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

Setter Acquisition Limited is a non-trading holding company and, as such, the business review provides a summary of the year to 31 December 2025 from the group's perspective.

The Group’s strategy is centred on the pet grooming market in the UK and Europe. The Group remains dedicated to advancing the range of products it offers to customers and works with its sister companies within Nexus Brands Group to foster innovation in pet grooming products and supplies.

During the year revenue streams have reduced throughout the retail and wholesale markets in which the Group operates. The reduced sales market has enabled the Group to focus on improving EBITDA percentage with freight costs reducing and the overhead cost base being streamlined. This, along with inventory reduction, has left the Group in a strong lean position to enter a new growth phase.

Earnings before interest, tax, depreciation and amortisation for the period showed a profit of £3,181,152 which represented a significant increase on the prior period profit of £2,045,393.

In addition to profits generated through trading activities, the Group is financed through a combination of intercompany balances and loans. At 31 December 2025, included within creditors was £7,738,147 (2024: £6,883,602) owed to group undertakings and which gave rise to an interest expense of £1,474,089 (2024: £1,749,558). Working capital balances have been bolstered and inventory has been unwound to improve the cash conversion cycle and reduce working capital locked up in excess stock.

Going concern

At the year end, the Group had net current assets of £10,431,560 (2024 - £10,433,921), cash and bank balances totalling £1,114,663 (2024 - £768,844) and access to additional funding if necessary. The Group has significant intercompany balances with its parent company and other entities within the wider group all of which are expected to be recovered and settled in full.

Budgets and forecasts have been prepared based on expected performance for a period of at least 12 months from the date of approval of these financial statements. With all relevant information considered, and appropriate planning implemented considering revised forecasting, the directors are satisfied that the Group will be able to meet its liabilities as they fall due and continue as a going concern. On this basis management have prepared these financial statements on a going concern basis.

In 2025, we have faced several risks and challenges. The primary influencing factor has been the continued economic downturn in the UK, which has led to Pet owners looking to reduce outgoings, however, through a combination of a strong product offering and the additional market share achieved through the acquisition of Transgroom NV in 2022 this risk has been mitigated.

As a result of global supply chain challenges, the Company has encountered shipment delays and substantial price escalations.

The main financial risks facing the Group relate to foreign exchange and liquidity/cashflow.

Foreign exchange risk

In 2025, there was fluctuation in the GBP to EUR and GBP to USD exchange rates, although ultimately both strengthened from January to December. As a large volume of the sales transactions are invoiced in EUR to European customers, and stock purchases are from USD denominated suppliers, the business is continually affected by this exchange rate fluctuation.

Credit risk

The Group’s credit risk is primarily attributable to its trade receivables. The Group's credit policy dictates that credit terms are generally not extended to customers, except for those who are considered large customers with a proven history of timely payments. A rigorous system of credit control is applied, and receivables are continually monitored. The amounts presented in the statement of financial position are net of allowances for doubtful debts.

Liquidity and cashflow risks

To sustain liquidity and guarantee the availability of adequate funds for day-to-day operations, the Group places a strong emphasis on meticulous budget planning and continuously updates its financial forecasts. The Group closely tracks its cash flow on a weekly basis in alignment with the most current projections. It's worth noting that the primary driver affecting cash flow is the management of inventory, and as such, this aspect is scrutinized extensively to ensure effective working capital management.

The Directors consider that the key performance indicators relevant to an understanding of the development, performance and position of the Group during the year and at the year end include sales, gross profit margin and EBITDA. Additional information and descriptions relating to those key performance indicators is included above as part of the fair review of the business. Further to this, management regularly review a suite of Management Information covering all facets of the business and take action as required.

The Group is committed to long term creation of shareholder value by increasing the Group’s market share which will result in an increase in revenue and operating profits. The Group will continue to meet the needs of its existing customers and develop innovative solutions for their needs while remaining highly competitive on price and quality.

The Group is focused on expanding further into Europe with the initial target markets being Germany and France. This will be through a multichannel approach where we will seek to significantly increase customer numbers and market share through online and marketplace sales. We aim to do this by using highly localised e-commerce sites in these territories along with maximising product reach and exposure through e-marketplaces.

Our subsidiary in Belgium, Transgroom NV will play a key part in this development through logistics, language support and their existing marketplace expertise

On behalf of the board

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

The principal activity of the group is that of a pet grooming supply wholesaler. The principal activity of the company is that of a non-trading holding company.

The results for the year are set out on page 10.

No interim dividends were paid (2024: £nil). The directors do not recommend payment of a final dividend (2024: £nil).

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

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

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

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

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies and future developments.

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.

This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the medium-sized companies exemption.

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have 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 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 group and parent company, 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;

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

• 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 directors are 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. They are 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.

We have audited the financial statements of Setter Acquisition Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including material 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 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 ethical responsibilities in accordance with those 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 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 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 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 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 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 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 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 directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

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

• Enquiries with management about any known or suspected instances of fraud within the business;

• Challenging assumptions and judgements made by management in their significant accounting estimates;

• Auditing the risk of fraud in revenue, through testing a sample of relevant transactions to provide comfort that revenue as stated in the financial statements has occurred and by reviewing the application of income cut off procedures around the balance sheet date;

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

• Reviewing minutes of meetings of those charged with governance and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.

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 loss for the year was £332,589 (2024 - £878,127 loss).

Setter Acquisition Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, 1 Ashley Road, Altrincham, WA14 2DT.

The group consists of Setter Acquisition Limited and all of its subsidiaries.

