Introduction

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

Likewise Floors Limited is a distributor of floor coverings and associated products. The Company is part of the wider Likewise Group which has the opportunity to become one of the UK's largest distributors in this sector.

Market Overview and Company Performance

The Directors are pleased to report that the Company's revenue increased from £109.4m in 31 December 2024 to £122.1m for the year ended 31 December 2025.

The cost-of-living crisis continues to exert significant pressure on consumers, primarily through the reduction in disposable income and increased household costs. While inflation has moderated from its peak, essential expenditure such as energy, housing and food remain high, constraining discretionary spending and delaying large ticket purchases such as home refurbishment projects. This economic environment, combined with a slowdown in housing market activity due to elevated interest rates, has had a pronounced effect on the floor coverings industry.

During the summer months, sales performance was adversely impacted by the unprecedented high temperatures experienced across the UK. As seen across the wider home improvement sector, reduced footfall and delayed purchasing decisions led to demand softening relative to seasonal expectations, contributing to a slowdown during this period.

Despite the challenging market conditions, Likewise Floors Limited has continued to demonstrate strong resilience and adaptability. Building on its performance in 2024, the Company delivered a further 12% increase in revenue in 2025, representing another consecutive year of double-digit growth.

This achievement is particularly notable given the absence of acquisitions during the period, with growth driven entirely through organic expansion and increased geographic reach. The performance highlights the effectiveness of the Company’s strategic initiatives, as well as the strength of its customer relationships and supplier partnerships.

In a subdued market environment, this level of organic growth underscores the Company’s ability to capture market share and respond effectively to shifting demand dynamics.

The organic revenue growth reflects the success of the Group’s strategy to expand its customer base and enhance its product offering, supported by a sustained focus on meeting and exceeding the expectations of both new and existing customers.

It also highlights the value of prior investments in logistics and distribution infrastructure, which have strengthened operational efficiency and enabled the Company to respond with greater agility to ever evolving market conditions.

Likewise London, operating from Sidcup, and Likewise Southeast, operating from Sudbury, continue to expand their market share across the region. Ongoing investment in the sales team enables both divisions to deliver consistently for existing customers while also increasing the number of new customer relationships in this strategically important geographical area. As a result, Likewise is well positioned to become a leading distributor in the region.

Likewise Midlands, operating from Birmingham, remains a strategically significant location for the wider Group. As a central logistics hub within the Likewise network, supported by a strong regional market presence and an experienced sales team, the division is well positioned to support continued growth. The introduction of a second cutting shift at the Birmingham site has further enhanced operational capacity, enabling the business to sustain its growth trajectory, deliver reliable next-day service, and provide increased logistical support across the Group.

Following its relocation in mid-2024, A&A, operating from a distribution hub in Manchester, has successfully settled into its new modern premises, benefiting from enhanced facilities and amenities that have improved employee wellbeing, morale, and overall productivity. With a settled sales team following changes made in H2 2024, a renewed strategic focus has positively influenced business performance in the latter part of the year, supporting a more efficient and forward-looking operation.

Likewise Scotland, operating from its distribution hub in Glasgow, has continued to enhance productivity in cut lengths of carpet and residential vinyl. The business delivered a particularly strong performance toward the end of 2025, reinforcing the view that consumer confidence was recovering, a trend that has continued into 2026. To further support operations, pallet capacity is being increased during 2026 through the addition of new racking and the introduction of a VNA (Very Narrow Aisle) picker, helping the facility handle more stock efficiently.

Likewise North East, based in Newcastle, benefits from a well-established and experienced management and sales team, which continues to drive strong performance across the region. Building on solid foundations, the business has maintained positive momentum, consistently gaining market share and strengthening customer relationships.

Likewise Wales was established at the start of 2024 and operates from a shared facility in Newport alongside fellow Group subsidiary Valley Wholesale Carpets. The business has continued to build on its strong start, gaining further market share throughout 2025. Following its successful launch, planning permission was secured during the year to expand the warehouse space, with work commencing in late 2025. As part of this facility expansion, investment is being made in a new cutting table, which will increase cutting capacity across the Group by approximately 30%. This will enhance operational efficiency, and support progress towards the Group’s medium-term targets. This investment will help drive the business forward, create a fourth distribution hub, strengthen the Company’s presence in the region, and support the wider Likewise Floors network. The project is on schedule to be operational from July 2026.

The investments in Newport will positively impact Likewise South, which operates from Newbury, by creating a more efficient and connected distribution network. This enhanced infrastructure provides the business with a stronger platform to streamline operations, improve service levels, and support growth, helping to further increase market presence and strengthen the Company’s position in the region.

