REGISTERED NUMBER: 06856641 (England and Wales)

Strategic Report, Directors' Report and

Financial Statements for the Year Ended 30 April 2026

for

Healthnet Homecare (UK) Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

9

Energy and Carbon Report forming part of the Directors' Report

11

Independent Auditors' Report

20

Statement of Comprehensive Income

23

Statement of Financial Position

24

Statement of Changes in Equity

25

Notes to the Financial Statements

26

DIRECTORS:

K Hinton

C D Carver

Mrs J M Sherry

SECRETARY:

Mrs J M Sherry

REGISTERED OFFICE:

Unit 1 & 2 Alfred Eley Close

Swadlincote

DE11 0WU

REGISTERED NUMBER:

06856641 (England and Wales)

AUDITORS:

RSM UK Audit LLP

Chartered Accountants and Statutory Auditor

Festival Way

Festival Park

Stoke on Trent

Staffordshire

ST1 5BB

The directors present their Strategic Report on Healthnet Homecare (UK) Limited (the "Company") for the year ended 30 April 2026.

REVIEW OF BUSINESS AND PRINCIPAL ACTIVITIES

Principal Activities

Healthnet Homecare (UK) Limited is a specialist homecare services company operating in the United Kingdom. The Company delivers a range of healthcare services directly to patients within their own homes and community settings.

Its three principal service lines are:

o Patient Adherence Services - providing actionable insights to patients, clinicians, commissioners, and pharmaceutical partners to support medication adherence and reduce the risk of patient non-compliance with treatment.

o Home Dispensing Services (including Complex and Specialised Medicines) - dispensing and delivering prescription medicines, including high-cost and complex therapies, directly to patients at home to ensure timely, safe, and reliable access to treatment; and

o Home Nursing Services - specialist nursing support in the community, including the administration of injectable and infusion therapies, patient training, and clinical monitoring, allowing patients to receive treatment in the comfort of their home environment, reducing hospital visits and supporting NHS and private healthcare system efficiency.

Business Overview

The Company operates within a highly competitive niche marketplace driven by the general public's healthcare needs. The Company has built its structure, operations, and philosophy with the patient firmly at the centre and believes it is in a strong position for the future, leveraging its integrated service model to provide a seamless patient journey.

Demand for community-based healthcare services continues to grow, driven by:

o the increasing prevalence of chronic and long-term conditions requiring complex medication regimes.

o a strategic shift in healthcare delivery as set out in the NHS 10-Year Plan - away from hospitals and into the home setting, driven by capacity pressures within the NHS; and

o heightened focus from pharmaceutical companies and healthcare providers on real-world data and digital tools to evidence and improve outcome effectiveness.

The Company is well-positioned within this environment, leveraging its integrated service model to provide a seamless patient journey.

The Company has established Healthnet MEA, a subsidiary in The United Arab Emirates, which provides pharmaceutical and medical device licencing and distribution in the Middle East, through local expertise, and digital care innovation.

PRINCIPAL RISKS AND UNCERTAINTIES

Regulatory and Compliance Risk

The Company operates in a highly regulated sector, requiring ongoing compliance. Risks include breaches of data protection laws, anti-bribery regulations, and sector-specific governance requirements. Healthnet maintains a comprehensive compliance framework, including mandatory training and a whistleblowing hotline.

Cybersecurity and Data Protection

As the Company increases its use of digital health platforms, protecting patient data and maintaining robust cyber defences are a key priority. Healthnet Homecare has over the last year reconfirmed our GCHQ/NCSC's Data Security and Protection template and Cyber Essentials+. From an Information Security point of view, we operate secure access and intrusion detection and have an externally managed Security Operations Centre, with agents on all servers and devices. We also have an inbound and outbound e-mail filtering and anti-phishing solution.

Business Continuity Risk

The Company recognises the critical importance of operational resilience in ensuring the uninterrupted provision of medicines, nursing services, and digital health solutions to patients and healthcare partners. Healthnet continues to strengthen its business continuity planning and scenario testing.

Liquidity and Cash Flow Risk

The Company monitors its cash flows closely to ensure that sufficient liquidity is maintained to meet operational needs, including medicine procurement, workforce costs, and investment in digital infrastructure; and cash flow forecasts are reviewed on a regular basis and updated for any changes expected to trade to ensure resilience.

Credit Risk

The Company is exposed to credit risk through trade receivables, primarily for healthcare commissioners, pharmaceutical partners, and private customers; and creditworthiness is assessed prior to contractual engagement, and receivables are monitored through robust credit control procedures.

DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE COMPANY'S SUCCESS

We recognise the importance of our wider stakeholders in delivering out strategy and business sustainability and are conscious of our responsibilities under section 172 of the Companies Act 2006.

Our customers

As a Company, our customers are at the centre of everything we do. We continue to focus on providing patients and healthcare partners with high-quality products and services at competitive prices, with an emphasis on clinical outcomes, patient safety, and service reliability.

During the year, the Directors monitored key operational and customer performance indicators, including patient volumes, service delivery, on-time deliveries, and customer feedback, to ensure service standards were maintained. Investment continued in digital health and data analytics capabilities to enhance the patient experience, improve clinical outcomes, and support healthcare partners. The Directors also oversaw the continued development of the 's Company's homecare services to meet increasing patient demand while maintaining high standards of quality and regulatory compliance.

