The director presents the strategic report for the year ended 31 December 2024.

The profit for the year, after taxation, amounted to £810,803 (2023: £10,806,246). Ordinary dividends were paid during the year of £nil (2023: £22,464). The director does not recommend payment of a final dividend (2023: £nil).

Principal risks and uncertainties

The Netflix group manages business and financial risk and uncertainties at group level, rather than on an individual company basis and for this reason the director believes that the Company has reduced exposure to business and financial risks.

On 29 November 2023, the UK government issued final legislation to reform the current system of creative industry tax credits to merge the four existing tax reliefs (Film, High-End Television (‘HETV’), Children’s Television and Animation) into a single mechanism of Audio-Visual Expenditure Credits (‘AVEC’) and has reviewed the qualifying criteria. The legislation was substantively enacted on 21 February 2024. The new mechanism is one of expenditure credits as opposed to corporate tax relief, requiring a change to the accounting treatment to include them within statutory operating profit rather than within the consolidated tax charge.

The Company has elected to claim the new AVEC for all qualifying expenditure incurred from 1 January 2024 as opposed to claiming under the previous HETV tax credit.

Key performance indicators

The director considers the Company's key financial performance indicator to be whether the programme is completed in line with the production budget. At the year end date, the total costs of the programme were in excess of the budgeted costs

Our long-term success relies on alignment with frameworks established and managed across other Netflix Group companies (the “Netflix Group”), and our external partnerships. We aim to foster partnerships that contribute to our sustained operational efficiency and overall value creation. The Director has regard to how the likely long-term consequences of any decision will impact the Company’s key stakeholders being its employees, the Netflix Group, shareholders, the community, environment, and suppliers.

Management builds and develops relationships with suppliers and other key stakeholders by maintaining communication and good practice in alignment with the Netflix Group Code of Ethics and the Netflix Supplier Code of Conduct (both available here: https://ir.netflix.net/governancedocs).

The Company operates within the broader Netflix Group commitment to investing in the UK creative industry by playing a leading role upskilling the UK creative community. Since 2019, Netflix has helped develop and support the careers and training people every year in the screen sector across the UK through placements on our own productions, classroom training and industry partnerships with educational institutions like the London Screen Academy and National Film and Television School. Netflix’s focus is on upskilling below-the-line crew across specific disciplines where the industry faces notable skills shortages, and focusing on inclusive working practices to improve retention in the wider industry. Through Netflix’s partnership with the National Youth Theatre, IGNITE, we have also provided workshops for young people across Wales, Yorkshire and the North East to help them build networks and raise awareness about careers in the industry. Netflix is also developing emerging talent across the entire creative process, generating meaningful new opportunities through initiatives like the Documentary Talent Fund.

The Netflix Group measures its carbon footprint by collecting, validating, and calculating data from across the business. These annual emissions totals inform Netflix’s strategy and serve as a measure of progress against its reduction targets. The Company operates within the broader Netflix Group commitment to measure and achieve those targets.

On behalf of the Board

The director presents her report and the audited financial statements of Sunken Garden Productions Limited ("the Company") for the year ended 31 December 2024.

The principal activity of the Company during the year was the production of broadcast content for distribution throughout the world.

The results for the year are set out on page 12.

No ordinary dividends were paid. The director does not recommend payment of a final dividend (2023: £nil).

The director who served during the year was:

The Company has granted an indemnity to its director against liability in respect of court proceedings brought by third-parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity provision remains in force as at the date of approving the Director's Report.

To entertain the world, we need a habitable planet to entertain. We are working to meet our climate commitments by making our operations more sustainable, including behind the camera in our productions, and to support creators who want to highlight sustainability on screen.

We have set two near-term climate targets aligned to consensus science:

• Reduce our emissions by roughly half by 2030;

• Match our remaining emissions from 2022 onwards in support of global net zero goals, through investments in verified natural climate solutions and super pollutant (e.g., methane) destruction.

To meet these objectives we are focused on four key levers:

• Energy Efficiency: Identifying cost-effective efficiency improvements for energy used in our offices and studios;

• Vehicle Electrification: Transitioning from vehicles that use fossil fuels to fully electric and/or hydrogen powered alternatives;

• Clean Mobile Power: Using alternatives to diesel generators on productions; and

• Renewable Energy: Using renewable electricity and fuels.

