Final Results
1 July 2026
Supreme plc
("Supreme," the "Company" or the "Group")
Audited Financial Statements for the year ended 31 March 2026
· Record year for revenue and Adjusted EBITDA1
· Organic investment and earnings accretive acquisitions underpinning performance
· Expansion of in-house manufacturing capabilities and product diversification supports medium term growth ambitions
Supreme (AIM:SUP), a leading manufacturer, innovator and distributor of fast-moving consumer goods, announces its audited results for the year ended 31 March 2026 ("FY26" or "the Period").
Financial highlights
FY26
£ millionFY25
£ million%
changeRevenue
270.2
231.1
+17%
Gross profit
78.9
73.7
+7%
Gross profit %
29%
32%
-3ppts
Adjusted EBITDA1
40.6
40.5
0%
Adjusted items
(0.8)
0.7
Profit before tax
26.7
30.9
-14%
Adjusted profit before tax2
27.5
30.2
-9%
EPS
15.4p
20.1p
-23%
Adjusted EPS3
18.9p
21.6p
-13%
Operating cash flow
32.4
25.1
+29%
Net assets
89.8
76.5
+17%
Adjusted net cash4
7.5
1.2
+525%
Statutory net debt
7.4
12.3
40% reduction
Financial highlights
· Record revenue of £270.2 million, increasing 17% YoY (FY25: £231.1 million) as a result of strategic acquisitions undertaken in the past two years combined with growth in the Vaping division.
· Adjusted EBITDA1 broadly level at £40.6 million, in line with current analysts' consensus following an upgrade earlier this year.
· Drinks & Wellness grew by 60% to £69.3 million of revenue, with SlimFast making a strong contribution after only five months as part of the Group, and a full year of contribution from Clearly Drinks.
· Positive Adjusted net cash position of £7.5 million (FY25: £1.2 million) after considerable investment into the business through M&A and manufacturing infrastructure initiatives.
Operational highlights
· Acquisitions of iconic brands SlimFast and 1001 carpet care in the Period for a combined cost of £22.3 million which, together, are expected to immediately generate annualised Adjusted EBITDA1 of around £6.5 million.
· £6.0 million investment to expand Supreme's in-house manufacturing capacity and capabilities, supporting future growth across multiple product categories.
o Creation of a state-of-the-art wellness manufacturing facility 'The Hive' and continued development of the tea facility 'The Plant'.
· Vaping revenues grew 15% YoY, despite major legislative change in the period from the introduction of the UK's disposable vape ban, with all major retailers retained.
· Further vertical integration of the Typhoo Tea business through the establishment of a UK-based manufacturing facility, which produced approximately 380 million tea bags in its first year of operation.
· Ongoing progress to increase the Group's international sales footprint with distribution capabilities established in Hong Kong, and recent license agreements extending reach into Middle East and China.
· Post-period end, secured two new licensing agreements with Carabao and Tonino Lamborghini, further expanding our drinks and wellness offering.
· In total, the Group now owns or exclusively licenses almost 30 different brands across our portfolio, demonstrating the mix and diversity of our business model.
Dividend
· The Board is proposing a final dividend, subject to shareholder approval at the Annual General Meeting on 17 September 2026, of 3.8 pence per share. If approved, the final dividend will be paid on 22 September 2026 to shareholders on the register at the close of business on 21 August 2026. The ex-dividend date will be 20 August 2026.
· The Group paid an interim dividend of 1.6 pence per share, which together with the final dividend would take total dividends for the year to 5.4 pence per share, a 4% increase on the prior year dividend.
Outlook
· Supreme has had a positive start to FY27, supported by solid customer traction for existing and new products with current trading in line with market expectation.
· Supreme is well-positioned to grow organically and demonstrate resilience in the vaping industry with the introduction of the Vaping Products Duty and expected market consolidation.
· Management will continue to harness Supreme's extensive manufacturing and distribution capabilities, alongside further leveraging an expanded product portfolio, offering consumers great quality at affordable prices.
Sandy Chadha, Chief Executive Officer of Supreme, commented:
"I am delighted to report a record-breaking performance for Supreme. Our portfolio has doubled over the past couple of years, fuelled by a combination of brand led acquisitions alongside organic expansion of our product offering.
Our ongoing investment in Supreme's manufacturing capabilities continues at pace, greatly enhancing our ability to both safeguard margins but more importantly, continue to place product development at the heart of our business.
We entered the new financial year supported by our strong balance sheet, a diversified portfolio of products and brands, and a clear strategic vision on where our priorities lie.
I look forward to updating all our stakeholders later in the year on our continued progress."
Retail Investor Presentation
Management will be hosting a presentation for investors in relation to the Company's full year results on Thursday 2nd July at a revised time of 1pm. GMT.
To register for the event, please go to:
1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non hedge accounted derivatives and non-recurring items.
2. Adjusted Profit before tax means profit before tax and Adjusted items (as defined in Note 7 of the financial statements) Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.
3. Adjusted EPS means Earnings per share, where Earnings are defined as profit after tax but before amortisation of acquired intangibles and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments, fair value movements on non-hedge accounted derivatives and non-recurring items.
4. Adjusted net cash means net debt as defined in Note 20 to these financial statements excluding the impact of IFRS16.
Enquiries:
Supreme plc
Sandy Chadha, Chief Executive Officer
Suzanne Smith, Chief Finance Officer
via Vigo Consulting
Shore Capital (Nominated Adviser and Joint Broker)
David Coaten / Mark Percy / George Payne - Corporate Advisory
Ben Canning - Corporate Broking
+44 (0)20 7408 4090
Zeus (Joint Broker)
Jordan Warburton / Emma Burn - Investment Banking
Nick Searle - Corporate Broking
+44 (0)161 831 1512
Vigo Consulting (Financial PR & Investor Relations)
Jeremy Garcia / Safia Colebrook / Georgina Moul
+44 (0)20 7390 0230
About Supreme
Supreme supplies products across three operating divisions: Vaping (previously known as 'Vaping' and 'Branded Distribution'), Drinks & Wellness ('Sports Nutrition & Wellness' combined with Typhoo Tea, Clearly Drinks and the newly acquired SlimFast brand), and Electricals & Household (previously 'Batteries' and 'Lighting', also including the recently acquired 1001 cleaning brand). The Company's capabilities span from product development and manufacturing through to its extensive retail distribution network and direct to consumer capabilities. This vertically integrated platform provides an excellent route to market for well-known brands and products.
The Group has over 3,000 active business accounts with around 55,000 retail outlets. Customers include B&M, Home Bargains, Poundland, Tesco, Sainsbury's, Morrisons, Amazon, The Range, Costcutter, Asda, Halfords, Iceland, Waitrose, Aldi and HM Prison & Probation Service.
In addition to distributing globally-recognised brands such as Duracell, Energizer and Panasonic, and supplying lighting products exclusively under the Energizer, Eveready and JCB licences across 45 countries, Supreme has also built a strong portfolio of in-house brands, most notably 88Vape. The Company has a growing footprint in Sports Nutrition & Wellness via its principal Sci-MX brand and has recently expanded into the soft drinks and hot beverages markets with the acquisitions of Typhoo Tea and Clearly Drinks and now into weight management through SlimFast, one of the UK's leading meal replacement brands.
https://investors.supreme.co.uk/
CHAIR'S STATEMENT
I am pleased to report a robust performance across FY26, delivering EBITDA in line with the prior year while successfully navigating the regulatory disruption in the vaping industry. Our strong cash generation and financial position have enabled us to successfully execute two earnings accretive acquisitions, including SlimFast - our largest transaction to date - alongside ongoing organic investment in the business. We remain committed to diversifying our product portfolios, while invigorating iconic brands that continue to deliver new market entry and growth opportunities for Supreme.
This progress is reflected in our record financial performance in FY26, with revenue of £270.2 million (FY25: £231.1 million), and Adjusted EBITDA of £40.6 million (FY25: £40.5 million). More importantly, we ended the Period in a positive Adjusted net cash position after initial cash outflow of £12.9 million in respect of the acquisition of the SlimFast and 1001 brands during the Period, and £6.0 million to enhance manufacturing capabilities, reinforcing the underlying strength of the business. The Group ended the Period with an adjusted net cash position of £7.5 million and a statutory net debt position of £7.4 million, reflecting IFRS16 lease liabilities.
Our extensive manufacturing and distribution capacities continue to offer consumers high-quality yet affordable products spanning Vaping, Drinks & Wellness and Electricals & Household.
Our Vaping category proved resilient to changes in the industry following the UK disposable vape ban, enforced from 1 June 2025, and continues to perform well. As a Board, we are supportive of the legislative landscape within our vaping segment that seeks to eradicate underage vaping, including the forthcoming Vaping Products Duty ("VPD") due to be implemented in October 2026. Whilst the VPD may lower sales volumes, we are optimistic that it will reduce illicit trade in favour of established, trusted distributors such as Supreme, and believe we are well placed to manage this transition.
The Group enhanced its Drinks & Wellness footprint during the Period, further developing our in-house manufacturing capability for Typhoo at 'The Plant', our black tea facility, alongside reviving its branding and digital presence. We have also extended our reach in the energy and isotonic market, signing two licensing agreements post-period end with Carabao and Tonino Lamborghini, as we look to further diversify our Drinks & Wellness offering.
The earnings-enhancing acquisition of SlimFast into the Group added another highly recognisable brand to our diverse portfolio, expanding Supreme's presence in the weight management market. SlimFast has an established sales footprint, including Home Bargains, Tesco and Amazon and provided Supreme with access to new customers such as Boots and Superdrug.
Our Electricals & Household category saw a forecast reduction in revenue, reflecting an overall decline in the lighting and batteries market. Nevertheless, the Company's low-maintenance operations across these markets remains a cash-generative source of income and one where this structural decline can be closely managed. Our acquisition of the 1001 carpet care brand expanded this category with a well-recognised name that was immediately earnings enhancing for Supreme in FY26. Product diversification within the category also created access to new retail customers, highlighting the strength of Supreme's M&A strategy.
During the year, the Group increased its capital expenditure, investing in 'The Hive': our new, state-of-the-art 40,000 sq ft protein powder manufacturing facility. This reflects the same scalable approach to in-house manufacturing previously executed in Vaping with the VN Labs facility, now being replicated across Drinks & Wellness.
The Board remains pleased with the Group's performance, and on its behalf, I would like to thank all our employees for their efforts, hard work and commitment during the year, which continue to support our strong financial results and ongoing growth ambitions.
Paul McDonald
Non-executive Chair
30 June 2026
CEO REVIEW
I am delighted to report a strong financial and operational performance from Supreme, delivering a record year in terms of both revenue and Adjusted EBITDA1. This result is a testament to the resilience of our model, the quality of our brands, the strength of our retail partnerships, and above all, the exceptional capability and commitment of our team.
Revenue for the year was £270.2 million, representing growth of 17% YoY (FY25: £231.1 million), with Adjusted EBITDA1 broadly level at £40.6 million (FY25: £40.5 million), in line with current market expectations, following an upgrade earlier in the year. After investing £12.9 million acquiring the SlimFast and 1001 brands, and a further £6.0 million in manufacturing infrastructure, the Group remains net-cash positive at year end, a reflection of the underlying cash generative quality of our operating model.
Two years ago, Drinks & Wellness was a category generating £23.9 million of revenue; today it contributes £69.3 million. Our Vaping division, widely expected to contract in the wake of the UK's disposable vape ban, instead grew by 15% year-on-year. These are not coincidences; they are the outcomes of deliberate, disciplined strategic execution, and they give us considerable confidence as we look ahead to FY27 and beyond.
A recurring theme of FY26 has been our investment in manufacturing and operational infrastructure. We are a vertically integrated business, and our ability to manufacture at scale is one of our most durable competitive advantages. This year, we have invested £6 million into two significant capital programmes: the build-out of The Hive wellness manufacturing facility and the ongoing development of The Plant tea facility. These investments will generate returns for many years to come and underpin our ability to grow Drinks & Wellness revenues at attractive margins.
Our centralised distribution model, anchored by our Ark facility, continues to deliver significant operational and commercial efficiency benefits. The Ark platform enables us to fulfil across our product portfolio with the speed, accuracy and service levels that our retail partners have come to expect from Supreme. We believe this infrastructure advantage is difficult for competitors to replicate and will become increasingly valuable as we further extend our product offering.
Having been highly acquisitive in the two years preceding FY26, we made a deliberate choice to be more selective on M&A in the second half of the year. With a portfolio that has doubled over a short period, our priority has been the integration of new brands; ensuring that our operational infrastructure is sufficiently scaled will support the next phase of growth.
That said, we remain committed to strategic M&A as a core component of our growth. Our enviable track record of seamless integration, alongside our manufacturing and distribution expertise, has enabled Supreme to consistently generate returns that exceed acquisition cost, with SlimFast expected to be the most recent example. We will continue to pursue complementary acquisitions where the strategic and financial case is compelling, at the pace and on the terms that are right for our Business.
Operational Review
We are pleased to report another period of resilient growth, reflecting the strength and adaptability of Supreme's diversified business model. Our strategy continues to differentiate us in the market, enabling us to respond quickly to customer demand while maintaining strong operational control. Operating under three distinct categories of Vaping, Drinks & Wellness, and Electricals & Household, I am delighted to see our divisions performing well, and in some cases surpassing our expectations.
Management remains focused on executing a clear and disciplined growth strategy, including:
· Targeting complementary earnings-enhancing acquisitions;
· Generating cross-selling opportunities to expand our customer footprint and average revenue per customer;
· Developing new product verticals that complement Supreme's customer base, focused on a high quality and good value consumer proposition;
· Leveraging our new manufacturing and distribution footprint to create ongoing economies of scale and explore bringing more product manufacturing in-house; and
· Enhancing online distribution and services to further grow our B2B and D2C sales channels.
Vaping: Navigating a Year of Significant Change
The UK ban on disposable vapes, which took effect on 1 June 2025, represented the most significant regulatory event in our industry's recent history. Nevertheless, our Vaping category outperformed expectations, with revenues for the period growing by almost £20 million (15%) on the prior year to £148.1 million (FY25: £129.0 million). Our ability to retain every major retail customer and guide them through the transition from disposable vapes to pod systems - following our guidance on range and SKU count - highlights our position as a leader in the UK vaping market.
We also introduced a number of well-regarded third-party brands into our distribution portfolio during the year, including IVG and Hayati, further broadening our vaping range. Our core 10ml e-liquid business, produced at scale from our Manchester manufacturing facility where we manufacture approximately 70 million bottles annually, performed solidly throughout with steady demand across the Period. We are seeing encouraging growth in contract manufacturing within the 10ml segment, a trend we expect to accelerate as smaller manufacturers face increasing complexity from the introduction of the Vaping Products Duty ("VPD") due to come into effect in October 2026.
The VPD will be the next major industry milestone. We have spent a significant portion of the second half of FY26 preparing for its introduction: adapting our manufacturing processes to accommodate digitised tax stamps, reviewing packaging requirements, applying for duty suspension arrangements and reconfiguring certain warehousing operations. The operational implications are complex, but we are well-resourced and well-prepared.
Supreme is confident that the forthcoming VPD regime represents an opportunity for the Group: smaller competitors without Supreme's financial strength and operational depth will find the compliance burden considerable. Supreme, however, expects to navigate the change effectively and opportunistically, as it begins to take a larger market share.
Drinks & Wellness: A Category Transformed
Our Drinks & Wellness division has continued to evolve in FY26 following further M&A activity and diversification. It has undergone a remarkable transformation over the past two years, now reporting revenue of £69.3 million, compared to £23.9 million just 24 months earlier. This reflects both the quality of the acquisitions we have made and the speed and effectiveness with which we have integrated them. Investment into the category over the past 2 years has resulted in a vertically integrated, manufacturing-led platform that generates high gross margins, supports brand innovation, and offers our retail customers an increasingly compelling and differentiated proposition.