Our employees

The Company employed 506 people on average during the year across its operations. The Company is committed to being a great place to work, achieved by fostering a culture where employees are empowered to make decisions within clearly defined roles and responsibilities, supported by appropriate training and development.

During the year, the Directors continued to invest in recruitment, training, and employee development to ensure the Company had the skills and resources required to support its continued growth. Regular performance reviews and one-to-one meetings were undertaken to provide feedback, set objectives and identify development opportunities. Training programmes were delivered to support both technical and professional development, including regulatory and compliance training where appropriate.

The Directors also monitored employee engagement, well being, and retention, recognising that a skilled and motivated workforce is fundamental to delivering high-quality patient care and customer service.

A broad programme of role-specific and professional training was delivered during the year. Dispensary staff undertake the Buttercups Level 3 Pharmacy Technician course as a requirement of their role and as part of their ongoing development, and staff have been further upskilled through ADCA dispensing qualifications. Professional qualifications, including CIPD and learning and development training qualifications, CIPP payroll qualifications and finance courses, have been supported, and colleagues have been given access to AI and Automation Practitioner Level 4 courses and Multi-Channel Marketing Level 3 apprenticeships.

All employees undertake annual mandatory training covering health and safety, Good Distribution Practice and pharmacovigilance, and the clinical team additionally completes mandatory clinical refresher and therapy training. Training is delivered principally through the Company's learning management system, supplemented by external providers where appropriate.

Our communities

Our products, services, and people contribute positively to the communities in which we operate, including the patients and healthcare partners who rely on our homecare and distribution services. High standards of ethics and business conduct remain central to our role as a responsible corporate citizen.

Our charity strategy is built around three key pillars: Community, Care and Climate, ensuring that our charitable activities create meaningful social and environmental value while supporting our business objectives. We work with carefully selected charity partners that align with our values, focusing on community wellbeing, patient support, and positive environmental impact. Through fundraising, community investment, and direct support for local initiatives, we aim to make a measurable difference to the people and places where we operate.

A key part of our approach is encouraging colleagues to get involved through volunteering opportunities that support local schools, community groups, charities, and environmental projects. By providing employees with opportunities to give their time, skills, and expertise, we strengthen our connection with communities, enhance employee wellbeing, and create lasting social impact. Together, these activities allow us to support the causes that matter to our employees, patients, and local communities, while reinforcing our commitment to responsible and sustainable business practices.

The environment

As a Company, our products, supply chain, and operations all have an impact on the environment. We believe our policies, working practices and procedures are properly designed to prevent unreasonable risk of environmental damage, and we continually seek opportunities to improve our environmental performance. This is of relevance given the significant increase in trading and distribution activity during the year, and we remain focused on ensuring that growth in volume does not come at the expense of our environmental commitments. Further detail is provided in the Energy and Climate Report.

Our shareholders

We continue to create long-term, sustainable value for our shareholders by investing in competitiveness across our chosen markets.

Our suppliers

The Company continues to develop and strengthen its long-term partnerships with suppliers to ensure the consistent delivery of high-quality products and services to its customers. The Directors recognise that collaborative supplier relationships, supported by fair payment practices and open communication, are fundamental to maintaining a resilient supply chain and delivering excellent patient outcomes.

Payment terms are agreed with each supplier at the point of contracting and are monitored monthly. Agreed terms across the Company's principal product lines range from 30 to 90 days, with 45 days being the most common. During the year, purchases from the Group's principal suppliers totalled approximately £1,036 million, representing around 65% of total purchasing, with a spend-weighted average payment term of 51 days, compared with 53 days in the preceding period. The Directors monitor payment performance against these terms and are satisfied that the Company continues to meet its obligations to suppliers in accordance with agreed practice.

The Company's supplier base includes long-standing relationships with many pharmaceutical manufacturers, these include Biogen and Pfizer, with whom the Group has partnered for ten years since the introduction of Benepali and Enbrel respectively in 2016; Janssen (Johnson & Johnson), a partner of nine years since the introduction of Stelara in 2017; and Sanofi, Celltrion and Abbvie, each of whom has worked with the Company for eight years following the introduction of Praluent, Remsima and Humira in 2018. The continuity of these relationships supports security of supply for patients, and the Directors regard the maintenance and extension of such partnerships as a key element of the Company's resilience.

EMPLOYEES

During the year the directors and other members of the company's senior management have sought to keep employees updated on and involved in the group's strategy, performance, and future objectives. Employees have been informally consulted through Business Updates, Team Management Meetings, and through our communication strategy on decisions that affect them including changes we make which affect how we work together through our values and processes which affect all our stakeholders. As a result of this engagement process and feedback opportunities during the year the directors have supported various projects across the business to support engagement and operational efficiencies. We invested in initiatives that strengthen employee engagement and foster a positive workplace culture. Activities have included regular wellbeing events, recognition programmes, team-building sessions, and opportunities for professional development. We've also encouraged open communication through feedback forums and team management meetings, ensuring that employees feel heard and valued and introduced our Employee Empower Forum this is voluntary and attended by employees across all areas of the business, it encourages our employees to share their ideas with regards to charity initiatives, wellness and employee engagement activities. These efforts have contributed to a more connected, motivated, and resilient workforce. Employees are encouraged to share in the Company's performance through the Company's annual bonus scheme.

