The directors present the strategic report for the year ended 31 January 2026.

FY25/26 represented a strong year of trading for the Company, with revenue of £15.45m (2025: £14.56m), representing year-on-year growth of 6%. Gross profit increased by £888k (11%) to £9.11m (2025: £8.22m), reflecting improved operational efficiencies and increased economies of scale, which contributed to higher site-level profitability across the estate. Site overheads & central costs increased during the year, reflecting the establishment of the group’s standalone structure following the exit from JD Sports.

The company has focused on strengthening its senior management team, enhancing operational capability and developing a strong pipeline of new locations to support its growth strategy. Performance benefited from the continued maturity of recently opened sites, improved profitability across the estate and increased operational efficiencies achieved from operating 12 of our own purpose-built sites.

Management have identified that certain items historically capitalised within fixed assets did not meet the recognition criteria under FRS 102, as they represented revenue expenditure. Therefore, the company has written off £249k to the profit and loss account, and the comparative figures have been restated to reflect this correction.

To support its expansion plans, a revolving credit facility with Santander of £6m was secured to fund the build and fit-out of new sites.

The company has a well-developed pipeline of new sites providing confidence in its continued growth trajectory. Post year-end there remains significant undrawn headroom on this facility and in addition to this, the company generates positive cash flows from its recurring membership model each month, providing additional liquidity and funds to invest into the future growth.

Like businesses of all natures, principal risks are present, albeit the Directors considers and strategise against certain risks and uncertainties are more specific to the sports & leisure sector in which it operates, with the key risks being identified as:

· the location and influence of competitors;

· availability of key property locations;

· recruitment & retention of staff;

· general economic factors.

The Directors & Board monitor a range of financial and non-financial key performance indicators (“KPIs”) to assess the performance of the group and its progress against its strategic objectives. The principal KPIs considered by the Board are set out below.

• Revenue growth

• Site level performance & growth

• EBITDA & OP growth

• Member satisfaction and retention

During the year, these KPIs were regularly monitored by management and the Board. Financial performance improved during the year, primarily reflecting the continued maturation of previously opened sites, together with increased operational efficiencies across the estate. These factors contributed to growth in both revenue and profitability during the year.

The Board also continued to monitor member satisfaction and retention as a key non-financial indicator.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 January 2026.

The principal activity of the company continued to be that of the provision of children's swimming lessons.

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:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. 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 is arranged. 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 unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

PM+M Solutions for Business LLP were appointed as auditor to the company and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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; and

• 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.

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.

We have audited the financial statements of Swim Sports Company Ltd (the 'company') for the year ended 31 January 2026 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 January 2026 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'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 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.

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

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.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management about their own identification and assessment of the risks of irregularities;

• the matters discussed among the audit engagement team and relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

• any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to:

  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  • the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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.

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

Swim Sports Company Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Fourth Floor, Unit 5B The Parklands, Bolton, United Kingdom, BL6 4SD.

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 £'000.

The financial statements have been prepared under 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;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of We Are Swim Holdings Limited. These consolidated financial statements are available from its registered office, 4th Floor, 5b The Parklands, Lostock, Bolton, United Kingdom, BL6 4SD.

The financial statements have been prepared on a going concern basis.true

In assessing the appropriateness of this basis, the directors have considered the company’s current financial position, forecasts and cash flow projections, and the availability of financing and support from the wider group for a period of at least twelve months from the date of approval of the financial statements.

The company reported a profit for the year ended 31 January 2026 and generated positive EBITDA. Trading performance has continued to strengthen post year end, with continued growth in revenue and profitability, providing further confidence in the company’s ability to generate positive cash flows in the foreseeable future.

At the reporting date, the company has a significant balance due to group undertakings. The directors can confirm that amounts due to group undertakings will not be recalled for a period of at least twelve months from the date of approval of these financial statements. This support ensures that the company is able to meet its obligations as they fall due.

The company is part of a wider group which has access to a revolving credit facility with a limit of £6 million. At the reporting date, only £1.3 million of this facility had been drawn down, providing substantial headroom to fund working capital requirements and planned capital expenditure to support the continued expansion of the business.

The directors have also prepared cash flow forecasts which demonstrate that the company will have sufficient liquidity to meet its liabilities as they fall due, taking into account reasonably possible downside scenarios.

Based on the above, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

The company recognises revenue from the following major source:

• Provision of children's swimming lessons

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue represents amounts receivable for the provision of children's swimming lessons in the ordinary course of business, stated net of discounts and value added tax.

The company provides swimming lessons to customers, typically delivered over a fixed programme or on a session-by-session basis. Revenue is recognised as the performance obligation is satisfied, which occurs when the swimming lessons are delivered.

Where customers pay in advance for blocks of lessons or future sessions, the amounts received are recognised as deferred income within creditors. Revenue is subsequently recognised in the profit and loss account over the period in which the lessons are provided, reflecting the stage of completion of the service. The company operates on a reoccurring income model with payments predominantly made via direct debit.

No revenue is recognised in respect of lessons not yet delivered at the reporting date.

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.

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 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, 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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, 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.

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.

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 where the company has a present legal or constructive obligation at the reporting date as a result of a past event, it is probable that an outflow of economic benefits will be required, and the amount can be reliably estimated.

Provisions are measured at the best estimate of the expenditure required to settle the obligation. Where material, amounts are discounted to present value, with the unwinding of the discount recognised as a finance cost. Provisions are reviewed at each reporting date and adjusted as necessary.