All sub-sectors within Drinks & Wellness, including Sports Nutrition, Tea, Soft Drinks and Weight Management, delivered revenue and gross profit ahead of the prior year.
Within Sports Nutrition, our Sci-MX brand continued to grow strongly. According to Nielsen data, Sci-MX V-Gain is the UK's fastest-growing vegan powder on the market, and Sci-MX creatine delivers the highest rate of sales of any creatine brand sold in the UK. We have invested significantly in this sub-category during FY26, fitting out a brand new, state-of-the-art 40,000 sq ft wellness manufacturing facility - 'The Hive' - which will not only support further growth across our own brands but will substantially increase our contract manufacturing capability.
The Soft Drinks sub-category grew revenues by approximately 41% YoY to £26.3 million, almost 20% higher than its pre-Supreme revenue. This growth has been driven by cross-sell initiatives with some of Supreme's largest retail customers, alongside a new channel unlocked by the "pilot line" manufacturing investment made immediately post-acquisition, which allows smaller, nascent brands to launch their products through our facility. The pairing of Clearly Drinks' automated, accredited manufacturing capabilities with Supreme's customer network, balance sheet and entrepreneurial energy is a compelling model, and one we have now validated. Post-period end, we signed two license agreements in the energy drinks sector with Carabao in April and Tonino Lamborghini in May. We believe that the combination of strong independent brands and our operational capabilities is an attractive proposition, and we expect to see further momentum in our energy drinks offering as new customer interest grows.
Typhoo Tea completed its first full year under Supreme ownership during FY26 and performed solidly. At the outset, we stabilised the brand's retail listings by replacing an inconsistent, price-led approach with firm, permanent placements at key retailers. This foundation, combined with the opening of our dedicated tea manufacturing facility, 'The Plant' (which produced approximately 380 million tea bags in FY26), positions Typhoo for sustained growth. The same facility is expected to more than double output in FY27 on an almost identical cost base, a clear illustration of the operating leverage available as we scale and apply our continuous improvement disciplines, which we have previously executed in both our Vaping and Wellness manufacturing operations.
The acquisition of the SlimFast brand from Glanbia for £20.6 million, completed in October 2025, was a significant strategic addition to the Group and our largest acquisition to date. In just five months of ownership, the brand has performed well, and we have extensive plans for innovation and expanded distribution. SlimFast was immediately earnings enhancing for the Group and contributed to our strong FY26 performance; however, we are realistic that it had been somewhat under-invested prior to our acquisition, and rebuilding consumer and retailer confidence to deliver consistent, sustainable performance will take time. Nevertheless, the SlimFast brand is instantly recognisable for UK customers, and its integration into our new protein manufacturing facility, The Hive, will add scale and cost efficiency in the coming months.
An exciting development for the Group is the performance of our brands internationally. We launched Juicy Protein in Hong Kong via Circle K's 350-store convenience network during FY26, and early indications are positive. SlimFast and Tonino Lamborghini Energy Drinks are expected to follow in FY27, with other retailers having already committed to these brands. We have begun investing in on-the-ground infrastructure in the territory and are simultaneously exploring opportunities in the Middle East and China regions. International expansion has always been a strategic aspiration for us; it is now becoming a commercial reality.
Electricals and Household: Cash generative growth
Our Electricals & Household division, encompassing Batteries, Lighting and, following the acquisition of the 1001 cleaning brand, remained a reliable contributor to the Group, even as it navigated a more difficult year than in recent periods.
Batteries faced two discrete headwinds during FY26. First, the swift and unexpected exit of Panasonic from the UK market created a period of disruption, as we worked to replace volume with alternative brands. We have done so, but the transition naturally took time and came at a short-term cost to revenue. Second, a structural change at Amazon, which has moved to direct supply models, cutting out the reseller channel through which Supreme had previously distributed, removed a meaningful revenue stream that we do not expect to recover. Critically, gross margins across Electricals remain resilient, underlining the quality and durability of the category's earnings even as the topline faces temporary headwinds.
Lighting saw a gradual decline, accelerated in FY26 by our exit from the fittings market and the loss of a customer in Ireland. Neither development was unexpected, and both are consistent with our stated position that Lighting, while still contributing positively to Group earnings, is a non-core category.
The 1001 cleaning brand, acquired in FY26, has performed solidly since joining the Group, generating revenue of £2.0 million in the Period, and is beginning to demonstrate the cross-sell potential we envisaged at the time of acquisition.
Outlook
Supreme enters FY27 in a strong operational and financial position. We have record revenues, a diversified and growing portfolio of brands, two new manufacturing facilities, a strengthened retail distribution network spanning more than 55,000 outlets, and a clear strategic roadmap for each of our three divisions.
The introduction of the VPD will bring short-term complexity, but we also expect to see growing opportunity as the market consolidates around operators with scale, compliance capability and trusted customer relationships in a more regulated environment, and we look forward to demonstrating our resilience through this next transition just as we did through the disposables ban.
We expect our new products to generate excitement among both our retail partners and consumers, and SlimFast to develop into a substantial contributor as we invest in the brand and bring its manufacturing in-house.
Above all, we will continue to do what Supreme does best: provide consumers with high-quality, affordable products across categories they care about; move quickly, act decisively, and manage cost with discipline; and build deep, trusted relationships with our retail partners that make us indispensable.
On behalf of the entire Supreme team, I thank our shareholders for their continued support. I look forward to delivering for our customers, shareholders and employees in FY27.
Sandy Chadha
Chief Executive Officer
30 June 2026
1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non hedge accounted derivatives and non-recurring items.
CHIEF FINANCE OFFICER'S REVIEW
I am delighted to present our financial results for FY26, a year in which the Group delivered another strong financial performance, building on the momentum generated in previous years. We achieved growth across our key financial metrics, reinforcing the significant progress achieved across the business.
Revenue increased 17% to £270.2 million (FY25: £231.1 million), largely driven by strategic acquisitions and organic development in the product mix, alongside growth in our Vaping category.
The business retained its strong cashflow disciplines and reported an Adjusted net cash4 position of £7.5 million, even after considerable investment into the business in the form of brand acquisitions and capital initiatives to support growth - including product and manufacturing infrastructure.
A summary of the key financial results is presented below, followed by further detail on divisional performance, group profitability and cash flow.
Financial highlights
FY26
£ millionFY25
£ million%
changeRevenue
270.2
231.1
+17%
Gross profit
78.9
73.7
+7%
Gross profit %
29%
32%
-3ppts
Adjusted EBITDA1
40.6
40.5
0%
Adjusted items
(0.8)
0.7
Profit before tax
26.7
30.9
-14%
Adjusted profit before tax2
27.5
30.2
-9%
EPS
15.4p
20.1p
-23%
Adjusted EPS3
18.9p
21.6p
-13%
Operating cash flow
32.4
25.1
+29%
Net assets
89.8
76.5
+17%
Adjusted net cash4
7.5
1.2
+525%
Statutory net debt
7.4
12.3
40% reduction
Revenue
Group revenue for FY26 was £270.2 million, representing an increase of 17% compared to the prior year (FY25: £231.1 million). This £39.1 million of incremental revenue came from the two acquisitions undertaken during the year (£10.9 million), the full year impact of the two acquisitions undertaken the year before (£16.2 million) and almost £20 million of incremental revenue from Vaping, partially offset by contraction across Batteries and Lighting of £8.8 million. Further details by division are presented below.
Following the acquisition of the 1001 cleaning brand, the Board elected to combine the revenue from the Group's existing cleaning product lines with 1001 to establish a distinct cleaning sub-category within Electricals. As a result, the segment was reclassified as Electricals & Household and the FY25 revenue has been re-presented accordingly.
Revenue within Electricals & Household decreased by £6.1 million (10%) to £52.8 million (FY25: £58.9 million). This largely reflects the contribution from the 1001 acquisition (£2.0 million), and the decline across the Batteries and Lighting categories (£8.8 million). The reduction in Batteries was driven by a number of external factors, most notably Panasonic's unexpected withdrawal from the European battery market, which caused short-term supply disruption. This was followed by a shift in Amazon's distribution model for global brands, effectively removing resellers, including Supreme and its customers, from this channel. Performance in Lighting was in line with the broader market contraction. While performance within Electricals & Household was disappointing, the category remains earnings-enhancing for the Group, requires limited operational oversight and continues to benefit from a low cost-to-serve model.
Revenue for Vaping increased by £19.1 million (15%) from £129.0 million in FY25 to £148.1 million. This growth was entirely organic and arose as a result of extended distribution across new brands (Hayati and IVG) and new territories (Spain) and the rollout of pod devices across Q2 that replaced disposable vapes following the UK ban that was implemented in June 2025. The remainder of the category continued to perform robustly throughout FY26.
Revenue from Drinks & Wellness grew by £26.1 million (60%) to £69.3 million, benefiting from the acquisition of SlimFast (£8.9 million) and the annualisation of last year's acquisitions of Clearly Drinks and Typhoo Tea (£16.2 million). The Board was delighted with the performance of all elements of this category including the legacy Sports Nutrition segment with the SCI-MX brand at its core now officially "the UK's fastest growing vegan powder on the market" reporting growth of £1.0 million in FY26.
Gross profit
Gross profit increased by 7% to £78.9 million (FY25: £73.7 million). Due to the change in sales mix, gross profit margin reduced from 32% to 29%, primarily reflecting the transition from disposable to pod-based vape products, which carry structurally lower margins across the market. Margins were also impacted in the early stages of pod distribution as the Group established its purchasing disciplines and optimised buying routines. This pattern is consistent with previous experience in disposables, where margins improved progressively over time as purchasing strategies matured and retailer demand became more predictable.
In FY25, the Group reported revenue of £54.1 million from disposable vape products. Following the introduction of a UK-wide ban on the sale of these devices in early FY26, the Group transitioned seamlessly to pod devices and did not incur any material stock write-offs or incremental overhead costs in either FY25 or FY26 in respect of this transition. This reflects disciplined inventory management and a proactive approach to supporting retail partners in clearing existing stock ahead of the regulatory change.
Adjusted EBITDA¹
Administrative expenses reported within Adjusted EBITDA were £38.3 million (FY25: £33.3million). The year-on-year increase was mainly driven by:
· £3.9 million in respect of the businesses acquired in FY26 or the full year impact of businesses acquired the year before. Of this, £2.3 million related to the overheads at Clearly Drinks where the business is operated on a standalone basis (due to its manufacturing being tied to its water source in the North-East of England) and therefore operational synergies are limited;
· £0.2 million in respect of The Hive, the Group's newly established Wellness manufacturing facility; and
· £0.2 million of consultancy costs in relation to our international expansion activities across the Middle and Far East.
Adjusted EBITDA¹ increased marginally to £40.6 million (FY25: £40.5 million).
Adjusted items
Adjusted items totalled £0.8 million (FY25: £0.7 million credit). As in previous years, these primarily related to fair value movements on forward contracts and share-based payment charges, which together netted to almost £nil (FY25: £0.6 million charge). In addition, the Group reported £0.8 million of charges in respect of acquisitions, largely relating to adviser fees and integration costs.
The Board believes that by adjusting these items from profitability, it is able to present the underlying performance of the business more clearly and further information on these items can found in Note 7 to these financial statements.
Whilst Adjusted EBITDA1 was broadly the same year-on-year, Adjusted Items were £1.5 million higher (owing to the large credit last year in respect of the Typhoo "Bargain purchase") and depreciation (owing to the increased capital investment in our manufacturing operations) and amortisation (owing to the acquired brands of Typhoo and SlimFast) were both collectively £2.5 million higher, meaning that profit before tax was £4.2 million lower versus FY25.
Finance costs
Finance costs (net of interest income) were £1.8 million in FY26 (FY25: £1.6 million), split between interest arising from borrowings (net of interest on deposits) of £0.6 million, interest relating to the lease liabilities under IFRS16 of £0.9 million and £0.3 million of interest charged on deferred & contingent consideration.
Taxation
The Group incurred a tax charge of £8.3 million (FY25: £7.4 million), giving rise to an effective tax rate of 31% (FY25: 24%). The difference related almost entirely to the swing on deferred tax relating to the share-based payments charge (Sandy Chadha's 5-year options did not vest resulting in an unwind of the associated deferred tax asset).
Profit after tax and earnings per share
Profit after tax was £18.4 million compared to £23.5 million in FY25.
As a result, earnings per share reduced by 23% to 15.4p (FY25: 20.1p) and on a fully diluted basis reduced from 19.5p to 15.0p. On an adjusted profit after tax basis, which we consider to be a better measure of performance, adjusted earnings (as calculated in note 11) were £22.2 million (FY25: £25.2 million) and adjusted earnings per share3 was 18.9p (FY25: 21.6p).
Dividends
In line with our dividend policy of distributing c.25% of net profit, the Group paid an interim dividend of 1.6p per share in January 2026. A final dividend of 3.8p per share will be proposed at the Annual General Meeting, scheduled to take place 17 September 2026, taking the total dividend for the year to 5.4p per share (FY25: 5.2p per share). This will be paid on 22 September 2026 to shareholders on the register at the close of business on 21 August 2026. The ex-dividend date will be 20 August 2026. The Group's ISIN and TIDM are GB00BDT89C08 and SUP respectively.
Cashflow
FY 26
FY 25
£m
£m
Adjusted EBITDA1
40.6
40.5
Movement in working capital
1.4
(6.9)
Tax paid
(9.1)
(6.8)
Cash-impacting Adjusted items
(0.5)
(1.7)
Operating cash flow
32.4
25.1
Debt servicing / raising / repaying
(2.7)
1.7
Lease payments
(1.8)
(1.9)
Capital expenditure
(6.0)
(3.2)
M&A (net of cash acquired)
(12.9)
(25.6)
Proceeds from sale of assets
0.7
1.0
Dividends paid (net of new share issues)
(5.9)
(5.5)
Exchange rate differences
0.5
-
Net cash flow
4.3
(8.4)
Opening cash
3.2
11.6
Closing cash
7.5
3.2
Net cash flow
4.3
(8.4)
The Group generated £32.4 million of operating cash in the Period which it largely reinvested back into the business via the acquisitions of the SlimFast and 1001 brands which totalled £12.9 million and capital investment in respect of our two new manufacturing sites (The Hive and The Plant) and the onsite investment into Clearly Drinks own manufacturing capabilities totalling £6.0 million.
In respect of financing, the Group's principal borrowing facility, a £40 million asset-backed lending facility with HSBC was entirely undrawn at year end with cash on the balance sheet of £7.5 million.
Net debt
FY 26
FY 25
£m
£m
Cash
(7.5)
(3.2)
Bank borrowings
0
2.0
Adjusted net (cash) / debt4
(7.5)
(1.2)
IFRS16 lease liability
14.9
13.4
Statutory net debt
7.4
12.3
Use of non-GAAP measures
As in previous years, certain non-GAAP metrics are used in this report to provide clarity and comparability. These are clearly defined in the notes to the financial statements and reconciled where applicable.
Suzanne Smith
Chief Finance Officer
30 June 2026
1. Adjusted EBITDA means operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.
2. Adjusted Profit before tax means profit before tax and Adjusted items (as defined in Note 7 of the financial statements) Adjusted items include share-based payments charge, fair value movements on non-hedge accounted derivatives and non-recurring items.
3. Adjusted EPS means Earnings per share, where Earnings are defined as profit after tax but before amortisation of acquired intangibles and Adjusted items (as defined in Note 7 of the financial statements). Adjusted items include share-based payments, fair value movements on non-hedge accounted derivatives and non-recurring items.
