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

The Group returned to growth in 2025 as the successful expansion of its product range outweighed the continued negative effects on demand from the UK political and economic environment. The industry experienced further reductions in activity and further insolvencies. Aluminium and labour costs remained inflationary, while the Group continued to invest in the organisation to support future growth. As a result, EBITDA increased at a slower rate than turnover giving headline results as below:

2025 Turnover: +4% to £32,332k vs £31,024k in 2024

2025 EBITDA: +1% to £3,076k vs £3,054k in 2024

9.5% vs 9.8% in 2024

All trading continued to be carried out under the trading name Made For Trade.

Made For Trade’s mission is to deliver the best products, with the best service at the best prices and in a challenging year the Group fulfilled this through a number of key activities:

Best Products – Korniche Slider, Korniche Flat Lite, New Korniche Lantern

In late 2024 we introduced our Slider featuring the Speedbead™. This product was developed in collaboration with Cortizo, a leading systems house, and offered an enhanced version of their popular Cortizo 4700 door.

In summer 2025 we introduced the Korniche Flat Lite offering an exceptional value for money flat roof solution.

In autumn 2025 we introduced our new Korniche lantern to replace the groundbreaking original of which almost 100,000 have been sold since launch in 2015. The new lantern’s features include even slimmer profiles, improved thermal performance and updated aesthetics.

Best Service

In 2025 we increased our Made For Trade Trustpilot score which stood at 4.8 at the end of the year. This is testament to our service, including the efforts of our customer service and field service teams in rectifying issues when they do occur and supporting customers with installation issues.

Best Price

Regrettably in 2025 we had to increase our prices due to inflationary pressures, but only by a modest amount. The new lantern was engineered with cost in mind and we passed cost savings to our customers by offering at a price lower than where the lantern had been before the price rise.

Further Information:

The business remains in excellent financial health, and we continue to make significant but sustainable investments for growth without the need for debt financing. Reinvestment of profits into capital assets remained high as we invested £0.7m in machinery and fleet.

Profit before tax was £2.8m, up 3% on 2024. After dividends of £5.4m and the £1.7m acquisition of own shares, net assets reduced from £18.0m to £13.3m. The exits of two minority shareholders caused a reduction in net assets of £5.6m. The Group recorded a positive cashflow, before non-capital asset investments, share repurchase and dividends, of £2.0m.

In support of the mission the Made For Trade vision is to lead the glazing industry with product design, the highest manufacturing quality and a gold standard service loved by installers and homeowners alike.

With innovative product design being in our DNA our dedicated and expanded Engineering R&D department delivered 3 all new Korniche products in 2025, the Flat Lite, new Lantern and Internal Glass Partition. As is expected from the brand the products benefit from existing or pending patented features that meet the different, but compatible, needs of our customer and the homeowner. We will continue to develop products in this vein and to protect our work through patent application which also enables us to take advantage of current government taxation schemes supporting innovative companies such as ourselves.

To continue to deliver the best products with the best service at the best prices we will continue to reinvest a large proportion of profits in capital equipment and the development of our systems and processes. Crucial though to our success will be attracting, retaining, developing and motivating great people in our business and we will continue to review and improve our training, engagement and wider benefits.

The management of the Group and the execution of the Group’s strategy are subject to a number of risks. The Group maintains and regularly reviews a risk register with actions taken to mitigate risks.

UK Macroeconomic conditions

Risk

The rate of inflation rose again in 2025 and remained well above the BOE’s target. There is a lasting impact on households’ purchasing power, particularly as interest payments on mortgages remain elevated vs recent years. This has a direct impact on relatively expensive, discretionary purchases. This is likely to continue to negatively impact our sales volumes and our customers’ profitability and cashflow for some time.

Mitigation

The company actively works to reduce costs of manufacture to maintain margins whilst remaining price competitive. We work to maintain strong relationships with a diverse customer base, meeting their needs, whilst regularly and proactively reviewing and addressing customer payment performance.

Our sustainable growth approach, including maintaining strong reserves, means we can comfortably continue to work towards our long-term growth strategy in the face of any short-term dip in performance. We have established a pipeline of new product launches to broaden our offer.

