REGISTERED NUMBER: 02738449 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2025

FOR

BEACON FOODS LIMITED

Page

Company information

1

Strategic report

2

Report of the directors

5

Report of the independent auditors

7

Profit and loss account

11

Other comprehensive income

12

Balance sheet

13

Statement of changes in equity

14

Cash flow statement

15

Notes to the cash flow statement

16

Notes to the financial statements

18

Directors:

E T Gough

J W Davies

J Singh

Secretary:

R Jones

Registered office:

Unit 2

Brecon Enterprise Park

Warren Road

Brecon

Powys

LD3 8BT

Registered number:

02738449 (England and Wales)

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

Principle activity

The principle activity of the company continues to be that of the manufacturing of ingredients for the food industry.

Review of business

The business continues to perform strongly, delivering sustained sales growth and maintaining robust profit margins in line with recent years. Results for the year show an increase in sales from £21.6m in 2024 to £25.6m in 2025. The gross profit margin remained strong at 47% (2024: 46%). Net profit increased to £2.23m (2024: £1.34m). Strategic investment in factory infrastructure and equipment has enhanced operational efficiency and created significant additional capacity. This positions the company well to support future growth without the need for major further capital expenditure.

The recent investment in manufacturing facilities is proving highly effective. Increased production capacity, combined with largely fixed overheads, is driving improved economies of scale. As volumes grow, the cost base remains stable, enabling continued margin expansion.

The upgraded facility now offers:

- Increased production capacity

- Greater flexibility in product and packaging formats

- Enhanced efficiency through modern, well-controlled processes

- Compliance with high-quality standards, including BRC AA certification

This strong operational foundation provides confidence that the business can accommodate future demand without significant additional investment.

The working capital cycle was uneventful with no significant movement in stock/debtors/creditors.

Cash generation during the year was still strong, allowing continued heavy investment in fixed assets. Total spending on fixed assets was £1.2m, funded from reserves. As expected, this has depleted cash reserves at the year end, but strong trading since then has boosted those reserves.

Principal risks and uncertainties

The key business risks and uncertainties affecting the company are considered to relate to:

- Global increase in energy costs

- Market conditions in the United Kingdom

- Competition from European imports

The company aims to mitigate these risks by establishing a compelling value proposition within its market, building on:

- High-quality, consistently reliable products

- Minimal allergen handling and UPF-free offerings

- Customer-friendly service model

- Low minimum order quantities

- Efficient and modern production capabilities

These attributes differentiate the business and resonate strongly with customers, contributing to both customer retention and acquisition.

The directors continually monitor the state of the market segments that affect the business and evolves the business strategy as required.

Key performance indicators

The company utilises a range of measures to assess its performance on the most appropriate time basis. These range from financial measures across the company as a whole to operational measures within individual departments.

Development and performance

The first half of 2026 has been strong in terms of both sales and margin. Investment in capacity over the last few years is now paying off and we are seeing the benefit of increasing volumes on a predominately fixed overhead.

Several factors are supporting ongoing growth:

- Expansion of the customer base

- Increased number of SKUs per customer

- Strong performance from New Product Development (NPD) teams

- Rising demand for clean-label and functional ingredients

The combination of these drivers supports the expectation of continued sales growth and margin improvement.

Given the stability of overheads and the absence of anticipated major capital expenditure, the business is well-positioned to benefit from operating leverage. As sales increase, profitability is expected to improve further. Management is confident that:

- Sales growth trends will continue

- Margins will strengthen over time

- Overhead costs will remain broadly stable

The business will continue to prioritise B2B markets, where it has demonstrated strong performance and established expertise. This segment aligns well with the company's operational model and value proposition.

Ongoing investment in NPD will remain a key priority, ensuring the company continues to meet evolving customer needs and capitalise on demand for innovative, clean-label ingredients.

Maximising utilisation of existing factory capacity will be critical to driving further efficiency gains and margin expansion.

The business is in a strong strategic position, supported by successful investment, efficient operations, and a differentiated offering. With stable overheads and increasing demand, the company is well-placed to continue its trajectory of profitable growth.