4. Adjusted net cash means net debt as defined in Note 20 to these financial statements excluding the impact of IFRS16.
Consolidated Statement of Comprehensive Income
for the Year Ended 31 March 2026
Year Ended
31 March 2026
Year Ended
31 March 2025
Note
£'000
£'000
Revenue
4
270,209
231,078
Cost of sales
6
(191,263)
(157,395)
Gross Profit
78,946
73,683
Other operating income
-
95
Administration expenses
6
(50,444)
(44,214)
Net gain on bargain purchase
7
-
2,941
Operating profit
28,502
32,505
Adjusted EBITDA1
40,556
40,481
Depreciation
13
(7,713)
(6,448)
Amortisation
12
(3,546)
(2,273)
Adjusted items
7
(795)
745
Operating profit
28,502
32,505
Finance income
9
62
157
Finance costs
9
(1,850)
(1,755)
Profit before taxation
26,714
30,907
Income tax
10
(8,280)
(7,400)
Profit for the year
18,434
23,507
Profit is attributable to:
Owners of Supreme PLC
18,039
23,459
Non-controlling interests
395
48
18,434
23,507
Other comprehensive income
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
183
11
Total other comprehensive income
183
11
Total comprehensive income
18,617
23,518
Total comprehensive income is attributable to:
Owners of Supreme PLC
18,222
23,470
Non-controlling interests
395
48
18,617
23,518
Earnings per share for profit attributable to the ordinary equity holders of the company:
Basic earnings per share
11
15.4p
20.1p
Diluted earnings per share
11
15.0p
19.5p
Note 1: Adjusted EBITDA, which is defined as operating profit before depreciation, amortisation and Adjusted items (as defined in Note 7) is a non-GAAP metric used by management and is not an IFRS performance measure.
All results derive from continuing operations.
The notes are an integral part of these financial statements.
Consolidated Statement of Financial Position
as at 31 March 2026
As at
31 March 2026
As at
31 March 2025
Note
£'000
£'000
Non-current assets
Assets
Goodwill and other intangibles
12
39,342
21,242
Property, plant and equipment
13
32,038
30,800
Total non-current assets
71,380
52,042
Current assets
Assets held for sale
14
-
500
Inventories
16
37,114
36,329
Trade and other receivables
17
47,475
42,199
Forward contract derivative
23.5
509
-
Net investment in sublease
21
-
338
Cash and cash equivalents
18
7,514
3,182
Total current assets
92,612
82,548
Total assets
163,992
134,590
Liabilities
Current liabilities
Borrowings
20
1,396
3,342
Trade and other payables
19
50,787
33,686
Forward contract derivative
23.5
-
131
Income tax payable
5,121
6,276
Total current liabilities
57,304
43,435
Net current assets
35,308
39,113
Borrowings
20
13,551
12,104
Deferred tax liability
15
2,600
2,117
Provisions
22
774
480
Total non-current liabilities
16,925
14,701
Total liabilities
74,229
58,136
Net assets
89,763
76,454
Equity
Share capital
24
11,732
11,731
Share premium
7,686
7,685
Merger reserve
(22,000)
(22,000)
Capital redemption reserve
83
83
Share-based payments reserve
4,882
4,326
Retained earnings
86,833
74,477
Capital and reserves attributable to owners of Supreme PLC
89,216
76,302
Non-controlling interests
547
152
Total equity
89,763
76,454
The notes are an integral part of these financial statements.
The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2026, and were signed on its behalf by:
S Smith
Director
Registered number: 05844527
Consolidated Statement of Changes in Equity
for the Year Ended 31 March 2026
Share Capital
Share Premium
Merger reserve
Capital redemption reserve
Share-based payments reserve
Retained earnings
Total equity attributable to shareholders
Non-controlling interest
Total
equity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
As at 1 April 2024
11,652
7,435
(22,000)
83
3,967
56,838
57,975
-
57,975
Profit for the year
-
-
-
-
-
23,459
23,459
48
23,507
Other comprehensive income
-
-
-
-
-
11
11
-
11
Total comprehensive income for the year
-
-
-
-
-
23,470
23,470
48
23,518
Transactions with shareholders:
Non-controlling interests on acquisition of subsidiary
-
-
-
-
-
-
-
1
1
Transactions with non-controlling interests
-
-
-
-
-
-
-
103
103
Issue of shares
79
250
-
-
-
-
329
-
329
Employee share schemes - value of employee services (note 25)
-
-
-
-
437
-
437
-
437
Deferred tax on share-based payment charge (note 15)
-
-
-
-
(78)
-
(78)
-
(78)
Dividends (note 24)
-
-
-
-
-
(5,831)
(5,831)
-
(5,831)
79
250
-
-
359
(5,831)
(5,143)
104
(5,039)
As at 31 March 2025
11,731
7,685
(22,000)
83
4,326
74,477
76,302
152
76,454
Profit for the year
-
-
-
-
-
18,039
18,039
395
18,434
Other comprehensive income
-
-
-
-
-
183
183
-
183
Total comprehensive income for the year
-
-
-
-
-
18,222
18,222
395
18,617
Transactions with shareholders:
Issue of shares
1
1
-
-
-
-
2
-
2
Employee share schemes - value of employee services (note 25)
-
-
-
-
535
-
535
-
535
Deferred tax on share-based payment charge (note 15)
-
-
-
-
21
-
21
-
21
Dividends (note 24)
-
-
-
-
-
(5,866)
(5,866)
-
(5,866)
1
1
-
-
556
(5,866)
(5,308)
-
(5,308)
As at 31 March 2026
11,732
7,686
(22,000)
83
4,882
86,833
89,216
547
89,763
Consolidated Statement of Cash Flows
for the Year Ended 31 March 2026
Year Ended
31 March 2026
Year Ended
31 March 2025
Note
£'000
£'000
Net cash flow from operating activities
Profit for the year
18,434
23,507
Adjustments for:
Amortisation of intangible assets
12
3,546
2,273
Depreciation of tangible assets
13
5,986
5,023
Depreciation of right of use assets
13
1,727
1,425
Finance income
9
(62)
(157)
Finance costs
9
1,800
1,700
Amortisation of capitalised finance costs
9
50
55
Income tax expense
10
8,280
7,400
Negative goodwill on acquisition
-
(4,163)
Impairment of assets classified as held for sale
14
-
65
Loss/ (gain) on disposal of tangible fixed assets
399
(94)
Movement on forward foreign exchange contracts
23.5
(640)
79
Share based payments expense
25
617
498
Working capital adjustments (net of acquired on business combinations)
Increase in inventories
(785)
(2,042)
Increase in trade and other receivables
(5,326)
(925)
Increase/ (decrease) in trade and other payables
7,555
(1,953)
Increase/ (decrease) in provisions
42
(321)
Taxation paid
(9,065)
(6,848)
Invoice discounting fees
9
(141)
(430)
Net cash from operations
32,417
25,092
Cash flows used in investing activities
Purchase of intangible fixed assets
12
(12,944)
(57)
Purchase of property, plant and equipment
13
(5,983)
(3,148)
Purchase of business combinations net of cash acquired
-
(25,619)
Proceeds from sale of property, plant and equipment
157
1,024
Proceeds from sale of assets held for sale
500
-
Lease receipts
346
306
Finance income received
9
62
157
Net cash used in investing activities
(17,862)
(27,337)
Cash flows used in financing activities
Repayments of related party loans
2
-
Repayment of ABL facility
20
(216,036)
(1,277)
Drawdowns of ABL facility
20
213,853
3,276
Issue of options or share capital
24
2
329
Dividends paid
24
(5,866)
(5,831)
Finance costs paid
(42)
(269)
Facility fees paid
-
(150)
Interest paid on ABL facility
20
(425)
-
Interest paid on leases
20
(904)
(835)
Lease payments
20
(1,279)
(1,382)
Net cash used in financing activities
(10,695)
(6,139)
Net increase/ (decrease) in cash and cash equivalents
3,860
(8,384)
Cash and cash equivalents brought forward
3,182
11,631
Effects of exchange rate changes
472
(65)
Cash and cash equivalents carried forward
7,514
3,182
Cash and cash equivalents
18
7,514
3,182
7,514
3,182
Notes to the Group Financial Statements
for the Year Ended 31 March 2026
1. Basis of preparation
Supreme PLC ("the Company") is a public company limited by shares, registered in England and Wales and domiciled in the UK, with company registration number 05844527. The registered office is 4 Beacon Road, Ashburton Park, Trafford Park, Manchester, M17 1AF.
The principal activity of the Group is the distribution of fast-moving branded, discounted consumer goods to retailers and wholesalers in the UK and online. The goods are either manufactured by Supreme in the UK or are sourced by Supreme from elsewhere in the UK, Europe or the Far East.
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined by section 434 of the Companies Act 2006.
The results for the year ended 31 March 2025 have been extracted from the full accounts of the Group for that year which received an unqualified auditor's report and which have not yet been delivered to the Registrar of Companies. The financial information for the year ended 31 March 2024 is derived from the statutory accounts for that year, which have been delivered to the Registrar of Companies. The report of the auditor on those filed accounts was unqualified. The accounts for the year ended 31 March 2025 and 31 March 2024 did not contain a statement under s498 (1) to (4) of the Companies Act 2006. The statutory accounts for the year ended 31 March 2025 will be posted to shareholders at least 21 days before the Annual General Meeting and made available on our website www.supreme.co.uk and on request by contacting the Company Secretary at the Company's Registered Office.
These Group financial statements have been prepared on a going concern basis under the historical cost convention, modified for the revaluation of certain forward contracts derivatives; in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards.
2. Summary of material accounting policies
The principal accounting policies adopted are set out below.
2.1 Basis of consolidation
The consolidated financial statements present the results of the Company and its own subsidiaries as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The Group financial statements incorporate the results of business combinations using the acquisition method. In the Consolidated Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. The merger reserve arose on a past business combination of entities that were under common control. The merger reserve is the difference between the cost of investment and the nominal value of the share capital acquired.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of financial position respectively.
2.2 New standards, amendments and interpretations
New standards, amendments and interpretations adopted by the Group
The group has applied the following amendment for the first time for its annual reporting period commencing 1 April 2025:
· Lack of Exchangeability - Amendments to IAS 21. The amendment did not have any material impact on these financial statements.
On 28 November 2025, the IASB issued Disclosures about Uncertainties in the Financial Statements - Illustrative examples, which amended multiple IFRS Accounting Standards to include illustrative examples demonstrating how companies can apply IFRS Accounting Standards when reporting the effects of uncertainties in their financial statements. The illustrative examples are accompanying materials to IFRS Accounting Standards and do not have an effective date. The IASB had issued a near-final staff draft of the illustrative examples in July 2025. The Group has considered these illustrative examples in its preparation of the consolidated financial statements and no additional disclosures or changes in presentation were considered necessary.
2. Summary of material accounting policies (continued)
2.2 New standards, amendments and interpretations (continued)
New standards, amendments and interpretations not yet adopted by the Group
The following amendments are effective for the period beginning 1 April 2026:
· IFRS 9 Financial Instruments (Amendments to the Classification and Measurement of Financial Instruments
· Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)
The following amendments are effective for the period beginning 1 April 2027:
· IFRS 18 Presentation and Disclosure in Financial Statements
· IFRS 19 Subsidiaries without Public Accountability: Disclosures
The Group is currently assessing the impact of these new accounting standards and amendments. The Group does not expect any standards issued by the IASB, but are yet to be effective, to have a material impact on the Group, other than IFRS 18.
IFRS 18 Presentation and Disclosure in Financial Statements will not have any effect on the recognition and measurement of items in the consolidated financial statements. However, it is expected to have a significant effect on the presentation and disclosure of certain items. These changes include categorisation and sub-totals in the statement of profit or loss, aggregation/disaggregation and labelling of information, and disclosure of management-defined performance measures.
Judgements made by the Directors in the application of these accounting policies that have a significant effect on these financial statements together with estimates with a significant risk of material adjustment in the next year are discussed in note 3.
2.3 Going concern
In assessing the appropriateness of adopting the going concern basis in the preparation of these financial statements, the Directors have prepared cash flow forecasts and projections for the two-year period to 31 March 2028. These forecasts and projections, which the Directors consider to be prudent, have been sensitised by applying general reductions to revenue and profitability, to consider downside risk and the impact these scenarios would have on the Group's cashflows and liquidity and its ability to continue to operate and trade.
· The Directors have undertaken a specific sensitivity analysis in relation to the forthcoming Vaping Products Duty ("VPD"), modelling a scenario in which revenue currently attributable to 10ml e-liquids reduces to nil, reflecting a potential complete loss of demand. While VPD will apply to both e-liquids and pod-based products, the resulting impact on retail pricing is expected to be more pronounced for e-liquids, which may increase the likelihood of a shift in consumer demand away from this category. Under this scenario, the business is not faced with any going concern risk for the foreseeable.
· In addition to the specific sensitivity on the VPD, the Directors have also overlaid further a potential downturn sensitivity by assuming a 5% and then 20% reduction in revenue across all divisions of the business (whilst maintaining the existing overhead base). Again, the business remains profitable and cash generative.
· In fact, owing to the working capital unwind that occurs in the short to medium term when sales reduce, the forecasts indicate that the Group's revenue can fall significantly (without any adjustment to overheads) in the period to 31 March 2028.
2. Summary of material accounting policies (continued)2.3 Going concern (continued)
· The recent and ongoing conflict in the Middle East has the potential to disrupt global energy markets and key trade routes, which may adversely affect the Group through shipping delays and increased volatility in the cost and availability of raw materials. The Directors have not performed a specific sensitivity analysis in respect of this scenario as they consider the Group to have sufficient resources and operational flexibility to manage the potential impacts arising from such developments.
· Whilst the Group's debt facility (a £40 million asset-based lending facility with HSBC) is priced at a variable rate (SONIA + a margin) and will be in place until March 2028, the Group's current positive leverage ratio (i.e. having a net cash positive position at the balance sheet date), means that Supreme's exposure to any increases in borrowing rates is limited. Should the Group increase its level of bank borrowings during the forecast period (likely to be triggered by M&A) then of course this increased cost of borrowing would impact the Group (albeit expected to be offset by the incremental earnings generated by any M&A target).
· Historically Supreme has been a net beneficiary in periods of economic downturn, owing to the fact more than half of its revenue is derived from the discount retail sector which typically trades buoyantly during these periods (for prudence this has not been assumed in the forecast). The inflationary cost increases (specifically over salary costs, energy and transport) have been specifically factored into the cost base throughout for the forecast period.
Based on these various scenarios, the Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Group and Company financial statements.
2.4 Currencies
Functional and presentational currency
Items included in the Group financial statements are measured using the currency of the primary economic environment in which the Company operates ("the functional currency") which is UK sterling (£). The Group financial statements are presented in UK sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using a standard exchange rate for a period if the rates do not fluctuate significantly. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.
Group companies
The results and financial position of foreign operations (none of which has the currency of a hyper-inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
· assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;
· income and expenses for each statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
· all resulting exchange differences are recognised in other comprehensive income.
2. Summary of material accounting policies (continued)
2.5 Revenue recognition
Revenue solely relates to the sale of goods and arises from the wholesale distribution and online sales of Electricals and Household, Vaping and Drinks and Wellness.
To determine whether to recognise revenue, the Company follows the 5-step process as set out within IFRS 15:
1. Identifying the contract with a customer.
2. Identifying the performance obligations.
3. Determining the transaction price.
4. Allocating the transaction price to the performance obligations.
5. Recognising revenue when/as performance obligation(s) are satisfied.
Revenue is measured at transaction price, stated net of VAT, and other sales related taxes. Rebates to customers take the form of volume discounts, which are a type of variable consideration, and the transaction price is constrained to reflect the rebate element. The transaction price equates to the invoice amount less an estimate of any applicable rebates and promotional allowances that are due to the customer. Accumulated experience is used to estimate and provide for rebates and discounts using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. These accruals are reported within trade and other payables.
Revenue is recognised at a point in time as the Company satisfies performance obligations by transferring the promised goods to its customers as described below. At any point in time where such obligations haven't been met but the customer has been invoiced, revenue is deferred, as disclosed in note 19. Variable consideration, in the form of rebates, is also recognised at the point of transfer, however the estimate of variable consideration is constrained at this point and released once it is highly probable there will not be a significant reversal.
