REGISTERED NUMBER: 00531808 (England and Wales)

SARVAL Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

9

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

DIRECTORS:

R Poskitt

B O Jeewooth

T B Versterre

SECRETARY:

B O Jeewooth

REGISTERED OFFICE:

Ings Road

Doncaster

South Yorkshire

DN5 9TL

REGISTERED NUMBER:

00531808 (England and Wales)

SENIOR STATUTORY AUDITOR:

Ian Parsons FCA

AUDITORS:

Parsons Accountants Ltd

Statutory Auditor

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

BANKERS:

HSBC plc

City Office

33 Park Row

Leeds

West Yorkshire

LS1 1LD

SOLICITORS:

Ramsdens Solicitors

7 King Street

Mirfield

West Yorkshire

WF14 8AW

Business Overview and Business Model

SARVAL Limited (the "Company") is a wholly owned subsidiary of SARIA Limited. The Company operates the frozen, chilled and dried avian protein ingredient businesses within the UK.

The Company processes avian by-products into protein ingredients primarily for use within wet and dry pet food applications. Wet ingredients are supplied in chilled or frozen formats, while dry products (proteins and fats) are produced through the rendering processes. Products are supplied to customers in the UK and international markets.

The Company's performance is influenced by raw material availability, energy costs, regulatory developments and global volatility in finished product markets.

Review of Performance and Position

For the year ended 31 December 2025, the Company reported a loss of £2.6m (2024: £7.9m loss). The 67% reduction in loss is a result of raw material and finished product pricing, together with operational cost and efficiency improvements.

At the year end the Company reported net liabilities of £23.4m (2024: £20.8m).

The Directors have continued to focus on cost management, operational optimisation and supplier diversification in response to challenging trading conditions. Despite market volatility, the Company maintains established processing capability and customer relationships across domestic and export markets.

Key Performance Indicators

The Directors monitor the performance of the Company using a combination of financial and non-financial key performance indicators.

Financial KPIs include profit after tax, EBITDA, commercial pricing, collection costs, conversion costs, operating cashflow and equity.

Non-financial KPIs include raw material throughput, yields, production mix between wet and dry formats, plant efficiency, energy usage, health and safety performance, and environmental compliance metrics.

Although the above KPI's are monitored closely, disclosure of any numerical information has been omitted where management believe this would be prejudicial to the company.

Section 172(1) Companies Act 2006 Statement

The Directors of the Company have acted in good faith and in a manner they consider most likely to promote the success of the Company for the benefit of its member, having regard to the matters set out in section 172(1) of the Companies Act 2006.

In fulfilling their duties, the Directors have considered:

The long-term sustainability of operations in volatile commodity markets

The interests, health and safety, and development of employees

Relationships with suppliers, customers and regulatory authorities

Environmental impact, including emissions performance under UK Emissions Trading Scheme (hereafter 'UK ETS')

The importance of maintaining high standards of business conduct

The need to act fairly between members

The following paragraphs summarise how the Directors fulfil their legal duties.

a. The likely consequences of any decision in the long term

The Directors have regard to the likely consequences of their decisions on the long-term objectives and financial sustainability of the company.

In particular, contractual commitments and capital requirements must adhere to a strict sign off process, including consideration of budget constraints and impact on future cash flows. This must be balanced with the groups overall aim to remain competitive and responsive to changing market conditions.

b. The interests of the company's employees

The company is responsive to the needs of its employees, and the Directors are committed to ensuring genuine and effective employee involvement in the company's activities.

The company respects human rights and employment law, without exception. The company seeks to ensure that every employee, without exception, is treated equally and fairly and that all employees are aware of their responsibilities.

c. The need to foster the company's business relationships with suppliers, customers and others

When dealing with all partners, whether they are suppliers, customers, or other stakeholders, the company will ensure the relationship is always maintained in a professional and responsible manner. A principal objective from the company's plan, is the delivery of long-term successful returns for the company and its business partners.

As part of this in the current financial year, the Directors have implemented a new procurement policy, that ensures adherence to relevant compliance regulations and sets out the groups intentions to engage in and maintain strong, transparent relationships with our suppliers.

d. The impact of the company's operations on the community and the environment

As the group is involved in several areas of the food supply chain, the environmental impact of the group and its ethical reputation is of great importance to the Directors.

e. The desirability of the company maintaining a reputation for high standards of business conduct

As the board of Directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible and sustainable manner, both financially and environmentally.

Collectively the Directors will continue to operate to the high standards of integrity expected of a business such as ours, and to employ a system of continuous improvement with training and development in line with our commitment to responsible behaviour.

