The director presents the strategic report for the year ended 31 December 2025.

The Group remained profitable in 2025 despite softer revenue. Turnover decreased by 4.3% to £12.94m, while gross margin was broadly maintained at 27.9%. Group EBITDA was £631,030 (2024: £708,802), a reduction of 11.0%, and EBITDA margin reduced to 4.9% from 5.2%. Inventory reduction supported positive operating cash generation and a reduction in net debt, although cash generated from operations and profit before tax were lower than in 2024.

Revenue Group EBITDA Gross margin Operating profit Net debt

£12.94m £0.63m 27.9% £0.50m £0.60m

- 4.3% - 11.0% 2024: 28.0% margin 3.9% - £0.07m

Company overview

Soyang Europe Limited is a private company incorporated in England and Wales. The consolidated Group comprises Soyang Europe Limited and its subsidiary, including a 75% interest in Soyang Hardware Limited at 31 December 2025. The principal activity of the Group continued to be the wholesale distribution of digitally printable wide-format and superwide-format media, surface coverings, associated printing hardware and consumables. The United Kingdom remained the principal geographical market, representing £12.62m of turnover of £12.94m.

Business review

Revenue reduced across both principal revenue streams. Media revenue decreased to £10.54m from £10.95m, while hardware revenue decreased to £2.40m from £2.57m. Gross margin was broadly maintained at 27.9% compared with 28.0%, with lower distribution and administrative costs in aggregate.

Operating profit was £502,648 compared with £509,617. Group EBITDA was £631,030 compared with £708,802 in 2024, a reduction of 11.0%. EBITDA margin reduced from 5.2% to 4.9%. EBITDA is defined by the Group as consolidated operating profit before the depreciation charge retained in the income statement and amortisation. The 2025 calculation excludes £48,040 of depreciation eliminated on asset disposals. EBITDA is used by the Board as a supplementary measure of underlying operating performance and should not be considered in isolation from operating profit or operating cash flow.

Profit before taxation reduced to £287,476 from £449,076, primarily reflecting the absence of the £180,180 investment write-back recognised in 2024. Finance costs reduced to £217,188 from £243,007. Inventory reduced by £1.04m to £3.28m, trade debtors reduced to £2.08m and cash generated from operations was £507,094, compared with £1.01m in 2024.

In April 2025, the Group acquired a further 5% interest in Soyang Hardware Limited for £13,235, increasing its holding from 70% to 75%. Control was retained throughout the period.

• Market demand and concentration

• Potential effect: Revenue declined by 4.3% and the UK represented approximately 97.5% of revenue.

• Management response: Regular review of trading, product mix, margin and customer activity.

• Inventory and obsolescence

• Potential effect: Stock of £3.28m remains exposed to slow-moving, obsolete or damaged items.

• Management response: Review of stock ageing, purchasing and impairment while balancing availability and customer service.

• Credit and working capital

• Potential effect: Trade debtors of £2.08m create collection and liquidity exposure.

• Management response: Review of customer terms, collections, impairment, working-capital levels and cash forecasts.

• Foreign currency

• Potential effect: Non-sterling trading creates exchange-rate exposure. Exchange gains of £214,323 arose in 2025.

• Management response: Monitoring of material currency exposures when pricing, purchasing and settling transactions.

• Liquidity and financing

• Potential effect: Bank loans and overdrafts were £865,054 and finance lease obligations were £178,253.

• Management response: Monitoring cash flow, borrowing requirements, debt service and working capital.

• Operational and supply continuity

• Potential effect: The Group depends on its people, systems, premises, suppliers and customer relationships. Disruption could affect service and performance.

• Management response: Maintenance of appropriate insurance, IT safeguards, supplier relationships and operational contingency arrangements.

Operating profit was broadly stable despite lower revenue. Profit for the financial year was £216,456 compared with £365,935. Total equity was £4.34m, broadly consistent with 2024. Net current assets improved to £805,943 from £563,436 and net debt reduced to £600,497 from £671,510.

