REGISTERED NUMBER: 10481194 (England and Wales)

Group Strategic Report, Report of the Director and

Consolidated Financial Statements for the Year Ended 31 January 2026

for

Paperclip Holdings Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

10

Report of the Independent Auditors

12

Consolidated Income Statement

16

Consolidated Other Comprehensive Income

17

Consolidated Balance Sheet

18

Company Balance Sheet

19

Consolidated Statement of Changes in Equity

20

Company Statement of Changes in Equity

21

Consolidated Cash Flow Statement

22

Notes to the Consolidated Cash Flow Statement

23

Notes to the Consolidated Financial Statements

24

DIRECTOR:

Mr C Campbell

REGISTERED OFFICE:

Palmeira Avenue Mansions

19 Church Road

Hove

East Sussex

BN3 2FA

REGISTERED NUMBER:

10481194 (England and Wales)

SENIOR STATUTORY AUDITOR:

Oliver Atkinson

AUDITORS:

Atkinsons

Chartered Accountants & Statutory Auditors

Palmeira Avenue Mansions

19 Church Road

Hove

East Sussex

BN3 2FA

The director presents his strategic report of the company and the group for the year ended 31 January 2026.

Who we are and what we do

Paperclip Holdings Limited (the "Company") is the parent company of the group (the "Group"). The Company is a holding company and does not trade; the Group’s trading activities are carried out by its subsidiary, DIGI2AL Limited ("DIGI2AL").

Purpose and overview

DIGI2AL is a UK sovereign Defence & Security technology business. Since 2013 we have helped government, and the Ministry of Defence in particular, to solve complex, high-consequence technology challenges, delivering secure, mission-critical software in demanding and often operationally constrained environments. Our work spans the full software lifecycle, from user research and service design through engineering and deployment to live operational support.

Over more than a decade we have completed over 1,000 projects and built a substantial, credentials-led track record across the Defence & Security sector.

Business model: how we create value

Defence & Security organisations face siloed legacy systems, acute shortages of specialist skills and stringent security requirements, all of which slow the delivery of digital capability at a time when software and data increasingly determine operational advantage. DIGI2AL exists to solve these problems, enabling the rapid and secure delivery of mission-critical software in constrained and classified environments.

Our delivery model combines a core of permanent, security-cleared employees with an established network of specialist freelancers. Permanent colleagues own client relationships, programme leadership, delivery governance and commercial and strategic oversight; freelancers provide flexible capacity and niche expertise under our direction. This blended model allows us to mobilise trusted, cleared teams quickly and to scale delivery in line with programme demand.

We create value by delivering outcomes, being secure services that save time, reduce cost and improve the experience of those who use them, rather than by supplying contingent labour. On our largest engagements we act as prime integrator, consolidating disparate requirements into coherent, well-governed delivery, as we have done for the Royal Navy.

Ownership and structure

The Company holds 90.09% of the issued share capital of DIGI2AL, being all of its A and B Ordinary shares. The remaining C Ordinary shares, which represent the non-controlling interest, are held by individual shareholders. The Company is 60% owned by Paperclip EOT Limited, as trustee of the Paperclip Holdings Employee Ownership Trust, which holds those shares for the benefit of eligible employees of the Group, and 40% owned by the Group’s founder, Colin Campbell. The Employee Ownership Trust therefore holds an effective indirect interest of approximately 54% in DIGI2AL, aligning the long-term interests of employees with the Group’s success.

Following the establishment of the Employee Ownership Trust in 2024, DIGI2AL embarked on a broader programme of organisational development and investment to build a scalable platform for long-term growth. This programme combines leadership succession with the development of DIGI2AL's systems, commercial capability and organisational structure, alongside investment in recruitment and people development, to support growth and diversification across customers, markets and services. As part of this programme, the founder of DIGI2AL moved from Chief Executive Officer to a Non-Executive Director role, with day-to-day leadership passing to a new executive team led by Jack Maxton, who joined as Chief Technology Officer in January 2026 before becoming Chief Executive Officer in June 2026, and Dan Curran, who joined as Chief Financial Officer in February 2026.

Market and operating environment

The Defence & Security market in which DIGI2AL operates has strong long-term structural growth. The

Strategic Defence Review 2025 set out concrete commitments to move towards a more technology-enabled,

integrated force and to increase defence spending over the coming years, with data, software and digital

systems identified as central to operational advantage. Defence digital and technology spending has

continued to grow faster than the overall defence budget over the medium term.