Materials Pricing and Availability

Risk

The risk of supply is heightened in our business, relative to our industry, because we have developed unique products.

Mitigation

We continue to engage with both existing and new suppliers and have broadened the supply base. We are increasing supplier engagement to ensure all suppliers can demonstrate the required standards, supported by fair and rewarding contractual agreements.

Competitor Activity

Risk

In the last few years we have seen competitors enter the lantern market with new or revised products trying to emulate the Korniche product. In addition we have started to see some very low pricing in the Bifold market as players have sought to bolster their low sales volumes.

Mitigation

Whilst we protect ourselves as much as possible with patents for our products it is vital that we continue to meet our commitment to the best products with the best service at the best prices so that our customers are satisfied and that we communicate clearly through clear and targeted marketing activity using the Korniche brand. The 2025 launch of our all new Lantern product is an example of us ensuring we stand out versus the competition.

Reliance on Key Personnel

Risk

As a business that has already grown relatively rapidly in recent years there is a risk that further business growth becomes constrained by insufficient skills and experience.

Mitigation

The company continues to follow a plan to recruit externally into key management positions bringing in skills and experience from outside of our industry. In line with ISO9001 accreditation we will continue to invest in processes supported by investment in internal software development and 3rd party systems, reducing reliance on acquired knowledge.

In line with Section 172 of the Companies Act 2006, the directors of the Group have acted in ways most likely to promote the success of the Group for the benefit of its members as a whole, as set out below:

• The long term success of Made For Trade will be judged on the growth of the business through the deployment of new and innovative products. The directors recognise the criticality of investment in our people, systems and processes and make these investment decisions based on strategic alignment as opposed to short term profitability.

• We operate an open and somewhat informal business culture that encourages direct communication between all levels of employees. We are committed to supporting our employees to progress within the organisation where they have the desire to do so and provide continuous training to do so. The standards required from our employees are set out in the employee handbook and we ensure that these are maintained so as to provide a safe and welcoming environment. As part of this we maintain a whistleblowing policy should the need arise.

• Our relationships with key suppliers and customers have been key to the growth of the business and we work to maintain equitable relationships. We are sure to make all payments when due and are developing the transparency of our supplier selection processes.

• As a business that only makes aluminium products we are delivering durable and highly recyclable products. We regularly review data on our energy usage, materials waste and fuel use and take proactive measures to reduce these. This includes identifying structural changes to the whole supply chain and collaboration with suppliers to reduce overall environmental impact.

• The group understands the importance of maintaining trust with all of our stakeholders, including employees, suppliers, customers and shareholders, and strives to treat each stakeholder fairly and meet all commitments.

On behalf of the board

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

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

Ordinary dividends were paid amounting to £5,386,001. The directors do not recommend payment of a final dividend.

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

The Group maintains a comfortable level of free cash and a layered approach is taken to investments with a variety of maturities and varying degrees of volatility. Management of investments with longer maturity is outsourced with appropriate policies in regard to spread of investments. In addition, the business regularly forecasts cash requirements with a prudent approach taken.

The Group held an immaterial amount of debt related to Hire Purchase agreements at 31 December 2025. The remaining obligation of £5,855 falls due within one year.

The Group has significant foreign currency outflows. It follows a policy that limits short-term exposure through the use of basic instruments and does not speculate on future currency movements.

With a large customer base the Group has a risk of default, especially if market conditions are difficult for customers. The Group subscribes to a credit reference agency and regularly reviews credit positions and payment performance, taking appropriate action to address potential issues.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have prepared 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.

As permitted by the Companies Act, the group has disclosed in the Strategic Report information which would otherwise be disclosed in the Directors’ Report, as follows:true

• Future developments

• Stakeholder engagement

• Research and development activities

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 Aanco Holdings 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 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 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 extent to which our procedures are capable of detecting irregularities, including fraud, is the extent to which an audit conducted under ISAs (UK) is capable of detecting irregularity, including fraud. Our procedures include:

• obtaining an understanding of the legal and regulatory frameworks applicable to the group and company, such as the Companies Act 2006;

• obtaining an understanding of how the group and company complies with the applicable legal and regulatory frameworks;

• assessing the susceptibility of the group's and company's financial statements to material misstatement, including how fraud might occur, with audit procedures including reviewing internal controls, testing supporting documentation, enquiring of group and company management and obtaining written confirmation.

