The directors present the strategic report for the year ended 31 December 2025.

The principal activity of the group continued to be that of manufacturing adhesive products. The principal activity of the company continued to be that of a holding company.

The results for the year are set out on page 12.

The group's turnover remained steady in the year, increasing by 0.5% (2024 decrease of 4.2%). The gross profit margin has increased slightly from 49.0% to 50.4%. The group has performed in line with expectations given the market conditions and the directors are satisfied with the year end position and the company's future prospects. The company is in a strong financial position with good cash balances which will enable it to deal with any challenges and take advantage of the opportunities which are expected to arise in the following year.

The director uses and reviews many performance measures. Two key performance indicators required for the group to meet its objectives are:

                  2025         2024        % movement

                  £             £

Turnover             68,483,773         68,163,819            0.5%

Profit before tax              12,426,166         11,624,656             6.9%

Gross profit margin for the year ended 31 December 2025 was 50.4% (2024: 49.0%).

The directors consider the track of these KPI's indicate that the company is achieving its business objectives.

Financial risk management

The groups' principal financial instruments comprise bank balances, trade debtors and trade creditors. A purpose of these instruments is to maintain funds and finance the group's operations.

Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group maintains sufficient bank balances to finance its continuing operations.

Trade debtors are constantly monitored in respect of credit and cash flow risk policies. Customers' balances are regularly monitored for amounts outstanding for time and credit limits.

Trade creditors are managed by ensuring that sufficient funds are available to meet amounts due within stated terms, taking available settlement discounts where applicable.

The group enters into forward contracts to mitigate the risk of adverse fluctuations in the value of foreign currency and raw materials.

Business relationships with customers, suppliers and others

The company and group commits to relationships based on trust and openness with all customers, colleagues, business, partners and communities.

Future Development & Performance

The directors of the company intend to continue to develop the business of the group by continuing investment in new plant and equipment, research and development and outstanding customer service.

Research and development

Activities of the group are concentrated on ensuring that the group continue to compete in the market with an emphasis on product development and new product pipeline that is considered by the directors to be of key importance to the business strategy for growth.

Environmental

The directors of the company believe it is in the group's best interest to minimise the risk arising from the social and environmental impact of its activities and is committed to conducting its activities and operations in line with current legislation and best environmental practice.

The directors consider, both individually and together, that they have acted in the way they consider in good faith would be most likely to promote the success of the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 December 2024 and in creating future business plans ("our plans"):

• Our plans are designed to have a long-term beneficial impact on the group and to contribute to its success by providing high quality service to our customers;

• Our employees are fundamental to the delivery of our plans. We aim to be a responsible and attractive employer in our approach to pay and the benefits our employees receive and the opportunities they have to develop their careers;

• Our plans rely on developing long term relationships with suppliers and customers, enabling us to gain a detailed understanding of their requirements and priorities. We aim to act responsibly and fairly in how we engage with all stakeholders;

• Our plans consider the impact of the group's operations on the community and the environment. We encourage our employees to support the communities in which they work;

• As directors, our intention is to behave responsibly and ensure the management operate the business in a responsible manner, operating with the high standards of business conduct and good governance expected for a business such as ours and in doing so, will contribute to the delivery of our plans; and

• As directors, our intention is to behave responsibly to our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plans.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £1,000,800 (2024: £667,200). The directors do not recommend payment of a final dividend.

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

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.

The discussion of financial risk management objectives and policies has been promoted to the Strategic report within the 'Financial Risk Management' section and forms part of this report by cross reference.

The company's and group's approach to stakeholder engagement is set out in the Strategic report in the "Business relationships with customers, suppliers and others" section.

There have been no significant post balance sheet events.

The auditors, Ward Williams Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

F Ball Enterprises Limited have followed the HM Government Environmental Reporting Guidelines, Including Streamlined Energy and Carbon Reporting Guidance. The company has used the 2025 UK Government Conversion Factors for Company Reporting and applied these factors to the measured quantities of energy.

The boundary for Streamlined Energy and Carbon Reporting is all energy and carbon emissions attributed to the site of the main trading group subsidiary, F Ball & Co Limited, in Cheddleton.

Gas and electricity volumes have been taken from billing data.

Energy consumption and CO2 emissions for diesel and petrol consumed by vehicles, comprising the company car fleet, pool cars and hire cars has been based on miles travelled, to which conversion factors from the 2025 UK Government Conversion Factors for Company Reporting have been applied to calculate energy consumption and CO2 emissions.

Distribution of the product is contracted out to a third party and is not included in this report.

Gas use covers factory and office heating (Cheddleton site only) with sub-metering installed in all four buildings.

Process gas is also used which is sub-metered. Electricity use is largely lighting (mainly LED), a small amount of heating and motive power covering assembly lines and robotics. All sub meters supply readings half hourly.

