REGISTERED NUMBER: 10935716 (England and Wales)

UAC CYF. FUW LTD.

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2026

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

18

DIRECTORS:

S A Longworth FCA

I T Rickman - Chair

G A O Bebb

D T Miles

E W Williams

G I Lloyd

Mrs A D Davies

A F Gardner

SECRETARY:

S A Longworth FCA

REGISTERED OFFICE:

Llys Amaeth

Plas Gogerddan

Ceredigion

SY23 3BT

REGISTERED NUMBER:

10935716 (England and Wales)

AUDITORS:

Bevan Buckland Audit Ltd

Ground Floor

Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The directors present their strategic report of the company and the group for the year ended 31 March 2026.

The FUW Group continued to grow revenues steadily in all its trading companies.

Internal investment continued in line with the need for increased agility in difficult markets. Most notably the County Teams of UAC CYF. FUW LTD. became a regionalised Member Services Team in preparation for the first year of implementation of Welsh Government's Sustainable Farming Scheme (SFS).

External investment also commenced just before year end and the Group added another subsidiary, FUW Holdings, in transition to a restructuring which will complete by 31 December 2026, greatly strengthening the Group's presence in insurance markets in Wales and throughout the UK.

The three-year growth plan established in 2025 has been strengthened and extended to 2030.

The insurance broker, FUW Insurance Services Ltd, is proud of its strong partnerships with key providers in the insurance markets.

Members of the Farmers' Union of Wales and loyal customers of FUW Insurance Services Ltd continue to be a solid foundation for the Group's activities and plans.

REVIEW OF BUSINESS

The FUW Group has continued to strengthen both its performance and financial position despite inflation and wider market volatility. Group turnover increased by 6.6% to £7.42m (2025: £6.96m), and cost control measures introduced towards the end of the year contributed to a 37.1% increase in surplus before tax, to £225,870 (2025: £164,843). After taxation, the Group's surplus was £85,029 (2025: £40,621).

Total Net Assets of the Group are £974,403 at the year-end (2025: £832,019) and net current liabilities have reduced to £174,118 (2025: £296,019).

FUW Insurance Services Ltd, a 100% subsidiary, is the prime driver of performance with turnover increasing 6.8% to £6.44m (2025: £6.03m). Overheads increased through inflation and investment. Earnings before tax decreased to £1.09m (2025:£1.19m).

Total net assets of FUW Insurance Services Ltd at the year-end increased to £1.91m (2025: £1.67m), after dividends of £0.72m voted for the year (cash dividends of £1.12m were paid to the parent company, UAC CYF. FUW LTD, during the year).

FUW Properties continues to rent property to the rest of the Group.

PRINCIPAL RISKS AND UNCERTAINTIES

Rising inflation, increasing compliance requirements and investing for planned growth have all added overhead to the Group. The softened, increasingly competitive insurance markets continue to be closely monitored following the year end. The commercial and political future of Welsh agriculture is an area of major sources of uncertainty and the Group carries out regular scenario assessments. The Board of the company and the Boards of the Group are actively looking to improve profitability and drive growth in their strategic plans. There has been no recessional impact on the businesses, and since the year end the Group has continued to perform better than expected, with marginal but continued growth in revenues. The Board believes it has sufficient resources and flexibility to continue to develop and operate profitable, commercial activity serving the Group's members and customers across Wales and beyond for the foreseeable future.

FINANCIAL KEY PERFORMANCE INDICATORS

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross profit, operating profit and profit before taxation as set out in the Consolidated Statement of Comprehensive Income.

ON BEHALF OF THE BOARD:

I T Rickman - Chair - Director

16 September 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2026.

PRINCIPAL ACTIVITY

The parent company of the FUW Group UAC CYF. FUW LTD. (www.fuw.org.uk), a company limited by guarantee, reinvests all of its surpluses from the delivery of Group services to support farming and rural communities across Wales.

At the Farmers' Union of Wales (Undeb Amaethwyr Cymru), we know that family farms in particular are at the heart of our rural economy, caring for our landscape, and of course our culture; and they make innumerable other contributions to the well-being of Wales and the UK.

Each of the 13 historic counties of Wales have a dedicated team of staff to work with and support each County Committee of Members tailoring our support to the varying social, physical and economic 'landscapes' of our farming industry.

UAC CYF. FUW LTD. has 3 wholly-owned subsidiaries:

*

FUW Insurance Services Ltd (www.fuwinsurance.co.uk) is a leading agricultural insurance broker in Wales. Their history and their close operational ties with FUW provide a unique insight and understanding of the risks faced within the agricultural sector. The ethos of "Live local, work local, insure local" means that we provide insurance services to all the communities of Wales whilst offering a particular level of affinity with the agricultural sector. The surplus profits of the business financially support the parent company to better serve the Members of the Union and the wider rural communities across Wales.

*

FUW Holdings Ltd is an investment holding company to diversify the dividend base for the parent company and to encourage development of insurance business within Wales and throughout the UK.

*

FUW Properties Ltd holds some property for group use.