EBITDA reconciliation

2025 2024

Consolidated operating profit £502,648 £509,617

Add: depreciation charge £176,422 £199,185

Less: depreciation eliminated on disposals (£48,040) -

Add: amortisation - -

Group EBITDA £631,030 £708,802

Measure     2025     2024     Movement

Turnover £12,944,894 £13,526,220 (4.3%)

Gross margin 27.9% 28.0% (0.1%)

Group EBITDA £631,030 £708,802 (11.0%)

EBITDA margin 4.9% 5.2% (0.4%)

Operating profit £502,648 £509,617 (1.4%)

Profit before tax £287,476 £449,076 (36.0%)

Cash generated from operations £507,094 £1,010,501 (49.8%)

Net debt £600,497 £671,510 (10.6%)

Future developments

The Board’s priorities are sustainable revenue growth, disciplined margin management and strong cash conversion. The Group will continue to manage its product portfolio, cost base and working capital while maintaining appropriate customer service and supplier relationships.

In pursuing the long-term success of the Group, the director considers the likely consequences of decisions, the interests of employees, relationships with customers, suppliers and finance providers, the impact of operations on the community and environment, standards of business conduct and fairness between members.

Employees: The Group considers workforce capability, safe and effective working practices, communication, development and fair treatment.

Customers: The Group seeks to provide dependable products, service and technical support while applying appropriate commercial and credit terms.

Suppliers and finance providers: The Group seeks sustainable and transparent relationships, considering quality, availability, cost, payment terms, currency exposure and continuity.

Shareholders: The Board balances distributions and investment with profitability, liquidity, debt service and long-term resilience.

Community and environment: The Group considers the local impact of its operations and the responsible use of resources.

The Group employed an average of 33 people during 2025, compared with 34 in 2024. Aggregate employee costs were £1.39m, including £59,657 of defined-contribution pension costs. The Board recognises that employee knowledge, experience and engagement support customer service and operational continuity. The Group focuses on maintaining appropriate skills and resources, supporting communication and development and applying employment policies consistently and fairly.

Environmental matters

The Group’s principal environmental impacts arise from energy use, transport and distribution, packaging and waste. Management considers opportunities to reduce unnecessary consumption and seeks to ensure that waste is handled through appropriate channels.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company and group continued to be that of the sale of screen printing materials.

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

Ordinary dividends were paid amounting to £208,803 (2024: £163,147). The director does not recommend payment of a further dividend.

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

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

United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the director is 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 group and parent company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

We have audited the financial statements of Soyang Europe Limited (the 'parent company') and its subsidiary

(together, the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive

income, the group balance sheet, the parent company balance sheet, the group statement of changes in equity, the

parent company statement of changes in equity, the group statement of cash flows and notes to the financial statements,

including significant accounting policies. The financial reporting framework that has been applied in their preparation

is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The

Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted

Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

Our responsibilities and the responsibilities of the director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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

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

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

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

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

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

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or parent company or to cease operations, or has 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• through discussions with the director and other management and from our commercial knowledge and experience of the sector, we identified the laws and regulations applicable to the Parent company and Group; and

• focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Parent company and Group, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• considered journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• enquiring of management as to actual and potential litigation and claims;

• considered relationship with HMRC and relevant regulators and

• review of legal and professional fees and of incident log for evidence of litigation.

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

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

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent 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 groups.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £210,358 (2024 - £429,096 profit).

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

Soyang Europe Limited (“the company”) is a private limited company by shares, and incorporated in England and Wales (registered number: 05503397). The registered office is Calder House, Metcalf Drive, Altham, Accrington, BB5 5TU.

The group consists of Soyang Europe Limited and its subsidiary.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated group financial statements consist of the financial statements of the parent company Soyang Europe Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

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

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the director has a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Revenue 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 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.

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

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill was fully impaired at the end of the 2023 year.