While the medium-term direction of the market is firmly positive, the year itself was shaped by significant

short-term disruption to the timing of government spending. The 2024 general election temporarily slowed

government decision-making; this was followed by the Strategic Defence Review, the establishment of the

National Armaments Directorate and uncertainty ahead of the Defence Investment Plan. That plan, originally

expected in autumn 2025, was significantly delayed and was ultimately published on 30 June 2026, after the

Group's year end. Together these delayed the approval, placing and extension of work across parts of the

Ministry of Defence during the year. This is regarded as a matter of timing within the government

spending cycle rather than a reflection of underlying demand, which remains strong, and expect these

developments, including the now-published Defence Investment Plan, to release funding, weighted towards

digital, as they take effect.

Two further features of the market reinforce DIGI2AL's position. First, a persistent shortage of UK

security-cleared engineering talent means that government and prime contractors continue to rely on trusted

specialist partners to deliver complex, software-intensive programmes. Second, government policy

increasingly favours the participation of small and medium-sized enterprises: the Ministry of Defence has

committed to increasing its spending with SMEs to £7.5 billion by 2028(1) . These dynamics play directly to

DIGI2AL's strengths as a sovereign, security-cleared specialist with a proven delivery record and high

barriers to entry protecting its position.

Strategy and objectives

Our strategy is to build on our established position in Defence & Security and to convert our delivery

strengths into a broader, more resilient business. The board of DIGI2AL has set four priorities. The first is to

maximise the value of our existing long-term contracts, including our prime role on the Royal Navy's data

and applications programme, by converting available contract headroom into funded delivery. The second is

to win new footholds across the wider Ministry of Defence, including operationally focused areas of air and

land digital, using our credentials and case studies. The third is to broaden our customer base and diversify

our revenue by developing new routes to market, including work with Defence prime contractors and

technology partners. The fourth is to strengthen our commercial engine, with clearer accountability for

growth, better account management and a more consistent bid capability, so that opportunities convert into

bookings, revenue and cash more consistently.

Together, these priorities are intended to broaden the Group's customer base and diversify its revenue

streams, improving the quality and resilience of the business. Progress is measured through the key

performance indicators set out below.

(1)Ministry of Defence, 'Small and Medium-sized Enterprise (SME) Action Plan', GOV.UK, 2025; the £7.5

billion target (by 2028) represents approximately a 50% increase on 2023-24 direct and indirect SME spend.

Key performance indicators

The Group’s key performance indicators have been refreshed this year to reflect DIGI2AL’s new commercial operating model. The previous emphasis on measures such as net assets, overheads and revenue mix has given way to a set that better captures whether the Group is converting opportunity into profitable, cash-generative delivery. The measures fall into two groups, described below, with performance against them reviewed in the review of the business below.

The first group covers scale and profitability. Revenue remains the primary measure of scale and delivery;

gross profit and gross margin show the efficiency and quality of that delivery; and EBITDA and the

EBITDA margin capture underlying operating profitability and margin discipline.

The second group covers cash and resilience. Operating cash flow measures the cash generated from

operations and the quality of the Group's earnings, while the closing cash position reflects its liquidity

and financial resilience. As a debt-free business, these measures are central to how the director assesses

financial strength.

KPI

FY26

FY25

Change

% change

Revenue

£27.1m

£30.0m

(£2.9m)

(9.7%)

Gross profit

£7.5m

£8.1m

(£0.5m)

(6.3%)

Gross margin

27.8%

26.8%

1.0ppt

n/a

EBITDA

£5.6m

£6.4m

(£0.8m)

(11.9%)

EBITDA margin

20.7%

21.2%

(0.5ppt)

n/a

Operating cash flow

£3.8m

£4.8m

(£1.0m)

(20.7%)

Cash

£2.8m

£5.7m

(£2.8m)

(49.7%)

Decreases are shown in parentheses. Margin movements are shown in percentage points (ppt); a percentage change is not meaningful for ratio measures (shown as n/a). Financial figures are rounded to £0.1m. EBITDA is stated before depreciation and amortisation and, as the Group’s depreciation is minimal, is closely aligned to operating profit.

