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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
COMPANY INFORMATION
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V-NOVA SERVICES LIMITED
CONTENTS
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V-NOVA SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
V-Nova is a London-headquartered technology group providing next generation data management and compression solutions and codecs to address the ever-growing image, video, AR/VR and AI data processing and delivery challenges. The Group's mission is to provide a step change improvement in availability and quality of experience of digital services, enabling higher quality and more affordable services for all.
The group provides ground-breaking solutions for the three key trends in modern technology:
∙Video Everywhere - Digital media is growing rapidly, competing for high quality, cost-efficiency, and lower power consumption. The world wants more video, anywhere, anytime, and V-Nova’s LCEVC can enable this cost-efficiently, at low latency and high quality for Entertainment and Media, as well as other industries like security and automotive.
∙Immersive XR/VR - The market is striving to deliver new immersive formats. V-Nova's technologies remove the key bottlenecks for XR streaming and create the first truly immersive cinematic experiences, setting the template for a revolution in entertainment (and professional applications).
∙AI - AI is evolving from text-only LLM chat-bots to Large Multimodal Models and Intelligent Edge. V-Nova’s technologies can produce multi-fold processing efficiencies for AI media indexing, multimodal Generative AI and intelligent edge technologies. Broadly speaking, its technologies allow AI Media Indexing, Machine Vision and Large Multimodal Models (LMMs) to behave with data like humans do, focusing on relevant signal resolution and regions of interest while keeping the entire signal available at maximum quality in efficiently compressed form.
Uniquely, V-Nova’s technology was designed from the ground up for hierarchical processing, massively parallel processing and AI. This allows better compression, improved picture quality and substantial processing power reductions without requiring dedicated hardware acceleration, hence maintaining compatibility with devices already deployed in the field and at lower levels of power consumption.
The Company holds two international standards in video, MPEG 5.2 LCEVC and SMPTE VC-6 (as well as essential IP in other international video standards, such as h.265/HEVC and h.266/VVC) and a proprietary AR/VR format, V-Nova PresenZ. LCEVC is a unique, ground-breaking “hybrid” solution that improves any existing and planned video compression codec, at the same time delivering a generational improvement in compression capability and reducing the overall video workflow computational complexity by up to an order of magnitude. As a hybrid solution, LCEVC is notably not in direct competition with any other codec in the market. With V-Nova PresenZ, the Group offers the world’s first photorealistic 6-Degrees of Freedom (6DoF) AR/VR technology, enabling an unprecedented level of immersive realism for cinematic experiences, with the user able to freely move in a life-like Hollywood-grade cinematic experience with full parallax, ability to look around/behind objects, and no motion sickness. VC-6, with its family of products, is the codec utilising V-Nova’s technology in its pure form, leveraging on the unique approach of its technology for use cases that are not available to traditional codecs. In particular, in landmark projects with world-leading tech and media companies, it has been proven to have ground-breaking capabilities in AI-driven applications, such as analysis, detection and recognition. The Company is the operating arm of the V-Nova Group and is particularly focused on the Research and Development activities of the various V-Nova technologies for the group. During the year the parent company successfully secured further funding from new and existing investors for £14.2m, as part of a wider Series C5 funding round. Post balance sheet date, the group received additional investment for £2.3m. The funds raised by the parent company are being used mostly to support the Company’s operating activities. For the year-ended 31 March 2025 £1,464,878 is expected to be received as a repayment from HMRC as R&D Tax Credit for the Research & Development carried out during the year.
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V-NOVA SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
During the year 2024/25 the Company was still focused on the development, standardisation and productisation of the Group’s technologies whilst supporting pilot and prototype projects with key strategic partners.
The Group’s products and solutions are gaining strong momentum in the market with several high profile adoptions and integrations that have been announced during the year and a healthy pipeline of commercial opportunities, ranging from the adoption of LCEVC for the new broadcasting standard in Brazil and Latin America to the launch of the first immersive 6 Degrees of Freedom movie production. The Company regards the amount of investment in Research and Development as its leading KPI. During the year the Company capitalised £5,927,033 (2024: £5,366,836) in Development Intangibles (i.e., not including pure Research activities that are not capitalised under IAS 38). This indicates the continued commitment of the Company and the Group on the innovation of its core technology and its extension to ever-wider reaching applications. In clear demonstration of the above investment bearing fruit, during the year the Group filed 250 patent applications (2024: 220) and at balance sheet date had a total of 1200 pending or granted (2024: 950). The Company remains among the most innovative companies in the UK by number of patents per employee, with more than 45% of its employees being named inventors on its patents.
The Board has overall responsibility for risk management and internal controls; this includes management of market risk, credit risk, liquidity risk and internal control.