Likewise North, operating from the Leeds Distribution Hub, is firmly established as the leading distributor along the M62 corridor. The division benefits from the optimisation of distribution capabilities of A&A in the Northwest, enabling more efficient delivery routes for customers and creating operational synergies across the Group. The Leeds hub is a key strategic site for Likewise Floors, serving as a central stock location and supporting other divisions with cutting capacity.

To complement this growth and support the wider network, a new 5-meter-wide cutting table was installed at the start of 2026, further increasing cutting capacity at the hub and across the Likewise Floors network, again helping the Group progress toward its medium-term objectives.

Delta Carpets and H&V Carpets continue to make positive progress, building on the foundations established in 2025 to drive further growth in 2026. The premium carpet brand, Floors by Lewis Abbott, has recently launched six new products, expanding the collection to fourteen. With a dedicated sales team recruited in 2025, Floors by Lewis Abbott is well-positioned to become a significant player in the UK premium carpet sector.

Established in 2025, Likewise South West formed a new start-up location for the Group operating from a logistics centre in Plymouth. With a naturally slower start at commencement, the business continues to grow and with planned further investment, will become a prominent player in Devon and Cornwall.

Further investment is planned to support continued growth in the region and to further establish Likewise Floors as a leading presence in the South West.

The creation of Likewise South West realises the Group’s strategy to achieve full geographical coverage across the UK. With this expansion, Likewise is now well positioned to deliver floor covering products across the country.

This milestone positions the Group firmly on the path to becoming one of the UK’s largest and most dependable distributors of floor coverings. As the business continues to grow, it remains committed to delivering high-quality products, exceptional service, and the trusted relationships on which its customers rely.

With the Group’s infrastructure now firmly in place, the Company’s focus has shifted towards identifying and enhancing operational efficiencies across the entire network, alongside continued investment in strengthening market presence and developing its sales teams.

In light of the continued growth of the business, the Board continues to appraise opportunities to further invest in the infrastructure required to meet increasing capacity demands. Investment was made in the fourth quarter of 2025 to develop a new product information website. This platform enables consumers who encounter Likewise Floors products through branding, media, PR, delivery vehicles, or word of mouth to explore the product range online. It also provides details of local retailers where specific products are on display, helping to connect end users with the Company’s customer base.

Launched in early 2026, the website strengthens relationships with customers who have invested in product displays by directing potential consumers to their stores. It leverages the Group’s growing market presence to support both existing and prospective customers, while also allowing consumers to research products online before visiting a retailer in person.

At the same time, the existing Likewise Floors business-to-business website continues to account for an increasing proportion of daily orders. Trade customers are able to check stock availability and place orders 24/7, with orders feeding directly into picking and cutting queues. This enhances efficiency for customers, providing full visibility of stock as they plan installations with end users, while also enabling the Group to grow without significant additional investment in personnel.

During 2025, the Company made a significant investment in the replacement and acquisition of new commercial vehicles, following a comprehensive review of its existing leasing arrangements. This investment provides the business with a modernised fleet and is expected to reduce the overall cost of fleet operations, particularly as the Company continues along its growth trajectory.

These assets were funded through asset finance, enabling the Company to undertake this investment without a significant impact on working capital. This approach has preserved financial flexibility, allowing continued investment in other key areas of the business, including the development of its sales teams and further capital projects, while also lowering the ongoing cost of operating an expanding fleet.

The Company will continue to assess its fleet strategy, as existing leases expire, funded either through cash reserves or asset finance. Decisions will be guided by what is deemed most effective operationally and in the best interests of shareholders.

The strategy of the Company remains broadly in line with that of the overall Group.

The Board remains confident that long‑term value can be delivered for suppliers, customers, and shareholders by building and sustaining a truly national supplier and distributor of floorcoverings across the UK. This vision continues to guide the Group’s strategic direction and underpins all major investment and operational decisions. As the Group nears its formative ambition of building a £200m turnover business, the Board are now appraising opportunities for growing the business in the medium-term.

In recent years, the Company has made substantial investments to scale its operations, resulting in the development of a strong, well‑recognised brand within the industry. These investments include the establishment of a robust logistics network, the expansion of key regional distribution hubs, the rollout of multiple start‑up sites nationwide, and, more recently, the renewal and growth of the commercial fleet through asset financing. The strength of the Company’s brand, reinforced by the wider Group’s infrastructure, has enabled new locations to gain market presence quickly and effectively.

Although acquisitions supported accelerated growth and extended geographic reach in the early years, the Board continues to regard organic growth as fundamental to the long‑term success of the business. Future acquisitions will be pursued selectively where they align with the Group’s strategy, provide compelling shareholder value, and contribute accretive growth or operational synergies. However, the Company’s ability to leverage its established network, brand reputation, and service capability remains the primary driver of sustainable medium‑term expansion.

