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and retained earnings for the year ended 31 December 2025. 2025-12-31 Year ended December 31, 2025 with comparable information. Euros Information is rounded to the nearest Euro. 2549945 107500 4649 2662604 57381 585548 28700 671629 30000 2406059 2436059 0 2436059 5679 0 5679 50000 23163 78842 4944 4200 9144 433480 271647 83600 21461 819332 898174 3334233 3334233 2401455 2550 107500 3932 2514417 47920 573862 22075 643857 30000 2171353 2201353 0 2201353 5076 0 5076 150000 44624 199700 4754 5040 9794 421720 190316 115507 19884 757221 956921 3158274 3158274 2186002 4250 107500 2155 2299907 45050 521234 18478 584762 30000 2003765 2033765 0 2033765 5066 0 5066 150000 64508 219574 4571 2000 6571 412690 173211 20435 18423 631330 850904 2884669 2884669 6863545 5178530 1685015 88850 175550 810230 106763 26366 654956 270250 384706 0 5808653 4422575 1386078 25000 156800 660389 100030 36712 457147 189559 267588 0 384706 267588 384706 267588 0 0 0 150000 100000 0 79934 800 372560 693416 -269884 38532 0 270360 31700 -63850 -11686 -9461 10120 793 -385000 100000 485000 19884 150000 100000 16348 1200 -2870 -52628 10870 219547 1700 193 194360 0 461948 0 435000 -435000 0 18423 100000 -118423 -91475 0 -91475 38532 384706 267588 384706 0 267588 0 XYZ (Holdings) Limited (the Company) is a limited company incorporated in A Land. The address of its registered office and principal place of business is 1 Hauptbanhof Strasse, Heidelberg, Germany. XYZ Group consists of the Company and its wholly-owned subsidiary XYZ ( Trading) Limited . Their principal activities are the manufacture and sale of candles. XYZ Group <p>These consolidated financial statements have been prepared in accordance with the <i>International Financial Reporting Standard for Small and Medium-sized Entities</i> issued by the International Accounting Standards Board. They are presented in Euros (EUR).</p> In determining the liability for long-service payments, management must make an estimate of salary increases over the following five years, the discount rate for the next five years to use in the present value calculation, and the number of employees expected to leave before they receive the benefits. 6743545 120000 5688653 120000 25000 63850 25000 0 21250 5116 30135 6577 The consolidated financial statements incorporate the financial statements of the Company and its wholly-owned subsidiary. All intragroup transactions, balances, income and expenses are eliminated. <p>Investments in associates are accounted for at cost less any accumulated impairment losses.</p><p>Dividend income from investments in associates is recognised when the Group’s right to receive payment has been established. It is included in other income. </p> <p>Revenue from sales of goods is recognised when the goods are delivered and title has passed. Royalty revenue from licensing candle-making patents for use by others is recognised in accordance with the relevant licence agreements. Revenue is measured at the fair value of the consideration received or receivable, net of discounts and sales-related taxes collected on behalf of the government of A Land.</p> <p>All borrowing costs are recognised in profit or loss in the period in which they are incurred.</p> <p>Income tax expense represents the sum of the tax currently payable and deferred tax.</p><p>The tax currently payable is based on taxable profit for the year.</p><p>Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax bases (known as temporary differences). Deferred tax liabilities are generally recognised for all temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled (taxable temporary differences). Deferred tax assets are generally recognised for all temporary differences that will result in amounts that are deductible in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled (deductible temporary differences)—but only to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.</p><p>The carrying amount of deferred tax assets is reviewed at each reporting date and is adjusted to reflect the current assessment of future taxable profits. Any adjustments are recognised in profit or loss.</p><p>Deferred tax is calculated at the tax rates that are expected to apply to the taxable profit (tax loss) of the periods in which it expects the deferred tax asset to be realised or the deferred tax liability to be settled, on the basis of tax rates that have been enacted or substantively enacted by the end of the reporting period.</p> <p>Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.</p><p>Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the straight-line method. The following annual rates are used for the depreciation of property, plant and equipment:</p><ul><li>Buildings    2 percent</li><li>Fixtures and equipment    10–30 percent</li></ul><p>If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations. </p> <p>Intangible assets are purchased computer software that is stated at cost less accumulated depreciation and any accumulated impairment losses. It is amortised over its estimated life of five years using the straight-line method. If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.</p> <p>At each reporting date, property, plant and equipment, intangible assets and investments in associates are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset (or group of related assets) is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount and an impairment loss is recognised immediately in profit or loss.