The directors present the strategic report for the year ended 30 April 2025.

Pattersons (Holdings) Limited is the parent company of the consolidated group.

The year to April 2025 presented significant challenges as the management team sought to previously implement a new system with a view to delivering a better service to Pattersons (Bristol) Limited customers and a restructure of debt that placed an unsustainable drain on the business’ financial resource.

Unfortunately the roll out of the Enterprise Resource Planning system came with a number of challenges resulting in poor data and customer service for a period of 6 months.

The resultant fall in turnover at a time when inflation has remained stubbornly high and the cost of goods and employing people has risen has meant that the results for the year to April 2025 show an operating loss.

It is with great regret that, despite the endeavours of the board and the management team, that this was a trend that was unable to be reversed and in July 2026, Pattersons (Bristol) Limited, entered administration.

Pattersons (Holdings) Limited continues to act as a holding company. The investment of the parent company in Pattersons (Bristol) Limited has been fully impaired in the light of the appointment of an administrator and this is reflected within this set of financial statements. The parent company continues to hold the Bristol premises from which Pattersons (Bristol) Limited has operated, though the trading subsidiary has been unable, post the balance sheet date, to make more than one month's payment to the parent in respect of its lease of the premises.

The parent company directors are therefore seeking alternate arrangements regarding use of the property going forward.

The group’s risk management strategy focuses on the minimisation of risks for the group.

As set out within these accounts, it has not been possible to mitigate all risks and as a consequence, Pattersons (Bristol) Limited has entered administration.

In particular, the trading subsidiary has had to navigate the following risks:

Economic Conditions

The economic conditions, high inflationary environment and the effect that this has had on customers of Pattersons (Bristol) Limited have affected demand.

Liquidity

A number of actions were taken with the intention of improving the availability of cash within the business, but ultimately the appointment of the administrator after the balance sheet date is a reflection of the failure to generate sufficient liquidity for the trading business to continue to operate.

The principle risks and uncertainties that now affect the group relate to the ability of the group parent to generate economic returns from the property in Bristol from which the trading subsidiary has historically operated.

Key performance indicators, including turnover, gross profit margin, distribution costs, salary costs and overhead proportions, are monitored, interpreted and challenged by the management on a regular basis.

Group turnover decreased to £16.08m (2024: £17.66m).

The loss for the year, after taxation, amounted to £732,779 (2024: £150,642).

On behalf of the board

The directors present their annual report and financial statements for the year ended 30 April 2025.

The principal activity of the company continued to be that of a holding company. The trading subsidiary Pattersons (Bristol) Limited continued during the year to be that of the sale of cleaning and catering equipment. As referenced within note 1.3, the trading subsidiary entered administration in July 2026.

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

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 group has established a risk and financial management framework with the primary objective of protecting the group from events that hinder the achievement of the company's performance objectives.

The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.

As set out within the going concern note (Note 1.3) in the financial statements, recent events have conspired to leave the directors with no alternative than to appoint an Administrator to oversee the operation and affairs of Pattersons (Bristol) Limited.

Credit risk, liquidity risk and cash flow risk

The group has experienced challenges up to the balance sheet date and beyond that have ultimately resulted in the requirement to appoint an Administrator to oversee the operations of Pattersons (Bristol) Limited as cash was no longer available to fund the operation. The illiquid nature of the property held by Pattersons (Holdings) Limited has meant that sufficient funds have not been available to allow the trading subsidiary to continue to operate.

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

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management, credit risk, liquidity risk and cash flow risk.

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.

During the year, redeemable preference shares in Pattersons (Bristol) Limited with an 6% coupon were bought by the company for £276,776. The balance sheet value of these shares was £988,485 at the point of purchase. The difference of £711,709 between the balance sheet value and the redemption value has been recognised as a capital contribution during the year.

During the year, redeemable preference shares in Pattersons (Bristol) Limited with an 8.75% coupon were bought by the company for £39,500.

During the year, redeemable preference shares in Pattersons (Holdings) Limited with an 6% coupon were bought by the company for £774,504. The balance sheet value of these shares was £3,198,017 at the point of purchase. The difference of £2,423,513 between the balance sheet value and the redemption value has been recognised as a capital contribution during the year.

The transactions outlined above were undertaken with a view to relieving the group of the significant financial burden associated with the preference shares which in 2024 cost the entities a combined £593,827.