Diversity

The company are proud to foster a workplace culture that values and celebrates diversity in all its forms. Our commitment to inclusion ensures that individuals of all backgrounds, identities, and experiences feel respected, supported, and empowered to thrive. Through ongoing initiatives, inclusive policies, and open dialogue, we continue to build a workforce that reflects the communities we serve and promotes equity at every level of the organisation.

Disability

The Company is committed to retaining and supporting employees with disabilities throughout their employment. We actively work to identify and remove physical barriers to ensure accessibility for both current employees and prospective applicants.

The Group is accredited at Level 1 of the Disability Confident scheme. Employees are supported through workplace adjustments, including the provision of specialist equipment; during the year, the Group collaborated with an employee supported by the Access to Work scheme and provided alternative IT equipment to enable them to conduct their role. The Company supports flexible working and makes use of occupational health services where appropriate. All employees have access to the Unum service, and the Company has additionally funded counselling and support services for employees with a range of learning and neurodiversity requirements.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Board recognises that strong and constructive stakeholder relationships are fundamental to the long-term success of the Company. We are committed to open engagement with all key stakeholders, including shareholders, customers, suppliers, regulators, and our employees.

Our approach is underpinned by formal policies and practices such as our Ethics Guide, Supplier Code of Conduct, and Whistleblowing Policy, which together promote transparency, integrity, and accountability across the business.

We maintain robust and collaborative relationships with customers and suppliers through contractual agreements, approval processes, and ongoing dialogue to ensure service quality, reliability, and compliance with regulatory expectations. These measures are essential in supporting the delivery of high-quality healthcare services to patients.

Equality, diversity, and inclusion remain at the heart of our values and purpose. Through clearly defined behaviours and leadership accountability, we continue to foster a culture that values difference, enhances collaboration, and builds respect across the organisation.

CORPORATE AND SOCIAL RESPONSIBILITY

Our Corporate Social Responsibility (CSR) strategy reflects our commitment to patients, customers, colleagues, the environment, the community, and ethical business conduct. We are dedicated to operating in a socially responsible manner, recognising that the long-term success of the Company is intrinsically linked to the wellbeing of the environment and the communities in which we operate.

We are committed to conducting our business fairly and transparently, with integrity at the centre of decision-making. Our approach to sustainability includes sourcing and implementing environmental solutions wherever possible, with the aim of reducing our carbon footprint in line with our internal environmental policy. Business growth and operational change are assessed to ensure minimal environmental impact, with activities conducted by well-trained and appropriately qualified employees.

The Company continues to strengthen its focus on building a sustainable society by integrating environmental and social purpose into the heart of the business strategy. Considerable progress has been made in developing and embedding our Environmental, Social and Governance (ESG) programme, which supports our commitment to responsible growth, community engagement, and reducing environmental impact.

KEY PERFORMANCE INDICATORS

The directors monitor the Company's performance against the following key performance indicators ("KPIs"):

2026

2025

Increase

Turnover

£1,169,639k

£966,827k

£202,812k

30.0%

Gross Profit

£51,073k

£40,204k

£10,869k

27.0%

Gross margin

4.37%

4.16%

21 bps

Operating profit

£17,328k

£9,607k

£7,721k

80.4%

Equity shareholders' funds

£31,401k

£19,350k

£12,051k

62.3%

Employee numbers

506

429

77

The Company delivered a strong financial performance during the year. The commentary below sets out the key movements against each indicator.

Turnover

Turnover increased by 21.0% to £1.17 billion (FY2024/25: £966.8m), reflecting strong volume growth across the homecare portfolio. The Company expanded its active patient base from approximately 140,000 to 180,000 patients during the year, driven by the onboarding of new therapy areas and the growth of existing business.

Gross Profit and Gross Margin

Gross profit increased from £40.2m to £51.1m, representing growth of 27%, with the gross profit margin improving from 4.16% to 4.37%. The improvement in margin reflects a favourable sales mix together with continued focus on operational efficiencies and cost management.

Operating Profit

Operating profit increased by £7.7m, approximately 80%, to £17.3m (FY2024/25: £9.6m). The improvement reflects both the increase in gross profit and the non-recurrence of exceptional items that impacted the prior year, including costs associated with the acquisition of Socius Pharma Limited by the Apollo 2024 Topco Limited group in October 2024.

Excluding those exceptional costs, the underlying improvement in operating profit reflects the scalability of the Company's operating model. As patient volumes and revenue grow, the fixed and semi-fixed cost base, including premises, systems and management overheads, is absorbed more efficiently.

Distribution costs increased during the year, primarily due to increased employee costs across Operations, Sales and Nursing functions. Salary costs increased by £3.5m during the year, reflecting additional recruitment to support the growth in patient numbers, order volumes and nursing activity. The increase in resource was required to maintain operational capacity and service levels as the business expanded and is consistent with the overall growth in revenue.

Equity Shareholders' Funds

Equity shareholders' funds increased by £12.1m to £31.4m at 30 April 2026 (FY2024/25: £19.3m), reflecting the accumulation of post-tax profits during the year. No dividend was paid during the period.