Whilst the formative investment phase to establish full UK network coverage was completed in 2025, the Group recognises the opportunity to build a business exceeding the original £200m revenue target. With consecutive years of double‑digit growth, the Board continues to appraise targeted investments to enhance operational capacity whilst meeting the needs of it's customers. In doing so, the Group also looks to continue to drive improvement to operational efficiencies to drive improvements in operating margins as scale increases.

Continued investment in sales capability and customer‑facing initiatives will remain essential to support growth; however, such investment will be more targeted and prioritised. The emphasis will be on unlocking the full potential of the existing platform, increasing efficiency, and improving return on sales in line with the Group’s long‑term ambitions.

This next phase presents a significant opportunity to capitalise on the strong foundations established in recent years. By maintaining disciplined execution, strengthening financial control, and consistently delivering high‑quality products and service, the Group is well placed to create long‑term value and reinforce its position as one of the UK’s leading floorcovering distributors.

The UK floorcovering market comprises manufacturers, distributors, retailers, and installers. As part of its long-term strategic vision, the Group is committed to establishing itself as a leading national distributor within this market, delivering high-quality products and a reliable service across the UK.

The overall UK flooring market is estimated to be worth approximately £2 billion, split between residential, commercial, public sector, and industrial markets.

Despite indications of market recovery during the latter part of 2024 and early 2025, consumer demand weakened during the second half of 2025. This was likely driven by a combination of factors, including the unprecedented heat experienced during the summer months and the continued impact of cost-of-living pressures on households, which contributed to reduced footfall across the retail sector.

Notwithstanding these challenging conditions, Likewise Floors continued to increase its market share by capitalising on prior investments in its distribution network and by further strengthening its well-established customer and supplier relationships.

Trading in the first half of 2026 has shown encouraging signs, with the Likewise brand continuing its positive trajectory. This has been supported by the acquisition of new customers, alongside ongoing strong levels of service and engagement with the Group’s existing customer base.

The Board continues to closely monitor geopolitical developments in the Middle East, particularly in relation to fuel and commodity prices and the potential for wider inflationary pressures on consumers. While these factors may present challenges across the sector, the Group remains resilient, supported by its strong and well-established supply chain.

The Group benefits from long-standing relationships with a broad and diverse network of suppliers across the continent. This multi-supplier approach provides both flexibility and security of supply, ensuring the Group is well positioned to manage potential disruption and continue delivering a consistent and reliable service to its customers.

As market conditions begin to stabilise, the Group is increasingly well placed to benefit from an improving outlook. Its strategic investments in infrastructure, logistics, and sales capabilities are delivering tangible benefits, strengthening operational performance and enhancing customer reach.

With a clear focus on both residential and commercial markets, supported by a nationwide distribution model, the Group is confident in its ability to continue gaining market share, deepen partnerships with suppliers, and deliver sustainable long-term value for customers and shareholders alike.

The Board consider the following as financial key performance indicators (KPIs) for the Company: revenue, adjusted profit before tax and operating cash flow. The Directors and senior management team review these for each of the businesses on a monthly basis. Individual subsidiaries have additional key performance indicators specific to their operations. Sales and margin are also monitored against budget on a daily basis by the executive management team.

Key performance indicators were as follows:

The Board continually assesses and monitors the key risks in the business. Below describes the principal risks and uncertainties that could have a material impact on the Company’s performance and prospects and the mitigating activities which are aimed at reducing the impact or likelihood of a major risk materialising. The Board does recognise, however, that it will not always be possible to eliminate risk.

Business Disruption

The Company’s operations may be subject to disruption due to unforeseen events such as major fires, the failure of key suppliers, or other critical incidents. Events like a fire at warehouse or disruptions in the supply chain could lead to temporary operational shutdowns or hinder the Company’s ability to deliver products to customers, potentially impacting financial performance.

To mitigate the risk of supplier failure, the Company maintains a broad and diversified supplier base, reducing dependency on any single source. In addition, sufficient inventory levels are held to buffer against short-term disruptions. Given the size and scale of its logistics network, the Company benefits from inherent resilience. For example, in the unlikely event of a fire at the Birmingham depot, stock cutting operations could be redirected to other locations within the business, minimising disruption to operations and ensuring continued service to the customer base.

The Company has developed business continuity and disaster recovery plans to ensure operational resilience. The COVID-19 pandemic demonstrated that with effective communication and the implementation of robust emergency procedures, core business activities can be maintained even under significant strain.

Furthermore, the Company carries insurance for business interruption and property damage resulting from such disruptive events.

As a distribution business, the impact of any changes in product preference and changing fashions in the marketplace is limited to the level of stock held at any one time. Any cost of discounting of stock that may be necessary is built into the general business model.

