Our Aim

The company’s strategy is to create excellent value for its customers, achieving this by competitive low prices, product quality, wide variety, and innovation.

The company continues to monitor the current store portfolio, with a target of improving footfall and increasing the average transaction value per customer. This will be achieved by continuously improving the customer experience and product range.

Company Ownership

The ownership structure of the company changed, effective from the 20th March 2026 with Christopher Edwards stepping down from his role as Non-Executive Director. His entire shareholding has been transferred to Christopher James Edwards, who will continue in his role as company CEO.

As part of the transition, Christopher Edwards’ investment, previously secured by a debenture charge, has been fully repaid. The associated security has been released, strengthening the company's financial structure and removing the obligations associated with the previous arrangement.

One Beyond operates as a discount retailer within England, Scotland, and Wales.

The business showed a slight decline in both turnover and store numbers in the year ending January 2026. Store turnover reduced by 1% to £132.8m. This was due to:

• Like-for-like sales declined by 5.7% during the first half of the year. In response, the company implemented changes to its buying strategy and team structure, with a greater focus on product ranges, value and competitiveness. Following these changes, trading performance improved during the second half of the year, particularly within FMCG, with year-on-year sales growth of 6.4%.

• Suspension of store openings until H2. This was a knock-on effect of the reduced sales in H1, which impacted new store openings. Despite this, the company was able to add six further stores in the year. The company has adopted a more selective approach to new store openings, focusing on suitable locations and ensuring that investment delivers an appropriate financial return.

• Closure of poor performing stores. The company continued to review its existing store portfolio, exercising lease break options where stores were not meeting financial expectations.

The company remains profitable in what is an extremely challenging environment but this has led to a fall in performance over the last few years as demonstrated below:

Year Ending     Net Profit before Tax     Vs Previous Year     % Change

31-Jan-24     £2,139,985     £517,435     32%

31-Jan-25     £937,224     -£1,202,761     -56%

31-Jan-26     £481,018     -£456,206     -49%

This fall is largely due to employment costs which continued to rise, due to:

• Employers National Insurance contributions increased from April 2025 with the secondary threshold being reduced from £9,100 to £5,000 per year coupled with the rate increasing from 13.8% to 15.0%. This impacted employment costs by £1.1m.

• The national minimum wage increased by a further 6.7%, contributing to a cumulative increase of 37.0% in recent years. This increased the company’s costs by a further £1.5m.

The impacts of these increases were largely mitigated by the following measures:

• Despite the increase in employment costs, OneBeyond was able to reduce the costs of its warehousing operation by £0.6m. This has been achieved through restructuring shift patterns, developing a core team of personnel, and optimising pick routes at the distribution centre.

• Distribution costs were reduced by £0.5m. This was achieved through a combination of delivery route optimisation, increased vehicle utilisation, and ongoing efficiency improvements.

• A risk-based review of in-store security reduced costs by £0.6m. The review aligned guarding resources more closely with assessed risk and store requirements, avoiding continued deployment in response to isolated incidents while maintaining appropriate security arrangements.

• Benefits in foreign exchange. Sterling strengthened against the dollar, reducing the cost of imports by £0.8m and improving product margins. The business manages currency fluctuations by using a mix of forward contracts and spot prices.

The measures taken during the year helped to mitigate the effect of rising costs and resulted in reductions across warehousing, distribution and in-store security. The company continues to review its cost base in response to ongoing inflationary pressures.

Overall, the company remained profitable despite lower turnover and significant increases in employment costs. Management action during the year included restructuring the buying team, improving warehouse and distribution efficiency, reviewing the store portfolio and repaying the investment previously secured by a debenture charge. These actions strengthened the company’s operating model and financial position while supporting its return to like-for-like sales growth.

Future Developments

The company’s immediate priorities are to restore sustainable sales growth and protect profitability through disciplined control of operating costs.

The improvement in like-for-like sales during the second half of the year provides evidence that the changes to the buying function, product range and pricing strategy are gaining traction. Management will continue to develop these measures to support further improvements in sales performance.