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

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 recognised in the profit and loss account.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

The directors believe that the policy of not providing depreciation on freehold property is necessary in order for the financial statements to give a true and fair view. The directors confirm that buildings are maintained to high standards of condition and the value is not significantly impaired by the passage of time. Consequently, any element of depreciation is not considered to be material.

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

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

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

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

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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

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

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

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

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

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors, bank loans, 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 group's contractual obligations expire or are discharged or cancelled.

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

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, 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.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

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.

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 group’s accounting policies, the director is 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 directors consider the fair valuation of the group’s freehold land and buildings to be £5,000,000. This is based on the directors’ assessment, with reference to an external valuation undertaken by Taylor Weaver Chartered Surveyors (RICS) on 6 November 2025

However, due to the inherent nature of property valuations, this is subject to estimation uncertainty.

The directors consider the fair valuation of the group’s stock to be £3,281,801. The valuation of stock requires management judgement. At each year end, management reviews stock holdings and assesses the need for provisions against slow-moving, obsolete or damaged items. These assessments are based on industry and product experience, historical sales patterns and expectations regarding future demand. Actual outcomes may differ from these estimates.

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

Their aggregate remuneration comprised:

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

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

The NBV of assets held under Hire purchase or finance lease as at 31 December 2025 was £147,084 (2024 £215,010). Depreciation charged on these assets was £49,028 (2024 £55,937).

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

Soyang Europe Limited acquired control of Soyang Hardware Limited on 27 May 2022.

The Group acquired an additional 5 ordinary shares in Soyang Hardware Limited from a non‑controlling shareholder on 30 April 2025 for consideration of £13,235, increasing the Group’s equity interest from 70% to 75%.

In accordance with FRS 102 section 9, the transaction has been accounted for as an equity transaction. The carrying amounts of the controlling and non‑controlling interests were adjusted to reflect the change in ownership interests. Control was retained throughout the period.

Other creditors includes an amount of £1,031,321 (2024 - £1,482,115) relating to an invoice finance liability.

Included within bank loans are amounts secured by fixed and floating charges over the company’s premises at Altham totalling £785,505 (2024 - £881,927), of which £255,503 (2024 - £458,727) is repayable after more than five years.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. No finance lease repayments are due after 5 years.

Finance lease creditors are secured on the assets to which they relate.

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

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

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

Soyang Hardware Limited

Soyang Hardware Limited is a related party by virtue of being a subsidiary undertaking of the company. Soyang Europe Limited holds 75% of the issued share capital of Soyang Hardware Limited.

As at 31 December 2025, an amount of £154,126 (2024: £177,426) is included within creditors, representing a loan from Soyang Europe Limited to Soyang Hardware Limited. The loan is interest-free and repayable on demand.

Soyang Print Solutions

Soyang Print Solutions is a related party by virtue of common directorship and shareholding with Mark Mashiter.

As at 31 December 2025, an amount of £70,107 (2024: £18,993) is included within creditors, representing a loan from Soyang Europe Limited to Soyang Print Solutions. The loan is interest-free and repayable on demand.

Soyang Technologies Co.

Soyang Technologies Co. is the parent company and holds 40% of the share capital of Soyang Europe Limited.

During the year Soyang Europe Limited purchased goods to the value of £3,373,114 (2024 - £4,209,120) from Soyang Technologies Co. At the balance sheet date, included in trade debtors, is the amount due from Soyang Europe Limited of £1,916,878 (2024 - £2,295,988).

During the year, the company provided loans to family members of the company's director. At the balance sheet date, the total of these loans amounted to £362,201 (2024 - £142,588). These loans were unsecured, interest free and repayable on demand.

At the balance sheet date an amount of £295,787 (2024 - £72,811) was owed to the company by a director. The maximum overdrawn balance during the year was £295,787. This loan is interest free

Dividends totalling £208,803 (2024 - £163,147) were paid in the year in respect of shares held by the company's directors.

The ultimate controlling party is considered to be Mark Mashiter by virtue of his majority shareholding.