The directors present the strategic report for the year ended 31 May 2026.

Volumes in the sheet material division increased by 3.4%, however pressure on our prices and margins resulted in a 15.4% drop in operating profit when combined with the manufacturing division. Pressure on margins and prices continues in 2026 due to the same UK and worldwide market uncertainties as 2025 and we remain hopeful for an upturn in market confidence in 2026/27.

We operate in an extremely competitive market, sourcing our materials from the Far East, South America and the UK.

The key risk areas the company has identified are:

Liquidity risk

The company has sufficient funds to fund its ongoing operations and in addition has access to sufficient facilities from our lenders should they be required. 

Foreign currency risk

Due to the nature and source of our sheet material divisions purchases we monitor exchange rates very closely and use foreign currency hedging as a strategy to alleviate the impact of what can be a volatile market.

Credit Risk

The company maintains its long established practice of obtaining trade credit insurance to mitigate credit risk.

In September 2026 the company purchased the premises previously leased since incorporation in Uddingston, North Lanarkshire.

We are hopeful a promising end to the 2025/26 financial year will continue into 2026/27 however we will monitor uncertain political and economic conditions in the UK and beyond.

We will continue to work towards reducing our carbon footprint through process efficiencies and new technology where possible.

The company’s key financial indicators for the year are summarised in the table below:

Section 172(1) of the Companies Act 2006 provides that a director of a company must act in a way that he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to various other stakeholder interests – below are the six key factors:

• the likely consequences of any decision in the long term;

• the interests of the company’s employees;

• the need to foster the company’s business relationships with suppliers, customers, and others;

• the impact of the company’s operations on the community and the environment;

• the desirability of the company maintaining a reputation for high standards of business conduct; and

• the need to act fairly as between members of the company.

1. Shareholders

Shareholders provide funds that help run and grow our business and they expect a sustainable return.

Operational and finance meetings are held monthly with our shareholders, where we engage and exchange views, and monitor closely how the financial year is progressing. Formal chaired, minuted meetings are held where strategic, operational, and financial matters are reviewed and discussed, providing a platform for well-informed decision making.

2. Customers

Our customers are our lifeblood whom we value highly. They provide the opportunities which provide gainful employment for our people and a return for our shareholders.

Service to our customers is of prime importance. We proactively build meaningful relationships with them and systematically seek feedback on how we are performing.

We also interact with our customers through framework agreements, tenders and call orders.

We fully adhere to the standards set out and agreed through ISO:9001 and look for continuous improvement in all our business activities.

3. Our people

Our people provide the external services to our customers and support each other in that common goal. We are passionate about nurturing a highly motivated, well-trained, team-orientated workforce and ensuring effective communication to all.

Health & safety is of paramount importance in our business.

4. Suppliers

We fully support collaboration with our suppliers as it reduces the risk in our supply chain and strengthens the platform from which we provide a service to our customers.

We also interact with our suppliers through tenders, agreements and purchase orders.

A high-quality and sustainable supply chain is key to our competitiveness and product certification through well-managed forests.

5. Social Responsibility

We recognise that we have a responsibility to the wider community and environment; and as a responsible importer, commit to be as environmentally friendly as possible in all our endeavours.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 May 2026.

The principal activity of the company continued to be that of sourcing and supply of plywood and the manufacturing of specialist fire doors and door sets.

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £750,020 (2025: £356,434). The directors do not recommend payment of a further dividend.

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

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Caledonian Plywood Company Ltd recognise that we have a responsibility to the environment and endeavour to be as environmentally friendly as possible in our business activities.

We recycle our waste and separate our wood waste and mixed recycling waste, as well as our paper and food waste. We are audited by SEPA (Scottish Environmental Protection Agency) under the Packaging Waste Regulations.

We are both FSC® or PEFC™ Certified, allowing us to offer Certified products from sustainable forests.

The environmental impact of our operations

We recognise our responsibility to mitigate the impact of our operations on climate change, and are taking steps to reduce this wherever possible. 97% of the scope 2 electricity emissions within our operational control are purchased from sustainable energy and we remain focused on identifying and implementing energy saving measures across our organisational footprint.

Energy Use and Greenhouse Gas Emissions – Market Based

Energy Use and Greenhouse Gas Emissions – Location Based

Energy use in 2026 has decreased compared to the previous year due to careful monitoring of gas consumption and continuing adoption of electric vehicles in our fleet.

Methodology
Our Scope 1 and Scope 2 energy use and greenhouse gas emissions data for 2026 has been internally produced by the Company.

To calculate the footprint, data was collated from across the Company and from our suppliers to identify the amount of energy used in our operations. The Company uses the most robust and accurate data source available for each component of its energy use and carbon emission calculations. Assumptions and estimations are only used when strictly necessary by means of the most robust data and assumptions available.

Full data from both suppliers for energy, gas and gas oil supplies and internally generated data for company car and truck mileages was available for the year; no estimates have needed to be applied.

We do not consider refrigerant losses on our air conditioning units to be material and as such these are not reported in our emissions data. For business travel, the company analyses mileage information to establish the level of scope 1 emissions. Each vehicle’s respective CO2e g/km rating is applied. We do not consider non-company vehicle travel to be material and as such this is not reported in our emissions data.

