Company registration number 16337495 (England and Wales)
LUDWICK GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2026
LUDWICK GROUP LIMITED
COMPANY INFORMATION
Directors
R Matthews
(Appointed 24 March 2025)
L Matthews
(Appointed 24 March 2025)
Secretary
L Matthews
Company number
16337495
Registered office
2 The Parade
St Albans Road East
Hatfield
Hertfordshire
AL10 0EY
Auditor
Sumer Auditco Limited
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
LUDWICK GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
LUDWICK GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 MARCH 2026
- 1 -

The directors present the strategic report for the period ended 29 March 2026.

Review of the business and KPIs

Ludwick Group Limited was incorporated on 24 March 2025 and became the parent company of the Simmons group following a group reorganisation completed on 31 March 2025.

 

The group's principal trading activity is the manufacture and sale of bakery products and the operation of retail bakery and food-to-go outlets through its subsidiary undertaking, Simmons (Bakers) Limited. The group also holds investment and property assets through Hatfield Trading Limited.

 

During the year the company received dividend income from subsidiary undertakings and reported a profit for the year of £383,669. Net assets at 29 March 2026 amounted to £40.8 million for the company and £39.5m for the group.

 

The group delivered a strong trading performance during the year. Turnover came in at £34.9 million and gross profit margin was 70.4%. Overall, loss before taxation amounted to £502k.

 

The establishment of Ludwick Group Limited as the new parent company during the year provides a simplified group structure and an appropriate platform for the future ownership and governance of the group's trading, investment and property activities. The directors are pleased with the performance and financial position of the group during the period.

Principal risks and uncertainties

As a holding company, the principal risks affecting the company are linked to the performance of its subsidiary undertakings and the value of its investments. The directors regularly monitor the financial performance, cash generation and funding requirements of the group and consider the overall risk profile of the business to be appropriately managed.

 

The group's trading operations are exposed to risks common to the bakery and retail sector, including changes in consumer demand, food and energy cost inflation, labour availability and wider economic conditions. The directors continue to monitor these factors closely and believe the group's established brand, customer base and financial strength position it well to respond to these challenges.

Future developments

The directors intend to continue supporting the development of the group's trading activities through investment in retail locations, production facilities and operational efficiency. The directors remain confident in the long-term prospects of the group and expect the business to continue generating sustainable profits and cash flows.

Section 172 (1) Statement

The directors of Ludwick Group Limited are required to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, having regard to the matters set out in section 172 of the Companies Act 2006. As the parent company of the group, many of the board's decisions are taken with regard to the long-term success, sustainability and governance of the group as a whole.

 

In carrying out their duties during the year, the directors have had regard to a broad range of stakeholders and factors when making decisions, including:

LUDWICK GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 2 -

Employees

The directors recognise that the continued success of the group depends upon the commitment, wellbeing and development of its employees. Through the board's oversight of the group's trading operations, the directors consider workforce matters including recruitment, retention, training, remuneration, health and safety and employee engagement. Regular reporting from management enables the board to understand workforce challenges and opportunities and supports decision-making designed to promote a skilled, motivated and engaged workforce.

 

Customers

The group's reputation and long-term success are dependent on maintaining strong relationships with customers. The directors receive regular information concerning trading performance, customer demand and operational performance and seek to ensure that strategic decisions support the continued delivery of high-quality products, service standards and value for customers throughout the group's retail estate.

Suppliers and Business Partners

The directors recognise the importance of maintaining effective and collaborative relationships with suppliers, landlords, advisers and other business partners. The board seeks to ensure that the group conducts business fairly and responsibly and takes a long-term approach to building mutually beneficial commercial relationships which support the sustainability and resilience of the business.

 

Community and Environment

The group has operated within its local communities for many years and the directors recognise the importance of maintaining the trust and support of customers, employees and local stakeholders. The directors consider the impact of significant business decisions on the communities in which the group operates and support initiatives that contribute positively to those communities.

 

The board also recognises the importance of environmental responsibility and oversees the group's approach to energy efficiency and resource usage. Details of the group's energy use and carbon emissions are included within the Streamlined Energy and Carbon Reporting disclosures elsewhere in this annual report.

