directors have received formal confirmation from the ultimate parent company, AAK AB, that it will continue to provide adequate financial support to enable the company to meet its liabilities and financial commitments as they fall due for a period of at least 12 months from the date of signing these financial statements.

After considering these factors, forecasts, and the explicit parent support, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Related party exemption

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

Significant judgements and estimates

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no other judgements considered to have had a significant effect on amounts recognised in the financial statements except for the below.

Stock write down

The company recognised a significant impairment charge on its stock, primarily acquired before the onset of the conflict in Ukraine. This precautionary measure aimed to ensure sufficient supply amidst potential disruptions to the supply chain. However, the purchase prices during this period were heavily inflated due to market uncertainty. Subsequently, in the current and previous financial periods, as pricing stabilised management faced challenges in passing the increased prices on to its customers. This resulted in an adjustment of £1,022,270 to impair its stock (2024: £3,068,030).

Rework provision

The company recognised a rework provision in respect of inventory that has passed its expiry date but remains suitable for sale after undergoing necessary rework processes. Management estimates the required provision based on expected future costs to bring the inventory back to a saleable condition. These costs include direct expenses incurred in the rework process. Management considers historical rework costs and expected volumes. As these estimates involve uncertainty, actual costs may differ, and the provision is reviewed regularly for adjustment.

Turnover

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods).

Tangible fixed assets

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

Fixtures and fittings

-

33% on cost

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. For both the current and prior financial year, stocks are carried at their estimated market selling price, as this market price is lower than their historical cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.

Foreign currencies

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial assets

Basic financial assets, including trade debtors, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

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 the income statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade creditors and amounts owed to group undertakings, 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 receipts discounted at a market rate of interest.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3.

TURNOVER

The turnover and loss 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

415,113

682,134

Europe

2,718,857

3,310,233

Rest of World

1,111,932

2,287,600

4,245,902

6,279,967

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

183,362

193,524

Social security costs

22,720

20,261

Other pension costs

5,577

(5,284

)

211,659

208,501

The average number of employees during the year was as follows:

2025

2024

Directors

2

2

Administration

5

5

7

7

2 (2024: 2) directors are remunerated by other companies in the group.

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging/(crediting):

2025

2024

£

£

Other operating leases

51,207

49,995

Depreciation - owned assets

2,072

2,226

Auditors' remuneration

21,060

20,250

Foreign exchange differences

(9,271

)

22,764

Impairment of trade debtors

(671

)

25,618

Impairment of stock (See note 9)

1,022,270

3,068,030

Litigation settlement

25,000

371,293

Rework provision

-

1,328,754

During the previous financial year the company agreed to a final settlement of €1,000,000, of which €550,000 has been covered by insurers. This related to a customer claim arising from supplied batches of Soy Lecithin contaminated with traces of peanut protein, coupled with a Non-Performance claim for failure to deliver contracted volumes. The claim was handled by AAK AB on a group-wide basis.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank interest

1,298,602

1,611,104

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(1,127,879

)

-

Tax on loss

(1,127,879

)

-

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax credit 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

£

£

Loss before tax

(2,545,923

)

(6,446,795

)

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

(636,481

)

(1,611,699

)

Effects of:

Loss carried forward

636,153

1,612,316

Deferred tax not accounted for

328

(617

)

Group relief receivable

(1,127,879

)

-

Total tax credit

(1,127,879

)

-

The company has, subject to HMRC approval, corporation tax losses of £26,294,833 available to offset against future trading profits.

8.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2025

and 31 December 2025

6,352

16,767

23,119

DEPRECIATION

At 1 January 2025

1,955

16,144

18,099

Charge for year

1,449

623

2,072

At 31 December 2025

3,404

16,767

20,171

NET BOOK VALUE

At 31 December 2025

2,948

-

2,948

At 31 December 2024

4,397

623

5,020

9.

STOCKS

2025

2024

£

£

Finished goods

996,908

2,821,359

The company recognised an impairment charge on its stock, primarily acquired prior to the onset of the conflict in Ukraine. This precautionary measure aimed to ensure sufficient supply amidst potential disruptions to the supply chain. However, the purchase prices during that period were heavily inflated due to market uncertainty. Subsequently, in the current and previous financial periods, as pricing stabilised, management faced challenges in passing the increased prices on to its customers. This resulted in an adjustment of £1,022,270 to impair its stock (2024: £3,068,030).

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

468,090

696,348

Amounts owed by group undertakings

1,127,879

-

Other debtors

12,770

13,526

Corporation tax

140,055

140,056

VAT

1,917

-

Prepayments and accrued income

12,065

8,083

1,762,776

858,013

Trade debtors are stated after provisions for impairment of £24,798 (2024: £29,478).

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Bank loans and overdrafts (see note 12)

25,988,317

24,729,770

Trade creditors

684,277

765,842

VAT

-

4,451

Other creditors

4,172

27,757

Accruals and deferred income

141,059

1,497,401

26,817,825

27,025,221

12.

LOANS

An analysis of the maturity of loans is given below:

2025

2024

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

25,988,317

24,729,770

The bank overdrafts are guaranteed by the company's parent undertaking, AAK AB.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary

£1

100

100

14.

RESERVES

Retained

earnings

£

At 1 January 2025

(22,544,039

)

Deficit for the year

(1,418,044

)

At 31 December 2025

(23,962,083

)

15.	ULTIMATE PARENT COMPANY

The parent undertaking of the largest and smallest group for which consolidated financial statements are prepared is AAK AB (incorporated in Sweden). Consolidated financial statements are available from https://aak.com/investors/.

16.	POST BALANCE SHEET EVENTS

Subsequent to the year-end, AAK Group management decided to restructure the business in order to streamline ongoing costs. The Company is expected to continue to operate in the UK based from its registered office in hull, supporting ongoing sales activities within the AAK Group in the UK market with minimal sales overheads and consequently reduced operational costs. Accordingly, the directors have considered the impact of these events on the Company's ability to continue as a going concern and are satisfied that the going concern basis of preparation remains appropriate.