The company will pursue a measured programme of new store openings, approving only locations that meet its financial and operational criteria. Alongside this expansion, management will continue to review the existing portfolio and take appropriate action where stores do not meet performance expectations.

The company will continue to invest in warehouse efficiency, distribution optimisation and technology to improve productivity and strengthen operational resilience. These initiatives will support tighter cost control and help mitigate continuing inflationary pressure, particularly from employment costs.

The wider retail environment is expected to remain challenging. Nevertheless, the directors believe that the improvements in trading performance, disciplined approach to store investment and continued focus on operating efficiency provide a sound basis for a return to turnover growth in the coming financial year.

Key Performance Indicators

The directors use store numbers and turnover as key measures of the company’s scale, trading performance and progress against its growth strategy. During the year, these key performance indicators were:

• Stores – 2026: 119 (2025: 121). The business continually reviews its store portfolio, adding new stores on a quality over quantity basis whilst scrutinising existing stores to ensure that they are not underperforming.

• Turnover –2026: £132.8m (2025: £133.8m). Marginal fall in year-on-year sales due to H1 LFL performance. The company is fully expecting to return to growth in 2027 having posted strong LFLs throughout the year so far.

Economic

The principal risk facing the company is managing the impact of rising costs in a highly competitive environment. Changes in consumer confidence and household disposable income can influence purchasing behaviour. The company seeks to mitigate this risk through competitive pricing, continuous product development and careful management of its store portfolio.

External factors and global events have continued to increase inflation in the UK.

The company has been affected by the UK Government’s decision to increase employers’ National Insurance contributions from April 2025. Increases in employment taxes have a disproportionate effect on labour-intensive industries such as retail.

The rising costs are managed by utilising a wide range of suppliers, both domestically and overseas to ensure that products are sourced at the lowest possible cost. The performance of all products is closely monitored, reviewing any product lines that fail to perform in line with expectations.

Operational and supply-chain disruption could affect product availability, customer service and profitability. The company mitigates this risk by sourcing from a wide range of domestic and overseas suppliers, monitoring product performance closely and maintaining established warehousing and distribution operations.

The safety and security of employees, customers and company assets are important operational considerations. Security arrangements are reviewed using a risk-based approach so that controls and guarding resources remain proportionate to individual store requirements and emerging risks.

Foreign Exchange

The company is exposed to foreign exchange rate risk. All stores are located within the UK and sales are conducted in sterling. However, a significant proportion of stock is purchased in US dollars, exposing the company to movements in the rate.

This is mitigated by constantly reviewing currency markets, using a combination of forward contracts and spot prices, to protect the business from fluctuations.

The directors of the company act in a responsible manner to promote its long-term success. The aim is to offer great value for its customers, whilst continuing to grow the number of retail outlets.

In making decisions during the year, the directors considered the likely long-term consequences for the company and the interests of employees, customers, suppliers and the communities in which it operates. This included balancing competitive pricing and growth with product quality, operational resilience, responsible sourcing, employee development and environmental impact.

Our Employees

Our employees are vital to the successful running of the business, through their dedication, experience and skill. To support this, the company offers ongoing training and routinely updates its employees regarding best business practices.

The business is fully committed as an equal opportunities employer and makes every effort to ensure that it has a diverse workforce, with a zero-tolerance approach to any form of discrimination.

Our Customers and Suppliers

Customer satisfaction is important to the success of One Beyond. The company’s experienced buying team sources a wide range of products at affordable prices, with the aim of offering customers quality and value for money.

The company trades directly with suppliers that are required to meet its responsible sourcing and accreditation standards. Own-brand goods are subject to factory testing to assess whether they meet the company’s quality requirements.

Our Community

The business works closely with a local charity, which provides support and investment in research to help children living with cancer. One Beyond has donation boxes at all stores, which are passed directly to the charity, and donates excess stock.

The company has provided jobs to over 1,700 members of staff. Many of our stores are in socially deprived areas, giving employment opportunities where they will not otherwise exist.

Our Environment

The business recognises that it has an obligation to minimise its impact on the environment. The transport fleet is routinely upgraded, with replacement vehicles approximately 33% more fuel efficient than the vehicles they replaced.