Future success will depend on maintaining operational excellence, leveraging existing capacity, and selectively exploring new market opportunities such as QSR and food service.

Signed on behalf of the board:

E T Gough - Director

11th September 2026

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

Dividends

The total distribution of dividends for the year ended 31st December 2025 was £351,000.

The directors recommend that no further dividend is paid and the remainder be transferred to reserves.

Research and development

The company invests heavily in research and development in order to continue to produce new and exciting products.

Future developments

The directors expect continued improvement in the level of activity and operational profits for the forthcoming year ending 31st December 2026. No changes in the operational activities are expected in the foreseeable future.

Directors

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

E T Gough

J W Davies

Other changes in directors holding office are as follows:

J Singh - appointed 6th January 2025

Financial instruments

The company enters into no complex financial instruments.

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.

Signed on behalf of the board:

E T Gough - Director

11th September 2026

Opinion

We have audited the financial statements of Beacon Foods Limited (the 'company') for the year ended 31st December 2025 which comprise the Profit and loss account, 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 31st 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 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 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.

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 commercial knowledge and experience of the food industry and supply sector;

-

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, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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;

-

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

-

understanding the design of the company's remuneration policies.

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;

-

assessed whether judgements and assumptions made in determining the accounting estimates 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, relevant regulators 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.

Chris Duckett (Senior Statutory Auditor)

for and on behalf of Chris Duckett (Audit) Limited

Chartered Accountants & Statutory Auditors

Network House

Thorn Office Centre

Rotherwas

Hereford

HR2 6JT

11th September 2026

Turnover

3

25,630,771

21,646,414

Cost of sales

13,584,770

11,616,962

Gross profit

12,046,001

10,029,452

Administrative expenses

9,734,283

8,595,937

Operating profit

5

2,311,718

1,433,515

Interest receivable & similar income

190

-

2,311,908

1,433,515

Interest payable & similar expenses

6

80,929

96,094

Profit before taxation

2,230,979

1,337,421

Tax on profit

7

578,400

291,100

Profit for the financial year

1,652,579

1,046,321

Profit for the year

1,652,579

1,046,321

Other comprehensive income

-

-

Total comprehensive income for the year

1,652,579

1,046,321

Fixed assets

Intangible assets

10

-

-

Tangible assets

11

8,954,532

9,452,440

8,954,532

9,452,440

Current assets

Stocks

12

1,497,597

1,114,007

Debtors

13

5,311,449

4,316,422

Cash at bank and in hand

425,137

29,395

7,234,183

5,459,824

Creditors

Amounts falling due within one year

14

3,528,270

3,349,303

Net current assets

3,705,913

2,110,521

Total assets less current liabilities

12,660,445

11,562,961

Creditors

Amounts falling due after more than one year

15

(2,080,420

)

(2,510,115

)

Provisions for liabilities

19

(1,004,000

)

(778,400

)

Net assets

9,576,025

8,274,446

Capital and reserves

Called up share capital

20

10,000

10,000

Retained earnings

21

9,566,025

8,264,446

Shareholders' funds

9,576,025

8,274,446

The financial statements were approved by the Board of Directors and authorised for issue on 11th September 2026 and were signed on its behalf by:

E T Gough - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2024

10,000

7,218,125

7,228,125

Changes in equity

Total comprehensive income

-

1,046,321

1,046,321

Balance at 31st December 2024

10,000

8,264,446

8,274,446

Changes in equity

Dividends

-

(351,000

)

(351,000

)

Total comprehensive income

-

1,652,579

1,652,579

Balance at 31st December 2025

10,000

9,566,025

9,576,025

Cash flows from operating activities

Cash generated from operations

1

2,397,904

2,312,410

Interest paid

(80,929

)

(96,094

)

Net cash from operating activities

2,316,975

2,216,316

Cash flows from investing activities

Purchase of tangible fixed assets

(1,105,907

)

(2,157,595

)

Sale of tangible fixed assets

164,659

500

Reclassification of tangible fixed asset

-

4,198

Interest received

190

-

Net cash from investing activities

(941,058

)