The company operates from leased properties and may be required under lease agreements to reinstate properties at the end of the lease term or earlier break date. A dilapidations provision is recognised where such an obligation exists.

The provision is based on management’s best estimate of reinstatement costs, taking into account lease terms, the condition of the property and any schedule of condition. Estimates are supported by external professional surveys where appropriate. The provision is recognised when the obligation arises, typically when leasehold improvements are undertaken or the property is brought into use. Changes in estimates are recognised in the profit and loss account.

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.

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.

When the company acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the company allocates the consideration in the contract to the two elements.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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 company operates from leased properties and may be required to incur costs to reinstate properties to the condition specified in the lease agreements at the end of the lease term or earlier break date.

The measurement of the dilapidations provision is subject to estimation uncertainty due to the long-term nature of the obligation and the judgement involved in assessing future costs. Key assumptions include the expected scope of reinstatement works, the condition of the property at the reporting date, lease-specific obligations (including the existence of any schedule of condition), and the timing of exit from the property.

Estimates are supported by external professional survey reports where appropriate; however, actual costs incurred may differ from those estimated due to changes in market conditions, construction costs or the ultimate condition of the property at lease exit.

A sensitivity exists in respect of both the estimated cost of works and the expected timing of settlement, which could result in a material adjustment to the provision in future periods.

The total of dilapidation provision can be found in the provisions note.

The company depreciates tangible fixed assets over their estimated useful economic lives, taking into account expected usage, wear and tear, and the nature of the assets.

The determination of useful economic lives involves estimation uncertainty, particularly in relation to leasehold improvements and specialised equipment used in the operation of swimming facilities. Changes in expected usage, technological developments or changes in the condition of assets may result in revisions to useful lives.

The estimates are based on historical experience and management’s judgement. A change in the estimated useful lives would impact the depreciation charge recognised in the profit and loss account and the carrying value of fixed assets.

The company have made an assessment of the eventual crystallisation of the company's deferred tax asset, which arises from historic trading losses. This is based on assumptions and estimations around future profitability, which are subject to estimation uncertainty. Deferred tax assets are recognised the the extent the directors consider it probable the corresponding tax losses will be eventually utilised.

All turnover was derived from the company’s principal activity and was generated within the United Kingdom.

The items disclosed above comprise significant non-recurring matters which have been presented separately to assist users of the financial statements in understanding the underlying trading performance of the company.

These include the resolution of group balances in the prior year, following a group restructuring. Further exceptional costs were incurred in the current year in relation to the restructure, alongside the correction of historical balances.

Further details of amounts corrected by way of prior year restatement are set out in the notes. The directors do not consider these items to be indicative of the ongoing trading performance of the company.

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

Their aggregate remuneration comprised:

Included within interest payable and similar charges is finance costs recharged by Total Swimming Holdings Limited. These costs relate to the Group's revolving credit facility, of which Total Swimming Holdings Limited is the legal borrower, and are recharged to the Company as the principal beneficiary of the funding.

The actual credit 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:

Comparative information has been restated following a prior period adjustment to remove costs previously capitalised within tangible fixed assets that did not meet the recognition criteria of FRS 102. This resulted in a £249,000 reduction to the opening net book value of fixed assets and therefore the brought forward balances differ from the prior year carried forward amounts.

Amounts owed to group undertakings are interest free, unsecured and have no set repayment date.

The company operates from leased properties and may be required under lease agreements to reinstate properties at the end of the lease term or earlier break date. A dilapidations provision is recognised where such an obligation exists.

The provision is based on management’s best estimate of reinstatement costs, taking into account lease terms, the condition of the property and any schedule of condition. Estimates are supported by external professional surveys where appropriate. The provision is recognised when the obligation arises, typically when leasehold improvements are undertaken or the property is brought into use. Changes in estimates are recognised in the profit and loss account.

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

Deferred tax assets have been recognised to the extent management consider it is probable the associated tax losses will be utilised in the fullness of time.

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.

Operating lease commitments comprise the sites from which the company operates swimming lessons.

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 taken advantage of the 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 fellow wholly owned subsidiaries.

During the year, the Company received recharged expenses amounting to £Nil (2025: £101,000) from S.A.D Holdings Limited, a company in which S Parry was the majority shareholder throughout the year. A balance of £Nil (2025: £Nil) was owed to the company as at 31 January 2026.

The company is a subsidiary undertaking of Total Swimming Holdings Limited, which is a subsidiary of We Are Swim Holdings Limited. We Are Swim Holdings Limited is registered in England. Copies of the consolidated financial statements of We Are Swim Holdings Limited are available to the public and can be obtained from Companies House. This is both the smallest and largest group for which consolidated financial statements are prepared.

The ultimate controlling party is Michael James Fletcher, via his shareholding in Arete Investors 22 (Nominees) Limited.

Following a detailed review of the accounting function, it was identified that certain items previously capitalised within fixed assets did not meet the recognition criteria under FRS 102, as they represented revenue expenditure. Accordingly, these costs have been written off to the profit and loss account, and the comparative figures have been restated to reflect this correction. The impact of the adjustment has been recognised as a prior year restatement in accordance with FRS 102 Section 10, ensuring that the financial statements present a true and fair view.

The effect of this is a £249k reduction in the opening carrying value of tangible assets and a corresponding reduction in opening profit and loss reserves at 1 February 2024.