DIVIDENDS

No dividends will be distributed as the company is limited by guarantee and has no shares.

DIRECTORS

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

S A Longworth FCA

I T Rickman - Chair

G A O Bebb

D T Miles

E W Williams

G I Lloyd

Other changes in directors holding office are as follows:

E G N Evans - resigned 11 June 2025

Mrs A D Davies - appointed 8 September 2025

A F Gardner was appointed as a director after 31 March 2026 but prior to the date of this report.

D T Williams ceased to be a director after 31 March 2026 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

The auditor, Bevan Buckland, previously traded through the legal entity Bevan Buckland LLP, following a restructure and regulatory changes, Bevan Buckland LLP ceased to hold an audit registration with the engagement transitioning to Bevan Buckland Audit Ltd.

AUDITORS

The auditors, Bevan Buckland Audit Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

I T Rickman - Chair - Director

16 September 2026

Opinion

We have audited the financial statements of UAC Cyf. FUW Ltd. (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2026 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2026 and of the group's surplus for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:

-

identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud.

Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

In addition to the above, our procedures to respond to risks identified included the following:

-

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

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC;

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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

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

Use of our report

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

Henry Lloyd Davies (Senior Statutory Auditor)

for and on behalf of Bevan Buckland Audit Ltd

Ground Floor

Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

17 September 2026

TURNOVER

7,416,952

6,960,705

Administrative expenses

7,236,908

6,896,464

180,044

64,241

Other operating income

17,805

29,604

OPERATING SURPLUS

4

197,849

93,845

Interest receivable and similar income

41,505

45,119

239,354

138,964

Interest payable and similar expenses

5

13,484

(25,879

)

SURPLUS BEFORE TAXATION

225,870

164,843

Tax on surplus

6

140,841

124,222

SURPLUS FOR THE FINANCIAL YEAR

85,029

40,621

Surplus attributable to:

Owners of the parent

85,029

40,621

SURPLUS FOR THE YEAR

85,029

40,621

OTHER COMPREHENSIVE INCOME

Revaluation

57,355

-

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

57,355

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

142,384

40,621

Total comprehensive income attributable to:

Owners of the parent

142,384

40,621

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

1,054,544

1,037,487

Investments

10

Interest in associate

4,168

-

Investment property

11

102,000

102,000

1,160,712

1,139,487

CURRENT ASSETS

Debtors

12

1,533,327

1,135,190

Cash at bank

13

4,212,311

3,758,373

5,745,638

4,893,563

CREDITORS

Amounts falling due within one year

14

5,919,756

5,189,582

NET CURRENT LIABILITIES

(174,118

)

(296,019

)

TOTAL ASSETS LESS CURRENT LIABILITIES

986,594

843,468

PROVISIONS FOR LIABILITIES

18

12,191

11,449

NET ASSETS

974,403

832,019

RESERVES

Revaluation reserve

19

57,355

-

Other reserves

19

364,294

364,294

Income and expenditure account

19

552,754

467,725

974,403

832,019

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2026 and were signed on its behalf by:

I T Rickman - Chair - Director

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

675,766

689,208

Investments

10

-

-

Investment property

11

-

-

675,766

689,208

CURRENT ASSETS

Debtors

12

522,362

501,478

CREDITORS

Amounts falling due within one year

14

2,125,988

2,398,895

NET CURRENT LIABILITIES

(1,603,626

)

(1,897,417

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(927,860

)

(1,208,209

)

PROVISIONS FOR LIABILITIES

18

8,942

7,884

NET LIABILITIES

(936,802

)

(1,216,093

)

RESERVES

Revaluation reserve

19

19,951

-

Other reserves

19

303,145

303,145

Income and expenditure account

19

(1,259,898

)

(1,519,238

)

(936,802

)

(1,216,093

)

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

259,340

(301,709

)

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2026 and were signed on its behalf by:

I T Rickman - Chair - Director

Retained

Revaluation

Other

Total

earnings

reserve

reserves

equity

£

£

£

£

Balance at 1 April 2024

427,104

-

364,294

791,398

Changes in equity

Total comprehensive income

40,621

-

-

40,621

Balance at 31 March 2025

467,725

-

364,294

832,019

Changes in equity

Total comprehensive income

85,029

57,355

-

142,384

Balance at 31 March 2026

552,754

57,355

364,294

974,403

Retained

Revaluation

Other

Total

earnings

reserve

reserves

equity

£

£

£

£

Balance at 1 April 2024

(1,217,529

)

-

303,145

(914,384

)

Changes in equity

Total comprehensive income

(301,709

)

-

-

(301,709

)

Balance at 31 March 2025

(1,519,238

)

-

303,145

(1,216,093

)

Changes in equity

Total comprehensive income

259,340

19,951

-

279,291

Balance at 31 March 2026

(1,259,898

)

19,951

303,145

(936,802

)

Cash flows from operating activities

Cash generated from operations

1

859,321

456,661

Interest paid

(13,484

)

25,879

Tax paid

(121,706

)

(169,305

)

Net cash from operating activities

724,131

313,235

Cash flows from investing activities

Purchase of tangible fixed assets

(25,945

)