We approach these four levers using an OED framework — i.e., optimizing energy use first, then electrifying where possible, and decarbonizing the rest.

• Optimize (O): We conduct energy efficiency audits, optimize vehicle fleet operations, right-size vehicles and mobile power and give preference to more efficient equipment.

• Electrify (E): We are working to electrify the equipment that uses the most fuel, such as vehicles, buildings and generators. Where available, we use electric motors, which are more efficient, quieter, produce less odour and are more sustainable — because electricity is more easily decarbonized than direct fossil fuel combustion. Across our productions, we’ve increased the use of mobile batteries and hydrogen-battery powered generators in place of fossil-fuel powered generators. And we are also replacing internal combustion engine vehicles with electric, plug-in hybrid and hybrid vehicles.

• Decarbonize (D): When optimization and electrification aren’t possible, we decarbonize the remaining emissions by installing and purchasing renewable energy and sustainable fuels. This means matching renewable electricity to any grid-connected power that isn’t carbon-free and shifting to lower-carbon or zero-carbon fuel options when that isn’t possible. We continue to procure renewable electricity to match our global electricity demand and are actively exploring direct investments in new projects.

Each year we continually develop and further refine our 2030 science-based emissions reduction target transition strategy.

Netflix’s GHG emissions reporting is consistent with the operational control approach as set out by the GHG Protocol Corporate Accounting and Reporting Standard: Revised Edition (2004).

The methodology applied to estimate annual carbon footprint totals for both market-based and location-based emissions are the accounting methods as defined by the GHG Protocol Scope 2 Guidance. The location-based figures are calculated based on the emissions intensity of the locations where the electricity consumption occurs. A market-based method incorporates electricity procurement decisions that companies have chosen, such as provider-specific electricity supply and contractual instruments such as renewable energy certificates (RECs).

The organizational and operational boundary applies to Sunken Garden Productions Limited as well as owned and controlled corporate assets and administrative facilities, and leased facilities which are operationally controlled by Netflix through its leasing agreements.

The operational control approach best reflects Netflix’s ability to direct operational policies and therefore generate emission reductions (as well as obtain access to accurate and reliable data).

The year over year increase in electricity consumption and associated emissions was driven primarily by the increasing demands of our Open Connect network.

Netflix operates a global sustainability programme. For the purpose of this section of the report we have summarised key initiatives related to Sunken Garden Productions Limited:

• Netflix is a member of the albert Directorate and Consortium, which supports the global Film and TV industry to reduce the environmental impacts of production and to create content that supports a vision for a sustainable future. Netflix participates in the albert certification scheme for both our self-managed and partner-managed shows.

• Netflix actively partners with the entertainment industry to empower the industry to create content that supports a vision for a sustainable future through BAFTA and albert.

• Netflix has committed globally to a Science-Based Target of 46% reduction below 2019 levels across scopes 1 and 2 by 2030 and is implementing the purchase of renewable energy and fuels across its key markets, including the U.K.

• We maintain BREEAM compliance at our facilities

Further information on our sustainability progress can be found in our 2023 Environmental, Social and Governance (ESG) Report on our investor relations website at https://ir.netflix.net/governance/ESG.

The director is responsible for preparing the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards comprising FRS 101 'Reduced Disclosure Framework' and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that year.

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the Company’s auditor is unaware. Additionally, the director individually has taken all the necessary steps that she ought to have taken as a director in order to make herself aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

We have audited the financial statements of Sunken Garden Productions Limited (the 'Company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101, Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 101; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the Director's Responsibilities Statement set out on page 6, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the Company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the Company by discussions with director and by updating our understanding of the sector in which the Company operates.

Laws and regulations of direct significance in the context of the Company include The Companies Act 2006 and UK Tax legislation, specifically relating to creative industry tax credits.

In addition, the Company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation, employment law and health and safety regulations.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the Company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the Company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management's assessment of how the Company, and production, comply with the relevant laws and regulations governing access to the creative industry tax credits.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

There are no recognised gains and losses for the year other than those included in the Statement of Comprehensive Income.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

Sunken Garden Productions Limited (hereafter 'the Company') is a private limited liability company limited by shares. The Company is part of the Netflix group, one of the world's leading entertainment services. The main activity of the Company is that of the production of broadcast content for distribution throughout the world.

