REGISTERED NUMBER: 01300676 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

SODIAAL UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

L Favreau

M Leygnier

REGISTERED OFFICE:

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

REGISTERED NUMBER:

01300676 (England and Wales)

AUDITORS:

Grant Thornton UK LLP

Chartered Accountants &

Statutory Advisor

Victoria House

199 Avebury Boulevard

Milton Keynes

Buckinghamshire

MK9 1AU

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

The directors continually review and evaluate the risks that the company is facing. The principal risk and uncertainties facing the company are broadly grouped as: Competitive, Legislative, and Financial risks.

Competitive risks

The company operates in a highly competitive dairy sector, facing intense supermarket buyer power, volatile farm-gate milk costs, and EUR/GBP exchange rate fluctuations on French imports. The directors mitigate these risks through product diversification into premium food service niches and structured commercial contracts.

Legislative risks

As an import-reliant business, the company faces operational friction and compliance costs from evolving UK-EU trade regulations, post-Brexit border and various regulatory controls. The company mitigates these exposures by using expert customs brokers, maintaining agile logistics partnerships, and leveraging the compliance infrastructure of its parent cooperative.

Financial risk management objectives and policies

The company's activities expose it to several financial risks including price risk, credit risk, cashflow risk and liquidity risk. The company holds bank accounts in two major currencies (GBP, EUR) for the purposes of making and receiving payments and does not use derivative financial instruments for speculative purposes.

Cash flow risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The company does not take any specific action to minimise this risk and recognises any realised or unrealised gains or losses to the income statement in the month it is incurred.

Credit risk

The company's principal financial assets are bank and cash balances and trade and other receivables.

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowance for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the related cashflows.

The Credit risk on liquid funds is limited because the counter parties are banks with high credit ratings assigned by international credit-rating agencies.

The company has no significant concentration of credit risk with exposure spread over numerous customers, who themselves have high credit ratings.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company uses a mixture of long-term and short-term intercompany debt finance.

Price risk

The company has limited exposure to commodity price risk. The company generally purchases goods and services based upon market prices that are established with the vendor as part of the purchase process. The company does not use commodity financial instruments as it deems them unnecessary.

KEY PERFORMANCE INDICATORS

Year ended

Year ended

31 December 2025

31 December 2024

Turnover

£19,802,011

£21,610,386

Gross profit

£2,630,282

£2,969,766

Operating profit/(loss)

£301,471

£353,674

Profit/(loss) after tax

£174,078

£163,001

Current assets as % of current liability

111%

112%

Average number of employees

7

7

There have been numerous actions that have been implemented to improve efficiencies and reduce costs. The directors consider that Sodiaal UK Limited has an excellent future and continued in 2026 to consolidate its position in the market place.

ON BEHALF OF THE BOARD:

M Leygnier - Director

16 October 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of marketing the parent company's dairy products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

L Favreau

M Leygnier

Other changes in directors holding office are as follows:

I A Bastien - resigned 22 September 2025

THIRD-PARTY INDEMNITY PROVISIONS

There were no qualifying third-party indemnity provisions in force for the directors of the Company at any time during the year.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Information relating to the Company's financial risk management objectives and policies and its exposure to price risk, credit risk, liquidity risk and cash flow risk is disclosed in the Strategic Report and is incorporated into the Directors' Report by reference.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Grant Thornton UK LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

M Leygnier - Director

16 October 2026

Opinion

We have audited the financial statements of Sodiaal UK Limited (the 'company') for the year ended 31 December 2025, which comprise the income statement, other comprehensive income, the balance sheet, the statement of changes in equity, the cash flow statement, the notes to the cash flow statement and notes to the financial statements, including a summary of 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 December

2025 and of its profit for the year then ended;

- the financial statements have been properly prepared in accordance with United Kingdom Generally

Accepted Accounting Practice; and

- the financial statements 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 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

We are responsible for concluding on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor's opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

In our evaluation of the directors' conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the interest rate changes, global trading conditions considering the political situation, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

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 Strategic Report, Report of the Directors 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 Strategic Report, Report of the Directors 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is 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 Report of the Directors for the financial year for which the

financial statements are prepared is consistent with the financial statements; and

- the Strategic Report and Report of the Directors have been prepared in accordance with applicable legal

requirements.

Matters on which we are required to report by exception

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.

