ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

Registered number: 11687671

PROLOG FULFILMENT LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025


PROLOG FULFILMENT LIMITED

COMPANY INFORMATION

Directors	N R Daniells
	N J Hoare


Registered number	11687671


Registered office	Little Oak Drive
	Sherwood Business Park
	Annesley
	Nottinghamshire
	NG15 0DJ


Independent auditors	Shorts
	Chartered Accountants & Statutory Auditors
	63 Napier Street
	Sheffield
	S11 8HA


Bankers	HSBC UK Bank plc


PROLOG FULFILMENT LIMITED

CONTENTS

	Page
Strategic Report	1 - 4
Directors' Report	5 - 6
Independent Auditors' Report	7 - 9
Statement of Income and Retained Earnings	10
Balance Sheet	11
Statement of Cash Flows	12 - 13
Analysis of Net Debt	13
Notes to the Financial Statements	14 - 26


PROLOG FULFILMENT LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 28 DECEMBER 2025

Introduction

.The directors present their strategic report for the year ended 28 December 2025. Prolog Fulfilment Limited is a leading UK-based logistics and fulfilment provider, specialising in multi-channel fulfilment and kitting solutions. Services include multi kitting and subscription services with order fulfilment solutions for D2C, B2B, Tik Tok, and Amazon FBA & FBM. The company ensures that everything from individual consumer orders to large-scale wholesale shipments is handled with speed, accuracy and efficiency. Orders are despatched in the UK, Europe and Rest of the world with seamless cross border deliveries.

For B2C clients, Prolog delivers end-to-end fulfilment including inventory management, same-day pick and pack processes and final-mile delivery — supporting the promises our clients make to their own customers. Whether clients transact through an online store, a marketplace or subscription models, Prolog enables fast, flexible and cost-effective fulfilment that enhances customer satisfaction and brand loyalty.

For B2B businesses, Prolog provides bulk pick, pack and distribution services ensuring full retailer compliance. Services include complex order picking, pallet presentation and delivery all provided on a just-in-time delivery.

The company's technology provides full visibility through all processes integrating seamlessly with ERP platforms, marketplaces and retail distribution networks, ensuring smooth inventory flow and eliminating supply chain bottlenecks.

Business review

	2025	2024
	£000	£000
Revenue	25,850	18,603
GP	7,260	6,043
GP%	28%	32%
EBITDA	1,029	704

The company delivered its strongest ever financial performance in the year to 28 December 2025, with turnover of £25.8m representing growth of 39% on the prior year (2024: £18.6m). This exceptional top-line performance reflects both the strength of Prolog's capability and excellent service levels along with the continued execution of its growth strategy across multi-sales channels used by our customers.

Encouragingly, revenue growth translated directly through to profitability, with EBITDA increasing to £1.03m for the year (2024: £0.70m). This represents a strong improvement in earnings and demonstrates our operational capability as the business increases its scale increases.

Despite the continued headwinds from the UK economic environment — including additional business taxation and broader cost pressures — the company's strong market position, strategic investment programme in its IT systems, people and infrastructure means Prolog is well placed to navigate these uncertainties effectively. The directors are therefore extremely pleased with the company's performance in 2025 and remain confident in the business's ability to deliver continued growth in the year ahead.

The company continues to benefit from excellent employee retention levels, which underpin both productivity and profitable growth. This has been supported by continued investment in our operational management structure and in the development of our people.

Key Business Developments
A number of important strategic milestones were achieved during the year:

• Prolog achieved bonded warehouse status, significantly enhancing the company's ability to serve clients with complex international logistics requirements and opening new commercial opportunities in regulated goods

Page 1


PROLOG FULFILMENT LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 28 DECEMBER 2025

handling.
• The company continued to invest in its Warehouse Management System (WMS), strengthening operational capability and improving accuracy, throughput and client visibility across all fulfilment operations.
• International revenues grew materially year-on-year, reflecting the company's success in supporting clients as they expand their own global footprints and in attracting new overseas business.

The company is actively assessing further service enhancements and technology investments to support its clients as they evolve their businesses across new platforms and geographies. Future plans for growth are assessed alongside our clients' own ambitions, enabling us to grow together.