On 31 January 2024, the Company's immediate parent changed from Netflix Studios, LLC to Netflix Worldwide Productions, LLC. The ultimate controlling party, Netflix, Inc., remains unchanged. The registered office of Netflix, Inc., is located at 121 Albright Way, Los Gatos, California 95032, United States of America and the consolidated financial statements are available at this address.

The Company is incorporated in England and Wales and has its registered office at 30 Berners Street, London, W1T 3LR. The Companies House registration number is 11433959.

The Company's financial year covers the period from 1 January 2024 through to 31 December 2024.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

In preparing the financial statements, the Company applies the recognition, measurement and disclosure requirement of International Financial Reporting Standards as adopted by the UK (“adopted IFRSs”), but makes amendments where necessary in order to comply with the Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.

The Company is a qualifying entity for the purposes of FRS 101. Note 1.1 gives details of the Company’s parent and from where its consolidated financial statements prepared in accordance with US GAAP may be obtained.

The Company has taken advantage of the following disclosure exemptions under FRS 101:

• the requirements of IAS 7 Statement of Cash Flows;

• the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures;

• the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member;

• disclosure of information in relation to new standards not yet applied; and

• disclosures in respect of capital management.

Details of the Company's accounting policies are included within the relevant note where applicable, or disclosed in Note 4.2.

These financial statements have been prepared on a historical cost basis, unless otherwise stated.

The financial statements are prepared in British Pounds Sterling (GBP), which is the Company's functional currency. The previous period financial statements were presented in United States Dollar (USD). The presentational currency has been changed to align with the Company's functional currency.

Current or non-current classification

Current assets include assets that are consumed or realised as part of the normal operating cycle, being 12 months, other assets are classified as non-current. Current liabilities include all liabilities unless the Company has a contractual or unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

In preparing these financial statements, management has made judgements and estimates that affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

Details of the judgements and estimates made are included in the following notes:

• Note 2.1 Revenue

• Note 2.5 Income Tax Expense

Revenue arises principally from the sale of programme rights. The classification and geographical analysis of revenue is as follows:

Revenue is measured at the fair value of the consideration received or receivable, and represents amounts receivable for the sale of programme rights, stated net of discounts, returns and value added taxes. The Company recognised revenue over time as the relevant performance obligation is satisfied. There is one performance obligation with the customer, being the production of broadcast content.

The transaction price is allocated in full to the single distinct performance obligation and is set out in the contract between the Company and the customer. Payment is received before or as work is completed and therefore no discounting is required.

As the Company’s activity creates and enhances the programme that the customer controls, revenue is recognised over time as the Company satisfies performance obligations by transferring the promised rights to its customer in accordance with paragraph 35(b) of IFRS 15. The amount of revenue to recognise is determined based on the input method that calculates actual costs incurred relative to the estimated total costs for the project based upon a “percentage of completion” calculation.

Estimates of revenues, costs or the extent of progress towards completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues of costs are reflected in the statement of comprehensive income in the year in which the circumstances that give rise to the revision become known.

The Company has only one operating segment, the whole of revenue is attributable to this segment. All revenues are from related parties.

Estimation uncertainty of revenue

There are a number of judgements in respect of the recognition of revenue on contracts with customers, including:

• The determination of the number of distinct separate performance obligations in a contract. This is based upon judgement around whether the customer can benefit from the use of the service on its own or together with other resources that are readily available to it, and also whether the promise to transfer the rights is separately identifiable from other promises in the contract. As explained in the accounting policy for revenue, there is generally one distinct performance obligation, being the production of broadcast content;

• Whether the Company transfers control of the programme over time, and therefore satisfies the performance obligation and recognises revenue over time. This requires judgement as to whether the customer controls the programme as it is created and enhanced. As the customer approves the production of the programme as it progresses, and is involved in directing the production activity, it is generally considered that control is transferred over time and revenue is recognised accordingly;

• Recognition over time is determined based upon judgement and estimates on the overall contract margin and percentage of completion of the contract at each period end. These judgements are based on contract value, historical experience and forecasts of future outcomes. These include specific judgement in respect of contracts for which variations may be in the process of being negotiated, and so the contracts are accounted for on the basis of the best estimate of the revenue expected to be received on the contract.