</p><p>Similarly, at each reporting date, inventories are assessed for impairment by comparing the carrying amount of each item of inventory (or group of similar items) with its selling price less costs to complete and sell. If an item of inventory (or group of similar items) is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.</p><p>If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount (selling price less costs to complete and sell, in the case of inventories), but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (group of related assets) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.</p> <p>Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the leased asset to the Group. All other leases are classified as operating leases.</p><p>Rights to assets held under finance leases are recognised as assets of the Group at the fair value of the leased property (or, if lower, the present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring profit or loss. Assets held under finance leases are included in property, plant and equipment, and depreciated and assessed for impairment losses in the same way as owned assets.</p><p>Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease.</p> <p>Inventories are stated at the lower of cost and selling price less costs to complete and sell. Cost is calculated using the first-in, first-out (FIFO) method.</p> <p>Most sales are made on the basis of normal credit terms and the receivables do not bear interest. Where credit is extended beyond normal credit terms, receivables are measured at amortised cost using the effective interest method. At the end of each reporting period, the carrying amounts of trade and other receivables are reviewed to determine whether there is any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in profit or loss.</p> <p>Trade payables are obligations on the basis of normal credit terms and do not bear interest. Trade payables denominated in a foreign currency are translated into CU using the exchange rate at the reporting date. Foreign exchange gains or losses are included in other income or other expenses.</p> <p>Interest expense is recognised on the basis of the effective interest method and is included in finance costs.</p> <p>The liability for employee benefit obligations relates to government-mandated long-service payments. All full-time staff, excluding directors, are covered by the programme. A payment is made of 5 per cent of salary (as determined for the twelve months before the payment) at the end of each of five years of employment. The payment is made as part of the December payroll in the fifth year. The Group does not fund this obligation in advance.</p><p>The Group’s cost and obligation to make long-service payments to employees are recognised during the employees’ periods of service. The cost and obligation are measured using the projected unit credit method, assuming a 4 per cent average annual salary increase, with employee turnover based on the Group’s recent experience, discounted using the current market yield for high quality corporate bonds.</p> <p>All goods sold by the Group are warranted to be free of manufacturing defects for a period of one year. Goods are repaired or replaced at the Group’s option. When revenue is recognised, a provision is made for the estimated cost of the warranty obligation.</p> <p>Under the terms of the bank loan and bank overdraft agreements, dividends cannot be paid to the extent that they would reduce the balance of retained earnings below the sum of the outstanding balance of the bank loan and the bank overdraft.</p> EMPTY EMPTY EMPTY 5178530 4422575 271647 190316 -1397 -757 <p>(This should be shown in tabular form, not as a narrative) Income tax is calculated at 40 per cent (2024: 40 per cent) of the estimated assessable profit for the year.</p><p>Income tax expense for the year 270,250 EUROS in 2025 (189,559 EUROS in 2024) differs from the amount that would result from applying the tax rate of 40 per cent (both 2025 and 2024) to profit before tax because, under the tax laws of A Land, some employee compensation expenses (20,670 EUROS in 2025 and 16,750 EUROS in 2024) that are recognised in measuring profit before tax are not tax-deductible.</p> 528788 528384 56760 45478 42601 36450 1140 900 13640 10570 <p>The Group owns 35 per cent of an associate whose shares are not publicly traded.</p> 485000 270360 30000 36150 <p>During 2025 the Group noticed a significant decline in the efficiency of a major piece of equipment and so carried out a review of its recoverable amount. The review led to the recognition of an impairment loss of 30,000 Euros.</p><p>The carrying amount of the Group’s fixtures and equipment includes an amount of 40,000 Euros (2024: 60,000 Euros) in respect of assets held under finance leases.</p><p>On 10 December 2025 the directors resolved to dispose of a machine. The machine’s carrying amount of 1,472 Euros is included in fixtures and equipment at 31 December 2025, and trade payables includes the Group’s remaining obligation of 1,550 Euros on the acquisition of this machine. Because the proceeds on disposal are expected to exceed the net carrying amount of the asset and related liability, no impairment loss has been recognised.<br>&nbsp;</p> 0 1700 0 <p>Differences between amounts recognised in the income statement and amounts reported to tax authorities in connection with investments in the subsidiary and associate are insignificant.