 

Maintaining High Standards of Business Conduct

The directors are committed to maintaining high standards of business conduct and corporate governance. The board promotes a culture based on integrity, accountability and responsible decision-making and seeks to ensure that the group complies with all applicable legal and regulatory requirements.

Long-Term Decision Making

When considering significant matters during the year, including the establishment of Ludwick Group Limited as the new parent company of the group, capital investment within subsidiary undertakings, dividend policy and the ongoing allocation of resources across the business, the directors considered the likely long-term consequences of those decisions and the interests of relevant stakeholders. The directors believe that these decisions support the long-term success of the group and the creation of sustainable value for shareholders.

 

Shareholders

The company maintains regular dialogue with its shareholders and seeks to ensure that the interests of all members are considered when significant decisions are taken. The directors aim to maintain a strong financial position and an appropriate balance between reinvestment in the business and returns to shareholders.

 

The directors consider that throughout the year they have acted in a manner most likely to promote the success of the company for the benefit of its members as a whole, having regard to the interests of all key stakeholders and the matters set out in section 172(1) of the Companies Act 2006.

On behalf of the board

R Matthews
Director
9 October 2026
LUDWICK GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 MARCH 2026
- 3 -

The directors present their annual report and financial statements for the period ended 29 March 2026.

Principal activities

The principal activity of the group during the year was that of manufacture and sale of bakery goods and catering. The company became the parent company of the group following a group reorganisation completed on 31 March 2025.

Results and dividends

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

Ordinary dividends were paid amounting to £200,000. The directors do not recommend payment of a further dividend.

Directors

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

R Matthews
(Appointed 24 March 2025)
L Matthews
(Appointed 24 March 2025)
Disabled persons

The group and company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate

Employee involvement

During the year, the policy of providing employees with information about the group and company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between the management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's bonus schemes.

Auditor

Sumer Auditco Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

LUDWICK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 4 -
Energy and carbon report

As the parent company of a large group, the company has included the group's Streamlined Energy and Carbon Reporting disclosures within these annual financial statements.

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from the combustion of gas was 245 Carbon Tonnes (1,344,060 kWh) (2025: 279 Carbon Tonnes - 1,522,322 kWh).

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from the purchase of electricity for own use was 488 Carbon Tonnes (3,726,328 kWh) (2025: 673 Carbon Tonnes - 3,803,930 kWh).

The UK annual quantity of emissions (in tonnes) of carbon dioxide equivalent resulting from fuel for use in owned transport was 186 Carbon Tonnes (717,969 kWh) (2025: 189 Carbon Tonnes - 717,577 kWh).

The group uses a range of methodologies to calculate the above information, including utility bills and carbon trust energy and carbon conversion guidance.

The group engages 695 members of staff (2025: 711 members of staff) and uses 919 Carbon Tonnes of energy (2025: 1,141 Carbon Tonnes), equating to 1.32 Carbon Tonnes per member of staff (2025: 1.61 Carbon Tonnes).

The group has reported comparatives in this element of the report, which links to the reporting made at group level of Hatfield Trading Limited in the prior period.

The group is committed to improving energy efficiency. We have installed energy efficient light bulbs in all shops and throughout the bakery. We have purchased a number of electric vehicles, and we continue to recycle our food waste with Severn Trent who produce green electricity for the National Grid. We have solar panels on our warehouse.

Statement of directors' responsibilities

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:

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.

LUDWICK GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 5 -
Statement of disclosure to auditor

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.

On behalf of the board
R Matthews
Director
9 October 2026
LUDWICK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LUDWICK GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Ludwick Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 29 March 2026 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:

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:

LUDWICK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LUDWICK GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and 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:

Responsibilities of directors

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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

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:

LUDWICK GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LUDWICK GROUP LIMITED
- 8 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;

 

 

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

 

 

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the director’s and other management and the inspection of regulatory and legal correspondence.

