The directors present the strategic report for the year ended 30 June 2026.

The Duo Packaging Group of Companies is one of the UK's leading consultants, designers, manufacturers and procurement specialists of packaging solutions, providing an outstanding range of products to many of UK’s leading online retailers, retailers and industrial brands, and has a growing international client base. For the period in question, the Duo Group of Companies consisted of Duo Packaging Group Limited (as the parent company), with 2 trading subsidiaries- Duo Plastics Limited and Duo Packaging GmbH. Other than incurring costs associated with the closure of the former subsidiary, Duo Packaging Group did not trade during the reporting period.

Duclo Recycling Limited

The closure and liquidation of Duclo Recycling was the subject of a detailed update in the prior year’s accounts.

The Directors confirm that the outstanding Bank Guarantee arising from the closure of Duclo to HSBC was settled in full in September 2026, following a successful refinancing of Duo Plastics Ltd. Other than ongoing rental payments to February 2027 of a building formally occupied by Duclo, there are no further costs associated with the closure of Duclo.

Exceptional costs incurred to manage the Group restructuring have been absorbed by Duo Packaging Group insofar as those costs are directly related to Duclo.

Ongoing Trading

The main trading subsidiary Duo Plastics Limited, has continued to trade profitably and, other than the impact of the US / Iran conflict, in line with trading expectations, demonstrating the resilience of its customer base, supply chain and manufacturing excellence. For the period Duo Plastics generated a retained profit of £1.03m.

Despite the satisfactory result, Duo Plastics’ profitability generally has been impacted by global economic pressures and inflationary increases, impacting trading costs. The Directors closely manage, monitor and negotiate the best terms available from suppliers. The US/Iran conflict had a significant impact on the final quarter. The key raw material is Polymer and following the restrictions caused by the closure of the Strait of Hormuz, prices escalated. The Directors also believe that customer confidence was eroded during this period, with more cautious ordering patterns,

Since then, there has been a softening of Polymer prices as the supply chain reacted to the geo-political pressures. In addition, the company has been able to negotiate price increases to compensate.

The robust profitability of the business during quarters 1-3 enabled the company to face the pressures caused by the conflict and the directors look forward to continued growth in performance during the year ending June 2027. Underpinning these expectations is a new financing structure which was completed in September 2026. This encompassed a complete restructuring of facilities providing more flexible working capital facilities with enhanced headroom.

The company continued to invest in its UK production site and continued its research into innovative sustainable packaging products and increase its use of recycled and GreenPE material, where appropriate to do so. Last year the company continued its development partnership exploring the use of Graphene in production, and recent trial results will lead to the beginning of commercial production. In addition, the company increased business with industrial clients, reducing the impact of seasonality within the retail client base.

During the year the Group came to a Settlement Agreement with its Bankers over the guaranteed liabilities arising from the closure of Duclo. The company was joint guarantor. The revised facilities that were awarded in September 2026 have enabled full and final settlement of the guaranteed liability, The impact of the closure of Duclo Recycling in 2025 is now finalised and fully accounted for post year end.

The Duo Plastics' balance sheet continues to remain strong with Net Assets of £9.3m (2025: £7.9m). In the past 2 years the company has delivered profits in challenging circumstances, and the Directors are confident that the business will grow revenues and profitability supported by experienced management and a resilient customer and supplier base.

The overall group consolidated balance sheet value has improved to £45k net assets (2025: £1.13m net liabilities). Due to the continued strong trading of Duo Plastics, the Directors remain confident that the Group’s value will continue to increase materially.

Principal risks and uncertainties

The conclusion of matters relating to Duclo and the subsequent refinancing of Duo Plastics in September 2026 have mitigated risk to the group.

The group uses various financial instruments including factoring, bank loan and hire purchase, whilst tightly managing other items, such as stock debtors and creditors, that arise directly from its operations. The purpose of these financial instruments is to provide liquidity for the company’s operations.

Financial Risks are described in more detail below. The groups directors review and agree policies for managing these risks. These policies have remained unchanged from previous years.