REVIEW OF BUSINESS

The year’s performance is reviewed below against the key performance indicators set out above.

Financial performance

Revenue for the year was £27.1 million, £2.9 million (9.7%) lower than the prior year (2025: £30.0 million). The demand factors behind this are largely those described in the market and operating environment section, namely the disruption to the timing of government spending during a period of significant change; the reduction reflects market conditions rather than any loss of competitive position, with client relationships and delivery quality maintained.

Gross profit decreased by £0.5 million to £7.5 million (2025: £8.1 million), reflecting the reduction in revenue, while gross margin improved by 1.0 percentage point to 27.8% (2025: 26.8%). EBITDA decreased by £0.8 million to £5.6 million (2025: £6.4 million), with EBITDA margin reducing to 20.7% (2025: 21.2%). Of this decrease, £0.5 million was attributable to lower gross profit, with the balance principally reflecting expenditure on the programme to build a scalable platform for growth and diversification described under Ownership and structure above. Profit before tax was £5.6 million (2025: £6.6 million).

Operating cash flow was £3.8 million (2025: £4.8 million), with the Group remaining cash-generative. This should be seen in the context of a strong medium-term track record, revenue having grown from £16.4 million in FY22 to £30.0 million in FY25 while profitability improved as the business scaled.

Financial position and cash

The Group remains debt-free. Group cash balances reduced to £2.8 million (2025: £5.7 million) and total equity to £2.5 million (2025: £5.4 million). The reduction principally reflects contributions of £6.4 million (2025: £15.8 million) made by the Company to the Employee Ownership Trust to fund the repayment of loan notes issued as deferred consideration for the trust’s acquisition of shares in the Company, together with dividends of £0.7 million (2025: £0.3 million) paid by DIGI2AL to its minority shareholders. The Company’s contributions are funded principally by dividends from DIGI2AL, which paid dividends of £6.1 million to the Company during the year. The Company also sold its investment property during the year for £0.3 million.

Outlook

DIGI2AL enters the new financial year with continued prime status on its principal cross-MoD contract vehicle, delivered through the Royal Navy, which was extended by a further two years to 30 June 2028; the full two-year extension was taken in a single step rather than incrementally, providing enhanced forward visibility, with material headroom still to deliver. DIGI2AL also holds positions on 14 Ministry of Defence and Crown Commercial Service frameworks that provide repeatable access to funded opportunities, alongside a strengthening pipeline. With defence digital spending expected to continue growing and geopolitical conditions reinforcing demand, the director is confident in the Group’s prospects and its capacity to return to growth.

The Company expects to continue making contributions to the Employee Ownership Trust over the coming years, funded from dividends received from DIGI2AL and subject to the Group’s distributable reserves and cash requirements.

The director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future and therefore continues to adopt the going concern basis in preparing the financial statements.

Our people and culture

Our people are the core of our proposition. In a market defined by a shortage of security-cleared talent, our

ability to attract, develop, clear and retain high-quality engineers and specialists is a genuine differentiator

and a barrier to entry. During the year we continued to grow our permanent team and to invest in structured

career development, training and knowledge retention, complemented by an established network of

long-tenured specialist freelancers.

Employee engagement is high. In the most recent Sunday Times Best Places to Work survey, the results of

which were published in early 2026, DIGI2AL achieved an average engagement score of 88% (rated

Excellent and around 9 percentage points above the technology-sector benchmark), with all six engagement

categories rated Excellent, an employee Net Promoter Score of 64, 94% of colleagues proud to work here,

and a flight risk of only 5% against a sector norm of around 42%. Employee ownership through the

Employee Ownership Trust reinforces a culture in which colleagues share directly in the Group's success,

and we remain committed to an inclusive culture that draws deliberately on a diverse range of backgrounds

and disciplines.

Sustainability, social value and governance

DIGI2AL was founded on the principle of building an inclusive company that makes a positive difference.

On the environment, DIGI2AL continues to minimise its emissions, which arise principally from Scope 3

business travel, with an ambition to reach net zero by 2050. DIGI2AL is a certified Carbon Neutral Business, partnering with Carbon Neutral Britain to invest in projects that support environmental protection and improvement.