 

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Ann Brown (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
9 October 2026
LUDWICK GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 MARCH 2026
- 9 -
Period
ended
31 March
2026
Notes
£
Turnover
3
34,890,189
Cost of sales
(10,330,086)
Gross profit
24,560,103
Distribution costs
(10,355,683)
Administrative expenses
(15,508,268)
Other operating income
116,446
Operating loss
4
(1,187,402)
Interest receivable and similar income
8
172,061
Interest payable and similar expenses
9
(1,552)
Amounts written off investments
10
514,661
Loss before taxation
(502,232)
Tax on loss
11
(522,369)
Loss for the financial period
24
(1,024,601)
(Loss) for the financial period is all attributable to the owners of the parent company.
Total comprehensive expense for the period is all attributable to the owners of the parent company.
LUDWICK GROUP LIMITED
GROUP BALANCE SHEET
AS AT
29 MARCH 2026
29 March 2026
- 10 -
2026
Notes
£
£
Fixed assets
Goodwill
13
23,720,612
Tangible assets
14
21,682,105
Investments
15
6,130,682
51,533,399
Current assets
Stocks
17
376,687
Debtors
18
641,283
Cash at bank and in hand
4,240,308
5,258,278
Creditors: amounts falling due within one year
19
(14,617,321)
Net current liabilities
(9,359,043)
Total assets less current liabilities
42,174,356
Provisions for liabilities
Deferred tax liability
21
2,693,697
(2,693,697)
Net assets
39,480,659
Capital and reserves
Called up share capital
23
2,202
Other reserves
24
40,703,058
Profit and loss reserves
24
(1,224,601)
Total equity
39,480,659
The financial statements were approved by the board of directors and authorised for issue on 9 October 2026 and are signed on its behalf by:
09 October 2026
R Matthews
Director
Company registration number 16337495 (England and Wales)
LUDWICK GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 29 MARCH 2026
29 March 2026
- 11 -
2026
Notes
£
£
Fixed assets
Investments
15
54,476,364
Current assets
-
Creditors: amounts falling due within one year
19
(13,587,435)
Net current liabilities
(13,587,435)
Net assets
40,888,929
Capital and reserves
Called up share capital
23
2,202
Other reserves
24
40,703,058
Profit and loss reserves
24
183,669
Total equity
40,888,929

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 £383,669.

The financial statements were approved by the board of directors and authorised for issue on 9 October 2026 and are signed on its behalf by:
09 October 2026
R Matthews
Director
Company registration number 16337495 (England and Wales)
LUDWICK GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 MARCH 2026
- 12 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 24 March 2025
-
-
-
-
Period ended 29 March 2026:
Loss and total comprehensive income
-
-
(1,024,601)
(1,024,601)
Issue of share capital
23
2,202
40,703,058
-
40,705,260
Dividends
12
-
-
(200,000)
(200,000)
Balance at 29 March 2026
2,202
40,703,058
(1,224,601)
39,480,659
LUDWICK GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 MARCH 2026
- 13 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 24 March 2025
-
-
-
-
Period ended 29 March 2026:
Profit and total comprehensive income
-
-
383,669
383,669
Issue of share capital
23
2,202
40,703,058
-
40,705,260
Dividends
12
-
-
(200,000)
(200,000)
Balance at 29 March 2026
2,202
40,703,058
183,669
40,888,929
LUDWICK GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 29 MARCH 2026
- 14 -
2026
Notes
£
£
Cash flows from operating activities
Cash generated from operations
30
5,912,716
Interest paid
(1,552)
Income taxes paid
(10,965)
Net cash inflow from operating activities
5,900,199
Investing activities
Purchase of business
(754,126)
Purchase of tangible fixed assets
(4,158,883)
Proceeds from disposal of tangible fixed assets
36,300
Proceeds from disposal of investment property
475,000
Purchase of investments
(1,113,013)
Proceeds from disposal of investments
4,133,134
Interest received
92,420
Dividends received
66,425
Net cash used in investing activities
(1,222,743)
Financing activities
Dividends paid to equity shareholders
(200,000)
Net cash used in financing activities
(200,000)
Net increase in cash and cash equivalents
4,477,456
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
4,477,456
Relating to:
Cash at bank and in hand
4,240,308
Cash held in investments
15
237,148
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 MARCH 2026
- 15 -
1
Accounting policies
Company information

Ludwick Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 The Parade, St Albans Road East, Hatfield, Hertfordshire, AL10 0EY.

