Millcourt Shopfittings Limited

The directors present their strategic report for the year ended 31 December 2025. FAIR REVIEW OF THE BUSINESS, KPI’S AND FUTURE DEVELOPMENTS The management team and directors are pleased with the performance of the company in 2025 and are happy with the position going into 2026. Turnover has decreased by £4,458,340 to £10,330,704, mainly due to reduced sales prices to clients as raw material costs have been reduced. Demand for the supply of shopfitting equipment has continued into 2026 as despite the decrease in turnover, more units were sold in 2025 than 2024. Directors expect continued strong performance in the UK and European markets. At the end of the year the company had shareholders’ funds of £6,484,859 (2024: £6,386,969) including distributable reserves of £6,484,857 (2024: £6,386,967) giving a strong financial position, particularly given the net current assets position at the year-end was £5,587,462 (2024: £5,442,106) and cash reserves of £3,147,841 (2024: £1,751,948). Our sales order book for 2026 is expected to show a slight decline rather than growth, but no major downturn. The company remains well positioned to continue executing its strategy and investing in its infrastructure. PRINCIPAL RISKS AND UNCERTAINTIES The directors believe the principal risk facing the company to be the potential impact of the cost-of-living crisis, rising prices, geo-political instability and the likelihood of an economic recession. Material costs and general operating costs remain high, this is a macro-economic factor and there remains uncertainty over how long this will last. We are managing this through careful control of stock flow, productivity and efficiency gains, and where appropriate price increases. The company is exposed to economic currency fluctuations as most of its purchases are denominated in Euros. The company manages this risk by actively monitoring exchange rates, utilising natural hedging and where appropriate hedging agreements against foreign exchange variances. The company has an exceptionally strong balance sheet which will enable it to continue its strategy of growth and mitigate the impact of the wider economic climate. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The company makes use of financial instruments only through the operation of bank accounts and other basic items. The directors believe the company’s exposure to credit risk, liquidity risk and cash flow is not material for the assessment of the assets, liabilities, financial position and profit or loss of the company. The company’s exposure to price and foreign exchange risk is discussed in the principal risks and uncertainties section.