The company's and the group's principal activities and nature of its operations are disclosed in the Directors' Report.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention

The 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 for parent company information presented within the consolidated financial statements:

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

The financial statements of the company are consolidated in these financial statements.

The consolidated group financial statements consist of the financial statements of the parent company Setter Acquisition Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

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.

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 probably and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.

At the year end, the Group had net current assets of £10,431,560 (2024 - £10,433,921), cash and bank balances totalling £1,114,663 (2024 - £768,844) and access to additional funding if necessary. The Group has significant intercompany balances with its parent company and other entities within the wider group all of which are expected to be recovered and settled in full.

Budgets and forecasts have been prepared based on expected performance for a period of at least 12 months from the date of approval of these financial statements. With all relevant information considered, and appropriate planning implemented considering revised forecasting, the directors are satisfied that the Group will be able to meet its liabilities as they fall due and continue as a going concern. On this basis management have prepared these financial statements on a going concern basis

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Loyalty points are issued by the group when a customer purchases goods providing a right to a future discount. The value of the future discounts, based on the value of the points earned by the customer, is adjusted for expected redemption rates. The amount allocated to the loyalty points is deferred as a contract liability within accruals. Revenue is recognised as the points are redeemed by the customer.

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 is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

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.

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 recognised in the profit and loss account.

Interest in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. Investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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.

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 is determined using the first in first out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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

The 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 trade debtors, other debtors, accrued income, amounts owed by group undertakings 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 financial transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

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 {trade creditors, other creditors, accruals, other borrowings and amounts owed to group undertakings, 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.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when, and only when, the group's contractual obligations are discharged, cancelled, or they expire.

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. Current tax assets are recognised when tax paid exceeds the tax payable.

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 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.

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

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 the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date.

Assets and liabilities of overseas subsidiaries (including goodwill and fair value adjustments in relation to overseas subsidiaries) are translated into the group's presentation currency at the rate ruling at the reporting date. Income and expenses of overseas subsidiaries are translated at the average rate for the year as the directors consider this to be a reasonable approximation to the rate at the date of the transaction. Translation difference are recognised in other comprehensive income and accumulated in equity.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

When acquiring a business, management is required to use judgement regarding the types of separately identifiable assets acquired that carry contractual or legal rights, including trademarks. In doing so, management rely on historic experience, consideration of the nature of the assets and standard industry practice.

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.

When separable intangible assets have been identified on a business combination, management make estimates of the fair values of those assets. In doing so, management is required to make a number of assumptions which are used in determining the fair value of intangible assets including the timing and amount of future incremental cash flows expected to be generates by the asset and in calculating an appropriate cost of capital.

The annual amortisation charge for intangible fixed assets is sensitive to changes in the estimated useful economic lives of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on future investments and economic utilisation of the assets.

At each reporting date, an assessment is made for impairment of stocks. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

At each reporting date, an estimate is made of the value of the loyalty points creditor. When calculating the creditor, management consider the points issued and the points redeemed, as well as applying assumptions around expected redemption rates.

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/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

The enacted UK corporation tax rate existing at the year end date of 25% forms the basis for the UK element of the deferred tax calculation, following the UK budget in 2021 when the chancellor announced an increase to the main rate of corporation tax in the UK from April 2023.

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

Registered office addresses:

Amounts owed by group undertakings falling due within one year of £ nil (2024: £nil) and falling due after more than one year of £9,879,109 (2024: £10,603,061). The balance includes interest accrued of £3,884,737 (2024: £3,108,724). The balance is repayable in quarterly instalments, with the final payment falling in November 2028, and interest is charged at a variable rate. The average interest rate during the year was 9.99%.

The remaining amounts owed by group undertakings falling due within one year, are unsecured, accrue no interest and are repayable on demand.

Amounts owed to group undertakings falling due within one year includes loan notes payable to group undertakings of £159,245 (2024: £170,502) and accrued interest on loan notes of £781,433 (2024: £769,357). The loan notes are repayable in instalments, with the final payment falling in November 2028, and interest is charged at a variable rate. The average interest rate during the year was 9.99%.

The remaining amounts owed to group undertakings falling due within one year are unsecured, accrue no interest and are repayable on demand.

Included in other borrowings of £759,624 (2024: £759,624) are loan notes issued to the previous director and shareholder as part of the consideration to purchase the share capital in Christies Direct Ltd.

Amounts owed to group undertakings falling due after one year includes loan notes payable to group undertakings of £19,594,820 (2024: £20,818,729). The loan notes are repayable in instalments, with the final payment falling in November 2028, and interest is charged at a variable rate. The average interest rate during the year was 9.99%

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

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions totalling £7,522 (2024 - £7,608) were outstanding at the year end and are included in accruals and deferred income.

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

Cumulative profit and loss net of distributions to owners.

Share premium

Consideration received for shares issued above their nominal value net of transaction costs.

During the year, Golub Capital LLC had a fixed and floating charge over the assets of the company which remained in place at 31 December 2025.

The remuneration of key management personnel is as follows.

The largest group for which consolidated financial statements including the company are prepared is that headed by the ultimate parent entity, NBG Topco LP, an entity incorporated in the United States of America.

During the year, management identified that certain management charges relating to the year ended 31 December 2024 had not been recorded when the 2024 financial statements were finalised. This was considered to be a prior period error and has been corrected retrospectively in these financial statements by adjusting the comparative figures for the year ended 31 December 2024 to appropriately recognise the management charges in the period to which they relate.