</p><p>The deferred tax assets are the tax effects of expected future income tax benefits relating to:</p><p>(a) the long-service benefit (note 19), which will not be tax-deductible until the benefit is actually paid but has already been recognised as an expense in measuring the Group’s profit for the year.</p><p>(b) the foreign exchange loss on trade payables, which will not be tax-deductible until the payables are settled but has already been recognised as an expense in measuring the Group’s profit for the year.</p><p>Management considers it probable that taxable profits will be available against which the future income tax deductions can be utilised.&nbsp;</p><p>The deferred tax assets for the foreign exchange loss and the long-service benefits and the deferred tax liability for software relate to income tax in the same jurisdiction, and the law allows net settlement. Therefore, they have been offset in the statement of financial position.</p> -2155 -2912 -4309 340 1020 83600 115507 133600 265507 <p>The bank overdraft and loan are secured by a floating lien over land and buildings owned by the Group with a carrying amount of 266,000 Euros at 31 December 20X2 (412,000 Euros at 31 December 2024).</p><p>Interest is payable on the bank overdraft at 200 points above the London Interbank Borrowing Rate (LIBOR). Interest is payable on the seven-year bank loan at a fixed rate of 5 per cent of the principal amount.</p> <p>Trade payables at 31 December 2025 include 42,600 Euros denominated in foreign currencies (nil at 31 December 2024).</p> 5260 6100 4200 5040 0 4200 4200 0 5040 5040 10623 7033 0 0 0 6240 9830 10623 9830 <p> The Group holds one piece of specialised machinery with an estimated useful life of five years under a five-year finance lease.</p> 50000 75000 21461 19884 23163 44624 44624 64508 26100 26100 13050 39150 10000 30000 1 10000 30000 1 70000 70000 28700 83600 -54900 22075 115507 -93432 During 2025 a customer initiated proceedings against XYZ (Trading) Limited for a fire caused by a faulty candle. The customer asserts that its total losses are 50,000 Euros and has initiated litigation claiming this amount. The Group’s legal counsel do not consider that the claim has merit, and the Company intends to contest it. No provision has been recognised in these financial statements as the Group’s management does not consider it probable that a loss will arise. Approximately 50,000 Euros 50000 <p>EMPTY</p> <p>Transactions between the Company and its subsidiary, which is a related party, have been eliminated in consolidation.</p><p>The Group sells goods to its associate (see note 12), which is a related party.</p><p>The payments under the finance lease (see note 20) are personally guaranteed by a principal shareholder of the Company. No charge has been requested for this guarantee.</p><p>The total remuneration of directors and other members of key management in 2025 (including salaries and benefits) was 249,918 Euros (2024: 208,260 Euros).</p> Sale of goods Associate 10000 800 8000 400 Sale of goods Associate 249918 208260 <p>These financial statements were approved by the board of directors and authorised for issue on 10 March 2026.</p> 30000 30000 30000 384706 150000 100000 267588 2003765 2171353 0 0 0 0 0 0 0 0 2406059 Straight line Straight line Cost less accumulated depreciation and impairment losses Cost less accumulated depreciation and impairment losses 2 percent per year 10 to 30 percent per year 831455 0 485000 30000 36150 0 240360 0 30000 1540000 1009945 1960000 390000 420000 1960000 -30000 0 0 0 0 1570000 1102045 485000 241000 -240360 30000 0 0 1346045 270590 0 685800 485000 0 3062045 660590 0 0 -270360 0 0 0 30000 -204850 241000 -204850 3306045 1105800 8500 7650 8500 8500 0 0 0 5950 0 -1700 0 7650 850 0 1700 0 2550 8500 0 0 0 5950 0 -1700 0 1700 0 -3855 -680 0 -77 1020 0 -3932 -680 -400 -317 340 -400 -4249 5040 5260 6100 4200 25000 25000 0 25000 50000 0 13050 0 0 26100 13050 0 10000 10000 30000 30000 1 1 70000 70000 During 2025 a customer initiated proceedings against XYZ (Trading) Limited for a fire caused by a faulty candle. The customer asserts that its total losses are 50,000 Euros and has initiated litigation claiming this amount. The Group’s legal counsel do not consider that the claim has merit, and the Company intends to contest it. No provision has been recognised in these financial statements as the Group’s management does not consider it probable that a loss will arise. Approximately 50,000 Euros 50000 <p>On 25 January 2026 there was a flood in one of the candle storage rooms. The cost of refurbishment is expected to be 36,000 Euros. The reimbursements from insurance are estimated to be 16,000 Euros.</p> <p>On 14 February 2026 the directors voted to declare a dividend of 1.00 Euros per share (30,000 Euros total) payable on 15 April 2026 to registered shareholders on 31 March 2026. Because the obligation arose in 2026, a liability is not shown in the statement of financial position at 31 December 2025.</p> Sale of goods Associate 10000 800 Sale of goods Associate 8000 400 31620 22778 1000 0 5260 7340 850 Included in other expenses Included in other expenses Included in other expenses Included in other expenses Included in cost of sales; If the entity classifies its expense by nature in its income statement, this would say 'included in raw materials and consumables used'. Included in cost of sales; If the entity classifies its expense by nature in its income statement, this would say 'included in raw materials and consumables used'. If the entity classifies its expenses by nature in its income statement, this would say ‘included in depreciation and amortisation expense’.