Transport includes company cars, hire cars, people using their personal car for company business and two LPG Forklift trucks. None of the trading companies have their own freight vehicles. External contractors are used for deliveries.

Calculation approach

It is envisaged that due to the half hourly metering, 100% of CO2e generated by gas and electricity use will be accurately recorded. As far as transport is concerned, due to the potential of human error in recording and reporting with private mileage use affecting the outcome, the estimated accuracy should be >90%.

F Ball Enterprises Limited have chosen the tonnes of CO2e per million tonnes of production as an intensity ratio. This is considered to be the metric which has the best correlation and relevance to the group.

Restatement

Energy consumption in the year has been restated for 2024 due to more accurate conversion factors being employed and greater detail on product manufacture. 

The aggregate of energy consumption was previously reported as 2,766,847 kWh in 2024.

Scope 1 and 2 emissions were previously reported as 308.33 and 202.90 metric tonnes CO2e in 2024 with total emissions being 511.23.

The 2024 intensity ratio has consequently been restated.  This was previously reported as 8749.68 tonnes of CO2e per million tonnes of product.

The company continues to run a number efficiency and energy reduction targets and programs:

• Switch off programme continues from 2025 objectives.

• Carbon emissions reduction continues from 2025 objectives with a plan to monitor output by plant/process to further breakdown carbon footprint and investigate efficiency savings to reduce.

• Scope 3 emission measurement has begun with data collation in progress.

• Installation of new solar array system has been implemented and has had a positive impact on 2024/2025 carbon emissions and electricity usage.

• Replacement of 2 of the 5 LPG fork lift trucks in 2026.

The site has continued to closely monitor energy consumption and associated emissions through its ISO 14001 Environmental Management System. The ISO 14001 system is a complex and thorough system which covers the site’s significant aspects and impacts from goods inward to end of life product, including GHG’s, water, waste, resource efficiency, biodiversity/ecosystems and emissions to land, atmosphere and water.

Significant Changes in emissions since previous year

CO2e related to electricity has largely reduced year on year since 2023. This is due to improvement of existing solar array with new inverters, and addition of new solar array in April 2024. 2025 reduction in energy is attributable to the first full year of energy generation from the new and improved solar systems and also to a run of good weather throughout the spring and summer.

Gas CO2e has decreased overall in the last 5 years although there was a small increase in 2025 vs 2024 likely due to environmental factors (weather/temperature) as gas is largely used for space heating.

LPG CO2e has seen a steady increase year on year attributed to increased FLT activity. Plans are in place to replace 2 of the 5 LPF trucks with electric vehicles. This will take place in 2026 with benefits to be seen in 2027.

Emissions in relation to company vehicles remains largely consistent over the last 5 years as a total although changes with each category have occurred. Diesel vehicles (cars and vans) have increased slightly in 2025 vs 2024 and hybrid vehicle emissions have decreased 2025 vs 2024 in line with an increase in EV uptake in the same period.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of F Ball Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

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

• We obtained an understanding of the legal and regulatory frameworks applicable to the group and the sector in which it operates. We determined that the following were most significant: the Companies Act 2006 and UK corporate taxation laws.

• We obtained an understanding of how the group are complying with those legal and regulatory frameworks by making inquiries to the management of the company. We corroborated our inquiries through our review of correspondence during our audit work.

• We assess the susceptibility of the group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed included:

• identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

• understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

• challenging assumptions and judgements made by management in its significant accounting estimates;

• identifying and testing journal entries, in particular journal entries posted with unusual account combinations; and

• assessing the extent of compliance with the relevant laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,278,598 (2024 - £1,478,102 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

F. Ball Enterprises Limited ("the Company") is a limited company domiciled and incorporated in England and Wales. The registered office is Churnetside Business Park, Station Road, Cheddleton, Leek, Staffordshire, ST13 7RS.

The Group consists of F. Ball Enterprises Limited and all of its subsidiaries.

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company's profit for the year was £2,278,598 (2024: £1,478,102 ).

The consolidated financial statements incorporate those of F. Ball Enterprises Limited and certain of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

All financial statements are made up to 31 December 2025.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

Where equity holdings are transferred within the group of the ultimate parent company as part of a group reconstruction the transactions are accounted for using the merger accounting method.

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Assets under construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. Investments in associates are accounted for at cost less impairment.

Listed investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss.

Other investments are initially measured at cost and subsequently measured at cost less impairment, unless fair value can be reliably measured in which case they are subsequently measured at fair value through profit or loss.

At each reporting end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials.

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

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three moths or less.

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

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

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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

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

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

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted at the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

The group operates both defined benefit and defined contribution schemes for the benefit of its employees. The pension costs in relation to the defined contribution scheme are charged to the profit and loss account in the year they are payable in accordance with FRS102 Section 28.