 

The group consists of Ludwick Group Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements have been prepared for the period from incorporation 24 March 2025 until the period ended 29 March 2026.

1.2
Basis of preparation

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 principal accounting policies adopted are set out below.

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:

 

1.3
Business combinations

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. 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.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 16 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ludwick Group 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 29 March 2026. 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.

1.5
Going concern

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.

 

The group and company has been able to trade in line with expectations in the period since 30 March 2026 to present and has continued to generate profits and operating cash flows. The group and company has no external debt and has a strong net asset and liquidity base. Even in extreme downside scenarios the Directors have options available to them, including selling the properties, in order to preserve cash flow and allow the business to settle its liabilities as they fall due. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Revenue

Turnover represents the invoiced amounts of goods sold and services provided after the deduction of trade discounts and value added tax.

 

Revenue from the sale of goods is recognised as turnover on receipt of cash or card payment.

 

Wholesale sales are recognised when goods are delivered to customers.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets - goodwill

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.

1.8
Tangible fixed assets

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:

Freehold land and buildings
Over 50 years
Leasehold land and buildings
Over the period of 10 years or the lease
Plant and machinery
10% straight line
Fixtures, fittings and equipment
10% straight line
Motor vehicles
25% - 35% reducing balance

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.

1.9
Fixed asset investments

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.

1.10
Impairment of fixed assets

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.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 18 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

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.

1.12
Cash and cash equivalents

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.

1.13
Financial instruments

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

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.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 19 -
Other financial assets

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

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.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 20 -
Other financial liabilities

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.

Derecognition of financial liabilities

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

1.14
Equity instruments

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.

1.15
Taxation

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

Current 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

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.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
1
Accounting policies
(Continued)
- 21 -
1.16
Employee benefits

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.

1.17
Retirement benefits

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

1.18
Leases
As lessee

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.

As lessor

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

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 22 -
2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

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

Business combination accounting

The acquisition of Hatfield Trading Limited required management to exercise judgement in determining the fair value of the identifiable assets and liabilities acquired and the resulting goodwill arising on acquisition. The directors considered the available information at the acquisition date, including independent valuations where appropriate, in determining the allocation of the purchase price.

Non-recognition of identifiable intangible assets

In accounting for the acquisition, management considered whether any separately identifiable intangible assets, including brands, customer relationships and other intangible rights, should be recognised separately from goodwill. Following assessment of the relevant criteria under FRS 102, the directors concluded that no material separately identifiable intangible assets existed that could be measured reliably and recognised independently of goodwill.

Classification of redeemable preference shares

The directors exercised judgement in determining the classification of the redeemable preference shares issued as part of the acquisition consideration. In reaching this conclusion, particular consideration was given to the holders' ability to require redemption of the shares within five business days and the resulting contractual obligation on the Company to transfer cash. The directors concluded that the shares meet the definition of a financial liability rather than an equity instrument under FRS 102

Key sources of estimation uncertainty

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.

Depreciation of fixed assets

Depreciation policies have been set according to experience of the useful lives of the assets in each category and are reviewed annually.

Goodwill

Goodwill arising on acquisition is amortised over an estimated useful economic life of 10 years. The assessment of the useful economic life and the consideration of potential impairment requires management to make assumptions regarding the future trading performance and cash generation of the acquired business. Changes in these assumptions could result in a material adjustment to the carrying value of goodwill.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 23 -
3
Turnover and other revenue
2026
£
Turnover analysed by class of business
Sale of goods
34,890,189
2026
£
Turnover analysed by geographical market
Sales - UK
34,890,189
2026
£
Other revenue
Interest income
105,636
Dividends received
66,425
Rent receivable
5,500
4
Operating loss
2026
£
Operating loss for the period is stated after charging:
Depreciation of tangible fixed assets
1,880,678
Loss on disposal of tangible fixed assets
16,806
Amortisation of goodwill
2,635,624
Operating lease charges
645,132
5
Auditor's remuneration
2026
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
4,700
Audit of the financial statements of the company's subsidiaries
26,200
30,900
For other services
All other non-audit services
19,180
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 24 -
6
Employees

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

Group
Company
2026
2026
Number
Number
Production staff
103
-
Selling and distribution staff
565
-
Office and management staff
27
2
Total
695
2

Their aggregate remuneration comprised:

Group
Company
2026
2026
£
£
Wages and salaries
15,565,605
3,000,000
Social security costs
1,750,438
450,000
Pension costs
417,932
-
0
17,733,975
3,450,000
7
Directors' remuneration
2026
£
Remuneration for qualifying services
3,262,842
Company pension contributions to defined contribution schemes
60,220
3,323,062

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2.