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

The Directors of the company act in a way that they consider in good faith, and will promote the success of the company for the benefit of the members as a whole.

The Company operates in accordance with established compliance, environmental and governance frameworks, including policies relating to health and safety, environmental management, human rights, anti-bribery and tax compliance.

Principal Risks and Uncertainties

The Directors have identified the following principal risks and uncertainties that may impact the Company's performance, financial position, or future prospects.

Operational and Market Risks

Raw material availability risk

A reduction in availability of poultry by-products or changes in categorisation could affect production volumes. The Company mitigates this risk through diversified sourcing and flexibility between wet and dry production.

Demand volatility

Changes in demand for wet or dry pet food ingredients, including export restrictions or substitution effects, may impact revenue. The Company mitigates this risk through product diversification and access to multiple geographic markets.

Energy and emissions cost risk

The Company is exposed to fluctuations in energy costs and carbon allowance pricing under the UK ETS. Group mitigates this risk through hedging policies, operational efficiency initiatives and emissions management programmes are in place to mitigate this exposure.

Operational risk

The Company operates capital-intensive rendering and processing facilities. Equipment failure or plant disruption could impact production and profitability. Preventative maintenance programmes and operational monitoring are implemented to manage this risk.

Regulatory and compliance risk

The Company operates within a highly regulated framework governing animal by-products and environmental standards. Non-compliance could result in penalties or operational restrictions. Established compliance systems are in place to mitigate this risk.

Financial Risks

The Company is exposed to financial risks arising from its operations. The Directors consider these risks in a manner consistent with the accounting policies and financial instrument disclosures in the financial statements.

Liquidity and cash flow risk

Liquidity and cash flows are managed as part of a Group Liquidity Solution through regular cash flow forecasting, close monitoring of working capital, and disciplined control of capital expenditure.

Credit risk

Credit risk is managed through customer credit assessments, ongoing monitoring of receivable balances, and established credit control procedures.

Foreign currency risk

The Company is exposed to exchange rate movements in respect of export sales and certain purchases. Group mitigates this risk with natural hedges available across its diverse customer and vendor bases, plus treasury functions available from the Parent.

Inflation and cost risk

The Company is exposed to changes in labour, maintenance, transport and other operating costs. Cost management and efficiency initiatives are used to mitigate this exposure.

Capital and funding risk

The Company requires ongoing investment in vehicles, plant and equipment to maintain operational efficiency and compliance. The Directors mitigate this risk through capital planning, close monitoring of asset performance, and support from Group where appropriate.

Employee Involvement

The Directors are committed to ensuring genuine and effective employee involvement in the company's activities. The company believes that by providing regular updates to staff as to the company's progress, taking cognisance of staff feedback and by involving staff where possible in decisions, the overall effectiveness of the business through this teamwork is enhanced and that the morale of the work force is positively impacted.

The health, safety, and wellbeing of employees and contractors are a priority for the Company. Manufacturing operations involve inherent risks, which are managed through training, risk assessments, and established safety systems. The Company seeks to maintain a strong safety culture and continually improve performance.

Employee numbers are disclosed in note 4 to the financial statements. The Company participates in Group policies relating to health and safety, pensions, and employee benefits.

Future Developments and Outlook

The Company will continue to monitor global pet food demand, raw material availability and export market access. Investment in plant modernisation and efficiency improvements will continue where appropriate to reduce operating costs and enhance environmental performance.

While market conditions remain volatile, the Directors will continue to focus on operational flexibility, cost control and product mix optimisation to support long-term sustainability.

Going Concern

The financial statements have been prepared on a going concern basis. In making this assessment, the Directors have reviewed forecasts and cash flow projections and believe that the Company is appropriately resourced to continue trading for the foreseeable future.

The Company participates in a Group Liquidity Solution and expects to continue to benefit from the ongoing financial support and treasury arrangements provided by the German parent company in the immediate future.

The Directors consider that this Strategic Report, when read together with the financial statements, provides a fair, balanced and comprehensive review of the Company's development, performance, position and principal risks and uncertainties.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

29 May 2026

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

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a collector and processor of poultry industry by-products to produce poultry meal, poultry fat and feather meal. These products are used mainly for pet food production.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

R Poskitt

T B Versterre

Other changes in directors holding office are as follows:

B O Jeewooth - appointed 1 January 2025

A S Burdock ceased to be a director after 31 December 2025 but prior to the date of this report.

POLITICAL DONATIONS AND EXPENDITURE

There have been no political donations made within the period.