Economic Conditions

The Company is dependent on the level of activity in various markets and is therefore susceptible to any changes in economic conditions. Lower levels of activity in key markets in which the Company operates could reduce sales volumes adversely, thus affecting the Company’s financial results. The Company monitors trends in the key industries and markets the Company operates in. Due to the lean organisational structure, the Company is highly agile, enabling it to respond quickly to changes and implement adjustments to its business model and operations.

Fluctuations in Input Prices

The Company’s profitability may be affected by adverse fluctuations in raw material and commodity prices. While such increases are typically experienced across the industry and are often reflected in higher selling prices passed on to end consumers, they can nevertheless create short-term margin pressure and operational challenges. In response to recent geopolitical tensions in the Middle East, which have contributed to increases in raw material costs, the Group actively reviews its pricing strategy to ensure that operating margins are appropriately maintained.

In addition, the risk of rising global freight and logistics costs, also influenced by geopolitical instability, is expected to persist and may further impact the cost of goods, particularly those sourced from overseas suppliers. While short-term volatility can be partially mitigated through the maintenance of appropriate inventory levels, sustained increases in input costs are carefully managed and, where appropriate, reflected in product pricing to customers over time.

A portion of the Company’s purchases are denominated in Euros and US Dollars, exposing the Company to foreign exchange risk. To manage this, the Company regularly enters into forward currency contracts to mitigate potential volatility. However, ongoing macroeconomic factors, such as fluctuations in global interest rates and geopolitical tensions, continue to add uncertainty to currency markets.

The Company closely monitors these developments and incorporates flexible sourcing strategies, dynamic pricing mechanisms, and robust stock management to mitigate the impact of such cost fluctuations. Where necessary, cost increases are reflected in future pricing structures to preserve margin stability.

A director of a Company must act in the way he/she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

• The likely consequences of any decision in the long term

• The interests of the company’s employees

• The need to foster the company’s business relationships with suppliers, customers and others

• The impact of the company’s operations on the community and the environment

• The desirability of the company maintaining a reputation for high standards of business conduct, and

• The need to act fairly as between members of the company.

The Directors consider it crucial that the Company maintains a reputation for the highest standards of business conduct and are responsible for setting, reviewing and upholding the culture, values, standards, ethics and reputation of the Company to ensure obligations to key stakeholders are met. By using the core values of the business, we seek to sustain and develop strong, stable, profitable partnerships with all our customers, employees and suppliers by providing outstanding products.

During the year ended 31 December 2025, the Directors consider that they have at all times acted in a way that would most likely promote the success of the Company and for the benefit of its members as a whole, and in making those decisions have had particular regard the points outlined above.

The engagement with key stakeholders is summarised as follows:

Our people

Our employees are the foundation of our success and play a critical role in delivering the Company’s strategy. They are not only the face of our business to customers and suppliers but their combined knowledge, dedication, and passion are integral to maintaining the high standards that our stakeholders have come to expect.

The Company is committed to creating a supportive and rewarding working environment where individuals are empowered to thrive. We place strong emphasis on attracting high-calibre talent, investing in training and development, and nurturing a culture of learning and growth. Employees are encouraged to take ownership of their professional journey, with opportunities for advancement and recognition based on merit and performance.

We understand the importance of recognising and rewarding the contributions our people make. Competitive compensation and benefits are in place to ensure our team feels valued and motivated.

In addition, the Group has various Share Incentive Plans available to employees which allows them to invest in the company’s future while benefiting from potential financial returns. This helps strengthen their connection to the business and its continued success.

The Board takes an active role in ensuring open communication throughout the organisation. Information and decisions that impact employees are shared transparently through various communication channels.

Furthermore, we are deeply committed to fostering a diverse, inclusive, and respectful workplace. We continue to strengthen our focus on diversity and inclusion, promoting equal opportunities for all. Our hiring and promotion practices are based solely on merit, performance, and potential, ensuring that every employee has the opportunity to contribute meaningfully and reach their full potential.

Business relationships

Relationships with our customers are at the heart of what we do. The Company is committed to developing lasting relationships by providing great products, service and value for our customers.

With the support of our dedicated employees, we have regularly visited customers to enhance the quality of our service offering. These visits provide valuable opportunities to gather timely feedback on products, services, and shifts in consumer trends, helping us refine our business to better meet customer expectations. This continuous insight has been crucial in enabling us to adapt and grow in line with their evolving needs. Particularly in 2025, when the industry has experienced a reduction in demand, this feedback has been essential for guiding our strategies and ensuring we remain responsive to market changes.

Equally, strong relationships have been developed with suppliers which continue to allow us to exceed customer expectations. Regular dialogue with suppliers provides mutually beneficial feedback on products whilst exploring new ranges that may be of interest to our customers.

Community and environment

We believe that our success is closely linked to the well-being of the communities we serve. Through providing employment opportunities, we wish to play a role in the development and improvement of the communities we are a part of.

