The directors present the strategic report for the period ended 31 January 2026.

Despite reporting improved profitability following last year’s write down of group investments, group performance in the year ended 31 January 26 was disappointing. For our Pavers and Jones businesses revenue growth was insufficient to offset the significant and ongoing increase in employment-related and operational costs sustained. The current commercial and regulatory environment is highly cost inflationary, and consumer confidence is tepid. The increase in national insurance on part-time labour is particularly burdensome. Despite extensive efforts from all involved efficiency savings were insufficiently prompt to deliver the in-year cost reductions sought. That said, several initiatives undertaken during the year are bearing fruit this year, and performance YTD is encouraging.

For our other Group Investments, despite the best efforts of the teams involved performance has been very challenging in both Black Eden and Herring. During the year we consolidated the operations of Black Eden into the Pavers business and will be applying to strike it off once all outstanding third-party creditors are settled. Furthermore after last year’s write down of the Herring business performance again underwhelmed, however following a change in strategic direction early this year we are seeing sales and profitability improve.

During the year we identified that the goodwill arising on the group's acquisition of Pavers Limited in 2014 had not been amortised. The comparatives have been restated to amortise it over it’s useful economic life.

Our customers’ preferences are evolving at pace but we continue to focus on sourcing quality product, offering good value, and investing in customer service. There is still a lot of work to do in relation to our systems and data, and more broadly on increasing overall productivity, however opportunities for growth continue to exist across most of our channels

In what was a very challenging year, we remain grateful for the hard-work and loyalty of our people. Our staff continue to be highly engaged with the business. Their commitment, combined with positive relationships with our suppliers and stakeholders, is at the heart of our success.

We are delighted to have donated a further £183k to our Foundation in the year to support causes of importance to our colleagues and shareholders.

The group's key financial and other performance indicators during the period were as follows:

The risks and uncertainties faced by the business are those typical to the retail industry. The directors consider the principal risks and uncertainties to be the current economic climate in the UK, competition from other retailers, rising costs, maintaining the brand, the retention of key staff.

As the Board of Pavers Holdings Limited, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider to be most likely to promote the company’s success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board carry out this responsibility.

Promoting the company’s success for its members

Pavers Holdings Ltd history dates back to its founding in 1971 by Catherine Kinloch Paver, today the business is Chaired by Stuart Paver (Cathy’s son) and is run by Managing Director, Jason Paver (Stuart’s Son). We’re proud of the ways in which, over 50 years, the group has provided employment, training and financial reward for its owners and employees.

We make strategic decisions based on long-term objectives. In particular this has meant significant recent capital investment in shop fits, our warehouse, and IT infrastructure. This will enable us to continue to grow in the future and will ensure that we can serve more customers more effectively.

Engaging with stakeholders

Our key stakeholders, and the ways in which we engage with them, are as follows:

Our employees

We rely on a team of loyal and committed people to ensure our business is run efficiently and effectively, many of whom have been with us many years.

Recruitment and retention of staff is therefore a critical business activity. We engage with team members by:

• setting remuneration at competitive rates, and rewarding performance with bonuses at all levels;

• providing annual performance feedback and personal development support;

• providing training and career development opportunities through Pavers Academy.

Our customers and suppliers

We look for long term relationships with our suppliers, many of whom we have dealt with for many years. We have built, and will maintain, a reputation for loyalty and fairness in our interaction with customers and suppliers.

Our community

We are a family owned group who support charitable causes through the Pavers Foundation. The Foundation was launched in 2017 by the family following the sad loss of our founder Cathy Paver. This employee led Foundation supports worthy causes in three main areas: health, education and community. In addition, employees select a national or significant charity each year which then goes on to receive a substantial donation.

The group contributes a % of its profits each year, together with the carrier bag levy, to the Foundation, who then distribute this to worthy causes.

Our planet

We take our responsibility to the planet seriously. We have invested in Solar PV on the roof of our Head Office and we have extended our Head Office using Green Materials wherever possible. We aim to eliminate or recycle waste materials and continue to invest in lower energy consumption lighting. We are looking to use less packaging and we recycle and re-use where possible. We are constantly looking at all ways to reduce our Carbon Footprint.

On behalf of the board

The directors present their annual report and financial statements for the period ended 31 January 2026.

Information relating to fair review of the business, principal risks and uncertainties and future developments is included in the strategic report.

The principal activity of the group is the retailing of shoes.

The principal activity of the company is that of a holding company with property.

The results for the period are set out on page 11.

Ordinary dividends were paid amounting to £1,995,641. The directors do not recommend payment of a further dividend.

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

The group's principal financial instruments comprise bank balances, trade debtors, trade creditors and bank overdrafts.

The main purpose of these instruments is to raise funds for the group's operations and to finance the group's activities.

The group's approach to managing the risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank overdraft facilities.

The group makes use of money market facilities when funds are available.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

Employee involvement

The group continues to involve staff in the decision making process and communicates regularly with them during the year.

The group's aim for all its staff and applicants for employment is to fit the qualifications, aptitude and ability of each individual to the appropriate job and to provide equal opportunity, regardless of sex, religion or ethnic origin.