Methodology (continued)

Greenhouse gas (GHG) emissions are calculated in line with GHG Reporting Protocol – Corporate standard and reported in line with the UK Government’s Guidance on Streamlined Energy and Carbon Reporting and mandatory GHG reporting guidance.

The boundary has been set based upon operational control approach on our business activities and property portfolio. Warehousing and site movements at Port of Tilbury which is controlled and operated by the Port are not included, nor are subcontracted logistics. There is 100% alignment with our financial reporting. 100% of our energy consumption and carbon emissions are UK based.

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

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 company’s auditor 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 company’s auditor is aware of that information.

The directors are responsible for preparing the strategic report, directors' 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 elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company 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 UK 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 company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Caledonian Plywood Company Ltd (‘the company’) for the year ended 31 May 2026, which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 company’s affairs as at 31 May 2026 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 and Financial Statements other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report and Financial Statements. 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 the 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 company and its 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, or returns adequate for our audit have not been received from branches not visited by us; or

• The 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 set out on page 7, 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 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 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• Companies Act 2006;

• Health and Safety Regulations;

• UK Tax legislation; and

• UK Generally Accepted Accounting Practice.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;

• Performing audit work procedures over the risk of revenue recognition, including cut off testing;

• Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Caledonian Plywood Company Ltd is a private company limited by shares incorporated in Scotland. The registered office is 1 Cardowan Park, Tannochside Park, Uddingston, G71 5PF.

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.

At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors have prepared detailed trading projections to the end of October 2027 based on current trading conditions.  true

Further, the Directors have assessed the appropriateness of the Company’s existing funding facilities and continued access to those funding facilities to meet the Company’s working capital requirements. The Directors are satisfied there is sufficient headroom in the Company’s existing funding facilities to meet its working capital requirements and have no reason to believe sufficient funding facilities will not be available. The projections and the company's performance in the year to 31 May 2026 provide the Directors’ with a reasonable expectation that the Company has sufficient funds in place to allow the Company to continue as a going concern for a minimum period of 12 months from the date of authorising the financial statements.  In making this assessment, the Directors acknowledge that forecasts are by nature forward looking and therefore may vary from actual results.

Turnover represents amounts receivable from the sale of plywood and fire doors, net of VAT, trade discounts and volume rebates.

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

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

Goodwill is reviewed for impairment at the end of the first accounting period following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Intangible assets are represented by computer software. These are costs which are directly attributable to the production of identifiable and unique software products controlled by the company that will probably generate economic benefits exceeding costs beyond one year. Direct costs include the costs of software development employees. Costs are amortised over their estimated useful lives.

Amortisation is recognised so as to write off the cost 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, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost 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 credited or charged to profit or loss.

Assets under construction are stated at cost and are not depreciated until the asset is available for the use as intended by management.

At each reporting period end date, the company 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).

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. Cost is based on the cost of purchase on a first in, first out basis.

Cash and cash equivalents are basic financial assets and include cash in hand, bank overdrafts, invoice finance facilities and loans against imports.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 certain 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. Financial assets classified as receivable within one year are not amortised.

Financial assets 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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.

Basic financial liabilities, which include certain creditors, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 statement of comprehensive income 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

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

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

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’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 directors have considered whether there are any significant judgements or key sources of estimation uncertainty requiring disclosure and have concluded that there are none which are material to the financial statements.

An analysis of the company's turnover is as follows:

All of the company's turnover is generated within the UK.

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

Their aggregate remuneration comprised:

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

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Finished goods and goods for resale above is stated net of provision for impairment of £102,540 (2025: £176,426).

Trade debtors are stated after provision for impairment of £2,000 (2025: £7,744).

Included in other debtors is £7,264 (2025: £914,568) of invoice financing. At the year end, the value of trade debt subject to an invoice finance agreement was £11,107,757 (2025: £10,674,823).

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

As at 31 May 2026 included in creditors is a pension commitment of £31,798 (2025: £27,547).

The ordinary shares have attached to them full voting, dividend and capital distribution rights (including on a winding up). The shares are not redeemable and do not carry any rights of redemption.

Profit and loss reserves relate to retained cumulative profits and losses net of dividends paid.

At 31 May 2026, the company had a £500k duty deferment bond in place between HSBC and HMRC.

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

The Company acquired one of the leased properties, following the reporting date (note 23). This resulted in the early termination of this lease agreement. Consequently, future lease obligations will be significantly less from those reported above.

Subsequent to the reporting date, the company acquired a property for £2.0 million, exclusive of taxes and VAT. The acquisition was funded through existing cash resources and represents a material asset purchase for the company. This property had previously been leased by the Company, resulting in the early termination of the lease agreement, and a reduction of the future lease obligations reported in note 22.

Advances or credits have been granted by the company to its directors as follows:

Dividends totalling £750,020 (2025: £356,434) were paid in the year in respect of shares held by the company's directors.

During the current year, the following amounts were advanced to the company's directors:

D J Kilpatrick is deemed to be the controlling party of the company.