QUALIFYING THIRD PARTY INDEMNITY PROVISIONS

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

CHANGE OF NAME

On the 11th February 2014 the company name was changed to SARVAL Limited from Chettles Limited.

STREAMLINED ENERGY AND CARBON REPORTING

Covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and information relating to energy efficiency actions.

Current reporting year (Jan 25 - Dec 25)

Key Performance Indicator (KPI)

Amount '25

Amount '24

Unit

Electricity Usagex`

15,934,353

15,451,481

kWh

Gas Usage

143,205,810

127,617,862

kWh

Diesel Usage

522,484

561,967

litres

Total emissions generated through use of purchased electricity

2,820

3,199

tCO2e

Total emissions generated through combustion of gas

26,201

23,341

tCO2e

Total emissions generated through business travel

1,391

1,496

tCO2e

Total gross emissions

30,412

28,036

tCO2e

Intensity ratio (total gross emissions)

0.1309

0.1316

tCO2e per tonne of material processed

Energy efficiency actions

We are committed to responsible energy management and will practice energy efficiency throughout our organisation, wherever it is cost effective. We recognize that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.

We have implemented the policies below for the purpose of increasing the businesses energy efficiency in the relevant financial year.

- Upgrade vehicles to more energy efficient models where possible

- Introduction of hybrid/fully electric vehicles into the car portfolio

- Upgrade plant & machinery to improve on energy performance where possible

- Servicing and adjustment to existing plant & machinery to improve on energy performance where possible

- Increased availability and encouraged use of video conferencing.

- Reduced travel costs by reducing number of face to face meetings with clients and suppliers

The following energy efficiency measures are being implemented or are under consideration for implementation during 2026

- Carbon reduction by biomass combustion

- Continued investment in low energy processes and techniques at Widnes & Nottingham

- Continue to replace/upgrade vehicles and plant & machinery for more energy efficient options

Methodology used in the calculation of disclosures

ESOS methodology (as specified in Complying with the Energy Savings Opportunity Scheme version 6, published by the Environment Agency 28/10/2019) used in conjunction with Government GHG reporting conversion factors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Parsons Accountants Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

B O Jeewooth - Director

29 May 2026

Opinion

We have audited the financial statements of SARVAL Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not

visited by us; or

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditor's that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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.

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

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills

to identify or recognise non-compliance with applicable laws and regulations;

- We identified the laws and regulations applicable to the company through discussions with directors and other management, and

from our commercial knowledge and experience of the industry;

- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements

or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery,

employment and health and safety legislation;

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management

and inspecting legal correspondence; and

- We remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of

actual, suspected and alleged fraud; and

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

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions;

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential

bias; and

- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we identified procedures which included, but were not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation;

- Reading the minutes of meetings of those charged with governance;

- Enquiring of management as to actual and potential litigation and claims; and

- Reviewing correspondence with HMRC, relevant regulators and the Company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulation s are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Ian Parsons FCA (Senior Statutory Auditor)

for and on behalf of Parsons Accountants Ltd

Statutory Auditor

Unit 2 Silkwood Park

Fryers Way

Ossett

West Yorkshire

WF5 9TJ

29 May 2026

TURNOVER

3

62,925,346

57,334,068

Changes in stocks of finished goods and work in progress

(1,083,447

)

994,869

61,841,899

58,328,937

Other operating income

1,651,782

932,441

63,493,681

59,261,378

Raw materials and consumables

(35,902,683

)

(38,800,737

)

Other external expenses

(1,334,558

)

(804,194

)

26,256,440

19,656,447

Staff costs

4

(5,448,894

)

(4,977,372

)

Depreciation

(1,520,348

)

(2,071,534

)

Other operating expenses

(20,249,753

)

(17,779,336

)

OPERATING LOSS

5

(962,555

)

(5,171,795

)

Interest receivable and similar income

7

-

4,648

(962,555

)

(5,167,147

)

Interest payable and similar expenses

8

(1,618,185

)

(2,867,869

)

LOSS BEFORE TAXATION

(2,580,740

)

(8,035,016

)

Tax on loss

9

12,213

90,923

LOSS FOR THE FINANCIAL YEAR

(2,568,527

)

(7,944,093

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,568,527

)

(7,944,093

)

FIXED ASSETS

Tangible assets

11

11,483,244

12,148,701

CURRENT ASSETS

Stocks

12

3,122,179

4,498,640

Debtors

13

4,425,806

7,432,238

Cash at bank

288,972

84,845

7,836,957

12,015,723

CREDITORS

Amounts falling due within one year

14

42,700,976

44,976,672

NET CURRENT LIABILITIES

(34,864,019

)