Environmental, Social and Governance (ESG)
The company is proud to reaffirm its commitment to sustainability by maintaining its status as a Carbon Neutral Fulfilment company, certified under BSI PAS 2060. This certification reflects our ongoing dedication to reducing environmental impact and ensuring that all operations continue to meet the highest standards of carbon neutrality.

As part of our environmental strategy, Prolog has set ambitious targets to further reduce its carbon footprint during 2026. The company is transitioning to a supplier of 100% Renewable Source Electricity, ensuring that energy consumption is derived from clean and sustainable sources. We continue to explore the potential of solar panels and heat pump installations at our facilities to further reduce energy costs and emissions.

Sustainability is embedded at the heart of our business. We are fully committed to making meaningful and measurable progress towards a greener future, and we will continue to explore initiatives that enhance our environmental performance and reduce our wider footprint across the supply chain.

Page 2


PROLOG FULFILMENT LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 28 DECEMBER 2025

Principal risks and uncertainties

The directors have considered the principal risks and uncertainties facing the business and have identified the following key areas:

Global Economic Climate
The UK economic landscape remains uncertain, with additional business taxation and sustained cost pressures presenting challenges for both Prolog and its clients. The directors actively manage the company's cost base and keep pricing under continuous review to ensure the business remains competitive and resilient. The company's diversified revenue base — spanning multiple client sectors and geographies — provides an important natural hedge against economic volatility in any single market.
Competition and Market Risk
The eCommerce fulfilment market continues to attract new entrants as demand for logistics services grows. Retaining and winning clients in this environment requires a continued focus on service quality, technology differentiation and competitive pricing. Prolog's investment in its proprietary technology platform, its bonded warehouse capability and its expanding service offering are key differentiators that support the company's competitive position. The directors remain focused on ensuring that Prolog continues to lead on service levels and innovation.
Financial Risk
The company maintains robust budgetary and financial reporting processes, supported by appropriate key performance indicators, to manage credit, liquidity and other financial risks. The directors are satisfied that these controls are adequate and that the company's current financial position provides sufficient resilience to meet its obligations as they fall due.

The main financial risks arising from the company's instruments are credit risk and liquidity risk. The directors consider that the policies and procedures in place adequately address these risks, including credit checks for new customers and close oversight of trade debtors. The company seeks to deal only with demonstrably creditworthy counterparties.
Operational Risk
As the business continues to scale rapidly, ensuring that operational infrastructure, staffing and systems keep pace with growth is a key management priority. The pace of growth in 2025 highlighted the importance of capacity planning and operational efficiency. The directors are actively investing in management capability, technology and process improvement to ensure operations remain scalable, accurate and cost-effective as volumes continue to increase.
People and Talent
The company's continued success depends upon attracting, developing and retaining talented people at all levels of the organisation. Prolog's strong employee retention record is a meaningful competitive advantage and reflects the company's commitment to being a responsible and engaging employer. The directors continue to invest in training, career development and employee wellbeing, and are committed to maintaining a culture that enables our people to perform at their best.
Regulatory and Compliance Risk
Prolog operates across a range of regulatory environments, including customs and bonded warehouse regulations, employment law and data protection obligations. The directors maintain appropriate policies and procedures to ensure compliance across all relevant areas and take specialist advice where required. The company's bonded warehouse accreditation in particular requires rigorous ongoing compliance, and the directors are satisfied that adequate controls are in place.

Page 3


PROLOG FULFILMENT LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 28 DECEMBER 2025

This report was approved by the board on 18 September 2026 and signed on its behalf.

N R Daniells

Director

Page 4


PROLOG FULFILMENT LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 28 DECEMBER 2025

The directors present their report and the financial statements for the year ended 28 December 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.

Results and dividends

The profit for the year, after taxation, amounted to £401,218 (2024 - £151,083).

The dividend declared and paid was £210,200 (2024:£192,683).

Directors

The directors who served during the year were:

N R Daniells

N J Hoare

Qualifying third-party indemnity provisions

The directors have been granted a qualifiying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director acting fraudulently or dishonestly.