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

The group continues to involve staff in the decision making process and communicates regularly with them during the year.

The group's aim for all its staff and applicants for employment is to fit the qualifications, aptitude and ability of each individual to the appropriate job and to provide equal opportunity, regardless of sex, religion or ethnic origin.

The group does all that is practicable to meet its responsibilities towards the employment and training of disabled people. Where an employee becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

Sumer Auditco Limited were appointed as auditor to the company following BHP LLP becoming part of the Sumer Group on 31 December 2025, which required a change in audit firm to comply with applicable regulatory requirements.

In accordance with section 487(2) of the Companies Act 2006, Sumer Auditco Limited are deemed to be reappointed annually.

The group sets out below their energy consumption and emissions, which includes relevant entities in the group that meet the reporting requirements:

Pavers Holdings Limited have followed the 2019 HM Government Environmental Reporting Guidelines and have used the 2025 UK Government's Conversion Factors for Company Reporting. An operational approach has been used to define boundaries.

The primary source for energy consumption is invoices and supplier interval data. Where invoices are not in line with the financial year, a pro rata calculation has been used to estimate the usage for the reporting period. All gas and electric invoices have been validated before being added to report.

Electricity and gas data has been recorded over a 12-month period from February 2025 to January 2026. Data was collated directly from monthly invoices generated by suppliers. The reporting spreadsheet provides a breakdown of monthly and annual consumption for each meter in KWh.

Company transport data was provided by Pavers Holdings Limited, data was generated over the course of the mentioned supply period. Transport has been displayed by total mileage for all vehicles owned by Pavers Holdings Limited.

Pavers Holdings Limited's chosen intensity measurement ratio is tCO2/ Annual turnover (£M).

Pavers Holdings Limited continue to monitor and improve on their energy efficiency measures. A full office refurbishment including improved HVAC & lighting specifications have been carried out. Pavers Holdings Limited also continued to roll out new stores and refurbishments with LED lighting and renewed HVAC systems.

The figures above relate to the energy consumption of Pavers Limited and Pavers Holdings Limited. The report does not include data in relation to the subsidiaries, Herring Shoes Limited and Black Eden Limited, as they are exempt from the disclosure requirements due to the companies having no requirement to report.

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 prepared 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.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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 group’s auditors are unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

During the period the group made charitable donations of £183k (2025: £328k).

We have audited the financial statements of Pavers Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 January 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 31 January 2026 and of the group's profit for the period 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 period 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

•    the engagement partner ensured that the engagement team collectively had the appropriate     competence, capabilities and skills to identify or recognise non-compliance with applicable laws and     regulations;

•  we identified the laws and regulations applicable to the company through discussions with management,     and from our commercial knowledge and experience of the sector;

•  we focused on specific laws and regulations which we considered may have a direct material effect on     the financial statements or the operations of the company, including Companies Act 2006, taxation     legislation, data protection, anti-bribery, employment, environments and health and safety legislation;

•  we assessed the extent of compliance with the laws and regulations identified above through making     enquiries of management and inspecting legal correspondence; and

•  identified laws and regulations were communicated within the audit team regularly and the team     remained alert to instances of non-compliance throughout the audit.

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

•  making enquiries of management as to where they considered there was susceptibility to fraud, their     knowledge of actual, suspected and alleged fraud; and

•  considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and     regulations.

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

•  performed analytical procedures to identify any unusual or unexpected relationships;

•  tested journal entries to identify unusual transactions;

•     assessed whether judgements and assumptions made in determining accounting estimates were     indicative of potential bias; and

•  investigated the rationale behind significant or unusual transactions.

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

•  agreeing financial statement disclosures to underlying supporting documentation; and

•  enquiring of management as to actual and potential litigation and claims.

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

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

The group has no recognised gains or losses for the period other than the results above.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,719k (2025 - £5,316k loss).

Pavers Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Catherine House, Northminster Business Park, Upper Poppleton, York, North Yorkshire, YO26 6QU.

The group consists of Pavers 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 £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This 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:

• 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: Interest income/expense and net gains/losses for financial instruments not measured at fair value; 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 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2026.

Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

The consolidated group financial statements consist of the financial statements of the parent company Pavers Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 January 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.

The Group and parent company have historically generated positive cash flows from its operations and, during the year, repaid all external borrowings.

The directors have prepared forecasts and cash flow projections covering a period of at least 12 months from the date of approval of these financial statements. These forecasts indicate that the group and parent company will have sufficient financial resources to meet its liabilities as they fall due throughout that period.

Accordingly, at the date of approving the financial statements, the directors have a reasonable expectation that the group and parent company has adequate resources to continue in operational existence for the foreseeable future. The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts invoiced, net of value added tax, in respect of the sale of goods to customers.

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.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

If a subsidiary, associate or business is subsequently sold or closed, any goodwill arising on acquisition that was written off directly to reserves or that has not been amortised through the profit and loss account is taken into account in determining the profit or loss on sale or closure.