On social value, we support the communities and causes we care about, including charitable giving during

the year, and we deliver against the social-value themes required of public-sector customers, being tackling

economic inequality, fighting climate change and promoting equal opportunity. In practice this means a

commitment to local and inclusive recruitment, apprenticeships and skills development, support for veterans

and military spouses, payment of the Real Living Wage, prompt payment of suppliers, and increasingly

sustainable procurement. On governance, we maintain the accreditations and compliance our market

demands, including quality (ISO 9001), information security (ISO 27001, Cyber Essentials Plus) and

service-management standards, together with Defence-sector requirements such as JOSCAR, and we operate

robust policies on matters including modern slavery, anti-bribery, data protection and whistleblowing.

PRINCIPAL RISKS AND UNCERTAINTIES

Risks and mitigations

The Group’s trading activities are carried out by DIGI2AL, which delivers technology services predominantly to UK government and Defence customers of high standing from a financial and reputational perspective. Risk is identified, owned and managed at leadership level. The principal risks set out below are not exhaustive, nor a prediction of all future risks; appropriate mitigations or insurance are sought so far as possible.

Risk

Impact on the Group

Mitigation

Defence spending and procurement timing

Delays to spending approvals and procurement can defer the start or extension of programmes, affecting short-term revenue and cash flow.

Prioritise customers with confirmed funding; actively manage contract renewals and support customers in preparing approvals; target a broad range of customers to reduce dependence on any single decision.

Client and contract concentration

A significant proportion of revenue is currently derived from a small number of contracts and customers, creating exposure to change in a single budget or relationship.

A deliberate strategy to broaden the customer base across new areas of MoD, Defence primes and technology partners; investment in a structured commercial and account-management engine; and continued deepening of existing relationships.

Attracting and retaining key skills

Inability to locate, attract and retain security-cleared skills at competitive cost could limit the ability to win and deliver work, affecting revenue, profit and cash flow over time.

A strong employer brand and referral-led recruitment; structured talent development; employee ownership and long-term incentives; and a balanced permanent-and-freelancer resourcing model.

Dependence on key individuals

The success of the business depends on a small number of key individuals whose loss could create delivery and revenue risk.

Leadership development and succession planning (as demonstrated by the recent leadership transition); team cohesion and long-term incentives; and an operating model designed to reduce reliance on individuals.

Cyber security and data protection

Handling sensitive government data means a breach could cause loss of reputation and customer relationships, and contractual or regulatory liability. Inappropriate use of AI tools could also result in unauthorised disclosure of sensitive or confidential information and failure to meet security or contractual obligations.

Continual threat intelligence monitoring and information sharing; government grade encryption and layered defences; annual Cyber Essentials Plus accreditation; data loss prevention tooling and information segregation; supply chain monitoring; specialist data protection advice; and appropriate controls and guidance for the use of AI tools.

Operational and programme delivery

Delay or non compliant delivery, whether through programme issues, quality failures, third party or subcontractor dependencies, supplier security weaknesses or client factors, could lead to contractual liabilities, rework, additional costs or reputational damage.

A proven track record of delivery against Government Digital Service, Technology Code of Practice and accessibility standards; highly experienced leadership; collaborative sprint by sprint acceptance; avoidance of high risk milestone dependent payments; and appropriate supplier oversight, contractual security requirements and resource planning.

IR35 and contractor employment status

Mis-interpretation or mis-application of IR35 could create tax exposure for the Group or contractors, or reduce the availability of key people.

DIGI2AL contracts only for outcomes assessed as outside IR35, uses HMRC’s Check Employment Status for Tax tool with documented and periodically re-assessed outcomes, flows terms down to subcontractors, and does not operate on contingent-labour frameworks.

Contributions to the Employee Ownership Trust

The Company has undertaken to use all reasonable endeavours to make contributions to the Employee Ownership Trust so that loan notes issued to the vendors can be repaid. Its ability to do so depends on dividends from DIGI2AL, and therefore on DIGI2AL’s profits and cash generation.

Contributions are planned against DIGI2AL’s forecast profits, distributable reserves and cash, with DIGI2AL’s working capital needs prioritised; the level and timing of contributions are reviewed regularly.

Business continuity and disaster recovery

Disruption to critical personnel, systems, infrastructure or third party services, including through cyber attacks, infrastructure failures or supplier outages, could interrupt operations, delay programme commitments, result in financial loss and affect customer confidence.