Contracts with customers take the form of customer orders. Performance obligations take the form of distribution of products to the customer, or customer collection of goods, for which the transaction price is clearly identified. When control has passed from the Group to the customer, which tends to be on receipt by the customer revenue is recognised. In respect of certain direct shipments control passes when an invoice is raised, payment received, and title formally transferred to the customer; at which point the customer has the risks and rewards of the goods.
2. Summary of material accounting policies (continued)
2.6 Goodwill
The carrying value of goodwill has arisen following the acquisition of subsidiary entities. Such goodwill is subject to an impairment review, both annually and when there is an indication that the carrying value may be impaired. Any impairment is recognised immediately in the Statement of Comprehensive Income and is not reversed.
Where the fair value of net identifiable assets acquired and liabilities assumed in a business combination exceeds the consideration transferred, the difference is recognised immediately as a gain in the Consolidated Statement of Comprehensive Income after management has reassessed whether it has correctly identified and measured the assets acquired and liabilities assumed.
2.7 Other intangible assets
Other intangible assets that are acquired by the Group are stated at cost less accumulated amortisation and accumulated impairment losses.
At the end of each reporting period the Group assesses whether there is any indication that an asset may be impaired. If any such indication exists, an estimate of the recoverable amount is determined, and any impairment is recognised in the Statement of Comprehensive Income.
The amortisation is charged on a straight-line basis as follows:
Domain name - 10%
Trademarks - 10%
Customer relationships - 20%
Trade names - 20%
Know how - 10%
Computer software - 20%
2.8 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Depreciation is charged so as to write off the costs of assets over their estimated useful lives, on a straight-line basis starting from the month they are first used, as follows:
Land - not depreciated
Assets under construction - 0%
Plant and machinery - 25%
Fixtures and fittings - 25%
Motor vehicles - 25%
Computer equipment - 33%
Leasehold improvements - 25%
Buildings - 2%
The gain or loss arising on the disposal of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the Statement of Comprehensive Income.
2. Summary of material accounting policies (continued)
2.8 Property, plant and equipment (continued)
At each reporting date, the Company reviews the carrying amounts of its property, plant and equipment assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
2.9 Inventories
Inventories are valued using a first in, first out method and are stated at the lower of cost and net realisable value. Cost includes expenditure incurred in the normal course of business in bringing the products to their present location and condition.
At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the income statement. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the income statement.
2.10 Leases
The Company applies IFRS 16 in the Group financial statements. At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to restore the underlying asset, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liabilities.
The lease liability is initially measured at the present value of lease payments that were not paid at the commencement date, discounted using the rate implicit in the lease. Where there is no rate implicit in the lease then the Group's incremental borrowing rate is used.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect lease payments made, and remeasuring the carrying amount to reflect any reassessment, lease modification or revised in-substance fixed lease payments required by IFRS 16. Interest on the lease liability is recognised in profit or loss over the lease term so as to produce a constant periodic rate of interest on the remaining balance of the lease liability. If there is a remeasurement of the lease liability, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded directly in profit or loss if the carrying amount of the right of use asset is zero.
Short term leases and low value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for short-term lease of machinery that have a lease term of 12 months or less or leases of low value assets. These lease payments are expensed on a straight-line basis over the lease term.
2. Summary of material accounting policies (continued)
2.10 Leases (continued)
Sub-leases
When the Group sub-leases part of its right of use asset it recognises a reduction in the right of use asset and a lease receivable at the lease commencement date.
The lease receivable is measured as the present value of the lease income receivable at the commencement date, discounted at the same incremental borrowing rate.
2.11 Share based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of Comprehensive Income over the remaining vesting period.
Where equity instruments are granted to persons other than employees, the Statement of Comprehensive Income is charged with fair value of goods and services received.
2.12 Segmental reporting
The Directors consider there to be one segment for reporting purposes because although revenue is grouped within 3 product categories, as the directors analyse revenue at this gross level, the directors do not analyse, monitor or review the Groups KPIS (being adjusted EBITDA and profit before tax) by product category. Due to this, the Group do not believe there are any IFRS 8 considerations around the requirement to report operating segments for reporting purposes.
2. Summary of material accounting policies (continued)
2.13 Adjusted items
The Company's income statement separately identifies Adjusted items. Such items are those that in the Directors' judgement need to be disclosed separately by virtue of either: their volatility year-on-year; their one-off nature; their size, their non-operating nature; or because the adjustment of a particular item is widely accepted and conducted by peers (to ensure comparability with other listed businesses). These may include, but are not limited to, professional fees and other costs directly related to refinancing, acquisitions and capital transactions, fair value movements on open forward contracts, share based payment charges, material impairments of inventories and gains/losses on disposal of intangible assets. In determining whether an item should be disclosed as an Adjusted item, the Directors consider quantitative and qualitative factors such as the frequency, predictability of occurrence and significance. This is consistent with the way financial performance is measured by management and reported to the Board.
Adjusted EBITDA is presented as an Alternative Performance Measure (APM). Adjusted EBITDA is defined as earnings before interest, tax, depreciation, amortisation, and Adjusted items. Adjusted EBITDA is not defined by IFRS and may therefore differ from similarly titled measures presented by other companies, limiting comparability. Management believes Adjusted EBITDA provides useful additional information to assess underlying performance, but it should not be considered in isolation or as a substitute for IFRS-defined measures.
2.14 Financial instruments
Financial assets and financial liabilities are recognised in the Group Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument. Financial assets are de-recognised when the contractual rights to the cash flows from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired.
2. Summary of material accounting policies (continued)
2.15 Trade and other receivables
Trade and other receivables are initially measured at transaction price less provisions for expected credit losses. The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance.
IFRS 9's impairment requirements use forward-looking information to recognise expected credit losses - the 'expected credit loss (ECL) model'.
Recognition of credit losses is determined by considering a broad range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected life of the financial instrument.
Credit Insurance is also in place which also mitigates the credit risk in relation to the respective customer. This insurance is applied to most accounts over £5,000 with exception of proforma accounts and accounts agreed by the CEO, although some accounts are excluded from the credit insurance having been assessed by the Board on a cost-benefit analysis - these equate largely to the largest grocery retailers.
3. Critical accounting estimates and judgements
The preparation of the Group financial statements require management to make judgements and estimates that affect the reported amounts of assets and liabilities at each Statement of Financial Position date and the reported amounts of revenue during the reporting periods. Actual results could differ from these estimates. Information about such judgements and estimations are contained in individual accounting policies. The key judgements and sources of estimation uncertainty that could cause an adjustment to be required to the carrying amount of assets or liabilities within the next accounting period are outlined below:
Accounting estimates
Management have not identified any significant accounting estimates that require disclosure.
Accounting judgements
3.1 Inventory obsolescence
Management applies judgement in determining whether certain inventory items are obsolete, considering factors such as expiry dates, sales forecasts, changes in market sentiment and consumer tastes, and one off events such as government imposed regulation on the sale of products. Based on these judgements, estimates are made regarding the recoverable value of inventory, which could materially affect the financial statements if these estimates are incorrect.
3.2 Asset acquisition or business combination
During the year, the Group completed acquisitions, as disclosed in note 29, and management exercised judgement in determining whether each acquisition represented a business combination under IFRS 3 or an asset acquisition. This assessment considered whether the acquired set included inputs and substantive processes capable of contributing to outputs, including employees, operational processes, customer relationships and revenue-generating activities. Management also considered whether substantially all of the fair value was concentrated in a single asset or group of similar assets. Based on this assessment, management concluded that the acquisitions were asset acquisitions.
4. Revenue analysis
Revenue
Year Ended
31 March 2026
Year Ended
31 March 2026
Year Ended
31 March 2025
Year Ended
31 March 2025
£'000
£'000
£'000
£'000
Revenue
Gross Profit
Revenue
Gross Profit
Electricals & Household
52,822
9,034
58,892
12,182
Vaping
148,092
47,043
128,952
46,919
Drinks & Wellness
69,295
21,504
43,234
13,284
Foreign Exchange
-
1,365
-
1,298
270,209
78,946
231,078
73,683
Following the acquisition of 1001 during the year the Group has revised its reporting categories. The category formerly knowns as Electricals was renamed Electricals and Household, now including any household related products. As such the results for the year ended 31 March 2025 have been represented to reflect this recategorisation.
Analysis of revenue by geographical destination
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
United Kingdom
244,025
213,244
Ireland
6,142
8,543
Spain
13,125
3,214
France
2,427
2,656
Rest of Europe
1,342
2,386
Rest of the World
3,148
1,035
270,209
231,078
The prior year comparative has been restated to display revenues attributed to Spain separately following its identification as material in the year ended 31 March 2026. These revenues were previously included in the Rest of Europe category. Revenues associated with the Netherlands has also been restated in the prior year to the Rest of Europe.
The above revenues are all generated from contracts with customers and are recognised at a point in time. All assets of the Group reside in the UK except for total non-current assets of £614,000 (2025: £569,000) and net assets of £5,171,000 (2025: £4,260,000) held in Europe.
5. Operating segments
The Chief Operating Decision Maker ("CODM") has been identified as the Board of Directors. The Board reviews the Group's Internal reporting in order to assess the performance and allocate resources. The Board of Directors deem the Group to be one operating segment because they do not assess performance or allocate resources at a disaggregated level.
Information about major customers
The Group has generated revenue from an individual customer that accounted for greater than 10% of total revenue. The total revenue from this customer (2025: 2 customers) was £39,078,000 (2025: £29,967,000, £25,710,000). These revenues related to all divisions.
6. Expenses by nature
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
The profit is stated after charging/(crediting) expenses as follows:
Cost of sales
Inventories recognised as an expense
168,833
137,841
Impairment of inventories
366
1,052
Direct Labour (note 8)
9,611
8,015
Other direct cost of sales
12,453
10,487
191,263
157,395
Administrative expenses
Impairment of trade receivables
(118)
77
Wages and salaries (note 8)
15,572
13,989
Establishment costs
5,450
3,937
Auditor's remuneration for audit services
330
340
Selling, professional and other expenses
17,156
14,954
Adjusted items excluding net gain on bargain purchase (note 7)
795
2,196
Depreciation of property, plant and equipment
5,986
5,023
Depreciation of right of use assets
1,727
1,425
Amortisation of intangible assets
3,546
2,273
50,444
44,214
Total cost of sales & administrative expenses
241,707
201,609
During the year, Auditor's remuneration in respect of non-audit services was £nil (2025: £nil). During the year Auditor's remuneration in respect of the parent company audit was £15,000 (2025: £15,000) and group audit was £225,000 (2025: £225,000). The remaining audit fee of £90,000 (2025: £100,000) related to the audit of the direct and indirect subsidiary undertakings of Supreme PLC.
7. Adjusted items
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Fair value movements on forward contracts (note 23.5)
(640)
79
Share based payments charge (note 25)
617
498
Acquisition costs
614
1,030
Transaction costs
204
683
Other restructuring costs
-
(94)
Net gain on bargain purchase
-
(2,941)
795
(745)
Fair value movements on forward contracts
The Group typically holds 1 years' worth of USD-denominated purchases on open forward contracts. The charge in the year ended 31 March 2026 reflects the movement in the fair value of these open forward contracts at the balance sheet date. The movement is reported each year as Adjusted due to its volatility. The asset at 31 March 2026 is £509,000 (2025: liability of £131,000) and is reported as 'forward contract derivative' in the statement of financial position. This is a non-cash item and is not taxable for corporation tax purposes. The resulting tax impact is therefore £nil.
7. Adjusted items (continued)
Share based payments charge
The Group operates a number of share incentive arrangements as set out in note 25. The aggregate expense recognised in the year has been reported as an Adjusted item in line with its treatment by other comparable businesses. The charge is a non-cash item and was disallowable for corporation tax purposes. The resulting tax impact is therefore £nil.
Acquisition costs
Acquisition costs arise at Supreme when businesses are integrated into the Supreme Group. In the year ended 31 March 2026 these costs related to the acquisition of the trade and selected UK and European assets of SlimFast, the trade and intellectual property of 1001, and some finalisation of costs associated with the Typhoo transaction in the prior year. These costs include the loss on fair valued machinery acquired in the year ended 31 March 2025 of £365,000, and payments made to suppliers to maintain supply during the period where customers were being transitioned following acquisition. £35,000 of these costs were included in accruals at the year end.
In the year ended 31 March 2025 these costs related to the acquisitions of Acorn Topco Limited and the trade and certain assets of Typhoo Tea Limited. These integration expenses reflected redundancy costs. £38,000 of these costs were reported within accruals at the year ended 31 March 2025.
Acquisition costs of this nature were treated as allowable for the purpose of corporation tax and the corporation tax impact was £154,000 in 2026 (25%) and £258,000 (25%) in 2025.
Transaction costs
In the year ended 31 March 2026 and 31 March 2025 these costs consist largely of adviser fees in respect of acquisitions as well as the accounting advice taken afterwards to assess the purchase price allocation. £nil of these costs were included in accruals at the year end (2025: £159,000).
The majority of the transaction costs in 2026 were treated as disallowable for corporation tax purposes. As a result the tax charge arising on these costs totalled £2,000 (25%). Transaction costs of this nature in the prior year were treated as allowable for the purpose of corporation tax and the corporation tax impact was £171,000 (25%).
Other restructuring costs
Following the decision to exit a warehouse facility held under lease during the year ended 31 March 2025 the Group recognised a profit of £94,000 on the unwinding of the remaining lease.
This gain was treated as allowable for the purposes of corporation tax and the corporation tax impact was £24,000 (25%).
7. Adjusted items (continued)
Net gain on bargain purchase
During the year ended 31 March 2025 the Group acquired the trade and certain assets of Typhoo Tea Limited out of administration for a consideration of £10.2m. The fair value of net assets acquired totalled £14.4m. The resulting negative goodwill of £4,163,000 has been recognised as a gain on bargain purchase. In addition to this the business was charged £1,222,000 in ransom payments by key Typhoo suppliers. These costs were deducted from the goodwill recognised to produce a net gain on bargain purchase which was presented in the income statement in the year.
Net gain on bargain purchase has been treated as allowable for the purposes of corporation tax and the corporation tax impact was £735,000 in the year ended 31 March 2025 (25%).
8. Employees and Directors
Year Ended
31 March 2026
Year Ended
31 March 2025
No.
No.
Monthly average number of employees (including Directors):
Management and administration
115
101
Warehouse
66
78
Sales
38
55
Manufacturing
255
249
474
483
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Aggregate remuneration of staff (including Directors):
Wages and salaries
21,723
19,951
Social security costs
2,715
2,190
Other pension costs
745
864
25,183
23,005
Amounts classified as Adjusted Items
-
1,001
Amounts recorded as Cost of sales and Admin expenses
25,183
22,004
Directors' remuneration
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Directors' emoluments
1,020
1,149
Social security costs
154
227
Company contributions to defined contribution pension schemes
14
4
1,188
1,380
The highest paid director received remuneration of £547,000 (2025: £630,000).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,000 (2025: £1,000).
During the year, retirement benefits were accruing to 3 directors (2025: 3) in respect of defined contribution pension schemes.