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. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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

Use of our report

This report is made solely to the 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.

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 £4,539,650 (2024 - £4,213,724 profit).

Aanco Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Wellington House, Wynyard Avenue, Wynyard, Billingham, TS22 5TB.

The group consists of Aanco Holdings Limited and all of its subsidiaries.

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 certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Acquisitions are accounted for using merger accounting where appropriate.

During the year ended 31 December 2020 the group underwent a reconstruction. Aanco Holdings Limited acquired 100% of the shares in Aanco (UK) Limited with 75% of the shares being acquired by way of a share for share exchange and 25% for cash. Although this reconstruction did not meet the merger accounting criteria under Financial Reporting Standard 102 and the Companies Act 2006, the acquisition has been accounted for using merger accounting.

The consolidated financial statements have been presented as if Aanco Holdings Limited and Aanco (UK) Limited had always been part of the group. If the acquisition method had been used, goodwill on acquisition (estimated to be roughly £13m) would have been recognised in the consolidated balance sheet with a related amortisation charge (estimated to be roughly £1.3m per annum). As a result, net assets as shown in the consolidated balance sheet as at 31 December 2025 would have been higher than as shown using merger accounting (by an amount estimated to be roughly £5.5m). Consolidated profit after taxation in the year ended 31 December 2025 using the acquisition method would have been roughly £1.3m lower compared to using merger accounting.

The directors consider that this departure from the provisions of Financial Reporting Standard 102 and the Companies Act 2006 is necessary in order for the consolidated financial statements to give a true and fair view. The consolidated financial statements have been prepared in accordance with Financial Reporting Standard 102 and the Companies Act 2006 in all other respects.

The consolidated group financial statements consist of the financial statements of the parent company Aanco Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

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 directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

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

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

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.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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

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

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange published by the Bank of England for the last working day of the preceding calendar month. 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 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 average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

Aggregate remuneration includes agency costs of £819,846 (2024 : £339,295). Agency workers are not included in the staff numbers noted above.

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:

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

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

Obligations under finance leases are secured against the assets to which they relate.

Obligations under finance leases are secured against 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.

During the year 3,000 Ordinary shares were redesignated as A Ordinary shares. The A ordinary shares are non-voting and carry conditions and restrictions in respect to their right to dividends.

In addition to the above, the following shares have been allotted, called up and fully paid by Aanco Group Limited:

• 150 A Ordinary shares of 0.01p each;

• 185 B1 Ordinary shares of 0.01p each;

• 35 C Ordinary shares.

The A Ordinary shares are non-voting and carry conditions and restrictions over their disposal and any return of capital.

The B1 Ordinary shares are non-voting, have no right to receive a dividend and carry conditions and restrictions over their disposal and any return of capital.

The C Ordinary shares are non-voting and carry no right to participate in any return of capital.

Different rates of dividend may be declared in respect of the different classes of share.

During the year Aanco Group Limited issued 60 B1 Ordinary shares for cash consideration of £10 per share.

The group guarantees its products for up to ten years. Rectification work is considered to be an ongoing charge but the group accepts that it has contingent liability to carry out this work. The value of this liability cannot be ascertained with any accuracy but the group's past experience of rectification work indicates that it will not be material to the reading of these financial statements and therefore no provision has been made.

Grants receivable may be repayable in part or in full if certain conditions associated with the grants are not met.

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:

Amounts contracted for but not provided in the financial statements:

The remuneration of key management personnel is as follows.

During the year the group entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Mr AR Gaunt resigned as a director of the company on 4 April 2025. On the same date, the company purchased Mr. Gaunt’s entire shareholding for a total consideration of £1,670,000. The shares acquired were subsequently cancelled, resulting in a reduction in the company’s issued share capital.

During the year the group:

• made advances to directors of £1,650,855 and £1,650,782 was repaid by the directors (2024 - £3,464 and £5,273 respectively). Interest where applicable was charged according to HMRC's official rates. All amounts were repayable on demand; and

• sold tangible fixed assets to the directors at their market value of £120,000.

The controlling party is Mr B Gaunt.