REGISTERED NUMBER: 02126698 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

EAST RIDING HOLDINGS COMPANY

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr D B Dunn

Mr A Brocklehurst

Mr P A Ewen

Mr N G Fraser

Mr A Drant

REGISTERED OFFICE:

Full Sutton Industrial Estate

The Airfield

Full Sutton

York

YO41 1HS

REGISTERED NUMBER:

02126698 (England and Wales)

AUDITORS:

Fortus Audit LLP

5 & 6 Manor Court

Manor Garth

Scarborough

North Yorkshire

YO11 3TU

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The Group consists of a holding company, one trading company and two dormant companies at the 2025 year end. East Riding Sacks Limited manufactures and sells paper sacks and is the Group's only trading subsidiary following the liquidation of Trenton (Hull) Limited on 16th October 2024. Trenton Business Systems Limited, which previously provided IT services, is no longer active. The results of Trenton (Hull) Limited were included in the 2024 comparative figures up to the date of liquidation. The Group reported a pre-tax profit of

£1,547,308 (2024: Loss £135,965) for the year and sales of £29.5m (2024: £78.5m).

BUSINESS ENVIRONMENT

East Riding Sacks Limited is the largest paper sack manufacturer in the United Kingdom, supplying paper sacks to a wide range of customers across the food and industrial sectors in both the UK and Europe. The results for the company show a pre-tax profit of £1,579,726 (2024: £1,020,942) for the year and sales of £29.52 million (2024: £29.27 million), reflecting a strong improvement in profitability.

East Riding Sacks Limited is a 99% owned subsidiary of East Riding Holdings Company. The consolidated results of the wider Group are reported in the financial statements of East Riding Holdings Company.

The Directors remain confident that the Company's recent investment in both equipment and employee development will support the maintenance of its market position despite ongoing economic uncertainty. This confidence is underpinned by the quality of our products, the high level of service provided to customers, and the measures taken to secure future supplies and sales based on our assessment of market conditions.

The market is expected to remain highly competitive throughout the remainder of 2026 and into 2027. Nevertheless, the Company is well positioned to sustain its performance and continue delivering value to its customers and stakeholders.

During the year, the Company invested in a new SOS bag machine, enabling entry into a market segment in which it has not previously operated and providing opportunities for future growth and diversification.

The Trust and Holding Company can continue to draw confidence from the ongoing developments within the Company and the profitable platform it continues to build for the continued future success of the Group.

STRATEGY

The Group's overriding objective is to deliver sustainable long-term growth through the continued development of East Riding Sacks Limited. This is achieved by maintaining a high-quality and reliable product offering, investing in production facilities and equipment, enhancing operational efficiency and competitiveness, and retaining skilled employees to support strong relationships with customers and suppliers.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Group's strategy are subject to a number of

risks.

The principal business risks and uncertainties facing the Group arise from the operations of East Riding Sacks Limited and include the overall performance of the global economy, and the UK economy in particular, competition from both domestic and international manufacturers, fluctuations in raw material costs, employee retention and related employment costs, and the impact of energy prices on both the wider economy and the Group.

As the majority of raw materials are imported, costs are significantly influenced by movements in the Sterling/Euro exchange rate. To mitigate this risk, East Riding Sacks Limited has secured contracts with its major paper suppliers at competitive prices for 2026, ensuring that all anticipated paper requirements have been contracted for the year.

KEY PERFORMANCE INDICATORS

EAST RIDING SACKS LIMITED

2025

2024

Gross profit margin

29.96%

31.32%

Net profit margin (before tax)

5.24%

3.49%

ON BEHALF OF THE BOARD:

Mr A Brocklehurst - Director

23 September 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

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

Mr D B Dunn

Mr A Brocklehurst

Mr P A Ewen

Mr N G Fraser

Mr A Drant

FINANCIAL INSTRUMENTS

The group's principal financial instruments comprise bank balances, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's working capital. The group's operations expose it to a variety of financial risks that include liquidity risk and interest rate risk. The group's approach to managing risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts.

