The Company predominately operates in the Pub Market and engages in the rental and sales of Amusement with Prizes (AWP) equipment and related ancillary products.

The main activities of the company continue to be the rental of Gaming and Amusement equipment and associated ancillary products, along with providing engineering services to the Gaming Industry.

Regal Amusement Machine Sales Limited is committed to investing in innovative solutions and products for its customers, and during the year over 2000 new Digital AWPs have been deployed across the estate. Allied to this product investment, the business has also continued to invest in IT infrastructure and to undertake original Research and Development into new hardware and software.

This focus on providing cashbox enhancing solutions for our customer base has been rewarded with the retention and extension of several key contracts and an increase in the overall number of AWPs and other pieces of equipment operated.

The company operates within the pub sector which continues to face significant challenges, not least input cost price inflation and economic challenges which impact upon it’s customer base. Despite these headwinds, the sector has continued to innovate and, although we expect some level of pub closures during the months and years ahead, we are confident that the business can continue to grow within this sector.

The business monitors KPIs in relation to contract performance and profitability. A key metric used is Machine Weekly Average, which represents the weekly cashbox return to the business. Average Net Balance, a measure of overall machine performance, is also proactively monitored with corrective actions taken where necessary. These KPIs are monitored against both contracts and product lines. The business also monitors its financial performance and position using key financial ratios such as Profit before Tax Margin % (PBT%) and the Current Assets Ratio (CAR), excluding deferred tax asset. We are pleased to note that despite ongoing inflationary pressures the PBT% has remained robust during the current financial year (slightly declining from 8.6% to 7.5%), whilst the CAR has slightly declined from 1.2 to 1.1 in the same period. The Directors are confident that both these Metrics will improve during 2026 due to the full year effect of contracts mobilised during the second half of 2025.

Other key indicators include operational statistics relating to machine downtime, cash collection and jobs per day. These continue to be monitored on a real-time basis to ensure that the business is run in an efficient manner.

This statement by the board describes how the responsibilities under s172(1)(a) to (f) of the Companies Act 2006 have been approached in the financial period ending 31st December 2025.

The directors consider that they have acted in good faith to promote the success of the company on behalf of the stakeholders, in relation to matters set out in s172 of the Act.

The stakeholders of the business include the employees, clients, regulators, and suppliers of the business.

The directors monitor and review strategic objectives against long term growth plans and regular reviews at departmental and board level are held across the business in the key areas. These areas being HSQE (Health, Safety, Quality and Environment), Financial Performance, Operations, Human Resources, Regulatory Compliance and Risks and Opportunities.

HSQE is fundamental to the management of the business. Safe working practices that minimise environmental impact are key to the success of the business and vitally important for our stakeholders, the communities, and the environments in which we work. Reflecting this importance, HSQE is the first item discussed at the monthly board meeting.

The company’s employees, clients and suppliers are critical to the success of the business and so it is recognised that engagement is an important aspect in those relationships. The directors of Regal Amusement Machine Sales Limited adopt a clear, fair, and trusting approach to all interactions with employees, clients, and suppliers. This approach finds positive expression in the length of service of employees, our better than industry staff turnover ratio, and the longevity of the relationships with our clients and suppliers.

The directors recognise and understand that it is important to keep employees informed of all matters concerning them and they do this in a variety of ways including newsletters, face-to-face meetings, verbal updates, and written communications. The policy of the company is to consult and discuss with employees any issues that arise in accordance with relevant procedures or legislation.

The company has an equal opportunities policy and is committed to the principles within the policy in respect of all stakeholders.

The company has built, and continues to grow, the business on a reputation for delivering excellent customer service. The company, through the senior management and employees, strives continuously to improve in every aspect of the products and services it provides, for the mutual benefit of all stakeholders.

The company enjoys good relationships with suppliers in relation to credit arrangements and takes a firm approach to debtor management. Payment terms reduce the risk to the business whilst the process for debt collection minimises the risk of non-payments.

Operating within a highly regulated sector and under licence from the Gambling Commission, the business always complies with relevant legislation and guidance and ensures that both new starters and existing employees are conversant with the relevant principles and rules set out in the Gambling Act 2005.

The company is aware of it’s impact upon the wider community and environment in which it operates and safe working practices that minimise environmental impact are key to the success of the business and vitally important for our stakeholders, the communities and the environments we work in. Furthermore, as a socially responsible operator in the gaming sector, the business financially contributes to organisations which offer support to those impacted by Gambling.