In executing these transactions, the holders of the preference shares agreed to give up their right for a return of the full capital owed to them in accordance with the terms of the shares. As such, the shareholders have made a significant financial contribution recognised in equity of the balance sheets of the respective entities.

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

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Pattersons (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2025 and of the group's loss 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.

Material uncertainty related to going concern

In forming our opinion on the financial statements, we have considered the adequacy of the disclosures made in the accounting policies concerning the group's ability to continue as a going concern. The group has sought to navigate a number of challenging trading conditions. The disruption to service as a consequence of challenging system implementation at a time when the business was already experiencing a downturn in sales. Additionally, margins were squeezed by the inflationary environment meaning that the directors had no alternative than to appoint administrators to oversee the operation of Pattersons (Bristol) Ltd, the main trading subsidiary, in July 2026.

We draw attention to Note 1.3 in respect of going concern. These events and conditions, along with other matters noted within the accounts, indicate that a material uncertainty exists that may cast significant doubt on the group's ability to continue as a going concern. As noted above, the group's core trading subsidiary has appointed administrators. Whilst the group's directors are of the view that the parent entity, Pattersons (Holdings) Limited can take steps to secure it's future, at present, uncertainty exists regarding this position.

Our opinion is not modified in respect of this matter.

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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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

Use of our report

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £2,476,789 (2024 - £615,698 loss).

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

Pattersons (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is located at Winterstoke Road, Bristol, BS3 2NS.

The group consists of Pattersons (Holdings) Limited and all of its subsidiaries.

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

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

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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, joint ventures and associates are accounted for at cost less impairment.

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

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

All financial statements are made up to 30 April 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

At the time of approving the financial statements, the directors have given considerable thought to the basis for preparation of the financial statements, particularly in the context of the appointment of administrators in overseeing the operation and affairs of Pattersons (Bristol) Limited, the main trading subsidiary of the group.

As disclosed in note 25, preference shares were bought back by the company and its trading subsidiary during the year. In doing so, the group was able to reduce the significant financial burden that had been impeding the operation of the business. This transaction was undertaken with a view to ensuring that the group had the liquidity to modernise its operations and deliver an efficient and cost-effective solution to its clients and was funded by an investment of £920,000 in Handelsbanken for this purpose.

Unfortunately, the investment in the Enterprise Resource Planning software was challenging and unforeseen issues resulted in significant disruption to the high service levels that the group and its customers had previously enjoyed. Regretfully, the ambition to realise the efficiency anticipated to arrive with the advent of a new system was not matched with the reality. As a direct consequence turnover post year end reduced significantly.

At the same time, cost inflation in respect of goods, services and employment costs meant that the diminishing gross profit was not sufficient to cover all overhead costs.

Continued operating losses therefore eroded cash reserves in the trading subsidiary and the failure to reverse this trend has resulted in the board concluding that the operation of Pattersons (Bristol) Limited was no longer viable. Administrators were therefore appointed to oversee the operation of this entity in July 2026.

Pattersons (Holdings) Limited continues to operate as a holding company and retains its interest in the property occupied by Pattersons (Bristol) Limited. From 24th December 2025 Pattersons (Bristol) Limited ceased to make rental payments to the parent company as the trading subsidiary sought to protect the underlying trading operation. As a consequence, at the time of signing the accounts, £132,385 remains outstanding in respect of unpaid rent. Amounts of £405,891 are also owed to Pattersons (Holdings) Limited by Pattersons (Bristol) Limited in respect of balances previously owed to other subsidiaries of Patterson (Holdings) Limited. The directors also recognise that Pattersons (Holdings) Limited owed Pattersons (Bristol) Limited £159,536 at the point at which Pattersons (Bristol) Limited entered into administration in respect of payments made for the redemption of preference shares on its behalf in October 2024. The net amount owing to Pattersons (Holdings) Limited is £246,355 at the date the accounts were approved, however, the directors have assessed the likelihood of recovering these funds and recognise that recovery in full may not be possible or likely and have consequently made appropriate adjustments in these accounts to reflect their assessment.

The group statement of comprehensive income largely reflects the trading activities of its subsidiary Pattersons (Bristol) Limited. Following the appointment of an administrator to Pattersons (Bristol) Limited in July 2026, the group's trading activities are expected to change significantly. Consequently, future group statements of comprehensive income may not be directly comparable with those of previous years.