In respect of loans these comprise a bank loan and a loan from a related undertaking. The interest rate on the bank loan is variable and repayment is by quarterly installments with a balance at maturity. The loan from a related undertaking is interest free and repayable on demand. The directors are aware of the group's financial requirements and have determined that this will only be repaid, in whole or in part, when funds are available.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors and hire purchase liability liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

FREEHOLD LAND AND BUILDINGS

In the opinion of the directors the market value of freehold land and buildings is not significantly different to net book value.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr A Brocklehurst - Director

23 September 2026

Qualified Opinion

We have audited the financial statements of East Riding Holdings Company (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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, except for the possible effects of the matters described in the basis for qualified opinion section of our report, the financial statements:

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

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

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

Basis for qualified opinion

The qualification applies only to the comparative figures, due to the disposal of the subsidiary, Trenton (Hull) Limited, during the prior year, for the year ended 31 December 2024 we were unable to obtain sufficient appropriate audit evidence over the transactions of the subsidiary, Trenton (Hull) Limited. We are therefore unable to determine if any adjustments were required to the discontinued operations of the group which comprise turnover £49,192,152, cost of sales £48,417,830, administrative expenses £1,678,336, other operating income £17,505 and interest payable £366,906.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the 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 qualified opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 to irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the parent company and the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company and group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through discussions with those charged with governance.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the group to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the group has established to prevent and detect fraud, and how these are monitored by management.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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

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 a Report of the Auditors 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.

Jacqueline Godden FCCA (Senior Statutory Auditor)

for and on behalf of Fortus Audit LLP

5 & 6 Manor Court

Manor Garth

Scarborough

North Yorkshire

YO11 3TU

23 September 2026

TURNOVER

3

29,518,971

-

29,518,971

Cost of sales

(20,673,625

)

-

(20,673,625

)

GROSS PROFIT

8,845,346

-

8,845,346

Administrative expenses

(7,211,961

)

-

(7,211,961

)

1,633,385

-

1,633,385

Other operating income

4,085

-

4,085

OPERATING PROFIT

5

1,637,470

-

1,637,470

Interest receivable and similar income

4,454

-

4,454

Interest payable and similar expenses

8

(94,616

)

-

(94,616

)

PROFIT BEFORE TAXATION

1,547,308

-

1,547,308

Tax on profit

9

(384,941

)

-

(384,941

)

PROFIT FOR THE FINANCIAL YEAR

1,162,367

-

1,162,367

OTHER COMPREHENSIVE INCOME

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,162,367

Profit attributable to:

Owners of the parent

1,150,419

Non-controlling interests

11,948

1,162,367

Total comprehensive income attributable to:

Owners of the parent

1,150,419

Non-controlling interests

11,948

1,162,367

TURNOVER

3

29,266,403

49,192,152

78,458,555

Cost of sales

(20,099,825

)

(48,417,830

)

(68,517,655

)

GROSS PROFIT

9,166,578

774,322

9,940,900

Administrative expenses

(7,952,579

)

(1,678,336

)

(9,630,915

)

1,213,999

(904,014

)

309,985

Other operating income

85

17,505

17,590

OPERATING PROFIT/(LOSS)

5

1,214,084

(886,509

)

327,575

Interest payable and similar expenses

8

(96,634

)

(366,906

)

(463,540

)

PROFIT/(LOSS) BEFORE TAXATION

1,117,450

(1,253,415

)

(135,965

)

Tax on profit/(loss)

9

416,333

-

416,333

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

1,533,783

(1,253,415

)

280,368

OTHER COMPREHENSIVE INCOME

Disposal of subsidiary

(478,154

)

Income tax relating to other comprehensive income

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(492,703

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(212,335

)

Profit/(loss) attributable to:

Owners of the parent

265,819

Non-controlling interests

14,549

280,368

Total comprehensive income attributable to:

Owners of the parent

(226,884

)

Non-controlling interests

14,549

(212,335

)

FIXED ASSETS

Tangible assets

11

6,277,892

6,691,746

Investments

12

-

-

6,277,892

6,691,746

CURRENT ASSETS

Stocks

13

5,826,330

6,374,859

Debtors

14

6,508,336

6,643,799

Cash at bank and in hand

3,334,915

1,626,917

15,669,581

14,645,575

CREDITORS

Amounts falling due within one year

15

6,383,389

6,509,357

NET CURRENT ASSETS

9,286,192

8,136,218

TOTAL ASSETS LESS CURRENT LIABILITIES

15,564,084

14,827,964

CREDITORS

Amounts falling due after more than one year

16

(4,981,621

)

(5,472,579

)

PROVISIONS FOR LIABILITIES

21

(255,738

)

(191,027

)