The growth in net assets also reflects an increase in working capital to support the continued expansion of the business. Stock increased from £55.3m to £71.5m to support higher patient and order volumes and ensure continuity of supply. Debtors increased from £148.8m to £192.4m, principally reflecting the higher level of trading activity and the corresponding increase in trade receivables at the year end. Creditors increased from £207.8m to £254.3m, consistent with the increased scale of the business and the associated working capital requirements.

Investment also continued in fixed assets, principally IT systems, which were funded from operating cash flows. The Directors consider the movements in working capital to be consistent with the Company's growth and are satisfied that sufficient funding facilities remain in place to support the ongoing requirements of the business.

Employee Numbers

The Company employed 506 people on 30 April 2026, an increase of 77 from 429 at the prior year end, representing headcount growth of approximately 18%. The growth reflects investment across all areas of the business: operations and dispensing teams at Swadlincote to support higher order volumes; clinical nursing staff to service the expanding patient base; and business support functions including IT, finance, quality, and governance roles required to operate at scale in a regulated healthcare environment.

BALANCE SHEET REVIEW

Fixed Assets

Net tangible fixed assets of £8.6m at year end reflect ongoing investment in the operational infrastructure of the business. Capital additions during the year included investment in IT systems and software to support the digital growth of the business, fixtures and fittings and machinery across both sites. The Company's intangible assets of £6.2m principally reflect the carrying value of the investment in subsidiary undertakings and development costs associated with the digital platforms.

Working Capital

Trade debtors of £152m (FY2024/25: £108m) primarily represent amounts due from NHS commissioners and pharmaceutical partners in respect of dispensed medicines and service fees. The increase of £44m (40%) is principally attributable to the higher level of trading activity during the year and is consistent with the significant growth in turnover.

Debtor days increased modestly from 40 days in FY2024/25 to 44 days in FY2025/26. This reflects the timing of invoicing and receipts around the year end together with the standard NHS payment cycle, rather than any deterioration in the quality of the debtor book. Debtor days continue to be actively monitored by management through robust credit control procedures, and no bad debt provision was considered necessary at the year end due to the strong credit quality of the Company's customer base and its history of cash collection.

Trade creditors of £214.0m (FY2024/25: £164.7m) primarily reflect amounts payable to pharmaceutical manufacturers and wholesalers for medicines procured on behalf of patients. The increase of £49.3m (30%) is principally attributable to the higher level of trading activity during the year and is consistent with the growth in drug procurement required to support increased patient and order volumes.

Creditor days increased modestly from 66 days in FY2024/25 to 69 days in FY2025/26. This reflects the timing of purchases and payments around the year end together with the continued growth of the business and remains in line with agreed supplier payment terms. The Company continues to maintain strong relationships with its key suppliers and monitors payment performance to ensure obligations are met in accordance with contractual arrangements.

The Company operates an invoice discounting facility with Barclays, which had a utilisation of £50.5m at the year end, providing a flexible source of working capital to bridge the timing difference between drug procurement and receipts from NHS commissioners.

Cash and Liquidity

The Company held cash of £7.9m on 30 April 2026. Cash generation during the year was supported by the strong trading performance, with operating cashflow broadly in line with EBITDA after working capital movements. The principal working capital absorption relates to the growth in the debtor and stock balances, reflecting the increase in business volumes. The invoice discounting facility provides additional liquidity headroom and the directors are satisfied that the Company has adequate cash resources for its operational requirements for the foreseeable future.

MARKET ENVIRONMENT AND COMPETITIVE POSITION

The directors constantly review the risks and uncertainties in the marketplace, in the wider group, and at entity level. The group of which the Company is a part operates in a niche marketplace area which is driven by the general public's health needs. Whilst it remains a very competitive area, the business does not necessarily face the same level of risk and uncertainties as those experienced in the wider economy.

After considering the financial position of the Company at the time of approving the financial statements and the Company's financial forecasts up to July 2027, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

FUTURE DEVELOPMENTS

The directors remain committed to open engagement with all key stakeholders including shareholders to provide transparent updates on Company performance, strategy, and risks, ensuring their views are considered. The Company has built its structure, operations, and philosophy with the patient firmly at the centre and believes it is in a strong position for the future.

APPROVED BY THE BOARD AND SIGNED ON ITS BEHALF.:

K Hinton - Director

18 September 2026

The directors present their report with the financial statements of the Company for the year ended 30 April 2026.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2026 (2025: £nil).

DIRECTORS

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

K Hinton

C D Carver

Mrs J M Sherry

GOING CONCERN

The Directors continually monitor the principal risks and uncertainties affecting the Group, both at Group and individual entity level. The Group operates within the healthcare sector, providing specialist homecare services, digital health and data analytics, which are driven by ongoing patient demand. Whilst the market remains competitive, the Group has demonstrated resilient trading performance and is not considered to be exposed to the same level of volatility as many sectors of the wider economy.

In assessing the appropriateness of adopting the going concern basis, the Directors have undertaken a detailed review of the Group's financial position and future cash flow requirements. This assessment included the review of integrated profit and loss, balance sheet and cash flow forecasts covering a period of at least twelve months from the date of approval of the financial statements. The forecasts are based on approved budgets, expected patient and order volumes, and management's assessment of future trading performance.

The Directors have also reviewed the Group's available funding facilities and liquidity position, including forecast utilisation of the invoice discounting facility throughout the assessment period. The forecasts demonstrate that the Group is expected to retain sufficient liquidity and maintain adequate headroom within its committed funding facilities.

