Slide 1: 2025 Full Year Results
The leading, most trusted experts in flooring 2025 FULL YEAR RESULTS March 2026 1
Slide 2: Welcome and Agenda
WELCOME AND AGENDA ● INTRODUCTION ● 2025 FINANCIAL PERFORMANCE ● IMPLEMENTATION OF REVISED CORE CUSTOMER STRATEGY ● OUTLOOK ● Q&A Stephen Bird Adam Phillips Interim Executive Chair Chief Financial Officer 2
Slide 3: Introduction
INTRODUCTION Core customer Clear line of sight Transformation strategy to profitability in accelerated implemented 2027 3
Slide 4: New Management Team
NEW MANAGEMENT TEAM ● Experienced new management team ● Transformation leadership ● Board alignment Coco Rob Barclay Richard Jones Designate Chief Executive Interim Chief Financial Officer Officer 4
Slide 5: 2025 Financial Performance
2025 FINANCIAL PERFORMANCE 5
Slide 6: Income Statement
INCOME STATEMENT Revenue decline with flat margin and costs 2025 2024 % of % of Continuing operations £m £m ● Revenue reduced 4.6%1 year-on-year revenue revenue Revenue 498.7 100.0% 525.7 100.0% ● Gross margin of 29.5% was broadly unchanged year-on-year Cost of sales (351.4) (70.5)% (369.7) (70.3)%
Slide 7: Non-Underlying Items
NON-UNDERLYING ITEMS £30m of non-underlying items of which £4m was the net cash cost 2025 2025 2025 2024 ● Asset impairments of £4.8m related to write-downs of Cash Non-cash Total Total goodwill and intangible assets for the Melrose business Continuing operations £m £m £m £m ● £23.2m of business res
Slide 8: Cash Flow
CASH FLOW Net debt of £31m; stock reduction towards end of year turns into cash benefit in 2026 ● Over the last two years, cash flow has been broadly neutral with Net 2025 2024 2 year Debt unchanged over the two year period. The operating losses cash flow £m £m £m incurred by the business plus the c
Slide 9: Balance Sheet
BALANCE SHEET Strong asset backing; new borrowing facility agreed Dec 2025 Dec 2024 £m £m Property, plant and equipment 68.8 86.9 £75m (1) Intangibles 11.3 17.6 Inventories 77.4 102.8 property assets Trade and other receivables 86.6 111.0 Cash 26.1 12.0 Trade and other payables (97.2) (139.2) Borrow
Slide 10: Implementation of Revised Core Customer Strategy
IMPLEMENTATION OF REVISED “CORE CUSTOMER” STRATEGY 10
Slide 11: Revised Strategy
REVISED STRATEGY Objective of profitable, cash generative business with sustainable growth enabled through five distinct strategic levers 1. Reduce 2. Reduce 3. Enhance 4. Simplify 5. Optimise low margin fixed and customer ranges and cash revenue variable service consolidate costs suppliers Volume d
Slide 12: Reduce Low Margin Revenue
REDUCE LOW MARGIN REVENUE Four key actions to improve quality of revenue 1 Reduce low-margin business • Focus on profitable revenue not volume • Enables optimisation of network infrastructure 2 Exit Continental Europe • Exit unprofitable business in France and Netherlands • Focus on profitable categ
Slide 13: Reduce Cost Base
REDUCE COST BASE Low gross margin revenue reduction provides significant cost saving opportunity 1 Direct costs • Direct overhead reduction opportunity includes warehouse, transport, energy, rent and rates 2 Indirect costs • Reduction in overheads from network optimisation 3 • Historic 1.5 million1
Slide 14: Enhance Customer Service
ENHANCE CUSTOMER SERVICE A more focused business enables enhanced customer service for core customers 1 Delivery improvement • Delivery success substantially improved year-on- year for the first two months of this year 2 Improve availability • Better inventory management and newly centralised buying
Slide 15: Simplify Range and Consolidate Suppliers
SIMPLIFY RANGE AND CONSOLIDATE SUPPLIERS Four key actions to improve quality of offering for all stakeholders 1 Single go-to-market proposition • Consolidated six different own product brand businesses into the Mercado sales team 2 • Focus on key products for core customers Range reduction • Product
Slide 16: Optimise Cash
OPTIMISE CASH Three key actions to generate incremental cash strengthening business optionality and resilience 1 Working capital reduction • Working capital reduction through optimising inventory levels 2 • In 2023 the stock turn was 3.2x, improving to 3.5x in Improved stock turn 2024; recent run ra
Slide 17: Outlook
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Slide 18: Outlook
OUTLOOK ● The new core customer strategy will see a material planned reduction in revenue over 2026 and 2027 ● Once fully implemented, and assuming a stable market, this is expected to result in a smaller base revenue on continuing operations but with a significant enhancement to quality of earnings
Slide 19: Q&A
Q&A 19
Slide 20: Appendix
APPENDIX 20
Slide 21: Balance Sheet Dynamics 2025 – 2027
BALANCE SHEET DYNAMICS 2025 – 2027 Property disposals and working capital optimisation fund the turnaround plan leaving the Group with significantly less Net Debt at the end of 2027 Cost of transformation Property and transition net (debt)/cash disposals and working capital £(31)m Net Debt significa
Slide 22: Important Notice
IMPORTANT NOTICE This presentation includes statements that are, or may be deemed to be, forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including (but not limited to) the terms anticipates, believes, could, estimates, expects