Page 5


PROLOG FULFILMENT LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 28 DECEMBER 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 18 September 2026 and signed on its behalf.

N R Daniells

Director

Page 6


PROLOG FULFILMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED

Opinion

We have audited the financial statements of Prolog Fulfilment Limited (the 'Company') for the year ended 28 December 2025, which comprise the Statement of Income and Retained Earnings, the Analysis of Net Debt, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 28 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 7


PROLOG FULFILMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic Report and the 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.

Matters on which we are required to report by exception

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.

Page 8


PROLOG FULFILMENT LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PROLOG FULFILMENT LIMITED (CONTINUED)

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 an Auditors' 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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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 Auditors' 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 Auditors' 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.

Howard Freeman BSc FCA (Senior Statutory Auditor)

for and on behalf of

Shorts

Chartered Accountants

Statutory Auditors

63 Napier Street

Sheffield

S11 8HA

18 September 2026

Page 9


PROLOG FULFILMENT LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 28 DECEMBER 2025

	28 December	29 December
	2025	2024
Note	£	£


Turnover	4	25,850,354	18,602,618
Cost of sales		(18,589,981)	(12,559,043)
Gross profit		7,260,373	6,043,575
Distribution costs		(3,233,158)	(2,749,643)
Administrative expenses		(3,244,659)	(2,886,129)
Operating profit	5	782,556	407,803
Interest receivable and similar income		17,577	2,147
Interest payable and similar expenses	9	(232,741)	(200,055)
Profit before tax		567,392	209,895
Tax on profit	10	(166,174)	(58,812)
Profit after tax		401,218	151,083

Retained earnings at the beginning of the year	541,608	583,208
	541,608	583,208
Profit for the year	401,218	151,083
Dividends declared and paid	(210,200)	(192,683)
Retained earnings at the end of the year	732,626	541,608

The notes on pages 14 to 26 form part of these financial statements.

Page 10


PROLOG FULFILMENT LIMITED REGISTERED NUMBER:11687671

BALANCE SHEET

AS AT 28 DECEMBER 2025


	2025	2024
Note	£	£

Fixed assets
Intangible assets	11		7		7
Tangible assets	12		1,004,186		768,177
			1,004,193		768,184
Current assets
Stocks		193,660		317,376
Debtors: amounts falling due within one year	13	7,788,924		6,777,585
Cash at bank and in hand		260,979		84,598
		8,243,563		7,179,559
Creditors: amounts falling due within one year	14	(8,203,909)		(7,177,470)
Net current assets			39,654		2,089
Total assets less current liabilities			1,043,847		770,273
Creditors: amounts falling due after more than one year	15		(131,903)		(105,612)
Provisions for liabilities
Deferred tax	16	(179,308)		(123,043)
Net assets			732,636		541,618

Capital and reserves
Called up share capital	17	10	10
Profit and loss account	18	732,626	541,608
		732,636	541,618

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 September 2026.

N R Daniells

Director

The notes on pages 14 to 26 form part of these financial statements.

Page 11


PROLOG FULFILMENT LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 28 DECEMBER 2025


			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	401,218	151,083
Adjustments for:
Depreciation of tangible assets	246,683	296,719
Loss on disposal of tangible assets	(25,961)	-
Interest paid	232,741	200,055
Interest received	(17,577)	(2,147)
Taxation charge	166,174	58,812
Decrease/(increase) in stocks	123,716	(120,144)
(Increase) in debtors	(1,011,339)	(1,511,416)
Increase in creditors	1,124,125	1,682,471
Corporation tax (paid)	(95,464)	(93,295)
Net cash generated from operating activities	1,144,316	662,138

Cash flows from investing activities
Purchase of tangible fixed assets	(482,692)	(260,848)
Sale of tangible fixed assets	25,961	-
Interest received	17,577	2,147
HP interest paid	(42,112)	(43,271)
Net cash from investing activities	(481,266)	(301,972)
Cash flows from financing activities
Repayment of other loans	(37,417)	(49,888)
Repayment of/new finance leases	(48,423)	(152,750)
Dividends paid	(210,200)	(192,683)
Interest paid	(190,629)	(156,782)
Net cash used in financing activities	(486,669)	(552,103)
Net increase/(decrease) in cash and cash equivalents	176,381	(191,937)
Cash and cash equivalents at beginning of year	84,598	276,535
Cash and cash equivalents at the end of year	260,979	84,598