As part of the assessment, the Directors considered downside sensitivities, including reductions in forecast activity levels, and reviewed the impact on profitability, cash flows, liquidity, and compliance with the Group's financial covenants. Under these scenarios, the Group is forecast to remain within its available facilities and continue to comply with its covenant obligations.

Having considered the results of these assessments, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

MATTERS COVERED IN THE STRATEGIC REPORT AND FINANCIAL STATEMENTS

As permitted by Paragraph 1A of Schedule 7 to the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008, certain matters which are required to be disclosed in the Directors' Report have been omitted as they are included in the Strategic Report. These matters relate to the future developments of the Company, its business relationships with stakeholder, employee information and financial risk management.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 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 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 company's auditors are aware of that information.

AUDITORS

During the year, the Company appointed RSM UK Audit LLP as auditors to the Company. The auditors, RSM UK Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

APPROVED BY THE BOARD AND SIGNED ON ITS BEHALF.:

K Hinton - Director

18 September 2026

CLIMATE RELATED FINANCIAL DISCLOSURES (TCFD-ALIGNED) 2025/2026

This disclosure is made by Healthnet Homecare UK Limited ("HealthNet Homecare" or "the company").

1. GOVERNANCE

Board Oversight of Climate-Related Risks and Opportunities

The Board retains ultimate accountability for oversight of climate-related risks and opportunities, recognising climate change as a strategic issue influencing healthcare delivery, regulatory expectations, financial performance, and long-term organisational resilience.

Climate considerations are embedded within the corporate governance framework and formally incorporated into the annual review of principal risks. This ensures structured and consistent evaluation of financial, operational, and reputational exposures arising from transition and physical climate risks.

Performance against climate objectives is monitored through quarterly reporting to the Board, including:

- Greenhouse gas emissions (Scopes 1, 2, and developing Scope 3 coverage)

- Energy consumption and efficiency metrics

- Progress against emissions reduction targets

- Operational efficiency indicators aligned with SECR and TCFD requirements

This approach ensures strong alignment between statutory disclosures and strategic decision-making.

Management's Role in Assessing and Managing Climate-Related Risks

Day-to-day responsibility for managing climate-related risks and opportunities sits with the Executive Leadership Team (ELT), ensuring integration into operational planning and business decisions.

The ESG Committee, operating under ELT oversight, coordinates climate-related activity across the organisation. Its responsibilities include:

- Embedding climate risks within the enterprise risk management (ERM) framework

- Delivering the climate strategy and associated action plans

- Monitoring performance against emissions and efficiency targets

- Overseeing emissions data collection, validation, and reporting

- Identifying emerging risks, regulatory developments, and improvement opportunities

- Escalating material issues to ELT and Board

HealthNet Homecare continues to enhance governance maturity through selective engagement with external specialists, including:

- Independent verification of emissions data

- Climate scenario analysis support

- Advisory on regulatory and NHS Net Zero requirements

This structure ensures clear accountability, robust oversight, and continuous improvement in climate governance.

2. STRATEGY

Identification of Climate-Related Risks and Opportunities

HealthNet Homecare applies a structured ERM approach combining:

- Top-down analysis: regulation, NHS policy, market trends, climate science

- Bottom-up inputs: operational risks across logistics, clinical delivery, facilities, and supply chain

Transition Risks

Description

Impact

Timeframe

Increasing regulatory requirements

Higher compliance costs, system upgrades, assurance requirements

Short term

NHS Net Zero Supplier Roadmap

Increased reporting burden and potential supplier restructuring

Medium term

Decarbonisation policy changes

Capital investment in fleet and infrastructure

Medium term

Reputational underperformance

Reduced competitiveness in NHS/ private tenders

Short to medium term

Rising carbon-intensive input costs

Margin pressure from fuel, energy, logistics

Short to medium term

Physical Risks

Description

Impact

Timeframe

Extreme weather disruption

Service delays, cost increases, reputational risk

Short to medium term

Extreme heat impacts

Additional cooling, productivity loss, medicine safety risks

Medium term

Chronic climate shifts

Increased operating costs, infrastructure strain

Long term

Supply chain disruption

Delays, shortages, higher procurement costs

Medium to long term

Principal climate-related opportunities

Opportunity

Impact

Digital and remote care pathways

Reduced travel emissions, improved patient access, cost savings

Fleet optimisation

Lower emissions intensity, improved cost efficiency

Energy efficiency improvements

Reduced costs and regulatory exposure

NHS tender differentiation

Increased contract success and retention

Strengthened ESG capability

Improved decision-making and stakeholder confidence

Actual and potential impacts on the business model

Climate related risks influence HealthNet Homecare's logistics intensive operating model, particularly in relation to fleet emissions, energy use, and supply chain resilience. In the short term, transition risks increase compliance and reporting requirements. In the medium term, climate related expectations are expected to become embedded in NHS tendering processes, influencing revenue opportunities. Over the long term, physical climate impacts may increase operational disruption and insurance costs.

The company is responding through investment in fleet optimisation, energy efficiency, digital care pathways, and supplier engagement.