9. Finance (income)/costs
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Finance income
Right of use interest receivable
(9)
(16)
Bank interest receivable
(53)
(141)
(62)
(157)
Finance costs
Bank interest payable
-
235
Invoice discounting fees
141
430
ABL facility fees
425
-
Other interest payable
-
172
Unwind of discounting on deferred consideration
288
-
Amortisation of capitalised arrangement fees
50
55
Interest on lease liabilities
946
863
1,850
1,755
10. Taxation
Year Ended
31 March 2026
Year Ended
31 March 2025
Current tax
£'000
£'000
Current year - UK corporation tax
7,241
8,215
Adjustments to tax charge in respect of prior periods
345
132
Foreign tax on income
190
100
Total current tax
7,776
8,447
Deferred tax
Origination and reversal of temporary differences
429
(1,047)
Adjustments to tax charge in respect of prior periods
75
-
Total deferred tax
504
(1,047)
Total tax expense
8,280
7,400
Equity Items
Current tax
-
-
Deferred tax
21
(78)
Total
21
(78)
10. Taxation (continued)
Factors affecting the charge
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Profit before taxation
26,714
30,907
Tax at the UK corporation tax rate of 25% (2025: 25%)
6,679
7,727
Effects of expenses not deductible for tax purposes
193
1,187
Income not taxable for tax purposes
-
(1,114)
Adjustments to tax charge in respect of prior periods
420
357
Chargeable losses
(75)
(86)
Movement in deferred tax not recognised
154
(158)
Deferred tax on Share Based Payments
909
(379)
Enhanced Relief
-
(134)
Total tax expense
8,280
7,400
Factors that may affect future tax charges
Deferred taxes at the balance sheet date have been measured using the current enacted tax rates and have been reflected in these financial statements.
11. Earnings per share
Basic earnings per share is calculated by dividing the profit or loss for the year attributable to ordinary equity holders after tax by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share is calculated with reference to the weighted average number of shares adjusted for the impact of dilutive instruments in issue. For the purposes of this calculation an estimate has been made for the share price in order to calculate the number of dilutive share options.
11. Earnings per share (continued)
Statutory EPS
The basic and diluted calculations are based on the following:
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Profit for the year after tax
18,039
23,459
No.
No.
Weighted average number of shares for the purposes of basic earnings per share
117,316,956
116,714,097
Weighted average dilutive effect of conditional share awards
2,885,137
3,758,257
Weighted average number of shares for the purposes of diluted earnings per share
120,202,093
120,472,354
Pence
Pence
Basic earnings per share
15.4
20.1
Diluted earnings per share
15.0
19.5
Adjusted EPS
The calculation of adjusted earnings per share is based on the after tax adjusted operating profit after adding back certain costs as detailed in the table below. Adjusted earnings per share figures are given to exclude the effects of amortisation of acquisition related intangibles (on the basis that these intangible assets arise through purchase price allocations on acquisitions) and adjusted items, all net of taxation, and are considered to show the underlying performance of the Group.
Adjusted earnings per share is presented as an Alternative Performance Measure (APM). Adjusted EPS is not defined by IFRS and may therefore differ from similarly titled measures presented by other companies, limiting comparability. Management believes Adjusted EPS provides useful additional information to assess underlying performance of the Group, but it should not be considered in isolation or as a substitute for IFRS-defined measures.
11. Earnings per share (continued)
Adjusted EPS (continued)
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Adjusted earnings (see below)
22,153
25,239
No.
No.
Weighted average number of shares for the purposes of basic earnings per share
117,316,956
116,714,097
Weighted average dilutive effect of conditional share awards
2,885,137
3,758,257
Weighted average number of shares for the purposes of diluted earnings per share
120,202,093
120,472,354
Pence
Pence
Adjusted basic earnings per share
18.9
21.6
Adjusted diluted earnings per share
18.4
21.0
The calculation of basic adjusted earnings per share is based on the following data:
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Profit for the year attributable to equity shareholders
18,039
23,459
Add back/(deduct):
Amortisation of acquisition related intangible assets
3,475
2,218
Adjusted items
795
(745)
Tax effect of the above
(156)
307
Adjusted earnings
22,153
25,239
12. Goodwill and other intangible assets
Domain name
£'000
Trademarks
£'000
Customer relationships
£'000
Trade names
£'000
Know how
£'000
Computer software
£'000
Goodwill
£'000
Total
£'000
Cost
At 1 April 2024
311
1,544
3,803
3,374
262
156
7,508
16,958
Additions
-
6,050
1,000
900
-
57
1,845
9,852
At 31 March 2025
311
7,594
4,803
4,274
262
213
9,353
26,810
Additions
-
21,576
-
-
-
70
-
21,646
At 31 March 2026
311
29,170
4,803
4,274
262
283
9,353
48,456
Accumulated amortisation
At 1 April 2024
187
470
1,431
1,122
32
53
-
3,295
Amortisation charged in the year
25
448
920
824
26
30
-
2,273
At 31 March 2025
212
918
2,351
1,946
58
83
-
5,568
Amortisation charged in the year
25
1,868
721
860
26
46
-
3,546
At 31 March 2026
237
2,786
3,072
2,806
84
129
-
9,114
Carrying amount
At 1 April 2024
124
1,074
2,372
2,252
230
103
7,508
13,663
At 31 March 2025
99
6,676
2,452
2,328
204
130
9,353
21,242
At 31 March 2026
74
26,384
1,731
1,468
178
154
9,353
39,342
The amortisation charge for the year has been included in Administrative expenses in the Statement of Comprehensive Income.
Of the additions in the financial year £12,944,000 (2025: £57,000) was paid during the year. An amount of £8,809,000 was recognised as deferred and contingent consideration as per note 19. Adjustments arising as a result in a change of estimates relating to the acquisition of the 1001 brand in the year resulted in a reduction to the additions recognised in the period of £108,000. In the prior year the remaining amounts was recognised as part of the acquisition of business combinations.
12. Goodwill and other intangible assets (continued)
Individually material intangible assets
The individually material intangible assets at the year end are summarised below:
Intangible asset name
Asset category
Net book value at year end
£'000
Remaining amortisation period
Years
Description
Typhoo Trademark
Trademarks
2,875
8
The Typhoo Trademark was acquired in FY25 from the administrators of Typhoo Tea Limited.
1001 Trademark
Trademarks
1,612
9
The 1001 Trademark was acquired during FY26.
SlimFast Trademark
Trademarks
18,857
9
The SlimFast trademark was acquired during FY26.
The individually material intangible assets at the prior year end are summarised below:
Intangible asset name
Asset category
Net book value at year end
£'000
Remaining amortisation period
Years
Description
Typhoo Trademark
Trademarks
3,210
9
The Typhoo Trademark was acquired in FY25 from the administrators of Typhoo Tea Limited.
Liberty Flights Customer relationships
Customer relationships
1,015
2
These customer relationships were acquired in FY23 as part of the acquisition of Liberty Flights.
Liberty Flights Trade name
Trade names
1,577
2
This trade name was acquired in FY23 as part of the acquisition of Liberty Flights.
12. Goodwill and other intangible assets (continued)
Goodwill arises on acquisitions where the fair value of the consideration given for the business exceeds the fair value of the assets acquired and liabilities assumed.
Following the acquisition of a business, the directors identify the individual Cash Generating Units (CGUs) acquired and, where possible, allocate the underlying assets acquired and liabilities assumed to each of those CGUs.
In the current and prior year, the only CGU's for the purpose of the annual test for impairment of goodwill are Supreme Imports and Clearly Drinks.
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Supreme
7,508
7,508
Clearly Drinks
1,845
1,845
9,353
9,353
The key assumptions for the value in use calculations are:
· cash flows before income taxes are based on approved budgets and prior experience and management projections for the next 3 years;
· a long term growth rate of 2.0% (2025: 2.0%) for the period beyond which detailed budgets and forecasts do not exist; based on external sources of macroeconomic projections for the geographies in which the entity operates; and
· a pre tax discount rate of 13.1% (2025: 13.4%) based upon risk free rate for government bonds adjusted for a risk premium to reflect increased risk of investing in equities and investing in the Group's specific sector and regions.
Impairment testing of goodwill is performed at least annually by reference to value in use calculations which management consider to be in line with the requirements of IAS 36. These calculations show no reasonably possible scenario in which any of the goodwill balances could be impaired as at 31 March 2026 or 31 March 2025. There were no charges for impairment of goodwill in 2026 (2025: nil).
12. Goodwill and other intangible assets (continued)
Sensitivity to goodwill impairment
Management has applied sensitivities to the key assumptions, including discount rates and growth rates and believes there are no reasonably possible scenarios which would result in an impairment of goodwill.
A 1% increase or decrease in each assumption was selected as it reflects a realistic and supportable change in key assumptions, considering historical fluctuations in market discount rates and long-term growth expectations for the industry and countries operated in. This range captures reasonable volatility without moving into extreme or unlikely scenarios. The tables below show what the value in use would become should there be a 1% increase or decrease in the rate used in each assumption.
Supreme Imports Limited
Discount rate
Value in use
£'000
Long term growth rate
Value in use
£'000
Used in the value in use model
13.1%
2%
Value in use
203,072
203,072
1% increase
187,593
218,788
1% decrease
221,593
189,958
Clearly Drinks Limited
Discount rate
Value in use
£'000
Long term growth rate
Value in use
£'000
Used in the value in use model
13.1%
2%
Value in use
25,618
25,618
1% increase
23,548
27,742
1% decrease
28,098
23,845
13. Property, plant and equipment
Buildings
£'000
Plant and machinery
£'000
Fixtures and
fittings
£'000
Motor vehicles
£'000
Computer equipment
£'000
Leasehold improvements
£'000
Assets under construction
£'000
Right of use assets
Total
£'000
Cost or valuation
At 1 April 2024
1,492
6,816
306
433
760
4,023
-
19,496
33,326
Additions
-
1,908
74
-
76
1,009
938
113
4,118
On acquisition
1,430
12,469
33
-
-
-
-
-
13,932
Disposals
(927)
(322)
-
(45)
-
-
-
(1,456)
(2,750)
Reclass to held for sale (note 14)
(565)
-
-
-
-
-
-
-
(565)
At 31 March 2025
1,430
20,871
413
388
836
5,032
938
18,153
48,061
Additions
-
1,527
187
40
113
549
3,604
3,485
9,505
On acquisition
-
-
-
-
-
-
-
-
-
Disposals
-
(663)
-
(10)
-
-
-
(86)
(759)
Transfers
-
1,532
-
-
-
-
(1,532)
-
-
Reclass to held for sale (note 14)
-
-
-
-
-
-
-
-
-
At 31 March 2026
1,430
23,267
600
418
949
5,581
3,010
21,552
56,807
Depreciation and impairment
At 1 April 2024
-
4,923
136
116
501
655
-
5,579
11,910
Depreciation charged in the year
-
3,423
172
58
222
1,148
-
1,425
6,448
Eliminated on disposal
-
(154)
-
(21)
-
-
-
(922)
(1,097)
At 31 March 2025
-
8,192
308
153
723
1,803
-
6,082
17,261
Depreciation charged in the year
-
4,310
171
70
114
1,321
-
1,727
7,713
Eliminated on disposal
-
(146)
-
(6)
-
-
-
(53)
(205)
At 31 March 2026
-
12,356
479
217
837
3,124
-
7,756
24,769
Carrying amount
At 1 April 2024
1,492
1,893
170
317
259
3,368
-
13,917
21,416
At 31 March 2025
1,430
12,679
105
235
113
3,229
938
12,071
30,800
At 31 March 2026
1,430
10,911
121
201
112
2,457
3,010
13,796
32,038
The depreciation charge for the year has been included in Administrative expenses in the Statement of Comprehensive Income. Of the additions in the financial year £5,983,000 (2025: £3,148,000) was paid during the year including £1,017,000 (2025: £160,000) of cash paid for additions recognised in the prior year.
14. Assets classified as held for sale
During the year, tangible assets previously held for sale were sold for a consideration of £500,000.
Details of the assets classified as held for sale are below:
Freehold land and buildings
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Net book value included within property, plant and equipment
-
565
Impairment
-
(65)
Assets held for sale
-
500
These assets are presented separately in the statement of financial position under the heading "Assets held for sale".
15. Deferred tax
Deferred tax consists of the following temporary differences
As at
31 March 2026
(Debited)/ Credited to profit or loss
Credited to reserves
As at
31 March 2025
£'000
£'000
£'000
£'000
Share based payments
110
(910)
21
999
Short term temporary differences
768
(317)
-
1,085
Deferred tax asset
878
(1,227)
21
2,084
Excess of depreciation over taxable allowances
(852)
135
-
(987)
Fixed asset timing differences
(1,449)
188
-
(1,637)
Acquired intangible assets
(1,177)
400
-
(1,577)
Deferred tax liability
(3,478)
723
-
(4,201)
Net deferred tax liability
(2,600)
(504)
21
(2,117)
Movement in deferred tax in the year
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Balance at the beginning of the year
(2,117)
(854)
(Debited)/ Credited to profit or loss
(504)
1,047
Credited/ (Debited) to reserves - Share based payments charges
21
(78)
Acquired in business combination
-
(706)
Arising on business combination
-
(1,526)
Balance at the end of the year
(2,600)
(2,117)
The Directors consider that the deferred tax assets in respect of temporary differences are recoverable based on the forecasted future taxable profits of the Group. All deferred tax arises within the UK.
16. Inventories
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Goods for resale
32,036
31,469
Raw materials
5,078
4,860
37,114
36,329
The Directors believe that the replacement value of inventories would not be materially different than book value.
Inventories at 31 March 2026 are stated after provisions for impairment of £2,494,000 (2025: £2,128,000). During the year, inventories were written down by £366,000 (2025: £1,052,000) as disclosed in note 6.
When determining a suitable level of impairment management applies judgement in determining whether certain inventory items are obsolete, considering factors such as expiry dates, sales forecasts, changes in market sentiment and consumer tastes, and one off events such as government imposed regulation on the sale of products. Based on these judgements, estimates are made regarding the recoverable value of inventory, which could materially affect the financial statements if these estimates are incorrect.
17. Trade and other receivables
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Trade receivables not past due
30,704
21,624
Trade receivables past due
5,698
5,140
Provision for expected credit losses
(151)
(269)
Total trade receivables
36,251
26,495
Other receivables
8,352
12,737
Prepayments
2,872
2,967
47,475
42,199
The other receivable balance arises due to deposits and advance payments for stock to far east suppliers.
Currency analysis
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Sterling
35,341
25,307
Euro
3,690
4,065
US Dollar
8,444
12,827
47,475
42,199
17. Trade and other receivables (continued)
The Directors believe that the carrying value of trade and other receivables represents their fair value. Trade and other receivables are considered past due once they have passed their contracted due date. Trade and other receivables are assessed for impairment based upon the expected credit loss model.
The movement in provisions for impairment are shown below:
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Balance at the beginning of the year
269
262
(Credited)/ charged to the statement of comprehensive income
(47)
77
Utilisation of provision
(71)
(70)
Balance at the end of the year
151
269
The Group's customer base is predominantly made up of high-quality organisations with a high credit rating. In order to manage credit risk, the Directors set limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history. The maturity analysis of trade receivables from invoice date is analysed below.
Ageing of trade receivables
31 March 2026
Current
31 - 60 days
61 - 90 days
90 days +
Total
Expected loss rate
0%
0%
0%
60%
Gross trade receivables
22,786
11,833
1,530
253
36,402
Loss allowance
-
-
-
(151)
(151)
Net trade receivables
22,786
11,833
1,530
102
36,251
31 March 2025
Current
31 - 60 days
61 - 90 days
90 days +
Total
Expected loss rate
0%
0%
0%
48%
Gross trade receivables
16,752
8,234
1,216
562
26,764
Loss allowance
-
-
-
(269)
(269)
Net trade receivables
16,752
8,234
1,216
293
26,495
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivable from the date credit was initially granted up to the reporting date. The Group uses IFRS 9's simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses for trade receivables. The concentration of credit risk is limited due to the customer base being large and unrelated. Accordingly, the Directors believe that no further credit provision is required in excess of the provision for impairment of receivables.
Details on the Group's credit risk management policies are shown in note 23.3. The Group does not hold any collateral as security for its trade and other receivables.
18. Cash and cash equivalents
As at
31 March
2026
As at
31 March 2025
£'000
£'000
Cash and cash equivalents
7,514
3,182
Cash and cash equivalents only include cash at bank in both the current and prior year.
