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

NOTE produces PCBAs, subassemblies and box build products. NOTE is a competitive EMS provider and business partner to customers with complex requirements and high standards. NOTE manufactured products are typically embedded into complex industrial systems, MedTech devices, surveillance, security, and communications equipment, and more recently, in to emerging Greentech applications. NOTE’s business model builds on delivering high end manufacture, custom logistics solutions, global sourcing and procurement which are all wrapped around by high levels of customer service. NOTE’s offering covers the complete product lifecycles, from idea through to after-sales. Primarily, its customer base consists of large corporations operating on the global market, and enterprises whose main sales are in northern Europe. NOTE has a presence in Sweden, Finland, the UK, Estonia, Bulgaria, and China. Sales over the last 12 months were SEK 3,838 million, and the group has approximately 1,450 employees. NOTE is listed on Nasdaq Stockholm.

Headlines

NOTE Windsor Limited is one of four UK sites. Located in Windsor, Berkshire, NOTE Windsor primarily serves customers in the South of England.

NOTE Windsor Limited has several surface mount lines, through hole capability and a high level of expertise in final assembly (box build complete products). Customers are found primarily in advanced communication, surveillance, security, and industrial equipment. The site is well equipped with modern automated production, with 83 staff all within a facility measuring 25,000 square feet.

NOTE Windsor focus on a limited number of customers, approximately twenty, enabling a prominent level of customer service. Partnering with customers relies on both parties understanding that strategy and fit are as important than simply the price. 

The marketing and sales pipeline targets prospects requiring a local partnership where NOTE Windsor and the NOTE Group can add value to their supply chain and business. 

Quality performance was in line with previous years and remains at a high level. Delivery performance was just under target, but better than 2024, and good with market factors considered.

NOTE Windsor are currently collaborating with new and old customers and are confident that the business will continue to remain steady through 2026.

Customer perception continued to improve significantly from previous scores.

Many of the manufacturing trends that shaped 2025 have evolved into firmer strategic expectations. Last year, right‑shoring continued to outperform reshoring, with OEMs basing decisions not on labour cost, but on total value – quality, risk, flexibility, lifecycle support and long‑term resilience. Industry bodies such as Make UK and TechUK continue to emphasise the importance of UK electronics manufacturing for complex, regulated and medium‑volume products. When supported by strong quality systems and established global sourcing networks, UK EMS partners remain a commercially compelling choice. The most successful right‑shoring strategies were those developed collaboratively, with clear evaluation of cost, risk and performance from the outset.

The UK EMS sector enters 2026 with stronger operational discipline, enhanced capability and a more strategic focus on value. Uncertainty remains, but demand for electronics continues to grow across MedTech, industrial technologies, green solutions and [EG1.1] connected systems. UK manufacturing will remain essential for complex, regulated and medium‑volume applications where quality, speed, sustainability and partnership matter most.

Ultimately, success in 2026 will be driven by insight, adaptability and integrated partnerships built on transparency, shared objectives and long‑term value.

Electronics manufacturing relies on a number of key elements. Customer retention, material supply, facilities, people, and cash control.

NOTE Windsor works with a limited number of customers which enables the business to build strong working relationships with each customer at varying levels within their business. However, as individual customers grow, they can become more dominant with them spend exceeding desired levels. NOTE Windsor has currently two customers that are above 45% of sales which poses a risk if their demand drops without sufficient notice.

Material supply has been challenging for all electronics manufacturers for the last few years. This year the supply of material has improved, meaning that lead times have reduced, and pricing is beginning to return to normal levels.

Facilities are well maintained, audited regularly and as can be expected are safe for all employees and visitors. Risk assessments, procedures and improvement actions are taken to prevent accidents which could cause injury or jeopardise the business. There have been no notifiable accidents or near misses during this period.

People are the most important resource that the business has. The senior management have the responsibility for ensuring that all people, meaning our employees, visitors, and our wider networks through our supply chains, are treated according to our Human Rights and Modern Slavery Polices. There have been no reported breaches to our policy during this period.

Cash control is monitored monthly as part of the normal financial routines. Improvements to material supply meant stock turns improved, which in turn improved the cash flow.

The business delivered a positive trading profit at year end. While there is exposure to a single customer currently at risk of entering administration, this position is being actively monitored and managed, with ongoing engagement to support the best possible outcome.

In line with a prudent approach, a bad debt provision has been included in the accounts resulting in the end of year profit to show a loss of £1.5M. This ensures that any potential financial impact is appropriately anticipated and contained.

Importantly, NWI continues to benefit from the full financial support of the Group, providing confidence in a stable cash position and the ability to navigate any short-term uncertainties.

The business uses several leading and lagging performance indicators to monitor and manage the business. Much of this data is commercially sensitive and as such is confidential. The three key measures that are published and discussed with customers include:

• Delivery Performance (on time in full to first confirmed date)

• Quality Performance (within warranty claims)

• Customer Perceptions (net promoter survey score)

The business is assessed routinely to the following standards:

ISO 9001 – Quality Management System

ISO 14001 – Environmental Management System

ISO 45001 - Occupational Health and Safety Management System

Certificates can be obtained from the NOTE UK web site.

https://note-ems.co.uk/our-sites/note-Windsor/

The business reports environmental and sustainability data monthly. Currently this includes Scope 1, Scope 2, and some of Scope 3. The goal is to be fully compliant with Scope 3 by the end of 2030.