Time Horizons

HealthNet Homecare applies defined time horizons to ensure that climate-related risks and opportunities are assessed consistently and integrated into planning cycles:

- Short term (1-2 years):

Focus on immediate regulatory compliance, emissions reporting requirements, and operational adjustments required to meet current expectations

- Medium term (2-4 years):

Anticipated evolution in NHS procurement requirements, increased integration of climate considerations into commissioning decisions, and adaptation of healthcare delivery models

- Long term (4+ years):

Structural shifts in healthcare demand, infrastructure resilience requirements, and increased exposure to physical climate risks

These time horizons support forward planning and ensure that both near-term actions and longer-term strategic investments are appropriately considered.

Climate Scenario Analysis

To assess the resilience of its strategy, HealthNet Homecare has undertaken qualitative climate scenario analysis aligned with widely referenced 1.5•C (rapid transition) and 2•C (delayed transition) pathways.

Rapid Transition Scenario

This scenario assumes early and accelerated policy action to achieve net zero targets, aligned with UK Government and NHS commitments.

Key implications include:

- Increased short-term costs associated with compliance, reporting systems, and emissions reduction initiatives between 2024 and 2028

- Greater integration of climate requirements into NHS procurement processes, making strong climate performance a key differentiator

- Increased expectations around supply chain transparency and emissions reduction

- Opportunities to gain competitive advantage through early adoption of low-carbon operations

Despite higher initial costs, the organisation's homecare model remains resilient due to:

- Reduced reliance on patient travel

- Efficiency of centralised logistics

- Scalability of digital healthcare delivery

Delayed Transition Scenario

This scenario assumes limited policy action in the near term, followed by more abrupt regulatory intervention post-2030.

Key implications include:

- Lower short-term regulatory pressure but increased long-term disruption

- Greater exposure to physical risks, particularly affecting logistics and temperature-sensitive medicines

- Increased frequency of service disruption due to extreme weather events

- Rising insurance premiums and business continuity costs

While the homecare model remains viable under this scenario, it requires:

- Greater investment in resilience and contingency planning

- Enhanced infrastructure and supply chain robustness

Resilience of the Organisation's Strategy

Across both scenarios, HealthNet Homecare's core service model demonstrates strong structural resilience. The decentralised nature of homecare delivery and reduced reliance on physical healthcare facilities provide inherent advantages in a climate-constrained environment.

Planned investments between 2025 and 2027, particularly in fleet optimisation, digital care delivery, and energy efficiency, are expected to significantly enhance resilience, reduce emissions, and improve operational efficiency.

3. RISK MANAGEMENT

Processes for Identifying and Assessing Climate-Related Risks

Climate-related risks are identified, assessed, and managed through the organisation's established enterprise risk management framework. Risks are formally documented within the corporate risk register and are subject to regular review and update.

To support prioritisation, risks are assessed based on their potential financial impact:

- Low: Up to £50,000

- Medium: £50,000 to £100,000

- High: Over £100,000

In addition to financial impact, risks are evaluated based on:

- Likelihood of occurrence

- Severity of operational disruption

- Potential reputational consequences

This structured approach ensures that resources are directed towards the most material risks.

Integration into Overall Risk Management

Climate-related risks are fully integrated into wider organisational processes and decision-making, including:

- Strategic and business planning cycles

- Investment appraisal and capital allocation decisions

- Contract mobilisation and service design

- Business continuity planning and emergency preparedness

- Supplier selection and engagement processes

This integration ensures that climate considerations are not treated in isolation but are embedded within the overall risk and operational framework.

Monitoring and Mitigation of Risks

Risk mitigation actions are developed and implemented at both strategic and operational levels. These include:

- Investment in fleet efficiency and low-emission vehicles

- Improvements in logistics planning and route optimisation

- Strengthening supply chain resilience and supplier engagement

- Enhancing infrastructure and facilities management

The Assurance and Quality Group provides oversight, reviewing the adequacy of controls and monitoring the effectiveness of mitigation actions.

Data Quality and Methodology

Emissions are calculated in accordance with the Greenhouse Gas Protocol using a location-based approach for Scope 2 emissions and global warming potential (GWP-100) metrics.

Emission factors are derived from UK Government conversion factors and applied consistently across reporting periods. Primary consumption data is used where available, with estimations applied where necessary using appropriate proxies such as floor area or operational activity.

The implementation of SECR reporting has improved data consistency, classification accuracy, and overall auditability of emissions disclosures.

4. METRICS AND TARGETS

Baseline and Data Quality

The organisation previously established 2023 as its baseline year, representing the first year in which complete and consistent organisation-wide data for energy consumption, fleet activity, and emissions was available.

In 2026, the HealthNet implemented a carbon management platform to enhance the robustness and accuracy of its greenhouse gas accounting. This investment has improved the precision of emissions calculations and underlying assumptions, while also enabling the quantification of additional Scope 3 categories for the first time.

As a consequence of these methodological and data improvements, HealthNet has reset its baseline year to 2026. This updated baseline provides a more reliable foundation for forecasting, target-setting, and the monitoring of future emissions reductions

Emissions are reported on an operational control basis and include all UK operations under HealthNet Homecare UK Limited.

Data quality and accuracy are continually reviewed and improved, with external verification providing an additional level of assurance.

Emissions Metrics and Targets

HealthNet Homecare measures and reports Scope 1 and Scope 2 greenhouse gas emissions in line with recognised standards and DEFRA emission factors.