Currency analysis
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Sterling
5,906
1,834
Euro
1,387
1,348
US Dollar
123
-
HKD
98
-
7,514
3,182
19. Trade and other payables
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Trade payables
17,523
15,461
Accruals
18,253
13,305
Amounts owed to related parties
2
86
Deferred income
787
92
Other creditors
724
957
Other tax and social security
4,253
3,783
Invoice financing facility
143
-
Deferred consideration
8,882
-
Contingent consideration
215
-
Directors loan account
5
2
50,787
33,686
Currency analysis
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Sterling
38,714
30,810
Euro
2,000
1,519
US Dollar
10,073
1,357
50,787
33,686
19. Trade and other payables (continued)
Trade payables principally consist of amounts outstanding for trade purchases and ongoing costs. They are non-interest bearing and are normally settled on 30 to 60 day terms. The majority of supplier obligations, other than deferred and contingent consideration as separately disclosed in note 29, are settled within 30 days from date of invoice.
The Directors consider that the carrying value of trade and other payables approximates their fair value. Supreme PLC has financial risk management policies in place to ensure that all payables are paid within the credit timeframe, and no interest has been charged by any suppliers as a result of late payment of invoices during the period.
Deferred and contingent consideration
1001
SlimFast
Total
£'000
£'000
£'000
At 31 March 2025
Deferred consideration
-
-
-
Contingent consideration
-
-
-
-
-
-
Recognition of deferred consideration on acquisition
328
8,275
8,603
Recognition of contingent consideration on acquisition
206
-
206
Unwind of discount - contingent consideration
9
-
9
Unwind of discount - deferred consideration
14
265
279
557
8,540
9,097
At 31 March 2026
Deferred consideration
342
8,540
8,882
Contingent consideration
215
-
215
557
8,540
9,097
20. Borrowings
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Current
Asset based lending creditor
-
1,999
Lease liabilities (note 21)
1,396
1,343
1,396
3,342
Non-current
Lease liabilities (note 21)
13,551
12,104
13,551
12,104
Total borrowings
14,947
15,446
The earliest that the lenders of the above borrowings require repayment is as follows:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
In less than one year
1,396
3,342
Between two and five years
4,765
3,802
In more than five years
8,786
8,302
14,947
15,446
These amounts when presented gross on an undiscounted basis are as follows:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
In less than one year
2,340
4,189
Between two and five years
7,378
6,109
In more than five years
10,485
10,385
20,203
20,683
Management consider that the carrying value of borrowings approximate fair value of the instrument.
20. Borrowings (continued)
On 28 March 2025 the Group entered into a 3 year Asset Based Lending Arrangement with HSBC of £40 million which is secured by an assignment of, and fixed charge over the trade debtors and inventory of Supreme Imports Limited. Interest is charged at a rate of 1.75% over SONIA on drawn amounts. There is no interest charged on undrawn amounts. The facility was drawn as at the 31 March 2026 by £Nil.
Therefore, undrawn but committed facilities at 31 March 2026 were £40 million. At 31 March 2025 the undrawn facilities were £38 million.
Net cash disclosure
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Cash and cash equivalents
7,514
3,182
Total borrowings
(14,947)
(15,446)
Net cash position
(7,433)
(12,264)
20. Borrowings (continued)
Net debt analysis
Cash flows
Non-cash movements
Net debt as at 1 April 2024
Payments
Drawdowns
Interest payments
Facility fees paid
New leases
Foreign exchange adjustments
Interest expense
Movement on loan costs
Non current to current movement
Net debt as at 31 March 2025
ABL facility
-
1,277
(3,276)
-
150
-
-
-
(150)
-
(1,999)
Leases - current
(1,268)
1,382
-
83
-
(53)
-
(83)
-
(1,404)
(1,343)
Leases - non current
(13,449)
-
-
752
-
(60)
-
(752)
1
1,404
(12,104)
Sub-total
(14,717)
2,659
(3,276)
835
150
(113)
-
(835)
(149)
-
(15,446)
Cash and cash equivalents
11,631
(8,384)
-
-
-
-
(65)
-
-
-
3,182
Total
(3,086)
(5,725)
(3,276)
835
150
(113)
(65)
(835)
(149)
-
(12,264)
Cash flows
Non-cash movements
Net debt as at 1 April 2025
Payments
Drawdowns
Interest payments
Facility fees paid
New leases
Foreign exchange adjustments
Interest expense
Movement on loan costs
Non current to current movement
Net debt as at 31 March 2026
ABL facility
(1,999)
216,036
(213,853)
425
-
-
-
(425)
(184)
-
-
Leases - current
(1,343)
1,279
-
84
-
(441)
-
(84)
-
(891)
(1,396)
Leases - non current
(12,104)
-
-
820
-
(2,508)
-
(820)
170
891
(13,551)
Sub-total
(15,446)
217,315
(213,853)
1,329
-
(2,949)
-
(1,329)
(14)
-
(14,947)
Cash and cash equivalents
3,182
4,332
-
-
-
-
-
-
-
-
7,514
Total
(12,264)
221,647
(213,853)
1,329
-
(2,949)
-
(1,329)
(14)
-
(7,433)
21. Leases
The Group leases buildings and cars. Rental contracts are typically made for fixed periods of 3 to 15 years. There are no judgements over the length of the lease term for any of the Group's leases. There are no variable lease payments in any of the Group's leases.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases of the Group, the incremental borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
Amounts recognised in the Statement of Financial Position
The balance sheet shows the following amounts relating to leases:
Right-of-use assets
£'000
At 1 April 2024
13,917
Additions
113
Derecognised
(534)
Depreciation charge for the year
(1,425)
At 31 March 2025
12,071
Additions
3,485
Derecognised
(33)
Depreciation charge for the year
(1,727)
At 31 March 2026
13,796
The net book value of the right of use assets is made up as follows:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Buildings
13,756
11,976
Cars
40
95
13,796
12,071
21. Leases (continued)
Lease liabilities
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Maturity analysis - contractual undiscounted cash flows
Less than one year
2,340
2,190
More than one year, less than two years
2,287
1,746
More than two years, less than three years
1,830
1,683
More than three years, less than four years
1,672
1,340
More than four years, less than five years
1,589
1,340
More than five years
10,485
10,385
Total undiscounted lease liabilities at year end
20,203
18,684
Finance costs
(5,256)
(5,237)
Total discounted lease liabilities at year end
14,947
13,447
Lease liabilities included in the statement of financial position
Current
1,396
1,343
Non-current
13,551
12,104
14,947
13,447
Lease receivables
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Maturity analysis - contractual undiscounted cash flows
Less than one year
-
347
Total undiscounted lease receivable at year end
-
347
Finance costs
-
(9)
Total discounted lease receivable at year end
-
338
Lease receivable included in the statement of financial position
Current
-
338
-
338
Amounts recognised in the Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income shows the following amounts relating to leases:
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Depreciation charge - Buildings
1,670
1,389
Depreciation charge - Cars
57
36
1,727
1,425
Interest income (within finance income)
9
16
Interest expense (within finance expense)
946
863
There are no restrictions or covenants imposed by leases and there have been no sale and leaseback transactions.
Any expense for short-term and low-value leases is not material and has not been presented.
22. Provisions
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Dilapidations provision related to right-of-use assets
At 1 April
480
801
Additions
252
-
Release
-
(349)
Unwind of discounting
42
28
At 31 March
774
480
Provisions included in the statement of financial position
Current
-
-
Non-current
774
480
774
480
23. Financial instruments
The Group is exposed to the risks that arise from its financial instruments. The policies for managing those risks and the methods to measure them are described in note 2. Further quantitative information in respect of these risks is presented below and throughout these Group financial statements.
23.1 Capital risk management
The Group's objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders; and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group might adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.
The Group does not monitor capital on a formal basis. However, the Group ensures that it operates within the requirements of its financing covenants, which are designed to ensure that sufficient capital is maintained. These covenants are outlined below and the Group consistently meets these requirements. Regular reviews of financial performance and position are conducted by management to ensure ongoing compliance with these covenants and to maintain financial flexibility.
Financing covenants
On 28 March 2025 the Group entered into an Asset Based Lending Arrangement with HSBC. The following operational KPIs apply to this facility:
· Receivables related:
o Debt turn will not exceed the number of days specified as per the Debt Turn Covenant; and
o The aggregate value of Dilutions expressed as a percentage of Debts notified during the immediately preceding period of 60 days will not exceed the dilution percentage.
· Inventory related:
o Inventory turn will not exceed the number of days specified as per the Inventory Turn Covenant.
The Group has complied with all covenants in place throughout the reporting period. There are no indications that the entity may have difficulties complying with the operational KPIs in the next two financial years.
23. Financial instruments (continued)
23.2 Market risk
Competitive pressures remain a principal risk for the Group. The risk is managed through focus on quality of product and service levels, coupled with continuous development of new products to offer uniqueness to the customer. Furthermore, the Group's focus on offering its customers a branded product range provides some protection to its competitive position in the market. Stock obsolescence risk is managed through closely monitoring slow moving lines and prompt action to manage such lines through the various distribution channels available to the Group.
In addition, the Group's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk, foreign currency risk and interest rate cash flow risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by regularly monitoring the financial risks referred to above.
Given the size of the Group, the Directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the Board are implemented by the Group's finance department.
23.3 Credit risk
The Group's sales are primarily made with credit terms of between 0 and 60 days, exposing the Group to the risk of non-payment by customers. The Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed regularly by the board. In addition, the Group maintains a suitable level of credit insurance against selected customers. The maximum exposure to credit risk is £5,000 per individual customer that is covered by the policy, being the insurance excess.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables. Expected losses are based on the Group's historical credit losses, adjusted for current and forward-looking information on macroeconomic factors affecting the Group's customers. The Group's B2B historic credit losses have been minimal on the back of strong credit control, in addition to the insurance cover in place. This results in an immaterial expected credit loss being provided for.
An analysis of past due but not impaired trade receivables is given in note 17.
Cash and cash equivalents are held with established financial institutions. The Group monitors the credit quality of the financial institutions with which it deposits funds by reference to external credit ratings and considers the associated credit risk to be low. At the reporting date, cash balances were held with banks rated Fitch A+. The carrying amount of £7,514,000 represents the maximum exposure to credit risk of cash at bank.
Forward foreign exchange contracts are entered into with established banking counterparties. Where such contracts are in an asset position at the reporting date, the Group is exposed to counterparty credit risk to the extent of the positive fair value recognised. The maximum exposure to credit risk on forward foreign exchange contracts is therefore their carrying amount of £509,000.
23.4 Liquidity risk management
The Group is funded by external banking facilities provided by HSBC that are designed to ensure the Group has sufficient available funds for operations and planned expansions. This is monitored on a monthly basis, including re-forecasts of the borrowings required.
23. Financial instruments (continued)
23.5 Foreign currency risk management
The Group's activities expose it to the financial risks of changes in foreign currency exchange rates. The Group's exposure to foreign currency risk is partially hedged by virtue of invoicing a proportion of its turnover in US Dollars. When necessary, the Group uses foreign exchange forward contracts to further mitigate this exposure.
In the prior year a sensitivity of 20 percent was applied to assets held in foreign currencies to demonstrate the impact to the Group of movement in exchange rates on these assets. Following a review, a rate of 5 percent has now been applied as this is considered to more accurately reflect the true conditions the Group operates within. As a result the prior year comparative has been restated to demonstrate a sensitivity of 5 percent to ensure that comparison between periods is understandable.
The following is a note of the assets and liabilities denominated at each period end in US dollars:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Trade receivables
422
461
Cash and cash equivalents
123
-
Trade payables
(1,044)
(1,336)
(499)
(875)
The effect of a 5 percent strengthening of Pound Sterling at 31 March 2026 on the foreign denominated financial instruments carried at that date would, all variables held constant, have resulted in a decrease to total comprehensive income for the year and a decrease to net assets of £24,000 (2025 restated: decrease of £42,000). A 5 percent weakening of the exchange rate on the same basis, would have resulted in an increase to total comprehensive income and an increase to net assets of £26,000 (2025 restated: increase of £46,000).
The following is a note of the assets and liabilities denominated at each period end in Euros:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Trade receivables
2,450
2,667
Cash and cash equivalents
1,387
1,348
Trade payables
(1,209)
(1,029)
2,628
2,986
23. Financial instruments (continued)
23.5 Foreign currency risk management (continued)
The effect of a 5 percent strengthening of Pound Sterling at 31 March 2026 on the foreign denominated financial instruments carried at that date would, all variables held constant, have resulted in a decrease to total comprehensive income for the year and a decrease to net assets of £125,000 (2025 restated: decrease of £142,000). A 5 percent weakening of the exchange rate on the same basis, would have resulted in an increase to total comprehensive income and an increase in net assets of £138,000 (2025 restated: increase of £157,000).
Forward contracts
The Group mitigates the exchange rate risk for certain foreign currency creditors by entering into forward currency contracts. The Group's forex policy is to purchase forward contracts to mitigate changes in spot rates, based on the timing of purchases to be made. Management forecast the timing of purchases and make assumptions relating to the exchange rate at which the Group costs its products and take out forward contracts to mitigate fluctuations to an acceptable level. At 31 March 2026, the outstanding contracts mature between 1 and 10 months of the year end, (2025: 1 and 12 months). At 31 March 2026 the Group was committed to buy $33,713,000 (2025: $50,672,000) in the next financial year.
The forward currency contracts are measured at fair value using the relevant exchange rates for GBP:USD and GBP:EUR. The fair value of the contracts at 31 March 2026 is an asset of £509,000 (2025: liability of £131,000). During the year ended 31 March 2026, a gain of £640,000 (2025: loss of £79,000) was recognised in Adjusted items for changes in the fair value of the forward foreign currency contracts.
Forward currency contracts are valued using level 2 inputs. The valuations are calculated using the year end exchange rates for the relevant currencies which are observable quoted values at the year-end dates. Valuations are determined using the hypothetical derivative method which values the contracts based on the changes in the future cashflows based on the change in value of the underlying derivative.
23.6 Interest rate cash flow risk
The Group's interest-bearing liabilities relate to its variable rate banking facilities. The Group has a policy of keeping the rates associated with funding under review in order to react to any adverse changes in the marketplace that would impact on the interest rates in place.
The Group entered into an Asset Based Lending Agreement on 28 March 2025. The impact of a 1% increase in interest rates would have been £59,000 (2025: negligible impact).
23.7 Price risk
The Group's profitability is affected by price fluctuations in the sourcing of its products. The Group continually monitors the price and availability of materials but the costs of managing the exposure to price risk exceed any potential benefits given the extensive range of products and suppliers. The Directors will revisit the appropriateness of this policy should the Group's operations change in size or nature.
23. Financial instruments (continued)
23.8 Maturity of financial assets and liabilities
All of the Group's trade and other receivables and trade and other payables that meet the definition of financial assets and financial liabilities are receivable or payable within one year. Trade and other payables are generally contractually due within 30 days of invoice date. Borrowings, which includes lease liabilities, are disclosed in note 20.
23.9 Summary of financial assets and liabilities by category
The carrying amount of financial assets and liabilities recognised may also be categorised as follows:
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Financial assets
Financial assets measured at amortised cost
Trade and other receivables
44,603
39,232
Right-of-use receivables
-
338
Cash and cash equivalents
7,514
3,182
52,117
42,752
Financial liabilities
Financial liabilities measured at amortised cost
Non-current:
Borrowings
(13,551)
(12,104)
Current:
Borrowings
(1,396)
(1,343)
Trade payables
(17,523)
(15,461)
Amounts owed to related parties
(2)
(86)
Asset based lending facility
-
(1,999)
Invoice financing facility
(143)
-
Directors loan account
(5)
(2)
Deferred consideration
(8,882)
-
Contingent consideration
(215)
-
Other creditors
(724)
(957)
Accruals
(18,253)
(13,305)
(60,694)
(45,257)
Financial assets/ (liabilities) measured at fair value through profit and loss
Forward contracts
509
(131)
509
(131)
Net financial liabilities
(8,068)
(2,636)
24. Share capital and reserves
Share capital and share premium
Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs. The excess of proceeds of a share issue over the nominal value is presented within share premium.