Price risk

The group is exposed to price risk in relation to the cost of raw materials and associated costs. The group monitors trends in the market closely and liaises with third-party suppliers in relation to fluctuations in the prices and impact on future profitability. The group does not hedge its future purchase requirement, but it does seek to recover major movements in the purchase price through price adjustments with its customers when appropriate. With strong longstanding customer relationships, the business is able to forward order key raw materials with confidence.

Environmental risks

There has been continuous political pressure targeting the reduction in the usage of plastic products because of their perceived negative environmental impact. There is a risk of further reduction in plastic bag and other similar packaging usage both in the UK and overseas markets as further targets and/ or environmental taxes are introduced. The group is at the forefront in the offering of alternative materials and product solutions to its customers to assist them in meeting their environmental obligations whilst meeting the needs of consumers. The customers themselves are under pressure to reduce environmental costs and work closely with the group in achieving these aims.

The group continues to closely monitor, and evaluate, environmental and other regulatory matters which could have a major impact on its activities.

Economic risk

As a result of global economic factors costs generally have increased. This has impacted on raw materials and overhead costs (including energy costs), which in turn has resulted in increased cost of living pressures contributing to increases in staff costs. These inflation-related price increases are expected to remain for some time to come. Close monitoring of costs by the directors to budget, alongside a “live” plan are in place to mitigate the financial impact on on-going profitability.

Liquidity risk

The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to utilise cash assets safely and profitably. Short-term flexibility is achieved by an invoice discounting facility. The post balance sheet refinancing encompasses a more flexible and appropriate finance structure.

Interest rate risk

The group finances its operations through a combination of retained profits, bank loans and hire purchase contracts. The group exposure to interest rate fluctuations on its borrowings is managed using both fixed and floating facilities.

Foreign currency risk

The group’s principal foreign currency exposures arose from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.

Credit risk

The principal credit risk arises from the group's trade debtors. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis, and provision is made for doubtful debts where necessary. The group insures most of its debtors and prudently manages and reviews any that fall outside insurance allowances.

The Group reviews and monitors its performance against several key performance indicators both financial and non-financial. The principal measures include revenue growth, improvement of gross margins, and profit before tax. These are reviewed by the management team and reported to the Board monthly.

The directors have and will continue to monitor all the KPIs and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.

The main KPIs and corresponding results, comparing the 12 months to June 2026 to the 12 months to June 2025, are as follows:

Turnover for the year is materially as expected. In a competitive environment Duo Plastics has maintained revenues. It has successfully won new customers, and turnover growth is expected going forward.

Despite the global trading challenges, the company has reported a satisfactory profit before tax for the year ended 30 June 2026.

The company has maintained significant net current assets, illustrating continued liquidity.

The Directors remain encouraged by the continued profitability and cash generation of Duo Plastics Limited, which remains the Group's principal trading entity. Cash generated from operations remained strong at £338k and management continues to focus on operational efficiency, customer service and sustainable growth.

Average employee numbers reduced to 100 during the year. The group continues to maintain a skilled and experienced workforce within its core packaging operations and remains committed to the recruitment, retention and development of its employees.

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 June 2026.

The principal activity of the company and group was polythene extrusion, printing and conversion.

The results for the year are set out on pages 9 to 10.

No ordinary dividends were paid. 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 directors will continue to monitor profit margins, cost control and sales growth in the forthcoming year. The group's growth strategy is based around strong customer partnership and continued development of sustainable products.

The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.

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

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

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

We have audited the financial statements of Duo Packaging Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 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:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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

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

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

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

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, Duo Packaging Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, Duo Packaging Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the company's license to operate. We identified the following areas as those most likely to have such an effect: laws related to packaging and the regulated nature of the packaging industry, especially in relation to waste and plastic materials.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:

• Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

• Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud

• Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged 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.

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

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £317,020 (2025 - £7,876,313 loss).

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

Duo Packaging Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Vickers Street, Miles Platting, Manchester, M40 8PU.

The group consists of Duo Packaging Group Limited and all of its subsidiaries.

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

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

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties. 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:

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

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

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

The consolidated group financial statements consist of the financial statements of the parent company Duo Packaging 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 30 June 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.