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:

Shops are not depreciated as they are subject to ongoing refurbishment and maintenance programmes that maintain a consistent standard throughout their expected economic lives.

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 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.

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

Cash and cash equivalents 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.

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.

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.

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.

Retail outlet fixturing grants

Grants received in excess of costs incurred are written off to the profit and loss account immediately. The balance of these grants and grants received of a lessor amount than costs incurred are written off to the profit and loss account in equal instalments over the relevant outlet lease.

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

Stock is valued at the lower of cost and net realisable value. Included within stock is a provision for slow moving stocks. The directors must ascertain that the provisions included have been properly calculated and reflect the true recoverable stock value as at the period end. When calculating the stock provisions, management considers the saleability of stock items.

The directors have assessed the estimated useful life of the goodwill which arose on the acquisition of Pavers Limited in 2014 to have an estimated useful life of 40 years. The Directors assessed that the principal benefits represented by the goodwill (brand, customer franchise, retail operating capability, sourcing relationships and retail network) are capable of generating benefits over periods measured in decades rather than over a short contractual period. Other goodwill is impaired where its carrying value exceeded the underlying net assets of the subsidiary to which it relates. The resulting impairment charge reflects management's assessment of the value recoverable from that investment.

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 valuation of investments in subsidiary undertakings and unlisted investments requires management to assess whether there are indicators of impairment and where such indicators exist, estimate the recoverable amount of the investments. This assessment involves the use of judgement and estimates, including consideration of the financial performance, profitability and net asset position of the underlying entities. Changes in these assumptions may result in a material adjustment to the carrying value of investments in future periods.

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

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

Their aggregate remuneration comprised:

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

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

Amounts owed to group undertakings are interest free and repayable on demand.

There was no bank loan outstanding at 31 January 2026 (2025: £3.558m).

During the prior year, interest on the bank loan was payable at 1.750% per annum above the Bank of England Base Rate. The loan was repaid in full during the year.

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 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Ordinary shares

Ordinary shares carry the rights to participate in dividends and capital distributions whether on a winding up or otherwise. The ordinary shares are not redeemable.

Ordinary 'B' shares

Ordinary 'B' shares are entitled to vote but the number of votes shall be limited to either (I) 3% of all voting rights or (II) the % of voting rights equal to the number of B ordinary shares then in issue. They carry the rights to dividend payments or any other distribution subject to Article 5 and to participate in a distribution arising from a winding up of the company subject to Article 4. The ordinary shares are not redeemable.

Ordinary 'C' shares

Ordinary 'C' shares are entitled to receive notice of, attend at and vote at general meetings of the Company but the number of votes allocated to the Ordinary C shares shall be reduced in proportion to the percentage of C Ordinary shares which are note vested at the relevant time. The holders of the C Ordinary Shares are entitled to receive exit proceeds subject to the provisions of Article 4. After the second anniversary of the Class C issues date, each C Ordinary share will be entitled to participate in dividends subject to the provisions of Article 5. The shares are non-redeemable.

During the year, the Company purchased and cancelled 183 ordinary shares of £1 each for aggregate consideration of £499k. Following the cancellation, the issued share capital was reduced by £183 and a capital redemption reserve of £183 was created in accordance with the Companies Act 2006.

Details of the company's subsidiaries at 31 January 2026 are as follows:

The registered office is Catherine House Harwood Road, Northminster Business Park, Upper Poppleton, York, England, YO26 6QU for all companies listed above with the exception of Herring Shoes Limited and Red Herring Shoes Limited.

The registered office for those two entities is Unit 6 Station Yard Industrial Estate, Kingsbridge, Devon, TQ7 1ES.

There is an unlimited multilateral guarantee dated 19 May 2020 given by Pavers Limited in respect of bank borrowings.

A guarantee dated 13 January 2005 is present in favour of HMRC.

A debenture is present including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and First Floating Charge over all assets and undertaking both present and future dated 4 May 1999.

A subsidiary undertaking within the Group is party to a trade finance agreement with its bank in relation to letters of credit. As at 31 January 2026, there were no outstanding liabilities under the facility (2025: £29k).

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:

The remuneration of key management personnel is as follows.

Modo25 Limited

Purchases of digital marketing services during the year amounted to £796k (2025: £865k). Head office rental fees during the year amounted to £17k (2025: £18k). At the year end there were amounts due to the related party of £3k (2025: £12k).

Transactions with directors

During the year the company repurchased and cancelled 183 ordinary shares from a director for consideration of £499k. The transaction was undertaken on arm's length terms and approved by the Board.

The company is controlled by the Directors.

During the year, the directors reviewed the accounting treatment of goodwill arising on a past acquisition and identified that amortisation had not previously been recognised. Following reassessment, the directors determined that a useful economic life of 40 years is appropriate for the goodwill.

The financial statements have been restated to recognise the amortisation that would have been charged from the acquisition date. Comparative figures and opening reserves have been adjusted accordingly.

In accordance with FRS 102, the matter has been accounted for as a prior period adjustment. Details of the financial impact are disclosed in the notes to the financial statements.