Number of shares authorised and in issue
Ordinary £0.10
No.
£
At 1 April 2024
116,516,003
11,651,600
Issued
796,716
79,672
At 31 March 2025
117,312,719
11,731,272
Issued
5,084
508
At 31 March 2026
117,317,803
11,731,780
Ordinary £0.10 shares issued in the year
Date
Number of shares
Subscription price
Share capital
Share premium
Total cost
19 June 2025
5,084
£0.3837
£508
£1,442
£1,950
Total
5,084
n/a
£508
£1,442
£1,950
Dividends
Dividends of £5,866,000 (2025: £5,831,000) were declared and paid in the year; a final dividend in respect of 2025 of £0.034 per share (2025: £0.032 per share) and an interim dividend in respect of 2026 of £0.016 per share (2025: £0.018 per share).
Merger reserve
The merger reserve arose on a past business combination of entities that were under common control. The merger reserve is the difference between the cost of investment and the nominal value of the share capital acquired.
Share-based payments reserve
The share-based payments reserve represents the cumulative impact of the share-based payments charge.
Retained earnings
Retained earnings includes all current and prior period retained profits and losses, including foreign currency translation differences arising from the translation of financial statements of the Company's foreign entities.
All transactions with owners of the parent are recorded separately within equity.
25. Share based payments
The Group operates a number of share incentive arrangements as set out below.
2025 SIP Award
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
-
-
-
-
Lapsed
-
-
-
-
Granted
£0.10
154,056
-
-
Exercised
-
-
-
-
At the end of the year
£0.10
154,056
£0.00
-
FY25 was the first year of operation for the Supreme Incentive Plan (SIP). Amounts for the CFO were to be delivered 50% in cash and 50% in deferred shares which vest over a 3 year period and for which there are "underpins for performance across years 2 and 3". These 108,048 options were formally granted to the CFO following the approval of the FY25 financial statements. A further 46,008 options were also granted to another senior manager at the time.
2023 Senior management £nil cost awards (EPS)
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£0.00
108,011
£0.00
108,011
Lapsed
-
-
-
-
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
£0.00
108,011
£0.00
108,011
Options to subscribe for a further 157,516 shares at nominal value were granted to the CFO during the year ended 31 March 2024. A further 58,506 options were also issued to another senior manager at the time. These options are subject to performance conditions. 50% of the options require an average annual TSR of 5% to become exercisable in part and an annual average of TSR of 10% to become fully exercisable measured over a 3-year period. The remaining 50% of options are linked to an EPS performance target where a threshold of 36p by the end of a 3-year period is required in order for the options to become exercisable and 44p in order for the options to be fully exercisable. On the Period end of 31 March 2026 both elements vested in full but have not yet been exercised.
25. Share based payments (continued)
2022 Senior management awards (TSR)
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£0.00
87,325
£0.00
87,325
Lapsed
£0.00
(87,325)
-
-
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
-
-
£0.00
87,325
2022 Senior management awards (EPS)
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£0.00
87,325
£0.00
87,325
Lapsed
-
-
-
-
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
£0.00
87,325
£0.00
87,325
Options to subscribe for a further 174,650 shares at nominal value were granted to the CFO during the year ended 31 March 2023. These options are subject to performance conditions. 50% of the options require an average annual TSR of 7.5% to become exercisable in part and an annual average of TSR of 10% to become fully exercisable measured over a 3-year period. The remaining 50% of options are linked to an EPS performance target where a threshold of 33.7p by the end of a 3-year period is required in order for the options to become exercisable and 41.1p in order for the options to be fully exercisable. During the Period ended 31 March 2026 the TSR element (87,325 options) lapsed having not met the performance condition whilst the EPS element vested but has not yet been exercised.
2021 5-year CEO award
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£0.00
2,912,500
£0.00
2,912,500
Lapsed
£0.00
(2,912,500)
-
-
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
-
-
£0.00
2,912,500
On 9 March 2021 the Company awarded the following options to the executive directors under the Unapproved Scheme. Options to subscribe for a total of 5,825,000 shares at nominal value were granted to the CEO in two equal tranches. Each tranche of options will be subject to a performance condition which must be wholly satisfied for the relevant option to be exercisable. The performance condition for the first tranche of options is that total shareholder return per Share ("TSR") from Admission until the third anniversary of Admission is at least 100 per cent. of the placing price of 134 pence as at Admission (the "Placing Price"). The performance condition for the second tranche of options is that the TSR from Admission until the fifth anniversary of Admission is at least 200 per cent. of the Placing Price. 2,912,500 of these options lapsed in FY24, and the remaining 2,912,500 lapsed in this Period having not met the performance conditions.
The profit and loss expense that has been recognised in the current year in respect of the Unapproved Schemes (2021 to 2025) is £535,000 (2025: £435,000).
25. Share based payments (continued)
In respect of the CEO and CFO awards, the fair value at grant date is independently determined using a Monte Carlo simulation model which calculates a fair value based on a large number of randomly generated projections of the Company's future share prices. In respect of the CSOP and Unapproved Schemes, the fair value at grant date has been determined using a Black-Scholes model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, and the risk-free interest rate for the term of the option as shown overleaf:
The Supreme PLC Company Share Option Plan 2021 ("the CSOP Scheme")
2021 CSOP
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£1.74
143,673
£1.74
149,418
Lapsed
-
-
£1.74
(5,745)
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
£1.74
143,673
£1.74
143,673
2021 unapproved scheme
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£1.74
54,596
£1.74
54,596
Lapsed
-
-
-
-
Granted
-
-
-
-
Exercised
-
-
-
-
At the end of the year
£1.74
54,596
£1.74
54,596
The Company established the CSOP Scheme on 26 January 2021. Grants under the CSOP Scheme may be made by the Company as subscription Options or, with the consent of the Remuneration Committee, by an existing shareholder over shares already issued.
Under the CSOP Scheme certain eligible employees have been granted options to subscribe for ordinary shares in the Company of 10p each with an exercise price of 174 pence per ordinary share equal to the closing middle market price on 15 February 2021. The options were granted on 16 February 2021 and may be exercisable by the holder at any time between the third and tenth anniversaries of the date of the grant. Upon exercise, the relevant Shares will be allotted. A number of employees have been granted additional options on the same basis under the Unapproved Scheme detailed below to the extent that the total number of options granted to them exceeded the maximum number permitted to be granted under the CSOP Scheme by HMRC rules.
23 employees were granted options under the CSOP over a total of 206,886 shares and 4 employees have been granted options under the Unapproved Scheme over a total of 94,825 shares, being in aggregate 301,711 shares. By 31 March 2026, a total of 103,442 options had lapsed and 198,269 remained under option.
The profit and loss expense that has been recognised in the current year in respect of these awards is £nil (2025: £nil).
25. Share based payments (continued)
The Supreme PLC Sharesave Scheme 2021 ("the SAYE Scheme")
2021 SAYE scheme
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
-
-
£1.52
147,780
Lapsed
-
-
£1.52
(126,465)
Granted
-
-
-
-
Exercised
-
-
£1.52
(21,315)
At the end of the year
-
-
-
-
The Company established the SAYE Scheme on 26 January 2021. The SAYE Scheme was open to all employees who had achieved the qualifying length of service at the proposed date of grant (initially set at 3 months). Under the SAYE Scheme, an individual who wishes to accept an invitation to apply form options to be granted to him or her must take out a 3 or 5 year savings contract with an approved savings body selected by the Company. The individual makes a fixed monthly contribution over the life of the savings contract and on maturity receives a tax-free bonus. The monthly contribution can be a minimum of £10 and a maximum of £500.
The price at which options may be exercised will be set by the Directors at the date of grant and may be at a discount of up to a maximum of 20 per cent. against the market value at the date of grant of the shares over which they are granted. The option will generally be exercisable by the holder within six-month period after the bonus becomes payable on his or her relevant savings contract.
All employees of the Group (including executive directors) at 3 March 2021 were invited to participate in the SAYE Scheme. Employees were invited to subscribe for options over the Company's ordinary shares of 10p each with an exercise price of 152p, which represents a 20% discount to the closing middle market price of 190p per share ("Options") on 2 March 2021, being the trading day before the invitation for employees to participate was made. Other than in the case of a takeover or demerger or similar event, an option will generally be exercisable by the holder in relation to the SAYE Scheme within the 6-month period after the bonus becomes payable on his or her relevant savings contract. Any option not so exercised will lapse. There are no conditions of exercise in relation to options granted under the SAYE Scheme.
The profit and loss expense that has been recognised in the current year in respect of these awards is £nil (2025: £2,000).
25. Share based payments (continued)
The Supreme PLC Enterprise Management Incentive Scheme ("the EMI Scheme")
2018 EMI scheme
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
£0.38
5,084
£0.38
589,680
Lapsed
-
-
£0.38
(2,542)
Granted
-
-
-
-
Exercised
£0.38
(5,084)
£0.38
(582,054)
At the end of the year
-
-
£0.38
5,084
2018 unapproved scheme
Weighted average exercise price 2026 £
2026
No.Weighted average exercise price 2025 £
2025
No.At the start of the year
-
-
£0.38
193,347
Lapsed
-
-
-
-
Granted
-
-
-
-
Exercised
-
-
£0.38
(193,347)
At the end of the year
-
-
-
-
On 14 September 2018, the Group implemented an Enterprise Management Incentive Scheme. This was granted to employees to acquire shares in the Company for a number of ordinary shares of 10p each at the exercise price at the option of the employee. The exercise of these options was originally subject to the occurrence of a relevant event (a disposal or a listing) in accordance with the EMI Scheme rules, but this condition was satisfied by the 2021 listing of the Company. These options will expire 10 years from grant date. A second scheme was implemented alongside the EMI scheme ('2018 unapproved scheme') for one employee who was eligible for more options that the EMI scheme rules allowed for. All conditions of this scheme were the same as the EMI Scheme.
These options were fairly valued upon a valuation of the entity that had been performed by an independent expert.
The profit and loss expense that has been recognised in the current year in respect of these awards is £nil (2025: £nil).
25. Share based payments (continued)
Grant date
Share price at grant date (pence)
Exercise price (pence)
Expected volatility (%)
Projection period (yrs)
Expected lift (yrs)
Expected dividend yield (%)
Risk free interest rate (%)
Fair value per award (pence)
2025 SIP Awards
9 July 2025
176p
10p
42%
1.73
3
Nil
3.70%
167p
2023 Senior management £nil cost awards (TSR)
30 Nov 2023
124p
0p
53%
2.33
3
2.98%
4.30%
79p
2023 Senior management £nil cost awards (EPS)
30 Nov 2023
124p
0p
53%
n/a
3
2.98%
4.30%
105p
2022 Senior management £nil cost awards (TSR)
5 Aug 2021
101p
0p
55%
2.65
3
5.94%
1.92%
31p
2022 Senior management £nil cost awards (EPS)
5 Aug 2021
101p
0p
55%
n/a
3
5.94%
1.92%
75p
2021 5 year CEO award
9 Mar 2021
185p
nil
45%
0.89
5
3.90%
0.31%
59p
2021 CSOP
16 Feb 2021
176p
174p
45%
n/a
3
4.10%
0.34%
50p
2021 unapproved schemes
16 Feb 2021
176p
174p
45%
n/a
3
4.10%
0.34%
50p
2021 SAYE
18 Mar 2021
190p
154p
55%
3.16
3
3.79%
0.14%
59p
2018 unapproved schemes
4 Jan 2021
134p
38.38p
45%
2.65
3
5.94%
-0.09%
71p
The expected volatility has been estimated based upon the historical volatility of the FTSE AIM Retailers and Personal & Household goods sub sectors.
No awards are exercisable at the end of the year. The charge for share-based payments in the year was £617,000 (2025: £498,000) which is included within Adjusted items. Of this, £82,000 (2025: £61,000) related to Employers National Insurance Contributions and £535,000 (2025: £437,000) related to the share-based payments charge.
26. Ultimate controlling party
The Directors consider the ultimate controlling party to be S Chadha and his concert party.
27. Other financial commitments
See note 23.5 for details of the financial commitments under US dollar forward exchange contracts.
28. Related party transactions
28.1 Remuneration of key personnel
Remuneration of key management personnel, considered to be the Directors of the Company and members of the senior management team is as follows:
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Short-term employee benefits
1,821
1,685
Social security costs
255
362
Employee share schemes
362
475
Post-employment benefits
32
15
Total compensation
2,470
2,537
28.2 Transactions and balances with key personnel
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Loan balances with Directors:
Balance outstanding from director
(5)
(2)
28.3 Transactions and balances with related companies and businesses
Year Ended
31 March 2026
Year Ended
31 March 2025
£'000
£'000
Transactions with related companies:
Rent paid to SC8 Limited
629
374
SC8 Limited is owned entirely by Sandy Chadha, a director of Supreme PLC. On 5 May 2023 a new lease was signed between SC8 Limited and Supreme Imports Ltd for a term of 5 years from 16 March 2023. Additionally on 21 August 2025 Supreme Imports Ltd signed a further 10 year lease with SC8 Limited for an additional manufacturing site. Rent to be paid to SC8 Limited in respect of Beacon Road, and Hive (some of Supreme's manufacturing sites) will be £374,000 and £332,000 respectively per annum (plus VAT) and will continue to be disclosed as a transactions with related parties.
There are no year end balances due to any related company.
The above companies are related due to common control and Directors.
29. Acquisition of Trade and Assets
29.1 Acquisition of trade and assets of 1001
On 1 September 2025, the Group acquired the intellectual property of 1001, the iconic carpet care brand trusted by consumers for decades ("1001") for a fixed consideration of £1.65 million (including £0.35 million of deferred consideration) from the US-based WD-40 Company. The transaction also provides for the purchase of inventory at book value, with additional contingent consideration, associated with future sales growth, up to a maximum of £3 million.
Recognised amounts of identifiable assets acquired and liabilities assumed
Purchase Price
£'000
Fixed assets
Trademarks
1,834
Total identifiable assets
1,834
Total purchase consideration
1,834
Consideration
Initial cash consideration
1,300
Deferred cash consideration
350
Contingent cash consideration
250
Time value of money adjustment to deferred and contingent consideration
(66)
Total purchase consideration
1,834
Cash outflow during the year
1,300
29. Acquisition of trade and assets (continued)
29.2 Acquisition of trade and assets of SlimFast
On 20 October 2025, the Group acquired the trade and selected UK and European assets of SlimFast, a market leader in meal replacement products, for an initial cash consideration of £11.6 million (with a further £9.0 million of deferred consideration due 15 months from the date of acquisition) from Glanbia PLC, a global nutrition and food company. The Group will satisfy the consideration for the acquisition through a mixture of its existing cash resources and utilisation of its asset-based lending facility.
Recognised amounts of identifiable assets acquired and liabilities assumed
Purchase Price
£'000
Fixed assets
Trademarks
19,850
Total identifiable assets
19,850
Total purchase consideration
19,850
Consideration
Initial cash consideration
11,575
Deferred cash consideration
9,000
Time value of money adjustment to deferred consideration
(725)
Total purchase consideration
19,850
Cash outflow during the year
11,575
30. Post balance date events
There are no events after the balance sheet date that require disclosure.