We are looking at ways in which we can minimise our impact on the environment. We recognise the importance of sustainable practices in preserving the planet for future generations, and as part of our long-term strategy, we wish to identify and implement ways in which we can reduce our carbon footprint, waste, and resource consumption.

This should help foster a culture of responsibility and sustainability that aligns with both our corporate goals and the broader expectations of society.

On behalf of the board

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

The principal activity of the company continued to be that of the wholesale distribution of floorcoverings and associated products.

The results for the year are set out on page 17.

Ordinary dividends were paid amounting to £476,322. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The Company strives to ensure that all payments to suppliers are made promptly, adhering to the agreed-upon terms.

The Company is committed to maintaining strong supplier relationships and ensuring that all payments are made in accordance with contractual terms. No significant late payments were recorded during the year, and no penalties were incurred. The Company also continues to monitor cash flow carefully to ensure ongoing compliance with its payment obligations.

Given the increasing size of the company, it is now in scope for Payment Practices and Performance Reporting, with reports due to be available on the dedicated web based service..

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company's continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through e-mails and verbally, via management, which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

There are also various employee share schemes, which further encourage the involvement of employees in the company's performance.

As Likewise Floors Limited is a large company and has consumed more than 40,000 kWh of energy within the UK during the period, it is required to disclose the annual quantity of greenhouse gas emissions, energy consumption and energy efficiency actions within the Directors report.

As Likewise Floors Limited is a subsidiary of Likewise Group PLC, which is required to comply with the Streamlined Energy and Carbon Reporting (SECR) framework, the energy consumption of Likewise Floors Limited has been consolidated within the group-level energy and carbon disclosure provided by Likewise Group PLC.

The consolidated financial statements of Likewise Group PLC are available to the public and may be obtained from Companies House, Cardiff CF14 3UZ.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The three key financial risks the Company monitors are interest rate risk, liquidity risk and credit risk.

The Directors review and agree policies for managing these risks and they are summarised below:

Interest rate risk

The Company finances its operations through a mixture of retained profits and bank borrowings including invoice discounting facilities. The interest rates charged are reviewed and re-negotiated periodically.

Liquidity risk

Short-term flexibility is achieved through invoice financing facilities.

Credit risk

The credit rating of significant customers is monitored regularly.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

We have audited the financial statements of Likewise Floors Limited (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

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

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our assessment focused on key laws and regulations the company has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included but were not limited to compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the company and determined that the most significant which are directly relevant to specific assertions in the financial statements are those related to the financial reporting framework, being international accounting standards in conformity with the Companies Act 2006;

• obtaining an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries of management, those responsible for legal and compliance procedures and the Company Secretary. We corroborated our enquiries through our review of board minutes;

• obtaining an understanding of the entity’s policies and procedures and how the entity has complied with these, through discussions and sample testing of controls;

• obtaining an understanding of the entity’s risk assessment process, including the risk of fraud;

• designing our audit procedures to respond to our risk assessment; and

• performing audit testing over the risk of management override of controls, our audit procedures involved:

-    testing of journal entries and other adjustments for appropriateness, with a focus on manual journals     including those with unusual account combinations;

-    evaluating the business rationale of significant transactions outside the normal course of business;

-    challenging assumptions and judgements made by management in its significant     accounting     estimates,specifically those in relation to the impairment of goodwill and other intangible assets.

-    testing of journal entries with a focus on material manual journals and other adjustments for     appropriateness, evaluating the business rationale of significant transactions outside the normal         course of business, and reviewing accounting estimates for bias, specifically in relation to the     impairment of goodwill and other intangible assets.

• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. However, detecting irregularities that result from fraud is inherently more difficult that detecting those that result from error, as those irregularities that result from fraud may involve collusion, deliberate concealment, forgery, or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statement, the less likely we could become aware of it.

• The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify and recognise non-compliance with laws and regulations through the following:

-    Understanding of, and practical experience with, audit engagements of a similar nature and     complexity, though appropriate training and participation; and

-    Knowledge of the industry in which the client operates.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s member 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 member, those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s member, for our audit work, for this report, or for the opinions we have formed.

The notes on pages 22 to 45 form part of these financial statements.

The notes on pages 22 to 45 form part of these financial statements.

The notes on pages 22 to 45 form part of these financial statements.

The notes on pages 22 to 45 form part of these financial statements.

Likewise Floors Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Likewise Group PLC, Unit 4 Radial Park, Radial Way, Birmingham Business Park, Solihull, Birmingham, B37 7WN. The company's principal activities continued to be that of the wholesale distribution of floorcoverings and associated products.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable law.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of key management personnel compensation;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was determined and their effect on profit or loss and the financial position;

• comparative narrative information;

• related party disclosures for transactions with the parent or wholly owned members of the group.