(2,152,897

)

Cash flows from financing activities

Loan repayments in year

(225,042

)

(369,658

)

Amount withdrawn by directors

(422,962

)

(29,631

)

Movements in group balances

18,829

-

Equity dividends paid

(351,000

)

-

Net cash from financing activities

(980,175

)

(399,289

)

Increase/(decrease) in cash and cash equivalents

395,742

(335,870

)

Cash and cash equivalents at beginning of year

2

29,395

365,265

Cash and cash equivalents at end of year

2

425,137

29,395

1.	Reconciliation of profit before taxation to cash generated from operations

31.12.25

31.12.24

£

£

Profit before taxation

2,230,979

1,337,421

Depreciation charges

1,327,143

1,148,977

Loss/(profit) on disposal of fixed assets

112,013

(500

)

Finance costs

80,929

96,094

Finance income

(190

)

-

3,750,874

2,581,992

Increase in stocks

(383,590

)

(300,194

)

Increase in trade and other debtors

(637,559

)

(1,060,495

)

(Decrease)/increase in trade and other creditors

(331,821

)

1,091,107

Cash generated from operations

2,397,904

2,312,410

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 31st December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

425,137

29,395

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

29,395

365,265

3.	Analysis of changes in net debt

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

29,395

395,742

425,137

29,395

395,742

425,137

Debt

Debts falling due within 1 year

(177,004

)

3,672

(173,332

)

Debts falling due after 1 year

(1,273,415

)

221,370

(1,052,045

)

(1,450,419

)

225,042

(1,225,377

)

Total

(1,421,024

)

620,784

(800,240

)

1.	Statutory information

Beacon Foods 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 accounting

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 significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Critical accounting judgements and key sources of estimation uncertainty

The following judgements and estimations have been made in the process of applying the company's accounting policies that have had the most significant effect on amounts recognised in the financial statements.

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 it affects only that period or in both current and future periods.

Grant amortisation

Amortisation is provided to credit grant income over the economic useful life of the asset to which they relate. The useful economic lives and residual values are reviewed on an annual basis by the Directors.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economical lives and residual values of the assets. These are assessed by the Directors on an annual basis.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Revenue is recognised when goods are dispatched.

Goodwill

Goodwill arising on business combinations is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The goodwill has been fully amortised.

Tangible fixed assets

Tangible fixed assets are stated in the Balance sheet at costs less depreciation.

Depreciation is calculated to write off the cost or valuation less estimated residual value of tangible assets over their estimated useful lives at the following rates per annum:

Land & buildings

Straight line over 10 - 25 years & 0%

Plant & machinery

10% -25% SL

Fixtures, fittings & office equipment

20% - 33% SL

Motor vehicles

25% SL

Stocks & work in progress

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all direct expenditure. Cost is calculated on a first-in, first-out basis, 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 Profit and Loss Account, 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.

Research & development

Expenditure on research and development is written off against profits in the year in which it is incurred.

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.

Pension costs & other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate. The assets are held outside the company in a separately administered fund.

Operating leases

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Government grants

Grants of a capital nature are credited to the Balance sheet and amortised over the life of the assets to which they relate.

Grants receivable in respect of expenses or losses already incurred are recognised in profit and loss in the period when the grant becomes receivable or in the period in which the grant is intended to compensate.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments.

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

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at the cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the assets original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all of the risks and rewards of the ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities, including trade and other payables are measured at the transaction price. Other financial liabilities, including bank loans, loans from fellow group companies and preference shares that are classified as debt, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

3.

Turnover

2.4% of the company's turnover (2024: 1.3%) is attributable to geographical markets outside the United Kingdom.

4.	Employees (including officers)

31.12.25

31.12.24

£

£

Wages and salaries

5,554,587

4,799,499

Social security costs

624,023

436,191

Other pension costs

186,170

186,142

6,364,780

5,421,832

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

31.12.25

31.12.24

Production & transport

140

126

Admin & management

40

36

180

162