The directors present the strategic report for the year ended 31 March 2026.

The company's trading results continued to improve in the year, with an increase in turnover and gross profit compared to the previous financial year. Turnover increased by 8.62% from £20,009,174 in 2025 to £21,734,734 in the year, the cost of sales increased by 8.98% from £13,941,985 in 2025 to £15,194,272 resulting in an decrease in the gross profit margin from 30.32% to 30.09%. There was a increase in gross profit by 7.80% from £6,067,189 in 2025 to £6,540,462 in the year. The company's overhead costs increased by 25.16% from £3,649,576 in 2025 to £4,567,816 in the year. The company made a net profit £1,472,618 in the year compared with a net profit of £1,800,379 in 2025.

The company continues to pay down bank debt and makes capital contributions to an employee ownership trust.

Shareholder funds increased to £209,301 (2025: £92,683). The financial position of the company is reflected on the balance sheet and accompanying notes.

The Directors are satisfied with the continued profitability of the company. No significant future developments are foreseen.

The medical equipment and consumable market in the UK is highly competitive and margins continue to be under pressure. We are also subject to government policy and the effect on our markets of the general state of the UK economy.

The Directors are confident that a combination of trading performance and the support of both bank and shareholder are sufficient to address any liquidity risk that may arise.

The company may be affected by supplier price increases. The Directors are of the opinion that the risk is mitigated through the company's purchasing policies and margin strategy.

The company is optimistic that a continuing increase in equipment sales and the development of the Lawmed name will enable company growth.

Lawmed continues to work with its suppliers under their current contractual arrangements. The relationships continue to strengthen with most products groups showing resilience and growth in the marketplace. Our AirSeal product is still a market leader in its field, and our Dynamesh product has grown significantly. More recently Endosure, our diagnostic product for Endometriosis has been endorsed by NICE allowing the NHS to use it in a Primary Care setting for the next three years. This is a significant milestone and is expected to add significant growth in both the short and medium and long term. All three products are aligned with our concept of lowering the impact of medical interventions on the patients and providing significant economic benefits to the healthcare system here in the UK.

The NHS continues as our principal customer. A recently awarded Framework agreement allows us to have access to the NHS Trusts and Hospitals allowing continuity of supply of our whole portfolio to the NHS. This new award has allowed Lawmed to reposition and adjust its pricing structures upwards to reflect and deflect recent inflationary pressures on our costs. The award is favourable for Lawmed in general and will undoubtedly lead to an increase in revenue.

The Directors are satisfied with the continued profitability of the company, as evidenced above and our documented forecasting for the upcoming year.

Financial Instruments

The company's financial risk management objective is broadly to finance working capital through equipment sales and commissions received and where necessary through borrowings at prevailing market interest rates. Trade debtors credit risk is managed by the close monitoring of balances outstanding. Cash flow risk is managed by a daily review of cash and bank balances and the future cash requirement. The Directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position.

Post Balance Sheet Events

There have been no other significant post balance sheet events.

The Directors use financial and non-financial KPI's to analyse the performance of the business.

The Directors are pleased to report that the most significant KPI's used within the industry, namely those of Shareholder funds, customer satisfaction scores, turnover and gross profit have improved.

Financial key performance indicators

2026          2025

£              £

Turnover 21,734,734      20,009,174

Gross profit 6,540,462     6,067,189

Gross margin 30.09%          30.32%

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company continued to be that of resale of medical equipment.

The directors do not recommend payment of a dividend for the year ended 31 March 2026 (2025: £NIL).

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

Xeinadin Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The directors are responsible for preparing the annual report 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; 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Lawmed Ltd (the 'company') for the year ended 31 March 2026 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 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.

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

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:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

- Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to other laws and regulations, including ISO 9001 certification and CE certification, where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Lawmed Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Level 5a Maple House, 149 Tottenham Court Road, London, W1T 7NF.

The principle place of business is Building 5, The Heights, Wellington Way, Weybridge, KT13 0NY.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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.

The financial statements are prepared on a going concern basis which the directors believe to be appropriate based on the continued support of the shareholder and the company's bankers by way of additional funding to meet the company's costs on an ongoing basis.true

On the basis of the above, the directors consider that the company will be able to meet its financial obligations as they fall due. However, if for any reason, trading conditions were to decline to the point that the company did not trade profitably, and the shareholder and bank withdraw their support, in these circumstances, then this may impact on the company's ability to continue as a going concern.

If the company were unable to continue in operational existence for the foreseeable future, adjustments would have to be made to restate the balance sheet values of assets to their recoverable amounts and to provide for any additional liabilities that might arise.

Turnover comprises the fair value of consideration received or receivable for the sale of goods and for services provided in the ordinary course of business, excluding VAT and other sales-related taxes.

Revenue is recognised only when it is probable that the economic benefits associated with the transaction will flow to the company and the amount of revenue can be measured reliably. The company's turnover consists of the following:

The company recognises revenue from the following major sources:

1. Sale of Medical Equipment

Revenue from the sale of medical equipment is recognised when the significant risks and rewards of ownership have transferred to the customer, which typically occurs on delivery or installation, depending on contractual terms. Where installation is a separate performance obligation, revenue is allocated accordingly.

2. Commissions Receivable

Commission income is recognised when the company has fulfilled its performance obligations under the commission arrangement typically when the referred sale by a third party is completed and confirmed. Commission arrangements are assessed individually to ensure revenue is recognised only when it is earned and measurable.

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 credited or charged to profit or loss.

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.

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 the profit and loss.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and 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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

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

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

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax 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.

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

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.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Tangible fixed assets (see note 12)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Stock provision

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Management exercises judgement in assessing the recoverability of stock by considering factors such as stock age, historical usage and sales patterns, current demand forecasts, technological obsolescence and known quality issues. A provision is recognised where stocks are considered slow-moving, obsolete or where their estimated net realisable value is lower than cost. The level of provisioning is reviewed at each reporting date and reflects management's best estimate of the expected future recoverability of stock held.

Provision for bad and doubtful debts

The company makes a provision for amounts due from customers where there is objective evidence that the full amount due will not be recovered. The provision is determined through management's assessment of trade debtors, taking into account the ageing profile of outstanding balances, historical collection experience, customer specific circumstances, previous payment behaviour and any known financial difficulties affecting individual customers. The provision represents management's best estimate of the expected credit losses within the trade debtors balance at the reporting date and is reviewed regularly to ensure it remains appropriate.

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

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

Their aggregate remuneration comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Other creditors includes £1,191,575 (2025: £1,026,376), for factored debts, secured by a fixed and floating charge over the company's assets.

The company has a CIBIL loan with Funding Circle of £139,344 (2025: £215,074). The rate of interest applicable to the loan is 5.00%. The loan is repayable over the period until 2027.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

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.

The company's employee ownership trust (EOT) has acquired shares in the company and holds them in a trust for employees. The company paid £1,356,000 (2025: £1,808,000), as a capital distribution to the EOT, for the year ended 31 March 2026.

Minimum lease payments under non-cancellable operating leases fall due as follows:

The ultimate controlling party is Lawmed Trustees Ltd.

The Directors confirm to the best of their knowledge that there has been no subsequent events after the year end that would require either adjustments to, or disclosure in, these financial statements.