Where required, equivalent disclosures are given in the group accounts of Likewise Group PLC. The group accounts of Likewise Group PLC are available to the public and can be obtained as set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Likewise Floors Limited is a wholly owned subsidiary of Likewise Group PLC and the results of Likewise Floors Limited are included in the consolidated financial statements of Likewise Group PLC which are available from Companies House, Cardiff, CF14 3UZ.

The financial statements for the Company have been prepared on a going-concern basis.true

The Company currently utilises invoice financing arrangements and has the option to draw on additional authorised facilities to support working capital requirements. The Company operated within these facilities throughout the year and continues to do so into 2026. The Directors are confident that the Company will be able to operate within the finance facilities available to us.

The Board have undertaken assessments of going concern to build up a cash flow model through to December 2027 based on 2025 actuals, 2026 budget and forecast performance for 2027. These cashflows indicate that the business has adequate resources to continue to operate for the foreseeable future and within the current financing arrangements in place.

In addition, the parent Company, Likewise Group plc continues to support the Company and provide sufficient financial support to enable the Company to continue to trade and to discharge its debts and liabilities for at least twelve months from the date of approval of these audited financial statements.

Overall, given the positive net assets position, cash reserves on hand, availability of financing arrangements and the strong forecast performance of the Company, this provides the Directors with sufficient assurance on the Company's ability to continue as a going concern, and therefore adopt the going concern basis of accounting in preparing the financial statements.

Turnover comprises sales of goods to customers, less an appropriate deduction for discounts, and is stated at the fair value of the consideration net of value added tax and other sales taxes.

Turnover and receivables are recognised when performance obligations are satisfied and the goods are delivered to customers as this is the point in time that the consideration is unconditional, control of goods has passed and only the passage of time is required before the payment is due.

Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

Goodwill is not amortised but is reviewed for impairment at least annually.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. In accordance with IAS 36, an impairment loss recognised for goodwill is not reversed in subsequent periods, even if the recoverable amount of the cash-generating unit increases in a later period.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

• Brand name - 10 years straight line

• Customer base - 10 years straight line

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investments in subsidiaries are measured at cost less accumulated impairment.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Once an impairment loss has been recognised, the carrying amount of the asset (or cash-generating unit) is not increased in subsequent periods, even if the recoverable amount of the asset subsequently increases. Reversals of previously recognised impairment losses are not permitted and are not recognised in profit or loss or as revaluation increases.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Trade and other debtors are recorded initially at transaction price and subsequently measured at amortised cost. This results in their recognition at nominal value less an allowance for any doubtful debts. This allowance for expected credit losses (ECL) may be established where evidence of credit deterioration is observed. In order to assess credit deterioration, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on its historical experience and informed credit assessment, that includes forward-looking information. An additional reserve is established, where required, when a loss is both probable and the amount is known.

ECLs are a probability-weighted estimate of lifetime credit losses. Under the ECL model, the Company calculates the allowance for credit losses by considering on a discounted basis the cash shortfalls it would incur in various default scenarios for prescribed future periods and multiplying the shortfalls by the probability of each scenario occurring. The allowance is the sum of these probability weighted outcomes. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Company expects to receive) with a discount factor applied to such overdue amounts.

The discount matrix (“ECL Matrix”) below is applied to derive an ECL for overdue amounts:

31 - 60 days overdue 0% discount

61 - 90 days overdue 0% discount

91 - 120 days overdue 5% discount

Over 120 days overdue 50% discount

The Company reserves the right to exercise its discretion in the application of discounts outside of the ECL Matrix based on extenuating circumstances that may apply from time to time to the Company's trade debtors. An example of such an extenuating circumstance may occur when an overdue amount has been collected post a reporting or measurement date.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

The fair value of equity instruments in the parent company Likewise Group Plc, granted to employees is charged to the Income statement, with a corresponding increase in equity, within the profit and loss account, as a capital contribution from the parent company.

The fair value of share options is measured at grant date using the Black-Scholes pricing model and spread over the period during which the employee becomes unconditionally entitled to the award. The charge is adjustment to reflect the number of shares or options that vest.

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Invoice discounting

The Company has an invoice discounting arrangement. The amounts owed by customers to the Company are included within trade receivables and the amount owed to the invoice discounting company is included within borrowings. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the invoice discounting company and the invoices discounted.

The interest element of the invoice discounting charges and other related costs are recognised as they accrue and are included in the Income Statement with other finance costs.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The Company recognises identifiable intangible assets, such as brands and customer relationships, at fair value on acquisition of the relevant subsidiaries. Any excess paid over the value of net assets acquired is recognised as Goodwill in the Statement of Financial Position and is allocated to the appropriate business.