At the time of approving the financial statements, the directors have a reasonable expectation that both the company and group has adequate resources to continue in operational existence for the foreseeable future.

In respect of the company financial position, the company will continue to receive financial support of the main trading subsidiary Duo Plastics Limited. At the balance sheet date, creditors amounts falling due within one year include £7,798,082 (2025: £7,398,428) owed to group undertakings. Although technically this group debt is repayable on demand, repayment will not be sought until cash flow permits.

In respect of the group financial position, the directors are of the opinion that the on-going profitability of Duo Plastics Limited will restore the net current assets position in the future. Additionally, the closure of the loss making subsidiary, Duclo Recycling Limited will also result in improved group cash flow as there will be no on-going losses to fund.

In determining whether the group’s accounts can be prepared on a going concern basis, the directors considered the group’s on-going business activities together with the factors likely to affect its future development, performance, its financial position including cash flow, liquidity position, borrowing facilities and the risks and uncertainties relating to its business activities. The directors regularly review these factors to ensure that any risks are recognised and managed effectively.   The group has prepared detailed financial forecasts to 31 October 2027 and has just completed on a re-financing exercise post year end, and these support the going concern basis.

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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

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

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

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.

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

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

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

Assets in the course of construction are not depreciated.

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 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.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

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.

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

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

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

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

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

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

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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

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

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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

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

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

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

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

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

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

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.

Environmental compliance costs

All costs arising from initiatives to reduce the impact on the environment of the company's activities and for complying with environmental regulations including those relating to engineering modifications, plant, monitoring, audit and further development costs necessary, are expensed as the obligation arises.

Dividend income

Dividend income receivable from subsidiary companies is recognised in the period they are voted.

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

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The useful economic life of tangible fixed assets has to be estimated by the directors of the group to ensure an appropriate depreciation charge is recognised in the period. The value of the assets ultimately depends on the condition of the assets and whether economic income can be derived from the asset. The directors undertake a periodic review of the assets to ensure the value of the assets is fairly stated within the financial statements.

During the year, depreciation of £436,183 (2025: £751,330) has been charged.

Refer to note 15 for the carrying value of tangible fixed assets impacted by this key estimate.

The useful economic life of both goodwill and separately identifiable intangible fixed assets have been estimated by the director of the group to ensure an appropriate amortisation charge is recognised each year.

Annual impairment reviews of goodwill are undertaken by the Board considering both current and future profitability linked to the EBITDA multiple established on acquisition of subsidiaries.

Impairments indicators may include a reduction in turnover, profitability or EBITDA, and can also be affected by industry factors.

During the year amortisation of £Nil (2025: £131,027) has been charged.

Refer to note 14 for the carrying value of intangible fixed assets impacted by this key accounting estimate.

Carrying value of investments

Investments in subsidiary undertakings of £4,000,000 (2025: £4,000,000), are included in the company balance sheet.

Annual impairment reviews are undertaken by the board considering both the net assets of the subsidiaries, current and future profitability linked to the EBITDA multiple established on acquisition. Impairment indicators may include a reduction in turnover or profitability.

During the year no impairments have been considered necessary (2025: £Nil).

Refer to note 16 for the investments in subsidiaries impacted by this key accounting estimate.

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

During the current year, the company has recognised exceptional expenses in relation to costs incurred in the aftermath of the liquidation of the former subsidiary, Duclo Recycling Limited.

During the prior year, the group has recognised an exceptional expense, in relationship to a cross company guarantee provided to the group bank, concerning the subsidiary, Duclo Recycling Limited. On the liquidation of this subsidiary prior to the balance sheet date, the group's guarantee crystalised and as such a provision was required. This has been recognised on the face of the group statutory balance sheet due to its significant quantum.

These costs are considered exceptional due to both quantum and one-off in nature.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amount to 4 (2025: 4).

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

On 13 May 2025 Duclo Recycling Limited, formerly a subsidiary of the group entered into liquidation. The group lost control of the entity on appointment of the liquidator.