(32,960,949

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(23,380,775

)

(20,812,248

)

CAPITAL AND RESERVES

Called up share capital

18

2,000

2,000

Retained earnings

19

(23,382,775

)

(20,814,248

)

SHAREHOLDERS' FUNDS

(23,380,775

)

(20,812,248

)

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

B O Jeewooth - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

2,000

(12,870,155

)

(12,868,155

)

Changes in equity

Total comprehensive income

-

(7,944,093

)

(7,944,093

)

Balance at 31 December 2024

2,000

(20,814,248

)

(20,812,248

)

Changes in equity

Total comprehensive income

-

(2,568,527

)

(2,568,527

)

Balance at 31 December 2025

2,000

(23,382,775

)

(23,380,775

)

1.	STATUTORY INFORMATION

SARVAL Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of 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. The presentational currency is GBP and the financial statements are rounded to the nearest pound.

Going concern

Following significant profitability in 2022, performance dramatically reduced in the years 2023 to 2024 due to unforeseen market conditions. Whilst performance has improved in 2025, the company still made a loss and still has a deficiency of assets at the balance sheet date.

The company remains dependent upon the financial support of its parent undertaking in the short term, however the directors of the parent entity have confirmed this support for at least 12 months from the date of signing the accounts. The group strategy for returning this company to profitability was evident in the turnaround in 2022. This improved performance is expected to return, following the short term problems it has faced, and continue for the foreseeable future.

On this basis the directors consider it appropriate to prepare the financial statements on the going concern basis and the financial statements therefore, do not include any adjustments that would result from the company ceasing to trade.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 33.7.

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.

Significant judgements and estimates

In respect of depreciation, the entity is largely governed by the Rethmann accounting policies (issued by the parent group). These policies/rates are followed, to the extent that they are reflective of the average economic consumption of the asset type. Where the actual consumption of a class of asset differs materially from this policy, a more appropriate rate is applied.

The Rethmann policy of bad debt provision is applied, being 100% for debts over 365 days old, 50% for debts over 180 days old and 1% against all other debts.

Stock ageing is reviewed regularly by management to assess the requirement for a slow moving/obsolescence provision, however any such provision is not currently deemed necessary.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on the sale of goods, when the significant risks and rewards of ownership are transferred to our customers dependant upon their individual inco terms.

Turnover is recognised on the performance of services, as and when those services are carried out.

Other income

Other income arises either from fees charged for handling and processing a third party product, or from the recharge of operating costs incurred by an entity, where the facility of that entity is used by other group companies.

Processing fees are recognised on the performance of services, as and when those services are carried out.

Straight recharge of costs that can be allocated directly to another group company are treated as recharges only, and the cost is passed directly to the other entity. No income is recognised in this instance.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant & machinery - 2 - 10 years straight line

Motor vehicles - 25% reducing balance and 2 - 6 years estimated remaining useful life (specific to used vehicles)

Assets und cons - not provided

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

For manufactured goods, the absorption cost method of valuation is used incorporating all production overheads.

If this results in a value higher than net realisable value for any stock item, then the selling price of that item is applied.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforecable 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.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of posting the transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company has members in the SARIA Group Pension Schemes, funded defined benefit schemes.

The above defined benefit schemes have been closed to new members. Alternative provision is made for new employees in the form of a defined contribution scheme.

The pension charge represents contributions payable to the funds in respect of the accounting period.

3.

TURNOVER

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

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

39,017,651

28,754,532

Europe

9,061,139

17,883,965

South America

2,458,788

207,167

Asia

12,338,279

10,488,404

Central America

49,489

-

62,925,346

57,334,068

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

4,608,163

4,247,927

Social security costs

491,720

415,874

Other pension costs

349,011

313,571

5,448,894

4,977,372

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

2025

2024

Office & management

14

13

Collection & processing

87

85

101

98

2025

2024

£

£

Directors' remuneration

-

-

The wages and salaries figure includes £367,570 of temporary staff costs (2024: £211,329).

5.	OPERATING LOSS

The operating loss is stated after charging:

2025

2024

£

£

Hire of plant and machinery

449,366

418,561

Depreciation - owned assets

1,502,731

2,071,533

Loss on disposal of fixed assets

17,616

-

Foreign exchange differences

76,144

35,211

Operating leases (inc in hire of plant & equipment above)

177,998

65,057

6.	AUDITORS' REMUNERATION

2025

2024

£

£

Audit services

22,800

21,340

Tax services

-

2,767

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Sundry interest

-

4,648