Identification of critical business dependencies and proportionate business continuity and disaster recovery arrangements to support the recovery of essential services following disruptive events.

Financial risk management

The Group’s financial instruments comprise cash at bank, trade debtors and trade creditors arising directly from its operations. The Group has no borrowings and does not use derivative financial instruments.

Credit risk: the Group’s customers are predominantly UK government departments, principally the Ministry of Defence, and Defence prime contractors, and credit risk is considered to be low. Trade debtors are monitored regularly.

Liquidity and cash flow risk: the Group is debt-free and manages liquidity by maintaining cash balances (£2.8 million at 31 January 2026) and monitoring cash flow forecasts, including the timing of contributions to the Employee Ownership Trust, so that it can meet its obligations as they fall due.

The Group is not exposed to significant price or foreign exchange risk.

ON BEHALF OF THE BOARD:

Mr C Campbell - Director

29 October 2026

The director presents his report with the financial statements of the company and the group for the year ended 31 January 2026.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of digital technology development and consulting services, carried out through the company’s subsidiary, DIGI2AL Limited. The company is a holding company.

DIVIDENDS

No dividends will be distributed for the year ended 31 January 2026.

During the year the company’s subsidiary, DIGI2AL Limited, paid dividends of £673,880 (2025: £310,294) to its non-controlling shareholders.

RESEARCH AND DEVELOPMENT

During the year the company’s subsidiary, DIGI2AL Limited, undertook research and development to develop new technical capabilities in support of its Defence & Security customers, and has claimed research and development expenditure credit in respect of qualifying expenditure.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTOR

Mr C Campbell held office during the whole of the period from 1 February 2025 to the date of this report.

CHARITABLE DONATIONS

During the year DIGI2AL Limited made donations to charities of £154,150 (2025 - £125,742).

GOING CONCERN

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. The strategic report and the director’s report describe the financial position of the Group, its cash flows and liquidity position; the Group’s objectives; and its financial risk management objectives and its exposure to credit risk and liquidity risk.

Overall, the director considers the group to be a going concern for the following reasons:

The Group had net current assets of £2,431,559, including £2,844,667 of cash, as at 31 January 2026.

The Group has no bank loans and the latest projections indicate that no funding is required for the 12 month period from the date of signing this report.

The director has a reasonable expectation that the Group has adequate resources to continue to adopt the going concern basis in preparing the annual report and financial statements.

FUTURE DEVELOPMENTS AND EVENTS AFTER THE BALANCE SHEET DATE

Details of future developments can be found in the Strategic Report and form part of this report by cross reference.

The financial risk management objectives and policies are discussed in the Strategic Report and form part of this report by cross-reference.

EMPLOYEE MATTERS

Details of employee matters can be found in the Strategic Report and form part of this report by cross reference.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Atkinsons, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr C Campbell - Director

29 October 2026

Opinion

We have audited the financial statements of Paperclip Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2026 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2026 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page eleven, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

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

The objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), the policies and procedures regarding compliance with laws and regulations;

- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

- We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

- We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Auditor’s response to risks identified

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included; testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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

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

Use of our report

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

Oliver Atkinson (Senior Statutory Auditor)

for and on behalf of Atkinsons

Chartered Accountants & Statutory Auditors

Palmeira Avenue Mansions

19 Church Road

Hove

East Sussex

BN3 2FA

30 October 2026

TURNOVER

3

27,084,699

30,010,426

Cost of sales

19,543,047

21,958,694

GROSS PROFIT

7,541,652

8,051,732

Administrative expenses

2,037,180

1,730,124

5,504,472

6,321,608

Other operating income

4

49,396

13

OPERATING PROFIT

7

5,553,868

6,321,621

Income from fixed asset investments

-

44,199

Interest receivable and similar income

8

104,869

427,488

104,869

471,687

5,658,737

6,793,308

Gain/loss on revaluation of investment property

-

(231,932

)

5,658,737

6,561,376

Interest payable and similar expenses

9

52,539

601

PROFIT BEFORE TAXATION

5,606,198

6,560,775

Tax on profit

10

1,507,325

1,480,296

PROFIT FOR THE FINANCIAL YEAR

4,098,873

5,080,479

Profit attributable to:

Owners of the parent

3,680,925

4,484,443

Non-controlling interests

417,948

596,036

4,098,873

5,080,479

PROFIT FOR THE YEAR

4,098,873

5,080,479

OTHER COMPREHENSIVE INCOME

Revaluation of fixed asset investments

Fair value reserve

-

(99,821

)

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

(99,821

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,098,873

4,980,658

Total comprehensive income attributable to:

Owners of the parent

3,680,925

4,384,600

Non-controlling interests

417,948

596,058

4,098,873

4,980,658

FIXED ASSETS

Tangible assets

12

54,242

75,984

Investments

13

-

-

Investment property

14

-

300,000

54,242

375,984

CURRENT ASSETS

Debtors

15

3,089,267

2,897,362

Cash at bank

2,844,667

5,651,938

5,933,934

8,549,300

CREDITORS

Amounts falling due within one year

16

3,502,374

3,526,598

NET CURRENT ASSETS

2,431,560

5,022,702

TOTAL ASSETS LESS CURRENT LIABILITIES

2,485,802

5,398,686

PROVISIONS FOR LIABILITIES

17

13,560

-

NET ASSETS

2,472,242

5,398,686

CAPITAL AND RESERVES

Called up share capital

18

200

200

Merger reserves

1,017,801

1,017,801

Retained earnings

1,219,700

3,688,798

SHAREHOLDERS' FUNDS

2,237,701

4,706,799

NON-CONTROLLING INTERESTS

19

234,541

691,887

TOTAL EQUITY

2,472,242

5,398,686

The financial statements were approved by the director and authorised for issue on 29 October 2026 and were signed by:

Mr C Campbell - Director

FIXED ASSETS

Tangible assets

12

-

-

Investments

13

200

200

Investment property

14

-

300,000

200

300,200

CURRENT ASSETS

Debtors

15

-

57,983

Cash at bank

165,723

110,184

165,723

168,167

CREDITORS

Amounts falling due within one year

16

60,215

18,780

NET CURRENT ASSETS

105,508

149,387

TOTAL ASSETS LESS CURRENT LIABILITIES

105,708

449,587

CAPITAL AND RESERVES

Called up share capital

18

200

200

Retained earnings

105,508

449,387

SHAREHOLDERS' FUNDS

105,708

449,587

Company's profit for the financial year

6,007,559

3,601,198

The financial statements were approved by the director and authorised for issue on 29 October 2026 and were signed by:

Mr C Campbell - Director

Called up

share

Retained

Merger

capital

earnings

reserves

£

£

£

Balance at 1 February 2024

200

14,982,017

1,017,801

Changes in equity

Total comprehensive income

-

4,484,443

-

Contribution to EOT

-

(15,777,662

)

-

Balance at 31 January 2025

200

3,688,798

1,017,801

Changes in equity

Total comprehensive income

-

3,680,925

-

Contribution to EOT

-

(6,351,438

)

-

Transfer from non-controlling

interests

-

201,415

-

Balance at 31 January 2026

200

1,219,700

1,017,801

Fair

value

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 February 2024

99,821

16,099,839

406,143

16,505,982

Changes in equity

Dividends

-

-

(310,294

)

(310,294

)

Total comprehensive income

(99,821

)

4,384,622

596,058

4,980,680

Contribution to EOT

-

(15,777,662

)

-

(15,777,662

)

Adjustment to non-controlling

interests

-

-

(20

)

(20

)

Balance at 31 January 2025

-

4,706,799

691,887

5,398,686

Changes in equity

Dividends

-

-

(673,880

)

(673,880

)

Total comprehensive income

-

3,680,925

417,948

4,098,873

Contribution to EOT

-

(6,351,438

)

-

(6,351,438

)

Transfer from non-controlling

interests

-

201,415

(201,415

)

-

Balance at 31 January 2026

-

2,237,701

234,540

2,472,241

Called up

Fair

share

Retained

value

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2024

200

12,625,851

99,821

12,725,872

Changes in equity

Total comprehensive income

-

3,601,198

(99,821

)

3,501,377

Contribution to EOT

-

(15,777,662

)

-

(15,777,662

)

Balance at 31 January 2025

200

449,387

-

449,587

Changes in equity

Total comprehensive income

-

6,007,559

-

6,007,559

Contribution to EOT

-

(6,351,438

)

-

(6,351,438

)

Balance at 31 January 2026

200

105,508

-

105,708