The annual amortisation charge and useful life is based on the period over which management expects to benefit from the intangible assets, based on past experience and knowledge of the business acquired.

Goodwill is recognised on acquisition of subsidiaries. This value is the excess paid over the net assets acquired which cannot be separately identified as an intangible asset. Goodwill is not amortised but is subject to an annual impairment review.

The impairment assessment compares the carrying value of Goodwill and intangible assets with its recoverable amount. The recoverable amount is determined by performing a discounted cash flow (DCF) analysis of the Cash Generating Unit (CGU) with reference to divisional budgets prepared by management. To prepare the DCF, management are required to use estimates and judgement for the parameters applied to the model of growth and termination growth rate percentages along with the discount factor. The percentages used to calculate the growth rates are based on prior performance along with budgets for the coming year. The discount factor is based on the proportion of the company's cost of capital weighted between the use of debt and equity finance.

Stocks are stated at the lower of cost and the estimated selling price less costs to complete and sell.

Stock provisions are recognised to provide for short length stock dependant on its length and therefore it's likely realisable value. In addition, a provision is recognised for any aged stock, on an increasing basis, once it's been held in inventory for at least one year.

A significant shift in consumer market or customer demand may result in an additional specific provision being recognised.

For further information in relation to the amounts charged above please refer to pages 4 and 5 of the strategic report.

The fees payable to the Company's auditor for the audit of the financial statements were borne in the current and prior year by the parent company, Likewise Group PLC.

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

Their aggregate remuneration comprised:

Included within wages and salaries are costs in respect of share-based payments of £154,114 for the year (2024 - share based payment credit of £(57,856)).

In the prior year, the table was presented net of any share-based payment charge or credit, with these amounts disclosed separately in the narrative below the table. For clarity, in the current year these amounts have been included in total within the table, and are also reflected within the narrative presented below the table.

Directors emoluments were borne by the parent company, Likewise Group Plc, in both the current and prior year.

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

At 31 December 2025, the Company has unrecognised tax losses of £6,860,170 (2024 - £6,288,815) which are available for offset against future taxable profits. The amount of tax losses recognised in the year was £1,715,043 (2024 - £1,572,204).

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The carrying amount of goodwill has been allocated to the Company's primary activity of wholesale distribution and the associated cash generating unit of the Delta Carpets trading brand.

The Company tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.

The goodwill is a reflection of the benefit the acquisition of the trading brand will have on the Company and offers greater geographic coverage and provides the opportunity to expand this further. The Delta Carpets brand will benefit from the collective marketing and the enhanced product range available to all companies in the wider Likewise Group. Ultimately this will enable the acquired brand and Likewise Floors to provide an improved customer service, across a wider geographic area, with a greater product portfolio designed to help the Company continue its development.

The Company has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used in the supporting five year forecasts being a discount rate of 8%. The break even point of goodwill is at a growth level of -10% with terminal growth factor of 1%.

During the year ended 31 December 2025, the directors approved the purchase of £2,797,442 of assets through asset finance arrangements (2024: £nil). These acquisitions replaced previously leased assets and also included additional assets to strengthen the fleet as the business continues to expand geographically and increase market share.

These assets have been capitalised within the Motor vehicles category in the fixed asset note above.

The depreciation charge in the year was split between owned assets and right-of-use assets as follows:

The directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Registered office address of all the above:

The amount of stock impaired during the year was £977,699 (2024 - £917,009).

Stock impairments include roll balances that are sent with customer orders, any adjustments for the verification of roll stock measurements as well as any specific inventory write downs recognised.

The £2,984,565 (£1,608,550 - 2024) included within amounts owed by group undertakings are balances that are unsecured, interest‑free and have no fixed date of repayment. These amounts are repayable on demand; however, repayment is considered unlikely to occur within the next twelve months.

The balance within loans and overdrafts relates to an invoice discounting facility that is secured against the related trade debtor balances and by a floating charge over the assets of the Company and wider Group. The facility, denominated in Sterling and Euro, carries a fixed annual service charge of £18,000 and accrues variable interest linked to the Bank of England Base Rate.

The £3,213,490 (£4,036,107 - 2024) included within amounts owed to group undertakings are balances that are unsecured, interest-free and have no fixed date of repayment. These amounts are repayable on demand; however, repayment is considered unlikely to occur within the next twelve months.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

Lease liabilities comprise obligations arising from lease arrangements recognised in accordance with IFRS 16 Leases.

Included within lease liabilities are balances relating to right-of-use assets recognised under IFRS 16 totalling £13,609,872 (2024 - £16,370,176) representing the present value of future lease payments for leased assets.

Lease liabilities also include £2,585,767 (2024 - £794,173) relating to asset financing arrangements for commercial vehicles. Under these arrangements, legal title to the vehicles remains with the financing provider until the outstanding balances are fully repaid.