Matter on which we are required to report under the Companies Act 2006

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 Report of the Directors.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 4, 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

- We obtained an understanding of the legal and regulatory frameworks applicable to the company and determined

that the most significant which are directly relevant to specific assertions in the financial statements are those

related to the reporting framework FRS 102 and the Companies Act 2006, Tax legislation, Employment Law, Health

and Safety Act, Data Protection Act, Modern Slavery Act, UK Bribery Act and General Data Protection Regulation.

- We understand how the company is complying with those legal and regulatory frameworks by making inquiries of

management, those responsible for legal and compliance procedures and management. We corroborated our

inquiries through our review of board minutes and walkthroughs performed with management.

- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud

might occur, by evaluating management's incentives and opportunities for manipulation of the financial statements.

This included the evaluation of the risk of management override of controls. Audit procedures performed by the

engagement team included:

- identifying and assessing the design effectiveness of controls management has in place to prevent and detect

fraud;

- understanding how the directors considered and addressed the potential for override of controls or other

inappropriate influence over the financial reporting process;

- identifying and testing journal entries, which includes among others any journal entries with specific risk criteria;

- assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the

related financial statement item.

- In assessing the potential risks of material misstatement, we obtained an understanding of the entity's operations,

including the nature of its revenue sources, products and services and of its objectives and strategies to

understand the classes of transactions, account balances, expected financial statement disclosures and business

risks that may result in risks of material misstatement.

- These audit procedures were designed to provide reasonable assurance that the financial statements were free

from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not

detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than

detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional

misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and

transactions reflected in the financial statements, the less likely we would become aware of it;

- The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the

engagement team included consideration of the engagement team's:

- understanding of, and practical experience with audit engagements of a similar nature and complexity through

appropriate training and participation.

- understanding of the financial reporting framework and the relevant tax compliance regulations specific to the

entity.

- We communicated relevant laws and regulations and potential fraud risks to all engagement team members

including the potential for fraud in revenue recognition. We remained alert to any indications of fraud or non-

compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Taras Kulyk (Senior Statutory Auditor)

for and on behalf of Grant Thornton UK LLP

Chartered Accountants &

Statutory Advisor

Victoria House

199 Avebury Boulevard

Milton Keynes

Buckinghamshire

MK9 1AU

16 October 2026

TURNOVER

5

19,802,011

21,610,386

Cost of sales

17,171,729

18,640,620

GROSS PROFIT

2,630,282

2,969,766

Distribution costs

1,732,089

2,110,867

Administrative expenses

833,995

689,441

2,566,084

2,800,308

64,198

169,458

Other operating income

6

237,273

184,216

OPERATING PROFIT

8

301,471

353,674

Interest receivable and similar income

9

94,081

1,190

395,552

354,864

Interest payable and similar expenses

10

176,865

121,870

PROFIT BEFORE TAXATION

218,687

232,994

Tax on profit

11

44,609

69,993

PROFIT FOR THE FINANCIAL YEAR

174,078

163,001

PROFIT FOR THE YEAR

174,078

163,001

Other comprehensive income

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

174,078

163,001

CURRENT ASSETS

Stocks

13

-

2,210

Debtors

14

3,036,919

3,331,255

Cash at bank

6,473,637

3,942,212

9,510,556

7,275,677

CREDITORS

Amounts falling due within one year

15

8,571,705

6,510,904

NET CURRENT ASSETS

938,851

764,773

TOTAL ASSETS LESS CURRENT LIABILITIES

938,851

764,773

CAPITAL AND RESERVES

Called up share capital

18

1,000

1,000

Retained earnings

19

937,851

763,773

SHAREHOLDERS' FUNDS

938,851

764,773

The financial statements were approved by the Board of Directors and authorised for issue on 16 October 2026 and were signed on its behalf by:

M Leygnier - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

600,772

601,772

Changes in equity

Total comprehensive income

-

163,001

163,001

Balance at 31 December 2024

1,000

763,773

764,773

Changes in equity

Total comprehensive income

-

174,078

174,078

Balance at 31 December 2025

1,000

937,851

938,851

Cash flows from operating activities

Cash generated from operations

1

2,662,393

2,898,676

Interest paid

(176,865

)

(121,870

)

Tax paid

(54,657

)

-

Adjustment relating to prior year

10,063

(12,000

)

Net cash from operating activities

2,440,934

2,764,806

Cash flows from investing activities

Interest received

94,081

1,190

Net cash from investing activities

94,081

1,190

Increase in cash and cash equivalents

2,535,015

2,765,996

Cash and cash equivalents at beginning of year

2

3,938,622

1,172,626

Cash and cash equivalents at end of year

2

6,473,637

3,938,622

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

218,687

232,994

Finance costs

176,865

121,870

Finance income

(94,081

)