- 2023 performance: 185 tCO2e

- 2024 performance: 171 tCO2e (4.8% reduction)

- 2026 performance: 110 tCO2e (previous years' data included grey fleet fuel consumption). Scope 1 and 2 only; full Scope 3 data below.

- 2026 performance including Scope 3: 900,784.7 tCO2e

Scope 3 emissions, particularly purchased goods and services, are calculated using spend-based estimation methodologies and are subject to a higher degree of uncertainty. These figures are currently being refined as supplier-specific data becomes available.

Due to improvements in data quality, methodology, and Scope 3 coverage, emissions data prior to 2026 are not directly comparable with the updated baseline and has not been restated. Historical comparisons presented should therefore be interpreted with caution.

The organisation's estimated Scope 3 emissions equate to approximately 0.90 tCO2e per patient delivery, reflecting the significant contribution of purchased goods and services within the overall footprint.

Targets:

- 2028 interim target: 15% reduction from 0.90 tCO2e per patient delivery, 2026 baseline

- 2030 target: 35% reduction from 2026 baseline

These targets reflect a commitment to continuous improvement and alignment with national and NHS net zero ambitions.

Targets have been recalibrated following the reset of the baseline year to 2026 to ensure alignment with improved data accuracy and expanded emissions scope.

Scope 3 Emissions

The organisation has begun addressing key Scope 3 categories, focusing on areas with the greatest operational relevance and influence.

- Target: 10% reduction in emissions intensity per patient delivery by 2027

o 998,279 / 900,874.7tco2e

- Included categories: logistics, business travel, waste, and packaging

This approach recognises the importance of value chain emissions while taking a phased and data-driven approach to measurement and reduction.

Full Scope data

Scope

Name

tCO2e

1.1

generation of electricity, heat or steam

0

1.2

Transportation of materials, products, waste and employees

17.7

1.3

Physical or chemical processing

0

1.4

Fugitive emissions

4.9

2.1

Electricity related indirect emissions

87.4

2.2

Steam, heat and cooling related indirect emissions

0

3.1

Purchased goods and services

897046.3

3.2

Capital goods

357.9

3.3

Fuel and energy related activities not included in Scope 1 or Scope 2

42.4

3.4

Upstream transport and distribution

2628.3

3.5

Waste generated in operations

265.3

3.6

Business travel

150.5

3.7

Employee commuting

168.6

3.8

Upstream leased assets

15.2

Operational efficiency metrics

Operational performance is monitored through a series of efficiency metrics that support both cost control and emissions reduction:

- Fleet emissions intensity: reduction through route optimisation and vehicle efficiency

- Energy intensity: improved building performance and energy management

- Waste and recycling: increased diversion from landfill and improved resource efficiency

- Clinical waste: reduction through process improvements and material optimisation

These metrics provide actionable insights and support continuous operational improvement.

Emissions Reduction Initiatives Implemented

Reducing travel-related emissions

HealthNet Homecare has significantly reduced Scope 3 travel emissions by supporting the NHS in transitioning vulnerable patients away from hospital-based care and into community and home settings. This has reduced the requirement for patient, family, and clinical travel. Additionally, the deployment of secure video conferencing technology has reduced the need for nurses to undertake physical visits where clinically appropriate.

Energy efficiency - lighting upgrades

All internal lighting across HealthNet Homecare facilities has been converted to low voltage LED systems. This transition has delivered material energy efficiency gains and increased bulb life expectancy by approximately 500%, reducing both electricity consumption and replacement-related waste.

On-site renewable electricity generation

HealthNet Homecare has installed solar photovoltaic (PV) systems across its warehouse estate. Four PV projects have been delivered, each ranging between 80-87 kWp, collectively reduce emissions by up to 64 tCO2e per annum. A typical installation delivers approximately 79,765 kWh of clean electricity annually, avoiding circa 16,000 kg CO2e per site, increasing energy self sufficiency and reducing reliance on grid electricity.

Transition to electric vehicles (EVs)

A majority of management vehicles have now been transitioned to electric powertrains. As existing internal combustion engine vehicle leases expire, they are replaced with electric vehicles wherever operationally feasible, supporting long term Scope 1 emissions reduction.

Waste reduction and circular economy practices

HealthNet Homecare operates a reuse and recycling framework across its operations. Currently, 90% of cardboard packaging is manufactured from recycled material, equating to the preservation of 66 trees annually.

Route optimisation and logistics efficiency

Through route planning optimisation and increased load efficiency, average miles travelled per delivery vehicle have reduced from 231 to 156 miles, while average deliveries per route increased from 12 to 28. This has reduced emissions intensity per delivery from 5.88 kg CO?e to 1.75 kg CO?e, representing a 70.2% reduction in emissions per drop.

Investment in Carbon Management Platform

HealthNet Homecare has invested in a dedicated carbon management platform to enable comprehensive measurement and reporting of greenhouse gas emissions across all scopes. Following the completion of full data collection, work will commence on updating and enhancing the organisation's Carbon Reduction Plan to reflect improved data accuracy, expanded scope coverage, and evolving regulatory expectations.

Forward-looking Targets and Commitments

HealthNet Homecare has set the following time bound objectives to support continuous emissions reduction and alignment with long term climate resilience:

- By 2026: Implement a supplier audit capturing environmental, diversity, and inclusion metrics, including suppliers' Scope 1 and Scope 2 emissions.

