CHAIRMAN’S STATEMENT

I am pleased to report on Writtle’s results for 2025.

2025 was another strong trading year for Writtle with turnover and profit before tax both increasing by over 10% on prior year. This excellent overall performance masked differing fortunes within Writtle’s three business groups, with a record year for Instore compensating for a weaker result in Innovation, again demonstrating the benefits of Writtle’s wide portfolio of businesses within Marketing Services.

Cash generation was strong enabling Writtle to increase its annual dividend and declare its eighth Special Dividend.

RESULTS AND ORDINARY DIVIDENDS

Turnover was £97.53m (2024: £87.96m) and headline profit before tax was £7.51m (2024: £7.20m).

After deducting exceptional costs of £0.31m (as itemised in note 7), share-based payment charges of £0.12m and goodwill amortisation of £0.70m, statutory profit before tax was £6.38m (2024: £5.46m).

Net cash at the year-end was £8.99m (2024: £13.41m).

The directors are recommending a final dividend of 17p (2024: 16p) per share making total ordinary dividends for the year of 26p (2024: 24p) per share.

Subject to shareholders’ approval, the final dividend will be paid on 29 May 2026 to shareholders on the register on 25 March 2026.

SPECIAL DIVIDEND

Writtle’s policy is to distribute to shareholders cash balances above £5m for which the company has no immediate investment or acquisition use. We did not engage in any substantive discussions for acquisitions last year and have none planned in the immediate future which would absorb the excess cash. Therefore, we are pleased to declare another Special Dividend of 50p per share which will be paid on 24 April 2026 to shareholders on the register on 25 March 2026.

PRINCIPAL ACTIVITIES

Writtle is an international marketing services group.

For reporting purposes, we group our businesses into three headings: Innovation, Implementation and Instore, which describe their principal marketing focus.

Writtle’s operating model in its group companies continues to be based on Equity Involvement and Decentralised Growth.

Equity Involvement – Whether a group company was a start-up or acquired, Writtle will typically hold a majority shareholding alongside management which creates a motivational structure where Writtle and management’s interests are aligned. Alongside traditional bonus schemes, Writtle encourages its group companies to adopt a dividend policy to reward further its management and Writtle. Additionally, to encourage collaboration across Writtle group companies, Writtle has an annual share option award and encourages employee ownership of Writtle shares which are traded internally on a matched bargain basis, normally once a year. The result of this equity involvement is that managers of Writtle group companies behave like owners and have further incentive to promote the success of Writtle as a whole.

Decentralised Growth – Writtle looks for businesses in the marketing services sector which can demonstrate potential for further growth either organically or by acquisition. These businesses will typically be led by ambitious industry experts who will identify the best growth paths through their own experience. Rather than dictating policy or acquisition strategy from the centre, Writtle will support its management teams to grow their businesses, adding value through Writtle’s management experience and funding capacity.

By enabling management to part-own and plot the development of their businesses, Writtle has proved to be a highly attractive workplace for the best talent in our industry, and our results and employee retention bear witness to this.

REVIEW OF BUSINESS

The performance of Writtle’s three business groups, before central costs, is shown in the following table:

Our Innovation businesses faced a downturn in the second half which reversed much of the progress made in the first half. UK clients became cautious ahead of the government budget, and global clients reacted to the US tariffs by pausing some spending. Epoch, Seymourpowell and The Team were most affected, but WMH&I was a notable exception and exceeded its budget for the year. Management teams are constantly reviewing their cost bases which is necessary as market conditions remain volatile.

Our Implementation business BRANDED put in a resilient performance despite facing similar challenges to those experienced by our Innovation businesses. Investment in an expansion of its photography facilities and equipment saw an immediate return while the US business became firmly established with a wide range of clients. BRANDED opened its second US office in October 2025 to support further expansion.

Our Instore businesses achieved a record year. Both Arken and Fero operate in highly competitive markets, but their management teams continued to invest in technology and machinery to drive their businesses forward. Arken is always dependent on major roll-out plans from its retail clients, and this year saw greatly increased activity. Arken saw its highest ever turnover and profit, and installed displays in the UK, continental Europe and as far afield as Australia which is testament to its global reputation for design, quality and speed of delivery. Fero benefitted from prior year new business wins coming on stream during the year and a further significant new business win in the latter stages of 2025 sets the business up well for further growth.

For more details of individual operating company activity throughout the year, please refer to the reviews which follow this statement. Apart from overlaying similar financial controls, Writtle encourages individual company autonomy and identity, and the reviews reflect the character of each business.

Writtle has supported each of its businesses that seek to achieve B Corp Certification as part of the group’s ongoing commitment to meet the highest standards of social and environmental performance, transparency and accountability. This initiative has been greeted enthusiastically by employees and nearly all Writtle companies have now achieved B Corp Certification.

CORPORATE ACTIVITY

We did not look for acquisitions during the year although we continued to review inbound enquiries. There is no shortage of acquisition opportunities, but few meet our strict criteria. We are not seeking new acquisitions in the near future because we believe the best opportunities for growth and shareholder returns are in our existing businesses. We are reviewing both inward investment and our operating structure to stimulate growth and further incentivise our excellent management teams.

We will again be offering a share trading opportunity in May and shareholders who wish to participate, either buying or selling, should follow the guidelines in the letter accompanying this report. In a change to our usual practice, if there are excess shares available for sale once existing shareholder demand has been satisfied, Writtle is planning to use its excess funds to buy back shares for cancellation rather than using its Employee Share Ownership Trust (ESOT) to buy shares or offering them to new investors. This process would commence immediately after the share trading opportunity has closed. Our intention is to give longstanding shareholders an opportunity to sell their shares should they so wish, and the share sale for cancellation would complete in August. However, there are important tax implications and Writtle intends to seek HMRC approval so that individuals’ share sales qualify for capital treatment rather than income. The process for selling shares for cancellation is also explained in the letter accompanying this report. For shareholders who do not wish to sell, the cancellation of shares will increase their percentage ownership of Writtle.

CURRENT TRADING

The year has started well but we do not expect our Instore business group to repeat its record performance of the last two years as there are no major store roll-outs planned this year for Arken clients. The current war in the Middle East will no doubt create further turmoil in the general business environment, but I am confident that we will weather the storm and I look forward to updating you on our progress in September.

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Robert Essex

Chairman

27 March 2026

• 2025 Annual Report and Accounts

  14 April 2026