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2026
£
Remuneration for qualifying services
3,175,715
Company pension contributions to defined contribution schemes
10,110
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 25 -
8
Interest receivable and similar income
2026
£
Interest income
Interest on bank deposits
92,370
Other interest income
13,266
Total interest revenue
105,636
Other income from investments
Dividends received
66,425
Total income
172,061
9
Interest payable and similar expenses
2026
£
Other interest
1,552
10
Amounts written off investments
2026
£
Gain on investments held at fair value
514,661
11
Taxation
2026
£
Current tax
UK corporation tax on profits for the current period
408,802
Adjustments in respect of prior periods
11,125
Total current tax
419,927
Deferred tax
Origination and reversal of timing differences
102,442
Total tax charge
522,369
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
11
Taxation
(Continued)
- 26 -

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

2026
£
Loss before taxation
(502,232)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(125,558)
Tax effect of expenses that are not deductible in determining taxable profit
(198,842)
Adjustments in respect of prior years
11,125
Other non-reversing timing differences
690,157
Other permanent differences
13,281
Deferred tax adjustments in respect of prior years
(8,994)
Chargeable gains
157,806
Dividend income
(16,606)
Taxation charge
522,369
12
Dividends
2026
Recognised as distributions to equity holders:
£
Interim paid
200,000
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 24 March 2025
-
0
Additions - business combinations
26,356,236
At 29 March 2026
26,356,236
Amortisation and impairment
At 24 March 2025
-
0
Amortisation charged for the period
2,635,624
At 29 March 2026
2,635,624
Carrying amount
At 29 March 2026
23,720,612
The company had no intangible fixed assets at 29 March 2026.
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
13
Intangible fixed assets
(Continued)
- 27 -

The goodwill arose on the acquisition of subsidiary undertakings and is being amortised over its estimated useful economic life of 10 years.

14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 24 March 2025
-
0
-
0
-
0
-
0
-
0
-
0
Additions
1,833,669
703,274
350,553
1,067,176
204,211
4,158,883
Business combinations
10,229,401
2,530,625
2,034,210
4,119,979
542,791
19,457,006
Disposals
-
0
-
0
-
0
-
0
(177,673)
(177,673)
At 29 March 2026
12,063,070
3,233,899
2,384,763
5,187,155
569,329
23,438,216
Depreciation and impairment
At 24 March 2025
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
162,779
425,754
338,135
743,424
210,586
1,880,678
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(124,567)
(124,567)
At 29 March 2026
162,779
425,754
338,135
743,424
86,019
1,756,111
Carrying amount
At 29 March 2026
11,900,291
2,808,145
2,046,628
4,443,731
483,310
21,682,105
The company had no tangible fixed assets at 29 March 2026.

The carrying value of land and buildings comprises:

Group
Company
2026
2026
£
£
Freehold land
170,000
-
0
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 28 -
15
Fixed asset investments
Group
Company
2026
2026
Notes
£
£
Investments in subsidiaries
16
-
0
54,476,364
Listed investments
5,516,060
-
0
Unlisted investments
377,474
-
0
Investment cash
237,148
-
0
6,130,682
54,476,364
Movements in fixed asset investments
Group
Investments
Investment cash
Total
£
£
£
Cost or valuation
At 24 March 2025
-
-
-
Additions
1,113,013
-
1,113,013
Valuation changes
514,661
-
514,661
Cash movement
113,396
(998,427)
(885,031)
Acquired on business combination
8,398,994
1,235,575
9,634,569
Disposals
(4,246,530)
-
(4,246,530)
At 29 March 2026
5,893,534
237,148
6,130,682
Carrying amount
At 29 March 2026
5,893,534
237,148
6,130,682
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 24 March 2025
-
Additions
54,476,364
At 29 March 2026
54,476,364
Carrying amount
At 29 March 2026
54,476,364
16
Subsidiaries