(1,190

)

301,471

353,674

Decrease in stocks

2,210

21,453

Decrease in trade and other debtors

298,243

207,868

Increase in trade and other creditors

2,060,469

2,315,681

Cash generated from operations

2,662,393

2,898,676

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

6,473,637

3,942,212

Bank overdrafts

-

(3,590

)

6,473,637

3,938,622

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

3,942,212

1,179,411

Bank overdrafts

(3,590

)

(6,785

)

3,938,622

1,172,626

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

3,942,212

2,531,425

6,473,637

Bank overdrafts

(3,590

)

3,590

-

3,938,622

2,535,015

6,473,637

Total

3,938,622

2,535,015

6,473,637

1.	STATUTORY INFORMATION

Sodiaal UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

All amounts in these financial statements have been rounded to the nearest £1.

The company's place of business is 26-28 Hammersmith Grove, London, W6 7BA.

2.	STATEMENT OF COMPLIANCE

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the ultimate parent undertaking prepares publicly available consolidated financial statements which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group.

Accordingly, the company has taken advantage of the following disclosure exemptions available under FRS 102:

- Section 33 Related Party Disclosures, in respect of transactions with wholly owned members of the group

and key management personnel compensation disclosures.

The financial statements present information about the company as an individual undertaking and not about its group.

3.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention.

GOING CONCERN

The directors have reviewed the Company's forecasts and cash-flow requirements, including the availability and utilisation of its working-capital facilities.

After making appropriate enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the financial statements have been prepared on the going concern basis.

TURNOVER

Turnover is recognised at the fair value of the consideration received or receivable for goods 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 delivery 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.

TANGIBLE FIXED ASSETS

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

Computer equipment - 33% on cost

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

STOCKS

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the FIFO (first-in, first-out) method and includes purchase cost and directly attributable costs incurred in bringing inventories to their present location and condition.

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of section 11 'Basic Financial Instruments' and section 12 'Other Financial Instrument Issues' of FRS102 to all of its financial instruments.

Financial instruments are recognised in the entity's balance sheet when the entity becomes party to the contractual provision of the instruments.

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets other than those held at fair value through profit and loss are assessed for indicators of impairment at each reporting 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 flow have been affected. If an asset is impaired, the impairment loss is the difference between 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 and 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 and loss.

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities including creditors, bank loans, loans from fellow entity 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 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

Other financial liabilities

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the entity's contractual obligation expire or are discharged or cancelled.

TAXATION

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

FOREIGN CURRENCIES

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.

DEBTORS AND CREDITORS RECEIVABLE / PAYABLE WITHIN ONE YEAR

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in administrative expenses.

RECHARGED EXPENSES

Recharged expenses comprise costs recovered from group companies for administrative, personnel and support services provided by the Company. These costs are recharged at actual cost with no mark-up. Customer recharges are based on a pricing scale linked to import costs for cheese sales of less than 3 tonnes. Income is recognised in the period in which the related services are provided and is measured at the amount recoverable from the recipient company.

LEASING AGREEMENTS

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term. Lease incentives are recognised as an integral part of the total lease expense and are recognised over the lease term on a straight-line basis.

4.	JUDGEMENTS AND KEY SOURCES OF ESTIMATION

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 estimated and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period and future periods where the revision affects both current and future periods.

The principal areas of estimation uncertainty relate to the recoverability of trade receivables and the measurement of accruals, rebates, discounts and customer returns. Actual outcomes may differ from these estimates.

5.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

6.	OTHER OPERATING INCOME

2025

2024

£

£

Recharged expenses

237,273

184,216

7.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

408,154

417,211

Social security costs

51,858

23,363

Other pension costs

33,991

48,001

494,003

488,575

The average number of employees during the year was as follows:

2025

2024

Administration

7

7

DIRECTORS' EMOLUMENTS

The directors are employees of Sodiaal Group and do not receive remuneration from the Company. No directors' remuneration has been charged to the Company.

8.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Auditors' remuneration

40,576

21,500

9.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

HMRC interest received

-

1,190

Bank interest

94,081

-

94,081

1,190

Interest receivable is recognised in the profit and loss account on an accruals basis using the interest rate applicable to the deposit account.

10.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on loans from group

176,802

121,537

Interest on tax paid late

63

333

176,865

121,870

Finance costs comprise interest payable on amounts owed to group undertakings, bank charges and interest on overdue tax liabilities. Finance costs are recognised in the income statement using the effective interest method and are charged to profit or loss in the period to which they relate.