As it has also become apparent that the trading subsidiary will no longer be able to make rental payments to the company in respect of its premises, the board have evaluated alternative options for generating a return on the property. The property is unencumbered and at the point of signing the accounts the directors are evaluating whether to seek an alternative tenant or a sale of the property to a third party.

The board have evaluated the financial consequences of both options and are satisfied that the holding company has the means to generate sufficient return into the future by pursuing one of these routes.

On this basis the directors are satisfied that, despite the appointment of administrators to Pattersons (Bristol) Limited, it is appropriate to adopt the going concern basis of preparation of these accounts for Pattersons (Holdings) Limited.

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.

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 of 5-10 years.

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

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

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

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

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

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

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs.

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

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.

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.

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 directors use their knowledge of the business and the industry to estimate the useful life and residual of intangible and tangible fixed assets in order to arrive at an applicable depreciation and amortisation rates. In accordance with section 17 of FRS102, the directors review and update these estimates if there are indicators that current estimates should change. During the year there was no change in depreciation and amortisation rates.

It must be noted that there is inherent uncertainty with these estimates as factors such as unexpected wear and tear, technological advancement and changes in market price may result in future changes to the appropriate rate of depreciation.

The provision for obsolete and slow moving inventories is assessed on an item by item basis for damaged or slow moving stock.

Significant overdue items are assessed on the debtor's ledger with specific provision for debtors in financial difficulty.

The directors consider whether there are indicators of impairment in respect of assets, and where appropriate, assess their recoverable amount.

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

Their aggregate remuneration comprised:

During the year retirement benefits were accruing to 4 directors (2024 - 4) in respect of defined contribution pension schemes.

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

The directors have evaluated the investments in respect of subsidiaries at the point of signing the accounts. Following careful consideration, the directors have concluded that it is necessary to write down the value of the investments in subsidiaries to nil. Though Pattersons (Bristol) Limited appointed an administrator in July 2026, the directors have concluded that the appointment of the administrator is indicative of conditions that existed at the balance sheet date.

Details of the company's subsidiaries at 30 April 2025 are as follows:

Previously included within amounts owed by group undertakings was a balance of £458,457 due from Pattersons (Accommodation Supplies) Limited to Pattersons (Holdings) Limited, which also incorporated £54,303 due from Pattersons (Bristol) Limited to Pattersons (Accommodation Supplies) Limited. Following the appointment of an administrator to Pattersons (Bristol) Limited, balances were reviewed for their recoverability and have been written down to their estimated realisable value where appropriate.

Bank borrowings are secured by an unscheduled mortgage debenture incorporating a fixed and floating charge over all current and future assets of the group.

Included within bank loans and overdrafts is an invoice financing account. The security for this account comprises a fixed charge over a deposit bank account.

Included within bank overdrafts is an invoice financing account. The security for this account comprises a fixed charge over a deposit bank account.

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

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

Contributions totalling £62,481 (2024: £14,227) were payable to the fund at the reporting date.

During the year, redeemable preference shares with an 6% coupon were bought by the company for £774,504. The balance sheet value of these shares was £3,198,017 at the point of purchase.

Share capital of subsidiaries - Pattersons (Bristol) Limited

During the year, redeemable preference shares with an 6% coupon were bought by the company for £276,776. The balance sheet value of these shares was £988,485 at the point of purchase.

During the year, redeemable preference shares with an 8.75% coupon were bought by the company for £39,500.

Further detail of these transactions have been referenced within the Directors' Report.

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

Amounts contracted for but not provided in the financial statements:

Pattersons (Holdings) Limited, the parent company of the group, is controlled by Mr C J Patterson, who is the ultimate controlling party of the group.

The company has taken advantage of the exemption permitted by section 33 'Related Party Disclosures', not to provide disclosures of transactions entered into with other wholly-owned members of the group.

Amounts owed to related parties have an interest rate of The Bank of England bank rates plus 2%, they are unsecured and are repayable on demand.

During the year, Pattersons (Bristol) Limited paid rent of £105,000 (2024: £105,000) in respect of premises owned by Pattersons Executive Pension Scheme.

Amounts owed by related parties are interest-free, unsecured and repayable on demand.