One Beyond has embedded real-time monitoring software within its operating processes. This identifies abnormalities in electricity usage, which are fully investigated by the operations teams. This helps to reduce carbon emissions as demonstrated in the SECR report.

The infrastructure on new stores acquired is routinely upgraded replacing lighting with energy efficient LEDs and fitting auto sensors. The company continues to upgrade lighting across its existing store portfolio, replacing older fittings with more energy-efficient LED technology. These improvements are expected to deliver energy savings of between 10% and 50%, depending on the existing installation.

As a business, we are committed to having a more sustainable supply chain. We are working closely with our suppliers to reduce the use of plastic packaging for our products. Alternative packaging is being introduced wherever possible and is constantly monitored.

On behalf of the board

The director presents his annual report and financial statements for the year ended 31 January 2026.

The principal activity of the company continued to be that of a discount retailer within England, Scotland and Wales.

The results for the year are set out on page 14.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

The director who held office during the year and up to the date of signature of the financial statements was as follows:

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company’s activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with company’s treasury policy, derivative instruments are not entered into for speculative purposes.

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

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

Statement of Compliance and Methodology

OneBeyond has prepared this energy and carbon report in accordance with the UK Government’s Streamlined Energy and Carbon Reporting (SECR) framework.

This report covers the company’s UK energy use and associated greenhouse gas emissions for the year ended 31 January 2026, with comparative figures for the year ended 31 January 2025. It includes Scope 1 emissions from natural gas and transport fuel, Scope 2 emissions from purchased electricity, and Scope 3 emissions from grey fleet mileage.

Emissions and energy use have been calculated using the Greenhouse Gas conversion factors published by the UK Government for company reporting for the relevant period.

The conversion factors have been applied to energy usage data captured by the business, primarily relating to electricity, natural gas and fuel consumed within the company’s retail stores, distribution centre, transport operations, company car fleet and private vehicles used on company business. Energy consumption data has been compiled from supplier invoices, metering information, fuel records and business travel records where available. Where complete primary data was not available, reasonable estimates were applied using the most relevant available activity data and UK Government greenhouse gas conversion factors for the reporting period.

The chosen intensity ratio is total emissions expressed in kilograms of CO2e per retail bay. The business considers this the most appropriate metric because it links emissions performance to the scale of the retail estate.

• 2026: 103 kg of CO2e per retail bay

• 2025: 117 kg of CO2e per retail bay

Base Year

The chosen base year is the year ended 31 January 2025. This has been updated to better reflect the current operating profile of the business and to provide a more relevant baseline for energy saving targets.

Targets

Based on an Energy Savings Opportunity Scheme (ESOS) survey, the business is targeting a 5% year-on-year reduction in CO2e emissions against the base year.

Targets     Base Year    2026     2027     2028

Kg of CO2e per Retail Bay     117     111     106     101

Energy Efficiency and Continuous Improvement Actions

Overall, the company’s CO2e emissions reduced by 12% for the year ended 31 January 2026 compared with the previous year. The main sources of emissions continue to be electricity and transport.

Electricity is used primarily for store lighting, air-conditioning and refrigeration. Emissions per retail bay reduced compared with the previous financial year, supported by real-time monitoring, issue investigation and continued investment in more efficient lighting.

This improvement has been supported by the following actions:

• The company operates real-time monitoring of electricity usage, implemented in 2024 and now embedded within its operating processes. The system provides half-hourly consumption data across the property portfolio.

• Abnormalities in usage generate notifications for investigation by the operations teams, helping to confirm that protocols are being followed and that the systems provided are functioning correctly.

• Monitoring has identified opportunities to reduce electricity consumption where baseloads were significantly higher than expected or did not align with comparable stores.

• Store trends are routinely reviewed against previous consumption figures and benchmarked against other stores in the portfolio to identify further opportunities to reduce electricity consumption.

• The company is replacing older LED fittings, particularly in stores opened during the early years of trading. When compared with traditional lighting, lower-wattage LED fittings provide energy savings ranging from 10% to 50% because of improved luminous efficacy. Modern fittings also provide better in-store lighting levels for customers.