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	260,979	84,598

Page 12


PROLOG FULFILMENT LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 28 DECEMBER 2025


At 30 December 2024	Cash flows	New finance leases	At 28 December 2025
£	£	£	£

Cash at bank and in hand	84,598	176,381	-	260,979
Debt due within 1 year	(37,417)	37,417	-	-
Finance leases	(243,813)	179,199	(130,777)	(195,391)
	(196,632)	392,997	(130,777)	65,588

The notes on pages 14 to 26 form part of these financial statements.

Page 13


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

1.	General information

Prolog Fulfilment Limited is a private limited Company limited by shares, incorporated in England and Wales (registered number: 11687671). Its registered office is Little Oak Drive, Sherwood Business Park, Annesley, Nottinghamshire, NG15 0DJ. The principal activity of the Company throughout the year continued to be that of stock management and distribution services.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

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

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.

Page 14


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

2.Accounting policies (continued)

2.4

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the Company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Income and Retained Earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Income and Retained Earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.7

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Income and Retained Earnings over its useful economic life.

Page 15


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

2.Accounting policies (continued)

2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

The depreciation rates used are:

Freehold property	-	10 years straight line
Plant and machinery	-	2 - 10 years straight line
Fleet	-	5 years straight line
Fixtures and fittings	-	3 - 10 years straight line
Computer equipment	-	3 - 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.

2.9

Stocks

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 Balance Sheet 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 Statement of Income and Retained Earnings.

Page 16


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

2.Accounting policies (continued)

2.10

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties.

2.11

Current and deferred taxation

Tax is recognised in the Statement of Income and Retained Earnings.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 17


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have had the greatest level of uncertainty are addressed below:

(i) Impairment of debtors

The Company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. During the year, there were no provisions made for bad debts (2024: £nil).

(ii) Prepayment and accruals

The Company assesses the income and expenses arising during the accounting period and makes adjustments for these where the invoicing period does not align with the accounting period. When assessing these items, management consider factors including post year end invoices and payments and also contracts which are in place. Prepayments and accrued income are shown in note 13 of the accounts and accruals and deferred income are shown in note 14 of the accounts.

(iii) Depreciation

The carrying value of fixed assets is calculated on the basis of estimates of depreciation periods derived from the expected useful life of the asset concerned and residual values. The expected useful life of the asset concerned and its estimated residual value may change under the influence of technological developments, market circumstances and changes in the use of the asset. These factors may also give rise to the need to recognise an impairment on assets.

Turnover


					2025	2024
					£	£

	United Kingdom	25,850,354	18,602,618

All turnover arose within the United Kingdom.

Page 18


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

Exchange differences	246,683	296,719
Other operating lease rentals	1,294,620	1,543,002
	1,541,303	1,839,721

Fees payable to the Company's auditors for the audit of the Company's financial statements

23,500

22,500

Wages and salaries	7,175,264	6,470,683
Social security costs	763,262	524,799
Cost of defined contribution scheme	150,573	139,530
	8,089,099	7,135,012

The average monthly number of employees, including the directors, during the year was as follows:

	2025	2024
	No.	No.

Employees	267	259

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PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

Directors' emoluments	79,103	79,332
Company contributions to defined contribution pension schemes	6,002	5,947
	85,105	85,279

During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.

Other loan interest payable	24,826	23,916
Finance leases and hire purchase contracts	42,112	43,271
Other interest payable	165,803	132,868
	232,741	200,055

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PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

	Corporation tax
	Current tax on profits for the year	109,909	70,975

	Deferred tax
	Origination and reversal of timing differences	56,265	(12,163)


	Profit after tax	166,174	58,812

Profit on ordinary activities before tax

567,392

209,895

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)	141,848	52,474
Effects of:
Expenses not deductible for tax purposes	2,237	1,485
Capital allowances for year/period in excess of depreciation	22,089	5,105
Adjustments to tax charge in respect of prior periods	-	(252)
Total tax charge for the year/period	166,174	58,812

Factors that may affect future tax charges

There are no factors that will affect future tax changes.