Details of the company's subsidiaries at 29 March 2026 are as follows:

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
16
Subsidiaries
(Continued)
- 29 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Hatfield Trading Limited
*
Holding Company
Ordinary
100.00
-
Simmons (Bakers) Limited
*
Bakers
Ordinary
0
100.00
*
2 The Parade, St Albans Road East, Hatfield, Hertfordshire, England, AL10 0EY
17
Stocks
Group
Company
2026
2026
£
£
Raw materials and consumables
376,687
-
18
Debtors
Group
Company
2026
2026
Amounts falling due within one year:
£
£
Trade debtors
145,400
-
0
Corporation tax recoverable
33,597
-
0
Other debtors
161,033
-
0
Prepayments and accrued income
301,253
-
0
641,283
-
19
Creditors: amounts falling due within one year
Group
Company
2026
2026
Notes
£
£
Other borrowings
20
9,921,132
9,921,132
Trade creditors
1,174,159
-
0
Amounts owed to group undertakings
-
0
3,666,303
Other taxation and social security
2,577,704
-
0
Dividends payable
49
-
0
Other creditors
452,883
-
0
Accruals and deferred income
491,394
-
0
14,617,321
13,587,435
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 30 -
20
Loans and overdrafts
Group
Company
2026
2026
£
£
Preference shares
9,921,132
9,921,132
Payable within one year
9,921,132
9,921,132

The Company has issued 9,921,132 redeemable preference shares. The preference shares do not carry voting rights except in limited circumstances prescribed by the Articles of Association. The holders have the right to require the Company to redeem the shares and repay the subscription amount within five business days of serving notice. The preference shares rank in priority to the Ordinary Shares and A Ordinary Shares in respect of repayment of capital, including on a winding up of the Company. The shares carry no entitlement to participate in the residual equity growth of the group beyond their fixed redemption amount.

 

As the shares contain a contractual obligation for the Company to transfer cash to the holders upon redemption, they have been classified as financial liabilities in accordance with FRS 102.

21
Deferred taxation

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

Liabilities
2026
Group
£
Accelerated capital allowances
1,514,138
Revaluations
1,203,957
Short term timing differences
(24,398)
2,693,697
The company has no deferred tax assets or liabilities.
Group
Company
2026
2026
Movements in the period:
£
£
Asset at 24 March 2025
-
-
Charge to profit or loss
102,442
-
On business acquisition
2,591,255
-
Liability at 29 March 2026
2,693,697
-

The deferred tax movement in the year relates to deferred tax acquired on the acquisition of Hatfield Trading Limited and deferred tax arising on fair value adjustments recognised as part of the acquisition.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 31 -
22
Retirement benefit schemes
2026
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
417,932

At 29 March 2026 there were outstanding contributions payable of £97,642. 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.

23
Share capital
Group and company
2026
2026
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of 1p each
194,290
1,943
A Ordinary shares of 0.1p each
258,736
259
453,026
2,202
2026
2026
Preference share capital
Number
£
Issued and fully paid
Redeemable preference shares of 0.01p each, issued at £1 per share
9,921,132
9,921,132
Preference shares classified as liabilities
9,921,132

On 31 March 2025, the Company acquired the entire issued share capital of Hatfield Trading Limited. As part of the consideration for the acquisition, Ludwick Group Limited issued:

 

194,289 ordinary shares of 1p each;

258,736 A ordinary shares of 0.1p each; and

9,921,132 redeemable preference shares of 0.01p each and issued at value of £1 per share.

 

Each Ordinary Share and A Ordinary Share carries one vote at general meetings of the Company. Ordinary Shares have the preferential right to receive dividends declared by the Company to the exclusion of A Ordinary Shares. Following repayment of the Redeemable Preference Shares, Ordinary Shares participate first in distributions on a return of capital, after which any remaining surplus assets are distributed equally between Ordinary Shareholders and A Ordinary Shareholders in proportion to their holdings. Details for preference shares can be found in note 21.