NET ASSETS

10,326,725

9,164,358

CAPITAL AND RESERVES

Called up share capital

22

400,000

400,000

Retained earnings

23

9,770,854

8,620,435

SHAREHOLDERS' FUNDS

10,170,854

9,020,435

NON-CONTROLLING INTERESTS

24

155,871

143,923

TOTAL EQUITY

10,326,725

9,164,358

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

Mr A Brocklehurst - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

210,703

210,703

210,703

210,703

CURRENT ASSETS

Debtors

14

153,415

215,579

Cash at bank

3,593

149,005

157,008

364,584

CREDITORS

Amounts falling due within one year

15

1,417,432

1,592,590

NET CURRENT LIABILITIES

(1,260,424

)

(1,228,006

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,049,721

)

(1,017,303

)

CREDITORS

Amounts falling due after more than one year

16

4,000,000

4,000,000

NET LIABILITIES

(5,049,721

)

(5,017,303

)

CAPITAL AND RESERVES

Called up share capital

22

400,000

400,000

Retained earnings

23

(5,449,721

)

(5,417,303

)

SHAREHOLDERS' FUNDS

(5,049,721

)

(5,017,303

)

Company's (loss)/profit for the financial year

(32,418

)

58,800

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2026 and were signed on its behalf by:

Mr A Brocklehurst - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2024

400,000

8,354,616

478,154

Changes in equity

Total comprehensive income

-

265,819

(478,154

)

Balance at 31 December 2024

400,000

8,620,435

-

Changes in equity

Total comprehensive income

-

1,150,419

-

Balance at 31 December 2025

400,000

9,770,854

-

Non-controlling

Total

Total

interests

equity

£

£

£

Balance at 1 January 2024

9,232,770

129,374

9,362,144

Changes in equity

Total comprehensive income

(212,335

)

14,549

(197,786

)

Balance at 31 December 2024

9,020,435

143,923

9,164,358

Changes in equity

Total comprehensive income

1,150,419

11,948

1,162,367

Balance at 31 December 2025

10,170,854

155,871

10,326,725

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

400,000

(5,476,103

)

(5,076,103

)

Changes in equity

Total comprehensive income

-

58,800

58,800

Balance at 31 December 2024

400,000

(5,417,303

)

(5,017,303

)

Changes in equity

Total comprehensive income

-

(32,418

)

(32,418

)

Balance at 31 December 2025

400,000

(5,449,721

)

(5,049,721

)

Cash flows from operating activities

Cash generated from operations

1

3,324,548

823,781

Interest paid

-

(376,377

)

Interest element of hire purchase payments paid

(94,616

)

(87,163

)

Tax paid

(529,701

)

(49,431

)

Net cash from operating activities

2,700,231

310,810

Cash flows from investing activities

Purchase of tangible fixed assets

(422,599

)

(1,285,173

)

Sale of tangible fixed assets

77,350

-

Disposal of subsidiary

-

1,640,616

Interest received

4,454

-

Net cash from investing activities

(340,795

)

355,443

Cash flows from financing activities

New hire purchases in the year

-

1,923,976

Capital repayments in year

(651,438

)

(183,942

)

Net cash from financing activities

(651,438

)

1,740,034

Increase in cash and cash equivalents

1,707,998

2,406,287

Cash and cash equivalents at beginning of year

2

1,626,917

(779,370

)

Cash and cash equivalents at end of year

2

3,334,915

1,626,917

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit/(loss) before taxation

1,547,308

(135,965

)

Depreciation charges

755,523

1,020,933

Loss on disposal of fixed assets

3,580

-

Finance costs

94,616

463,540

Finance income

(4,454

)

-

2,396,573

1,348,508

Decrease in stocks

548,529

8,390,066

Decrease in trade and other debtors

135,869

1,877,965

Increase/(decrease) in trade and other creditors

243,577

(10,792,758

)

Cash generated from operations

3,324,548

823,781

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

3,334,915

1,626,917

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,626,917

863,722

Bank overdrafts

-

(1,643,092

)

1,626,917

(779,370

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

1,626,917

1,707,998

3,334,915

1,626,917

1,707,998

3,334,915

Debt

Finance leases

(1,983,318

)

510,738

(1,472,580

)

Debts falling due within 1 year

(1,552,940

)

140,700

(1,412,240

)

Debts falling due after 1 year

(4,000,000

)

-

(4,000,000

)

(7,536,258

)

651,438

(6,884,820

)

Total

(5,909,341

)

2,359,436

(3,549,905

)