- From 2026 onwards: Procure renewable energy only from all operational sites, including subsidiaries and any future sites, where practicable.

- From June 2026: work will commence on updating and enhancing the organisation's Carbon Reduction Plan to reflect improved data accuracy, expanded scope coverage, and evolving regulatory expectations.

- Ongoing:

o Commit to zero waste to landfill.

o Maintain exclusive use of recycled paper and minimise paper consumption through digitisation.

o Promote low carbon commuting via car sharing incentives and active travel infrastructure.

- Long term targets:

o Achieve net zero Scope 1 and 2 emissions by 2040, Scope 3 2045.

o Reduce water consumption by 30% across all facilities by 2030.

STREAMLINED ENERGY AND CARBON REPORTING

This report provides a comprehensive overview of the energy consumption and related emissions , energy efficiency initiatives, and overall energy performance of HealthNet.

This disclosure is made in accordance with the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

This report covers HealthNet for the financial year 1st May 2025 to 30th April 2026, and the annual GHG emissions from activities for which the company is directly responsible. Having considered the potential metrics within the business, we have concluded that Turnover (£M) is the most appropriate to achieve a benchmark which aligns with the carbon reduction policy and methodology that HealthNet are currently working towards.

Consumption and emissions year on year

Year

Consumption

Emissions

Intensity Metric

Emissions Intensity

(kWh)

(tCO2e)

(Turnover £m)

(tCO2e/£m)

2022 - 2023

853,925

183.95

460.00

0.3999

2023 - 2024

702,373

170.60

700.08

0.2437

2024 - 2025

1,182,836

262.86

962.70

0.2730

2025 - 2026

598,646

110.00

967.00

0.1137

The chosen intensity ratio is tCO2e per £ million turnover, which is considered the most appropriate metric for reflecting the scale of operations.

Breakdown - Scope 1 & 2 Comparison

Scopes

Consumption

Consumption

Emissions

Emissions

2025/2026

2024/2025

2025/2026

2024/2025

(kWh)

(kWh)

(tCO2e)

(tCO2e)

Transportation(Scop e 1)

81,818

566,445

17.70

135.24

Fugitive Emissions (Scope 1)

22,727

N/A

4.90

N/A

Scope 1 Total

104,545

566,445

22.60

135.24

Grid Supplied Electricity(Scope 2)

494,101

604,315

87.40

125.12

Transportation(Scop e 2)

N/A

12,076

N/A

2.50

Scope 2 Total

494,101

616,391

87.40

127.63

Total

598,646

1,182,836

110.00

262.86

SECR Disclosure Summary (2025/26)

Total energy consumption: 598,646 kWh

Scope 1 emissions: 22.6 tCO2e

Scope 2 emissions: 87.4 tCO2e

Total Scope 1 & 2: 110 tCO2e

Intensity ratio: 0.1137 tCO2e per £ million turnover (primary intensity metric for SECR compliance).

Emissions and energy consumption are reported on an operational control basis and include all UK operations under Healthnet Homecare UK Limited.

Data for prior years is not directly comparable due to improvements in data quality, changes in organisational boundary (including removal of grey fleet emissions), and expansion of Scope 3 reporting.

Energy Efficiency Actions Taken

- Reducing travel-related emissions

- Energy efficiency - lighting upgrades

- On-site renewable electricity generation

- Transition to electric vehicles (EVs)

- Waste reduction and circular economy practices

- Route optimisation and logistics efficiency

- Investment in Carbon Management Platform

CONCLUSION

HealthNet Homecare has developed a comprehensive and integrated approach to managing climate-related risks and opportunities, aligning with both TCFD recommendations and SECR regulatory requirements. The integration of statutory carbon reporting into strategic disclosure has strengthened governance, improved data quality, and enhanced transparency.

The organisation has demonstrated measurable progress in reducing emissions and improving operational efficiency, supported by clear targets and robust performance monitoring. Its homecare delivery model, combined with ongoing investment in digital innovation, logistics optimisation, and sustainability initiatives, provides a strong foundation for long-term resilience in a low-carbon healthcare system.

As regulatory expectations and stakeholder demand continue to evolve, HealthNet Homecare remains well positioned to respond effectively, maintaining high-quality care delivery while contributing to broader environmental and societal objectives.

APPROVED BY THE BOARD AND SIGNED ON ITS BEHALF.:

K Hinton - Director

18 September 2026

Opinion

Basis for opinion

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Responsibilities of directors

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

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

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;

- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and evaluating advice received from external tax advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the dispensing and distribution of pharmaceutical products and delivery of homecare services. We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these law and regulations and inspected the results of inspections conducted by licensing or regulatory authorities.

The audit engagement team identified the risk of management override of controls and the risk of fraud in revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. The risk of fraud in revenue recognition was identified in respect of the occurrence and accuracy of revenue transactions and correct application of cut off in revenue recognition around the period end. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, using data analytics to test revenue entries during the period and testing a sample of revenue entries around the period end.

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

Use of our report

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

Adam Krupski (Senior Statutory Auditor)

for and on behalf of RSM UK Audit LLP

Chartered Accountants and Statutory Auditor

Festival Way

Festival Park

Stoke on Trent

Staffordshire

ST1 5BB

18 September 2026