 

The shares were issued as non-cash consideration in exchange for the shares acquired in Hatfield Trading Limited.

 

In accordance with section 612 of the Companies Act 2006 (merger relief), the Company has not recognised share premium on the issue of shares forming part of the acquisition consideration. As the acquisition qualified for merger relief, the excess of the fair value of the shares issued over their nominal value has been credited to a merger reserve rather than to a share premium account.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 32 -
24
Reserves

Retained earnings

 

Retained earnings represent the accumulated profits and losses of the Group that have not been distributed to shareholders.

 

The balance includes the post-acquisition results of subsidiary undertakings together with the impact of consolidation adjustments arising on acquisition.

 

 

Merger reserve

 

The merger reserve arose during the year on the acquisition of Hatfield Trading Limited. As part of the consideration for the acquisition, the Company issued ordinary shares, A ordinary shares and redeemable preference shares to the vendors.

 

The acquisition qualified for merger relief under section 612 of the Companies Act 2006. Accordingly, the excess of the fair value of the shares issued over their nominal value has been credited to the merger reserve rather than recognised in share premium.

 

25
Acquisition of a business

On 31 March 2025 the group acquired 100 percent of the issued capital of Hatfield Trading Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
15,586,179
3,870,827
19,457,006
Investment property
350,000
125,000
475,000
Investments
8,398,994
-
8,398,994
Inventories
312,704
-
312,704
Trade and other receivables
760,846
-
760,846
Cash and cash equivalents
3,095,846
-
3,095,846
Trade and other payables
(2,218,356)
-
(2,218,356)
Tax asset
429,343
-
429,343
Deferred tax
(1,592,298)
(998,957)
(2,591,255)
Total identifiable net assets
25,123,258
2,996,870
28,120,128
Goodwill
26,356,236
Total consideration
54,476,364
The consideration was satisfied by:
£
Cash
3,849,972
Issue of shares
40,705,260
Issue of preference shares
9,921,132
54,476,364
LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
25
Acquisition of a business
(Continued)
- 33 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
34,890,189
Profit after tax
5,186,023

The goodwill arising on the acquisition of the business is attributable to the anticipated profitability of the distribution of the company's products in new markets and the future operating synergies from the combination.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 34 -
26
Operating lease commitments
As lessee

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:

Group
Company
2026
2026
£
£
Within 1 year
474,778
-
Years 2-5
1,490,448
-
After 5 years
736,383
-
2,701,609
-
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2026
2026
£
£
Acquisition of tangible fixed assets
52,800
-
28
Related party transactions

During the year, the company declared dividends totalling £200,000 to shareholders. Amounts of £49 remain payable to shareholders and are included within Creditors.

 

The group was provided services of £67,328 by a close family member of a director of Simmons (Bakers) Limited. The outstanding creditor amount at the year end was £13,500.

29
Controlling party

The company is ultimately controlled by the Matthews family through their ownership of ordinary shares held directly and through family discretionary trusts. The majority of the voting rights in the company are held by trustees of family trusts associated with the Matthews family. The directors consider that there is no single individual who exercises ultimate control of the company.

LUDWICK GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 MARCH 2026
- 35 -
30
Cash generated from group operations
2026
£
Loss after taxation
(1,024,601)
Adjustments for:
Taxation charged
522,369
Finance costs
1,552
Investment income
(172,061)
Loss on disposal of tangible fixed assets
16,806
Amortisation and impairment of intangible assets
2,635,624
Depreciation and impairment of tangible fixed assets
1,880,678
Other gains and losses
(514,661)
Movements in working capital:
Increase in stocks
(63,983)
Decrease in debtors
153,160
Increase in creditors
2,477,833
Cash generated from operations
5,912,716
31
Analysis of changes in net debt - group
24 March 2025
Cash flows
Acquisitions and disposals
29 March 2026
£
£
£
£
Cash and cash equivalents
-
5,231,582
(754,126)
4,477,456
Borrowings excluding overdrafts
-
-
(9,921,132)
(9,921,132)
-
5,231,582
(10,675,258)
(5,443,676)
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