No directors remuneration (2023: £nil) was paid or is payable during the year for services provided to the Company. The director is remunerated by the ultimate parent as an employee, with no recharge to the Company.

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

During the year, the average monthly number of employees calculated on a full-time-equivalent basis was 12 (2023: 119).

The charge/(credit) for the year can be reconciled to the profit/(loss) per the statement of comprehensive income as follows:

A key accounting estimate within the financial statements for this Company is the valuation of the Audio Visual Expenditure Credit (‘AVEC’) available. The estimate is based on the assessment of the value of qualifying expenditure as per HMRC legislation and guidance plus assessment of the qualification of the underlying programme as eligible for the expenditure credit.

Current tax is based on taxable profits or losses in the period. Taxable profits and losses differ from net losses as reported in the profit and loss account because they exclude items of income or expense that are deductible in other years, as well as items that are never taxable or deductible, and take account of brought forward tax losses. The Company's tax position is calculated using tax rates that have been enacted or substantively enacted by the reporting end date

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Current and deferred tax assets and tax liabilities are offset only if certain criteria are met.

On 29 November 2023, the UK government issued final legislation to reform the current system of creative industry tax credits to merge the four existing tax reliefs (Film, High-End Television (‘HETV’), Children’s Television and Animation) into a single mechanism of Audio-Visual Expenditure Credits (‘AVEC’) and has reviewed the qualifying criteria. The legislation was substantively enacted on 21 February 2024. The new mechanism is one of expenditure credits as opposed to corporate tax relief, requiring a change to the accounting treatment to include them within statutory operating profit rather than within the consolidated tax charge.

The Company has elected to claim the new AVEC for all qualifying expenditure incurred from 1 January 2024 as opposed to claiming under the previous HETV tax credit.

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, bank overdrafts, and amounts in transit from payment processors for credit card and debit card transactions.

All cash and cash equivalents are at the Company’s free disposal.

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less a provision for impairment when applicable.

The receivables are short-term in nature.

The receivables due from group companies bear no interest, are short-term in nature and are periodically settled.

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost.

The payables due to group companies bear no interest, are short-term in nature and are periodically settled.

The authorised share capital of the Company of £1 is divided into 1 ordinary share, fully paid-up, with a par value of £1 each.

Ordinary shares issued by the Company are classified as equity and are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

The Director has declared and made an interim dividend payment of £nil in respect of the financial year ended 31 December 2024 (2023: £22,464).

The Director is proposing a final dividend of £nil (2023: £nil) per share totalling £nil (2023: £nil).

Financial assets 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 classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Financial assets are initially measured at fair value plus transaction costs, other than those classified as fair value through profit and loss, which are measured at fair value.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if payment is due within one period or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when, and only when, the Company’s obligations are discharged, cancelled, or they expire.

Monetary assets and liabilities denominated in foreign currencies are translated into British Pounds Sterling (GBP) at the rates of exchange ruling at the date of the Statement of Financial Position. Trading results are translated at the average rate over the period in which the transactions were incurred. Foreign exchange differences are dealt with through the statement of comprehensive income.

The exchange rate ruling at the date of the Statement of Financial Position were £1= $1.2529 (2023: £1 = $1.2656) and £1= €1.2099 (2023: £1 = €1.0970).

Costs of sales

Production costs incurred are recognised in the statement of comprehensive income as cost of sales in the period in which they are incurred.

Value-added tax (VAT)

Revenues, expenses and assets are recognised net of the associated VAT, unless the tax incurred is not recoverable from the relevant tax authority. In this case, it is recognised as part of the cost of acquisition of the asset or part of the expense. Receivables and payables are stated inclusive of the amount of VAT receivable or payable. The net amount of VAT recoverable from, or payable to, the tax authority is included within other receivables or payables in the balance sheet.

Government Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants are recognised in the Statement of Comprehensive Income on a systematic basis over the period in which the company recognises as expenses, the related production costs for the which the grants are intended to compensate.

No events after the reporting period have occurred that are deemed material to the users of these financial statements.