A detailed Group sustainability report can be obtained from the NOTE UK website.

https://note-ems.co.uk/sustainability/

Senior Management

Director / Non-Statutory Director Gender Information

Female     4 (57%)

Male     3 (43%)

Development

The business has invested in the factory during 2025.

Additional investment was made for one new tower within the dispatch area to house all our box build goods. The automatic vertical lift modules, store the assemblies using vertical storage trays and saved ground surface area.

We added a third selective soldering machine to increase productivity within the Through Hole department.

Branding and marketing will continue to feature as an ongoing project as NOTE UK works to become a recognisable provider of electronics manufacturing services.

Outlook and Going concern

The outlook for NOTE Windsor is good. Work is required to consolidate the growth from 2025 and to further enable new work from existing customers. There is a healthy pipeline of enquiries, and it is expected that these will be won through the year with volume production likely to start towards mid to end 2026.

The business is in good financial health, has further improvement plans organised and is well positioned to attract new customers.

There are no significant doubts about going concern and no disclosures to be made.

On behalf of the board

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

The principal activity of the company continued to be that of the assembly of printed circuit boards and associated finished goods assembly.

The results for the year are set out on page 9.

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:

In accordance with the company’s articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

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 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;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 Note Windsor Limited (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 company's affairs as at 31 December 2025 and of its loss for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

From the preliminary stage of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

• Enquiry of management and those charged with governance around actual and potential litigation and claims;

• Reviewing minutes of meetings of those charged with governance, if available;

• Reviewing financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusions. There is always the unavoidable risk that material misstatements in the financial statements may not be detected despite the audit being properly performed in accordance with UK Auditing standards.

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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Note Windsor Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1A Alma Road, Windsor, Berkshire, SL4 3LH.

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 under the historical cost convention. The principal accounting policies adopted are set out below.

The financial statements have been prepared on a going concern basis. The directortrues have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

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.

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

Depreciation 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:

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 credited or charged to profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stock and work in progress are valued at the lower of cost and net realisable value. Net realisable value is based on estimated normal selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate. Cost incurred in bringing each product to its present location and condition is based on:

Components:

Purchase cost on a first in first out basis.

Work in progress:

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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. 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, loans from fellow group companies and preference shares that are classified as debt, 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 interest rate swaps and 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.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

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

Tangible fixed assets are depreciated over their estimated useful economic lives, taking into account estimated residual values. These estimates are based on management’s experience with similar assets, consideration of anticipated technological changes, expected usage, and other relevant factors.

The company establishes provisions for receivables that are considered unlikely to be collected. These provisions are based on management’s assessment of the probability of recovery, considering factors such as the customer’s financial position, past payment history, current economic conditions, and specific knowledge of individual debtors.

During the year, the company recognised significant impairments in respect of specific customer balances following a reassessment of recoverability based on information obtained after the reporting date.

The impairment has been treated as an adjusting event as it relates to conditions that existed at the balance sheet date.

The gross exposure to these customers, including associated balances such as interest receivable and amounts recoverable under intercompany arrangements, were materially provided against.

In determining the impairment, management exercised judgement in assessing the customer’s financial position, the likelihood of recovery, and the timing and certainty of cash flows.

A VAT receivable has also been recognised in respect of amounts recoverable from HMRC under bad debt relief rules where the criteria for recovery were met at the reporting date.

Due to the size of the balances and the judgement involved, this represents a key source of estimation uncertainty.

The company estimates a provision for obsolete or slow-moving stock based on management’s estimate of the value of stock identified as slow moving or obsolete. The provision represents management’s best estimate of the provision as at the reporting date.

The company recognises deferred taxation on timing differences arising between the carrying amount of fixed assets in the financial statements and the corresponding tax written down values. The calculation of the deferred tax provision requires management judgement in estimating the future reversal of temporary differences and applying the appropriate enacted tax rates expected to apply at the time of reversal. Changes in tax legislation, tax rates, or the recoverability of timing differences could impact the value of the deferred tax provision recognised in the financial statements.

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

Their aggregate remuneration comprised:

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

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

Impairment of inventories exclusively comprises items that are no longer saleable due to the failure of a significant customer to settle outstanding balances, resulting in the loss of the related sales channel.

Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:

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

The deferred tax liability relates to accelerated capital allowances that are expected to mature within the same period.

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 A, B and C shares rank pari passu in all respects.

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 company has an ongoing court case with a former employee. This case is active in the courts as at the year end, though no hearing or conclusion has been reached. The company continues to defend their position on the case, though it has not progressed sufficiently through the judicial process for any liability to be recognised. The directors consider that disclosure of an estimate of the potential financial impact would seriously prejudice the company’s position in the ongoing legal proceedings. Accordingly, this information has not been disclosed, in accordance with paragraph 21 of FRS 102.

The remuneration of key management personnel is as follows.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The parent company is Note UK Holding Limited (a company incorporated in England and Wales).

Note AB (Publ) (incorporated in Sweden) is regarded by the directors as being the company's ultimate controlling party. The consolidated financial statements of Note AB (Publ) are available from the companies registered office.