The Company's obligations in relation to right-of-use assets are secured by the lessors' title to the leased assets for such leases.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

A deferred tax asset of £586,098 (2024 - £588,446) has not been recognised in the financial statements on the basis that is is uncertain that the asset will crystallise in the foreseeable future.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £69,491 (2024 - £51,133) were payable to the fund at the reporting date and are included in creditors.

The Company operates a Defined Benefit Pension Scheme.

The scheme provides benefits based on final pensionable pay, is closed to new members and is closed to future accrual. For pensions earned after 5 April 1997 and for Guaranteed Minimum Pensions earned between 6 April 1988 and 5 April 1997, increases in payment will be in line with CPI rather than RPI. Revaluations of pensions in deferment are linked to RPI.

The assets of the scheme are held separately from those of the Company in trustee administered funds. The level of contributions is determined by a qualified actuary on the basis of triennial valuations. The liabilities have been rolled forward based on data at 31 December 2023.

The contribution made for the year ended 31 December 2025 was £Nil (2024 - £Nil). The Company expects to contribute £Nil to the scheme in the coming financial year.

Given that the defined benefit pension scheme is in surplus at 31 December 2025, there is expected to be no material impact on the Company's future cash flows.

Reconciliation of present value of plan liabilities:

Assumed life expectations on retirement at age 65:

The retirement benefit obligation recognised in the statement of financial position represents the surplus in the defined benefit scheme. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

The Trust Deed provides Likewise Floors Limited with an unconditional right to a refund of surplus assets assuming the full settlement of plan liabilities in the event of a plan wind-up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind up, or otherwise augment the benefits due to members of, the plan. Based on these rights, any material net surplus in the plan is recognised in full.

The defined benefit obligations arise from plans which are wholly or partly funded.

Scheme obligation liabilities would have been affected by changes in assumptions as follows:

Equity settled share option plan

Likewise Group Plc, the parent company of Likewise Floors Limited, has a Savings-Related Share Option Plan ("SAYE") for all employees of the Group. In accordance with the terms of the plan, as approved by shareholders, employees of the Group may be granted options to purchase ordinary shares in Likewise Group Plc. There are no performance criteria for the SAYE and options are issued to participants in accordance with HMRC rules. Vesting is conditional on continuity of service.

As at 31 December 2024, 7,234,596 options remained active. During the current year 2,670,728 new options were issued and 1,741,308 options lapsed on employees leaving the Company. No options were exercised in the year. The contractual life of the remaining 8,164,016 options is approximately 3 years.

As at 31 December 2024, 4,625,000 share options remained active which were granted to management under Enterprise Management Incentives (“EMI”). During the current year no new options were issued and 300,000 options lapsed on employees leaving the Group. No options were exercised in the year. The remaining 4,325,000 EMI options have fully vested and participants have 10 years from the date of the grant in which to exercise them.

As at 31 December 2024, 2,900,000 share options remained active which were granted to management under a Company Share Option Plan (“CSOP”). During the current year no new options were issued and 350,000 options lapsed on employees leaving the Group. No options were exercised in the year. The contractual life of the remaining 2,550,000 CSOP options is approximately 0.75 years.

Share options are valued using the Black-Scholes model. The inputs to the model are the option price and share price at the date of grant, expected volatility (20% / 44% / 45%, dependant on the scheme), expected dividend rate (0% / 1.56%, dependant on the scheme) and risk-free rate of return (4-5%). The model has been adjusted for expected behavioral considerations.

The resulting fair value is expensed through the Statement of Comprehensive Income over the vesting period of each scheme. The total charge/(credit) recognised for the year was:

The Company has one class of ordinary share which carry no right to fixed income.

This represents contributions made by the parent company, in the form of its shares, as part of the consideration for the Company's acquisition of subsidiary entities.

Most of the Company's transactions are carried out in GBP. Exposures to foreign currency exchange rates arise from the Company's overseas sales and purchases, which are denominated in EUR and USD.

The Company assesses exposure and takes out forward currency contracts to mitigate this foreign exchange risk. As at the 31 December 2025, the Company held forward Euro contracts totalling €679,889 (2024 - €1,073,767) and forward USD contracts totalling $2,793,879 (2024 - $4,633,702).

These contracts crystallise between January and May 2026.

As of 31 December 2025 the fair value of these cash flow hedging instruments are immaterial and therefore no derivates have been recognised in the balance sheet as at the year end.

This includes all current and prior period gains and losses and is a distributable reserve.

The Company is a wholly owned subsidiary of Likewise Group PLC, a company incorporated in England who produce consolidated financial statements for the Group. The ultimate parent Company's registered office is Unit 4 Radial park, Radial Way, Birmingham Business Park, Solihull, Birmingham, B37 7WN.