(26,068

)

Purchase of fixed asset investments

(4,168

)

-

Interest received

41,505

45,119

Net cash from investing activities

11,392

19,051

Cash flows from financing activities

Loan repayments in year

(10,408

)

(10,655

)

Net cash from financing activities

(10,408

)

(10,655

)

Increase in cash and cash equivalents

725,115

321,631

Cash and cash equivalents at beginning of year

2

3,313,307

2,991,676

Cash and cash equivalents at end of year

2

4,038,422

3,313,307

1.	RECONCILIATION OF SURPLUS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

Surplus before taxation

225,870

164,843

Depreciation charges

18,121

71,606

Loss on impairment of fixed assets

48,122

-

Finance costs

13,484

(25,879

)

Finance income

(41,505

)

(45,119

)

264,092

165,451

(Increase)/decrease in trade and other debtors

(398,137

)

283,158

Increase in trade and other creditors

993,366

8,052

Cash generated from operations

859,321

456,661

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2026

31.3.26

1.4.25

£

£

Cash and cash equivalents

4,212,311

3,758,373

Bank overdrafts

(173,889

)

(445,066

)

4,038,422

3,313,307

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

3,758,373

3,440,379

Bank overdrafts

(445,066

)

(448,703

)

3,313,307

2,991,676

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.25

Cash flow

At 31.3.26

£

£

£

Net cash

Cash at bank

3,758,373

453,938

4,212,311

Bank overdrafts

(445,066

)

271,177

(173,889

)

3,313,307

725,115

4,038,422

Debt

Debts falling due within 1 year

(20,178

)

10,408

(9,770

)

(20,178

)

10,408

(9,770

)

Total

3,293,129

735,523

4,028,652

1.	STATUTORY INFORMATION

UAC Cyf. FUW Ltd. is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Functional and Presentation Currency

The group's functional and presentational currency is pounds sterling.

Basis of consolidation

The financial statements of the subsidiary used in the preparation of the consolidated financial statements are prepared for the same reporting period as the parent company and are based on consistent accounting policies. The results of subsidiaries acquired or disposed of during the period are included in the consolidated financial statements from the effective date of acquisition up to the effective date of disposal, as appropriate.

Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Going concern

Inflation and the cost of labour continue to pressurise the cost base. Slow growth in insurance GPI and slower uptake of the Government's Sustainable Farming Scheme are pressurising revenues which are growing but less ambitiously than planned. Nonetheless, these are taken into account in the budgeting, forecasting and monitoring of the Boards and management of the Group.

The Board of the Company and the Boards of the Group continue to target profitability and sustainability in their strategic plans. The Board believes it has sufficient resources and flexibility to continue to deliver and develop profitable, commercial activity serving the Group's members and customers across Wales and beyond for the foreseeable future.

Intercompany indebtedness

FUW Insurance Services Ltd is a 100%-owned subsidiary of the parent company UAC CYF. FUW LTD. The insurance broking business of the Group provides cash-flows to the parent company for the benefit of the Members of the Farmers Union of Wales / Undeb Amaethwyr Cymru. This results in an intercompany debt from UAC CYF. FUW LTD. to FUW Insurance Services Ltd. FUW Insurance Services Ltd periodically votes dividends with which UAC CYF. FUW LTD. discharges liabilities to the subsidiary. Dividends of £1.12m were paid to the shareholder in financial year 2025-26, and dividends of £0.18m per quarter are being issued after year end. The aim is to reduce the intercompany loan over a three year period to the point it is no longer required as part of normal operations. This will be achieved in the medium term by the performance of Member Services in UAC and in the longer term by performance of planned investments in the UK insurance market.

In the opinion of the directors of FUW Insurance Services Ltd, the debt owed to that company by UAC CYF. FUW LTD. is supported by the value of the shareholding held by UAC CYF. FUW LTD. and by the periodic dividend payments to UAC CYF. FUW LTD. FUW Insurance Services Ltd does not rely on the recovery of the intercompany debt for its solvency or liquidity. UAC CYF. FUW LTD. does not recognise the value of the Fixed Asset Investment of ownership of FUW Insurance Services Ltd on its balance sheet, but it is a multiple of the level of debt.

The Board of UAC CYF. FUW LTD. believes that permitting FUW Insurance Services to retain significant profits is essential to empower the subsidiary to continue to grow its profitability, and therefore cash-flows to the parent company, for the benefit of the Members.

The Boards of UAC CYF. FUW LTD. and FUW Insurance Services Ltd have reviewed budgets, financial forecasts and the matters set out above for a period of at least 12 months from the date of approval of these financial statements, including the level of intercompany debt at 31 March 2026.

Having done so, the Boards are of the opinion that this level of intercompany debt does not alter their assertion that both companies should prepare their accounts on a going concern basis. Accordingly, the Boards believe the Group has sufficient resources and flexibility to continue to deliver and develop profitable, commercial activity serving the Group's Members and customers across Wales and beyond for the foreseeable future, and the Group and Company financial statements have been prepared on a going concern basis.

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.