The regular cost of providing retirement pensions and related benefits through the defined benefit scheme is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Differences arising on translation are taken to the profit and loss account. Exchange differences arising on investment in group companies are taken to reserves.

Research and development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following applies to the group accounts:

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

In determining the appropriate depreciation rates to apply against property, plant and equipment, the directors have used their knowledge and experience of both the company and the industry to assess the useful lives of each individual asset.

Included in other reserves is £7,291,500 (2024: £4,260,000) in relation to the defined benefit pension scheme, the value of which is determined by a qualified actuary using the projected unit method. Valuations are carried out triennially, the most recent being on 1 January 2023, the results of which were projected to 31 December 2025. Various assumptions are included in the valuation. For further details see note 24.

An analysis of the group's turnover is as follows:

Sundry income includes £85,151 in respect of solar panel energy generated by one of the subsidiaries.

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

Their aggregate remuneration comprised:

Other interest income includes £nil interest (2024: £69,142) received on overpaid corporation tax from HMRC.

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

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The group and company have not designated any financial assets that are not classified as financial assets at fair value through profit or loss. The fair value of listed investments is determined by reference to the quoted price for identified assets in an active market at the balance sheet date. Other investments are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and their fair value cannot be reliably measured.

The directors consider the carrying amounts of financial assets measured at amortised cost in the financial statements to be approximate to their fair values.

Details of the company's subsidiaries at 31 December 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

F Ball Enterprises Limited holds its interest in Caswell & Company Limited, F Ball and Co. (Asia) Pte and F Ball and Co (Europe) Limited indirectly through its wholly owned subsidiary F. Ball and Co Limited, and its interest in Wine Innovations Limited, Lyme Bay Winery Limited and XPO IT Services Limited through its wholly owned subsidiary Ball Capital Investment Limited.

Freehold property held by one of the group subsidiaries, XPO IT Services Limited, was not occupied and was being actively marketed for sale at the year end. The property was sold on 10 August 2026 and is consequently measured at its realisable value less selling costs.

The group uses derivative financial instruments to hedge against movement in foreign exchange and the value of raw materials. They are measured at fair value based on the forward rates at the maturity of the contract and the spot rate at the year end. At the end of the year, the group had no forward currency contracts and no forward contracts for the purchase of raw materials in place (2024: contracts were in place to the value of a £39,497 liability).

The fair value of listed investments is determined by reference to the quoted price for identical assets traded in an active market at the balance sheet date.

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The amount of the net reversal of deferred tax expected to occur next year is £558,000 (2024: £600,000) relating to the reversal of existing timing differences on tangible fixed assets.

There are no unused tax losses nor tax credits.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund.

The group also operates a defined benefit pension scheme. The plan is a final salary pension arrangement where members receive benefits based on their final salary. The plan also provides benefits to to spouses/dependants in the event of a member's death before or after retirement. The scheme was closed to new entrants at 1 January 2019. The group expects to pay contributions in the region of £241,000 to the plan during the next accounting period.

The assets of the scheme are held separately from those of the group. Contributions to the scheme are charged to the profit and loss account so as to spread the cost of pensions over employees' working lives with the group. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was on 1 January 2023. The results of the valuation have been projected to 31 December 2025. The assumption which has the most significant effect on the results of the valuation is that relating to the rate of return on investments. It was assumed that the investment returns would be 3.65% per annum before retirement and 3.65% / 4.15% for non-pensioners/pensioners respectively per annum after retirement.

The most recent actuarial valuation showed that the market value of the scheme's assets was £21,713,000 and that the actuarial value of those assets represented 102% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contributions of the company were agreed at 13.9% pa of the Pensionable Salaries with employees' contributions at 11.5% of earnings. As the scheme is in surplus, no recovery plan contributions are currently required. The next actuarial valuation is due on 1 January 2026.

Assumed life expectations on retirement at age 65:

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

The actual return on plan assets was £3,966,000 (2024: £2,146,000).

For further information please refer to the Retirement benefit scheme note.

A subsidiary company is contracted to purchase grapes and vines to the value of £379,908 (2024: £213,325) in the 12 months ending 31 December 2026.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Amounts contracted for but not provided in the financial statements:

The remuneration of key management personnel is as follows.

Group and Company

The group has taken advantage of the exemption conferred by FRS 102 Section 33 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

During the year the group sold goods and services to subsidiaries of Brookvale Limited, a group under the direct control of one of the company's directors, amounting to £7,606,812 (2024: £6,605,392). At the year end, balances of £105,869 (2024: £273) were due from these companies.

Dividends totalling £1,000,800 (2024: £677,200) were paid in the year in respect of shares held by the company's directors.

There is no single ultimate controlling party. F Ball Enterprises Limited is controlled jointly by various members of the directors' immediate families. No individual exercises overall control of the company.