Page 21


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

11.	Intangible assets

		Goodwill
		£
	Cost
	At 30 December 2024	7
	At 28 December 2025	7

	Net book value
	At 28 December 2025	7
	At 29 December 2024	7

12.	Tangible fixed assets

	Freehold property	Plant and machinery	Fleet	Fixtures and fittings	Computer equipment
	£	£	£	£	£
Cost
At 30 December 2024	213,345	628,486	153,021	453,409	742,730
Additions	44,423	121,143	-	44,799	272,327
Disposals	-	-	(151,003)	-	-
At 28 December 2025	257,768	749,629	2,018	498,208	1,015,057
Depreciation
At 30 December 2024	70,273	479,194	152,617	242,743	477,987
Charge for the year on owned assets	30,764	35,976	404	66,839	112,700
Disposals	-	-	(151,003)	-	-
At 28 December 2025	101,037	515,170	2,018	309,582	590,687
Net book value
At 28 December 2025	156,731	234,459	-	188,626	424,370

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PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

12.Tangible fixed assets (continued)

At 29 December 2024	143,072	149,293	404	210,665	264,743
					Total
					£
Cost
At 30 December 2024					2,190,991
Additions					482,692
Disposals					(151,003)
At 28 December 2025					2,522,680
Depreciation
At 30 December 2024					1,422,814
Charge for the year on owned assets					246,683
Disposals					(151,003)
At 28 December 2025					1,518,494
Net book value
At 28 December 2025					1,004,186
At 29 December 2024					768,177

Plant and machinery	71,049	63,127
Furniture, fittings and equipment	160,035	114,413
	231,084	177,540

Page 23


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

13.

Debtors


					2025	2024
					£	£


Trade debtors	6,316,409	5,611,781
Other debtors	309,862	321,729
Prepayments and accrued income	1,162,653	844,075
	7,788,924	6,777,585

Other loans	-	37,417
Trade creditors	2,745,706	2,542,142
Corporation tax	109,909	95,464
Other taxation and social security	791,569	775,774
Obligations under finance lease and hire purchase contracts	63,488	138,201
Other creditors	3,692,111	2,658,112
Accruals and deferred income	801,126	930,360
	8,203,909	7,177,470


	Other creditors	3,167,108	2,180,178

Details of security provided:

The other creditors includes an invoice financing facility secured by a fixed charge and a floating charge over the property or undertaking of the Company.

Page 24


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

Net obligations under finance leases and hire purchase contracts	131,903	105,612
	131,903	105,612

16.	Deferred taxation

	2025	2024
	£	£

At beginning of year	(123,043)	(135,206)
Credit to profit or loss	(56,265)	12,163
At end of year	(179,308)	(123,043)

Fixed asset timing difference	182,729	126,604
Short term timing differences	(3,421)	(3,561)
	179,308	123,043

Allotted, called up and fully paid

10 (2024 - 10) Ordinary shares of £1.00 each	10	10

Page 25


PROLOG FULFILMENT LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 DECEMBER 2025

18.

Reserves

Profit and loss account

Profit and loss account represents all cumulative retained profits and losses and is all considered to be distributable.

19.	Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £150,573 (2024: £139,530). Contributions totalling £38,221 (2024: £37,587) were payable to the fund at the Balance Sheet date and are included in creditors.

Not later than 1 year	1,689,898	1,651,830
Later than 1 year and not later than 5 years	4,184,022	5,764,457
	5,873,920	7,416,287

21.	Related party transactions
	Prolog Fulfilment Ltd employs 3 (2024: 3) family members of the directors. Their aggregate gross remuneration is £95,542 (2024: £92,817). Pension contributions made for these employees was £10,342 (2024: £9,957).

22.	Controlling party

In the opinion of the directors, there is no ultimate controlling party of Prolog Fulfilment Ltd.

Page 26