• The energy infrastructure of new stores is fully evaluated before opening. The company routinely upgrades existing lighting, where required, and provides systems to ensure that consumption is minimised.

Carbon emissions per retail bay from transport activities decreased compared with the previous year. The main source of transport consumption is the company’s logistics operations.

• Delivery route optimisation: Delivery routes are routinely reviewed to maximise vehicle utilisation, consolidate deliveries where practical and reduce unnecessary mileage. This helps to improve transport efficiency while maintaining the required level of service to stores and customers.

• Vehicle utilisation: The company continues to monitor delivery requirements and vehicle utilisation to ensure that transport capacity is aligned with operational demand. Where possible, deliveries are planned to make efficient use of available vehicle capacity.

• Vehicle fleet: The vehicle fleet has been progressively upgraded, with replacement vehicles being approximately 33% more fuel efficient than the vehicles they replaced. This contributes to a reduction in fuel consumption and associated carbon emissions.

• Ongoing efficiency improvements: Transport activity is regularly reviewed as part of the company's wider focus on reducing operating costs and environmental impact. Opportunities to further improve route planning, vehicle utilisation and fuel efficiency will continue to be considered as the store portfolio grows

The director is responsible for preparing the annual report 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 of the profit or loss of the company 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;

• state whether applicable UK 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 company will continue in business.

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

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

We have audited the financial statements of Onebeyond Retail Limited (the 'company') for the year ended 31 January 2026 which comprise the statement of income and retained earnings, the statement of financial position, the 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 company's affairs as at 31 January 2026 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

• certain disclosures of director's 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 director's responsibilities statement, 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 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

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

As part of our planning process:

• We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.

• We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and Health & Safety at Work 1974.

• We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

• Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

• Identifying and testing journal entries, in particular those that were significant and unusual.

• Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

• Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation and stock provision.

• Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

• Obtaining third party confirmation of material bank balances.

• Testing key turnover lines, for evidence of management bias.

• Documenting and verifying all significant related party balances and transactions.

• Performed analytical review to identify any unusual or unexpected transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may have not detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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;    

• reading the minutes of meetings of those charged with governance;

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

• reviewing correspondence with HMRC, relevant regulators, and the company’s legal advisors.    

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 company's member 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 member those matters we are required to state to the member 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

Onebeyond Retail Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2 Athena Way, Hoyland, Barnsley, England, S74 0FQ.

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

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

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

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

Turnover comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Turnover is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Turnover 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 despatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

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

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

The residual values, estimated useful lives and depreciation method of tangible fixed assets are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the statement of comprehensive income when the change arises.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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

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

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

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

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

Financial 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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors 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.

Equity instruments issued by the company 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 company.

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 income statement 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 company’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 income statement, 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 when the company has 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.

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 leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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

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

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

• Making judgement based on historical experience on the level of provision required for impairment of stock. Further information received after the statement of financial position date may impact the level of provision required.

• Estimates the net realisable values of stock, taking into account the most reliable

evidence available at each reporting date. Stock is calculated by performing a roll back of actual value counted at a later date. The directors must ascertain that the stock value have been properly calculated and reflect the true recoverable stock value as at the period end.

The exceptional income relates to compensation received for an ongoing claim in relation to a compulsory purchase order received during the year for a store lease that still had several years left until expiry.

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

Their aggregate remuneration comprised:

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

Included within other borrowings is an amount due to a director that's secured by way of fixed and floating charges including a negative pledge.

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

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company operates a defined contribution pension scheme for all qualifying employees, the amount outstanding at the balance sheet date is £41,733 (2025 - £35,296). The assets of the scheme are held separately from those of the company in an independently administered fund.

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

The remuneration of key management personnel is as follows.

During the year the company entered into the following transactions with related parties:

The balances above are included within trade creditors and not individually shown elsewhere.

The following amounts were outstanding at the reporting end date:

The balances above are included within trade debtors and not individually shown elsewhere.

In March 2026, the directors' current account included within other borrowings totalling £3,049,938 was repaid in full. The repayment was funded by a loan received from a company under common control.