Company Statement of Financial Position
as at 31 March 2026
As at
31 March 2026
As at
31 March 2025
Note
£'000
£'000
Fixed assets
Investments
6
26,239
26,170
26,239
26,170
Current assets
Debtors (of which £84,000 (2025: £986,000) is due after more than one year)
7
23,602
20,368
Cash at bank and in hand
14
14
23,616
20,382
Creditors: amounts falling due within one year
8
(595)
(525)
Net current assets
23,021
19,857
Total assets less current liabilities
49,260
46,027
Net assets
49,260
46,027
Capital and reserves
Share capital
9
11,732
11,731
Share premium
9
7,686
7,685
Capital redemption reserve
83
83
Share-based payments reserve
4,941
4,385
Retained earnings
24,818
22,143
Total Equity
49,260
46,027
The Company has taken advantage of the exemption permitted by Section 408 of the Companies Act 2006 not to produce its own profit and loss account. The profit for the year dealt within the financial statements of the Company was £8,541,000 (2025: £15,108,000).
The notes are an integral part of these Company financial statements.
The Company financial statements were approved by the Board of Directors on 30 June 2026 and were signed on its behalf by:
S Smith
Director
Registered number: 05844527
Company Statement of Changes in Equity
for the Year Ended 31 March 2026
Share Capital
Share premium
Capital redemption reserve
Share-based payments reserve
Retained earnings
Total
equity
£'000
£'000
£'000
£'000
£'000
£'000
As at 1 April 2024
11,652
7,435
83
3,948
12,866
35,984
Profit for the year
-
-
-
-
15,108
15,108
Total comprehensive income for the year
-
-
-
-
15,108
15,108
Transactions with shareholders:
Issue of shares
79
250
-
-
-
329
Employee share schemes - value of employee services (note 11)
-
-
-
437
-
437
Dividends (note 9)
-
-
-
-
(5,831)
(5,831)
Total transactions with owners, recognised in equity
79
250
-
437
(5,831)
(5,065)
As at 31 March 2025
11,731
7,685
83
4,385
22,143
46,027
Profit for the year
-
-
-
-
8,541
8,541
Total comprehensive income for the year
-
-
-
-
8,541
8,541
Transactions with shareholders:
Issue of shares
1
1
-
-
-
2
Employee share schemes - value of employee services (note 11)
-
-
-
535
-
535
Deferred tax on share-based payment charge (note 5)
-
-
-
21
-
21
Dividends (note 9)
-
-
-
-
(5,866)
(5,866)
Total transactions with owners, recognised in equity
1
1
-
556
(5,866)
(5,308)
As at 31 March 2026
11,732
7,686
83
4,941
24,818
49,260
The notes form part of these Company financial statements.
Notes to the Company financial statements
for the Year Ended 31 March 2026
1. General Information
Supreme PLC ("the Company") is a public company, limited by shares, registered in England and Wales and domiciled in the UK, with company registration number 05844527. The principal activity is that of a holding company. The registered office is 4 Beacon Road, Ashburton Park, Trafford Park, Manchester, M17 1AF.
2. Summary of material accounting policies
2.1 Reporting framework
The separate financial statements of the Company have been prepared in accordance with Financial Reporting Standard 101, "Reduced Disclosure Framework" ("FRS 101"), on the going concern basis under the historical cost convention, and in accordance with the Companies Act 2006 as applicable to companies reporting under FRS 101.
The financial information is presented in sterling and has been rounded to the nearest thousand (£'000).
The principal accounting policies, which have been applied consistently to all the years presented, are set out below.
2.2 Financial Reporting Standard 101 - reduced disclosure exemptions
The following exemptions from the requirements in IFRS have been applied in the preparation of these financial statements:
· The requirement of IFRS 1, 'First-time adoption of International Financial Reporting Standards', to present a statement of financial position at the date of transition.
· IFRS 7, "Financial Instruments: Disclosures".
· Paragraphs 91 to 99 of IFRS 13, "Fair value measurement" (disclosure of valuation techniques and inputs used for fair value measurements of assets and liabilities).
· Paragraph 38 of IAS 1, "Presentation of financial statements" - comparative information requirements in respect of:
i. Paragraph 79(a)(iv) of IAS 1;
ii. Paragraph 73 (e) of IAS 16, "Property, plant and equipment"; and
iii. Paragraph 118 (e) of IAS 38, "Intangible assets" (reconciliations between the carrying amount at the beginning and end of the period).
· The following paragraphs of IAS 1, "Presentation of financial statements":
iv. 10(d) (statement of cash flows);
v. 16 (statement of compliance with all IFRS);
vi. 38A (requirement of minimum of two primary statements, including cash flow statements);
vii. 38B-D (additional comparative information);
viii. 111 (statement of cash flows information); and
ix. 134-136 (capital management disclosures).
· IAS 7, "Statement of cash flows".
· Paragraphs 30 and 31 of IAS 8, "Accounting policies, changes in accounting estimates and errors" (requirement for the disclosure of information when an entity has not applied a new IFRS that has been issued but is not yet effective).
· Paragraph 17 of IAS 24, "Related party disclosures" (key management compensation).
· The requirements in IAS 24, "Related party disclosures", to disclose the related party transactions entered into between two or more members of a Group.
· Paragraphs 130(f)(ii)(iii), 134(d)-(f) and 135(c)-(e) of IAS 36, "Impairment of assets".
· Paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 and the second sentence of paragraph 110 of IFRS 15.
This information is included in the consolidated financial statements found earlier in this report.
2.3 Company profit and loss account
The Company has not presented its own profit and loss account as permitted by Section 408 of the Companies Act 2006. The Company's profit after taxation for the period was £8,541,000 (2025: £15,108,000). There are no material differences between the profit after taxation in the current period and its historical cost equivalent. Accordingly, no note of historical cost profits and losses has been presented.
2. Summary of material accounting policies (continued)
2.4 Going concern
For the purposes of reviewing going concern, the Company's status has been considered as part of a group wide exercise as its sole activity is that of a holding company, and its success is therefore intrinsically linked to that of the Group as a whole. In assessing the appropriateness of adopting the going concern basis in the preparation of these financial statements, the Directors have prepared cash flow forecasts and projections for the two-year period to 31 March 2028. These forecasts and projections, which the Directors consider to be prudent, have been sensitised by applying general reductions to revenue and profitability, to consider downside risk and the impact these scenarios would have on the Group's cashflows and liquidity and its ability to continue to operate and trade.
· The Directors have undertaken a specific sensitivity analysis in relation to the forthcoming Vaping Products Duty ("VPD"), modelling a scenario in which revenue currently attributable to 10ml e-liquids reduces to nil, reflecting a potential complete loss of demand. While VPD will apply to both e-liquids and pod-based products, the resulting impact on retail pricing is expected to be more pronounced for e-liquids, which may increase the likelihood of a shift in consumer demand away from this category. Under this scenario, the business is not faced with any going concern risk for the foreseeable.
· In addition to the specific sensitivity on the VPD, the Directors have also overlaid further a potential downturn sensitivity by assuming a 5% and then 20% reduction in revenue across all divisions of the business (whilst maintaining the existing overhead base). Again, the business remains profitable and cash generative.
· In fact, owing to the working capital unwind that occurs in the short to medium term when sales reduce, the forecasts indicate that the Group's revenue can fall significantly (without any adjustment to overheads) in the period to 31 March 2028.
· The recent and ongoing conflict in the Middle East has the potential to disrupt global energy markets and key trade routes, which may adversely affect the Group through shipping delays and increased volatility in the cost and availability of raw materials. The Directors have not performed a specific sensitivity analysis in respect of this scenario as they consider the Group to have sufficient resources and operational flexibility to manage the potential impacts arising from such developments.
· Whilst the Group's debt facility (a £40 million asset-based lending facility with HSBC) is priced at a variable rate (SONIA + a margin) and will be in place until March 2028, the Group's current positive leverage ratio (i.e. having a net cash positive position at the balance sheet date), means that Supreme's exposure to any increases in borrowing rates is limited. Should the Group increase its level of bank borrowings during the forecast period (likely to be triggered by M&A) then of course this increased cost of borrowing would impact the Group (albeit expected to be offset by the incremental earnings generated by any M&A target).
· Historically Supreme has been a net beneficiary in periods of economic downturn, owing to the fact more than half of its revenue is derived from the discount retail sector which typically trades buoyantly during these periods (for prudence this has not been assumed in the forecast). The inflationary cost increases (specifically over salary costs, energy and transport) have been specifically factored into the cost base throughout for the forecast period.
Based on these various scenarios, the Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the Group and Company financial statements.
2. Summary of material accounting policies (continued)
2.5 Financial instruments
Financial assets and financial liabilities are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. Financial assets are de-recognised when the contractual rights to the cash flows from the financial asset expire or when the contractual rights to those assets are transferred. Financial liabilities are de-recognised when the obligation specified in the contract is discharged, cancelled or expired.
2.6 Share-based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of Financial Position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of Comprehensive Income over the remaining vesting period. Where equity instruments are granted to persons other than employees, the Statement of Comprehensive Income is charged with fair value of goods and services received. The value of the awards made to the employees of the Company's subsidiaries are treated as an increase in the cost of investment in the subsidiary, with the credit taken to the share-based payments reserve.
3. Critical accounting estimates and judgements
In the preparation of the Company financial statements, the Directors, in applying the accounting policies of the Company, make some judgements and estimates that effect the reported amounts in the financial statements. The following are the areas requiring the use of judgement and estimates that may significantly impact the financial statements.
Accounting estimates
Information about estimates and assumptions that may have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.
3.1 Non-current asset impairment
The carrying value of the Company's investments in subsidiaries was £26,263,000 at 31 March 2026 (2025: £26,170,000). The Directors have performed an impairment review by comparing the carrying value to the higher of the value-in-use and fair value less costs to sell of the underlying assets. The value-in-use calculations require the use of estimates in calculating the future cash forecasts based upon management judgement. Future events could cause the assumptions to change, therefore this could have an adverse effect on the future results of the Company. The fair value less costs to sell calculations include an element of judgement.
The estimates used in the impairment calculation are set out in note 12 to the Group financial statements.
3. Critical accounting estimates and judgements (continued)
Accounting judgements
Judgements in applying accounting policies and key sources of estimation uncertainty.
The following are the areas requiring the use of judgement that may significantly impact the Company financial statements:
3.2 Non-current asset impairment
The calculation of fair value less costs to sell is based upon management's judgement by reference to the Group's market capitalisation. Taking into account movements in the share price the Directors consider there to be no reasonably possible scenario in which the asset would be impaired. No reasonable change in inputs would result in impairment.
4. Remuneration of Directors and auditors
Details of Directors' remuneration are shown in the Directors' Remuneration Report of the Group financial statements and note 8 of the Group financial statements. Details of auditors' remuneration are shown in note 6 of the Group financial statements. The Company has no employees.
5. Deferred tax
Deferred tax consists of the following temporary differences
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Share based payments
84
986
84
986
Movement in deferred tax in the year
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Balance at the beginning of the year
986
607
(Debited)/ credited to profit or loss
(923)
379
Credited to reserves
21
-
Balance at the end of the year
84
986
6. Investments
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Balance at the beginning of the year
26,170
26,150
Capital Contribution
69
20
Balance at the end of the year
26,239
26,170
The total value of capital contribution included in investments at 31 March 2026 totalled £652,000 (2025: £583,000).
6. Investments (continued)
At 31 March 2026, the Company directly owned 100% of the ordinary share capital of the following subsidiaries, which are incorporated in England and Wales unless stated:
Subsidiary
Registered address
Principal activity
Supreme Imports Limited§
4 Beacon Road, Ashburton Park, Trafford Park, Manchester M17 1AF
Distribution of consumer goods
At 31 March 2026, the Company indirectly owned 100% of the ordinary share capital of the following subsidiaries, which are incorporated in England and Wales unless stated:
Subsidiary
Registered Address
Principal activity
VN Labs Limited§
Distribution of consumer goods
Battery Force Limited§
Dormant
Supreme Health and Wellness Limited§
Dormant
Sealions Supplements Limited§
Dormant
Powerquick Limited§
Holding company
Supreme 88 Limited§
Holding company
Supreme Nominees Limited§
Holding of shares as nominee
Liberty Flights Holdings Limited§
Holding company
Liberty Flights Limited§
Distribution of consumer goods
Acorn Topco Limited§
Holding company
Acorn Bidco Limited§
4 Beacon Road, Trafford Park, Manchester, England, M17 1AF
Holding company
Clearly Drinks Group§ Limited
Holding company
Clearly Drinks Properties Limited§
Holding company
Clearly Drinks Equipment Limited§
Holding company
Clearly Drinks Brands Limited§
Holding company
Clearly Drinks Limited§
Distribution of consumer goods
Melroses Limited§
Dormant
The London Fruit & Herb Company Limited§
Dormant
Kardomah Limited§
Dormant
Red Mountain Coffee Company Limited§
Dormant
Ridgeways Limited§
Dormant
Heath & Heather Limited§
Dormant
Holding Esser Affairs B.V. §
Vanadiumweg 13, 3812 PX, Armersfoort, Netherlands
Holding company
AGP Trading B.V. §
Dormant
Vendek Limited§
Unit C5, South City Business Park, Whitestown Way, Tallaght, Dublin 24, D24 A993
Distribution of consumer goods
§ These entities were 100% owned as at 31 March 2026 and as at 31 March 2025.
In addition, the Company indirectly owns 51% of Renmo Trading S.L., a Company incorporated in Spain with its registered address at Torrejón de Ardoz (Madrid), Av. de la Constitución 228.
The Directors believe that the carrying value of the investments is supported by their underlying net assets.
6. Investments (continued)
Audit exemption statement
Under section 479A of the Companies Act 2006, the Group is claiming exemption from audit for the subsidiary companies listed below.
The parent undertaking, Supreme PLC, guarantees all outstanding liabilities to which the subsidiary company is subject at the end of the financial year. The guarantee is enforceable against the parent undertaking by any person to whom the subsidiary company is liable in respect of those liabilities.
Company number
Liberty Flights Holdings Limited
07137952
Liberty Flights Limited
07089691
Acorn Topco Limited
10569916
Acorn Bidco Limited
10627467
Clearly Drinks Group Limited
09314974
Clearly Drinks Properties Limited
10076850
Clearly Drinks Equipment Limited
07750387
Clearly Drinks Brands Limited
08276521
7. Debtors
Amounts Held in Current Assets
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Amounts owed by Group undertakings
23,518
19,382
Deferred Tax (note 5)
84
986
23,602
20,368
The Directors believe that the carrying value of trade and other receivables represents their fair value. In determining the recoverability of trade receivables, the Company considers any change in the credit quality of the receivable from the date credit was granted up to the reporting date.
All the amounts owed by Group undertakings shown above are repayable on demand but not expected to be received within the next 12 months. Historically, there have not been any incidents of credit losses on intercompany balances.
The deferred tax asset of £84,000 (2025: £986,000) falls due in more than one year.
8. Creditors: amounts falling due within one year
As at
31 March 2026
As at
31 March 2025
£'000
£'000
Other tax and social security
595
525
595
525
9. Share capital and reserves
Details of movements in share capital and reserves are set out in note 24 to the Group financial statements.
10. Related party transactions
The Company has taken advantage of the exemption included in IAS 24 'Related Party Disclosures' not to disclose details of transactions with Group undertakings, on the grounds that it is the parent company of a Group whose financial statements are publicly available.
Directors' transactions
Details of the Directors' interests in the ordinary share capital of the Company are provided in the Directors' Remuneration Report.
11. Share based payments
The Company operates a number of share option arrangements for key executives and employees, further details of which can be found in note 25 to the Group financial statements. Further details of the arrangements for senior executives can be found in the Directors' Remuneration Report in the Group financial statements.
The Company recognised total expenses of £535,000 in respect of the equity-settled share-based payment transactions in the year ended 31 March 2026 (2025: £475,000). This included £69,000 of Employers National Insurance contributions (2025: £58,000). The additional charge to equity of £69,000 (2025: £20,000) reflects the options granted to employees of Supreme Imports Ltd and corresponds to the increase in the investment in the subsidiary as shown in note 6.
12. Post balance date events
There are no events after the balance sheet date that require disclosure.
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