The directors have overall responsibility for delivering the company’s strategy and values and for ensuring high standards of governance. The primary aim of the directors is to promote the long-term sustainable success of the company to generate benefit for the stakeholders. Throughout the next financial year, the directors will continue to review, improve, and challenge the engagement with all stakeholders.

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 11.

No ordinary dividends were paid. 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:

Insurance policies are in place that indemnify the Directors against liability when acting for Regal Amusement Machine Sales Limited.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned and the reasonable adaptions which can be put in place. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training arranged, and adaptions made. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through video-conferencing meetings and other methods, matters likely to affect employees' interests. Information relating to matters of concern to employees is proactively shared through information bulletins, meetings and formal correspondence which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the groups’ performance.

Effective communication and engagement with stakeholders is considered paramount in maintaining the business’ reputation and success. Regular meetings are held with key Customers, Suppliers and Other parties including trade bodies and regulators.

Having successfully grown market share and profitability during 2025, the directors have put in place a refreshed strategic plan which is expected to ensure the business continues to trade profitably. When preparing this plan, a range of scenarios and sensitivities were modelled and assessed.

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2025 UK Government’s Conversion Factors for Company Reporting. We have used both location and market based reporting when calculating emissions values.

Utilities

Energy consumption figures for electricity and natural gas were prepared by our company and expressed in kilowatt hours.

Transport

Fuel consumption by company vehicles is recorded by fuel cards, expressed in litres. Energy consumption and emissions were calculated using the average forecourt mineral blend of fuels.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per average number of employees, the recommended ratio for the sector.

During 2025 following the implementation of several new energy saving solutions in the years prior to this, no further actions took place converting areas of the business to lower energy solutions. The business however continued to work with its Energy Saving Champions at each location to lead efforts to minimise energy consumption across the business including new electric car charging stations planned for early 2026.

The business is also actively exploring with external providers the possibility of transitioning an element of its vehicle fleet to lower carbon power solutions although this remains challenging due to a remote field force and limited public charging infrastructure.

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 company’s auditor 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 company’s auditor is aware of that information.

The directors have prepared a range of projected trading and cashflow forecasts for at least 12 months from the date of approval of these financial statements. As part of these forecasts the business has assessed a range of likely trading scenarios to ensure sufficient headroom exists for more pessimistic scenarios and has found no indication that external funding will be required. The directors have also reviewed the balance sheet and consider the cash and net assets position to be strong. Accordingly, the directors have concluded that the company is a going concern and have therefore prepared these statements on a going concern basis.

The directors are responsible for preparing the annual 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). 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;

• 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.

We have audited the financial statements of Regal Amusement Machine Sales Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 December 2025 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

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

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

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

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

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

• Enquiries with management, including directors, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to accrued income and the estimated useful life and residual value of fixed assets;

• Auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and income transaction testing to ensure revenue is complete in the financial statements and recognised in the correct accounting period; and

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Regal Amusement Machine Sales Limited is a private company limited by shares incorporated in England and Wales. The registered office is 139 Brookfield Place, Walton Summit Centre, Bamber Bridge, Preston, PR5 8BF.

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 £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

This 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:

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

• Section 11 ‘Basic Financial Instruments‘ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; and basis of determining fair values.

The company has taken the section 402 exemption from the requirement to prepare group accounts as under section 405 all of its subsidiary undertakings could be excluded from consolidation in Companies Act group accounts. The financial statements present information about the company as an individual entity and not about its group.

Regal Amusement Machine Sales Limited is a wholly owned subsidiary of its immediate parent undertaking, Merkur Gaming UK Limited. The ultimate parent undertaking is Merkur.com AG, a company incorporated in Germany. The results of Regal Amusement Machine Sales Limited are included in the consolidated financial statements of Merkur.com AG which are available from Merkur-Allee 1-15, 32339 Espelkamp, Germany.

The directors have prepared atrue range of projected trading and cashflow forecasts for at least 12 months from the date of approval of these financial statements. As part of these forecasts the business has assessed a range of likely trading scenarios to ensure sufficient headroom exists for more pessimistic scenarios and has found no indication that external funding will be required. The directors have also reviewed the balance sheet and consider the cash and net assets position to be strong. Accordingly, the directors have concluded that the company is a going concern and have therefore prepared these statements on a going concern basis.

Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, rebates, VAT and other sales related taxes.