A loss of £1.1m arose on the disposal, being the satisfaction of outstanding liabilities in excess of the carrying value of the assets of the business.

In the current year, no dividend has been paid or declared.

In the prior year, at the time dividends to individual shareholders were voted and paid, the company did have distributable profit and loss reserves based on management information available at the time. This is supported by the fact that intra-group dividends are received from the profitable trading subsidiary Duo Plastics Limited and immediately voted out to group shareholders.

In the prior year, certain significant year-end adjustments were processed on the prior year end date, which have resulted in the profit and loss reserve falling into a deficit position at the prior year balance sheet date. These included the exceptional provision of £1,596,135 for the crystallisation of cross-company guarantees provided in respect of Duclo Recycling Limited and £6,478,710 loss on group debt written off, as not recoverable from Duclo Recycling Limited, on liquidation.

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

Freehold properties were revalued on an open market basis, following independent valuations undertaken by Hilco Global Real Estate Advisory on 12th August 2026. The valuation conformed to International Valuation Standards and was based on market transactions on arm's length terms for similar properties. The directors consider this represented the fair value at 30 June 2026.

If revalued assets were stated on a historical cost basis rather than fair value basis, the total amounts included would be as follows:

Details of the company's subsidiaries at 30 June 2026 are as follows:

Registered office addresses (all UK unless otherwise indicated):

The bank loans and overdrafts are secured.

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

Included in other creditors is a balance of £5,801,469 (2025: £5,422,808) in respect of an invoice discounting facility. This balance is secured on book debts.

The bank loan is secured.

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

Group

The group’s bankers hold securities comprising an all monies debenture with a fixed and floating charge over the undertaking and all its assets, and a fixed and floating charge over all book debts, together with a chattel mortgage over all unencumbered plant and legal mortgages over the company's land and premises situated in Manchester. The total amount secured is in respect of HSBC UK Bank PLC is £225,797 (2025: £425,453).

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

During the prior year, the group has recognised an exceptional expense, in relationship to a cross company guarantee provided to the group bank, concerning the subsidiary, Duclo Recycling Limited. On the liquidation of this subsidiary prior to the prior year balance sheet date, the group's guarantee crystalised and as such a provision was required.

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax liability set out above predominately relates to accelerated capital allowances that are expected to mature over the associated fixed assets useful economic life. Pension contributions will attract tax relief in the year paid.

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

At the balance sheet date, contributions due to the schemes in the current reporting period were £37,246 (2025: £58,257).

All share classes rank pari passu.

The revaluation reserve represents the excess above initial cost recognised on certain categories of tangible fixed assets.

Other reserves

The merger reserve was recognised on consolidation of the subsidiaries into the Duo Packaging Group Limited. The merger reserve equated to the value of assets acquired above the nominal value of the share capital.

Profit and loss account

The profit and loss account represents accumulated trading profit and losses less dividends.

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:

On 16th September 2026, the Group settled the cross guarantee in favour of HSBC for £1,504,554. This was a achieved by a restructuring the group's funding with Close Brothers. All material liabilities regarding Duclo Recycling Limited which were the responsibility of the Parent company have now been settled.

The company has taken advantage of the exemption available in accordance with FRS 102 1.12(e), not to disclose transactions entered into between two or more members of a group, the company is the parent undertaking of the group to which it is party to the transactions.

During the period, rent at a rate of £125,375 (2025: £73,750) was paid to the SIPP of D P Brimelow.

Dividends totalling £0 (2025: £198,667) were paid in the year in respect of shares held by the company's directors.

The ultimate controlling parties are D B Brimelow and A M Brimelow by virtue of their majority shareholding.

During the current financial year, it was identified that a material error occurred in the processing of the disposal of Duclo Recycling Limited, which took place during the prior period.

While the Group's share of net assets and the respective disposal consideration were accounted for, the Non-Controlling Interest (NCI) associated with the subsidiary was erroneously not eliminated from group equity upon loss of control. Consequently, the loss on disposal of the subsidiary was understated, and the Non-Controlling Interest balance within equity was overstated in the prior period.