Revenue represents rental income from gaming machines and the recharge of licence fees during the year. Machine rental income is recognised on a weekly basis for machines placed at customers' premises representing an arrangement to supply services. Where an accounting date falls between weekly charging periods, income is calculated (based on an average daily collection rate, on an asset-by-asset basis), accrued and recognised from the date of the last charging period to the accounting date.

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.

Revenue from the rendering of engineering services is recognised when the work has been performed on the machines, at this point is when the associated economic benefit passes to the customer.

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

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment' losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

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

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

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

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Change in accounting estimate - depreciation

The company has reviewed the estimated residual value of its fixed assets and the review indicated that the residual value of certain categories of games machines is now higher than the estimated residual value of £nil used to estimate depreciation in the financial statements. As a result, effective from 1 January 2025, the company increased its estimated residual value of certain categories of games machines from £nil to £400-£600 to better reflect the estimated future value. The effect of this change in estimate was to reduce the depreciation charge in the year by £774,280.

Interests in subsidiaries 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 company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGU's). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is an indication that the impairment losses recognised in prior periods may no longer exist or may have decreased

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

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 and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

All the company's financial assets fall to be classed as basic financial assets and the company therefore has no other financial assets.

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. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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 company 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 company 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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by 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 when the company has 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 company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

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

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 leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

In the application of the company’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 judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

At the end of the reporting period, management undertake an assessment of the net book values of intangible and tangible fixed assets, based upon their knowledge of the customer relationships and condition of the tangible assets. Where necessary, an impairment is recognised in the profit and loss account.

The actual recoverable amount may differ from the assessment of net book value.

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

The useful economic life and expected residual value of tangible fixed assets is assessed based on the class of asset/category of machine. The average age of the machines is assessed at the end of the reporting period, in conjunction with the impairment review, to determine whether the estimates are still appropriate.

The estimated useful economic life of intangible fixed assets is assessed at the point of acquisition. This is reviewed at the end of the reporting period, in conjunction with the impairment review, to determine whether the estimates are still appropriate.

Included within accrued income at the year end is a projection of income due to be collected, based on an average daily collection rate, on an asset-by-asset basis, from the date of the last collection to the accounting date.

The actual income collected may differ from the estimate at each balance sheet date.

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

All turnover arose within the United Kingdom.

The depreciation charge above is after the effect of a change in accounting estimate. The depreciation charge within cost of sales has been reduced by £774,280 compared to the previous basis. See note 1.6 for further details.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).

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:

Legislation was enacted with effect from the accounting period ended 31 December 2024 to implement the Pillar Two Model Rules published by the OECD. Regal Amusement Machine Sales Limited is within the scope of Pillar Two.

Regal Amusement Machine Sales Limited’s worldwide group has assessed the Pillar Two rules for the group and its subsidiaries. As part of this work, it was concluded that the UK meets the CBCR safe harbour conditions for 2025. As a result, Regal Amusement Machine Sales Limited is not expected to have a UK domestic top-up tax charge. In addition, Regal Amusement Machine Sales Limited is not aware of any circumstances where top-up tax would apply through the UK multinational top-up tax rules or through the Pillar Two rules of another jurisdiction.

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

Trade debtors disclosed above are measured at amortised cost.

Loans from group undertakings are unsecured and interest bearing at a rate of 5% per annum. All loans are repayable on demand, therefore have been classified as payable within one year.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

In accordance with the accounting policy, the deferred tax asset has only been recognised to the extent that it is probable that it will be recovered against the reversal of deferred tax liabilities or future taxable profits.

The deferred tax asset set out above is not expected to reverse within 12 months.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The ordinary shares carry full voting rights in all circumstances whether on a poll vote or otherwise. They carry full dividend rights, full rights in respect of capital and a right to participate in distributions including on a winding up.

The ordinary 'A' shares do not carry the right to vote and do not carry the rights to dividends. However they carry full rights in respect of capital and a right to participate in distributions including on a winding up.

Operating lease payments represent rentals payable by the company for motor vehicles, gaming machines and properties.

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

The remuneration of key management personnel is as follows.

The company has taken advantage of the exemption conferred by FRS 102 Section 33, in that transactions entered into between two or more members of the group are not disclosed, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

The immediate parent company of Regal Amusement Machine Sales Limited is Merkur Gaming UK Limited.

The smallest and largest group into which Regal Amusement Machine Sales Limited is consolidated is that of Merkur.com AG, the ultimate parent company. Merkur.com AG is a company registered in Germany and its group financial statements can be obtained from Merkur-Allee 1-15, 32339 Espelkamp.