Key commercial risks relate to the adoption of the Group's technology and products, and building sustainable long-term customer and partner relationships, together with effective product positioning in the marketplace. The Company derived its revenues in the year from selling products and services. The Company's foreign currency risk is not material at its current stage of development; some goods purchased and sold are denominated in Euros and US Dollars. Credit risk is the risk that the counterparty will fail to discharge its obligation. The Company's principal financial assets are cash and trade and other receivables, which represent the Company's maximum exposure to credit risk in relation to financial assets. The Company's credit risk is primarily attributable to its trade receivables. The amounts presented in the Statement of Financial Position are net of allowances for doubtful receivables, estimated by the Company's management based on prior experience and their assessment of the current economic environment. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international agencies. New customers are subject to an initial credit assessment and credit limits are reviewed on an on-going basis and are subject to senior management oversight. The payment position of past due trade receivables is monitored daily and actively managed. The standard credit terms for sales are 30 days net. Liquidity risk in the Company is closely aligned with the risks in the ultimate patent, V-Nova International Ltd and is the risk that the group will not have sufficient funds to pay its debts as and when they fall due. The Group had cash at bank of £2,282,487 (2024 - £2,388,201) on 31 March 2025 and has historically successfully raised financing from various sources, including shareholders and new investors. The Directors are confident that the parent company will be able to continue to raise financing to develop and market the Group's products and expand its operations if and when required. As described, during the year and post year-end the Group successfully secured further funding through a mixture of new and existing investors. The Directors have reviewed the Company’s going concern position, taking into account its own and its parent’s current business activities, budgeted performance, and the factors likely to affect its future development and, as explained in Note 2.3, these financial statements have been prepared on a going concern basis, taking also into account that the Company’s parent, V-Nova International Limited, has confirmed that it will continue to provide such financial support as the Company requires for its continued operations.
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V-NOVA SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Company will continue to develop and support the Group’s standards and products in future periods, focusing on scaling up productisation and support activities in the Media and Entertainment industry and to global Hyperscalers, while expanding the application of the Group’s IP to new sectors and verticals, such as Artificial Intelligence and Intelligent Edge applications, AR/VR, Imaging, Aerospace, Security, Gaming, and Automotive.
This report was approved by the board and signed on its behalf.
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V-NOVA SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors present their report and the financial statements for the year ended 31 March 2025.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the Directors must not approve the financial statements unless they are 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 period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The loss for the year, after taxation, amounted to £11,610,870 (2024 - loss £8,775,977).
The Company has no distributable reserves and the Directors therefore do not recommend a dividend.
The Directors who served during the year were:
The Company has in place qualifying third party indemnity provisions for all of the Directors of V-Nova Services Limited.
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V-NOVA SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
Post balance sheet date, the Company’s ultimate parent, V-Nova International Limited, received additional investment subscriptions from new investors for £2.3m. The funds are being used mostly to support the Group's operating activities to commercialisation of its solutions.
On 1 April 2025 V-Nova International Limited appointed Dr Mary Meaney Haynes to its Board of Directors, further strengthening the Group leadership.
The auditor, James Cowper Kreston Audit, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the Board and signed on its behalf.
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V-NOVA SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF V-NOVA SERVICES LIMITED
We have audited the financial statements of V-Nova Services Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of 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).
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 United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 2.3 in the financial statements concerning the Company's ability to continue as a going concern. As stated in note 2.3 the Company may be reliant on the Directors of the parent Company being able to raise sufficient additional financing in the next 12 months. These conditions, along with the other matters as set out in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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 contained within the Annual Report. 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.
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V-NOVA SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF V-NOVA SERVICES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' 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 Directors' Report.
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V-NOVA SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF V-NOVA SERVICES LIMITED (CONTINUED)
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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
∙Enquiry of management and those charged with governance around actual and potential litigation and claims;
∙Enquiry of management and those charged with governance to identify any material instances of noncompliance with laws and regulations;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work to address the risk of irregularities due to management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for evidence of bias.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's 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.
for and on behalf of
Chartered Accountants and Statutory Auditor
Reading Bridge House
George Street
Berkshire
RG1 8LS
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V-NOVA SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
REGISTERED NUMBER: 08121803
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:
The notes on pages 12 to 29 form part of these financial statements.
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V-NOVA SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
V-Nova Services Limited (registered number: 08121803) is a company limited by shares incorporated in England and Wales under the Companies Act. The registered office is Level 2, 20 Eastbourne Terrace, Paddington, London, W2 6LG.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙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
∙the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
This information is included in the consolidated financial statements of V-Nova International Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Directors have reviewed the Company’s going concern position, taking into account its own and its parent’s current business activities, budgeted performance, and the factors likely to affect its future development. At the Statement of Financial Position date, the Company has net liabilities of £72,262k (2024: £61,536k), of which £82,381k (2024: £66,163k) is owed to other group companies. Given the relationship between the Company and its parent, it is reliant on its parent to maintain sufficient working capital. Post balance-sheet date, the Company’s parent raised a further £2.3m in equity funding from existing and new investors. This, in combination to existing cash and accounts receivable balances, allows the Group to cover its current forecast monthly cash requirements of circa £1.2m to the end of the current financial year. Since the roll-out of licensing contracts already signed is dependent on clients’ product priorities and the current pipeline opportunities are concentrated in high value deals with selected prospects, it is still difficult to accurately predict revenue performance and timing. In light of the above, the Group may seek additional funding to support its continued investment in R&D and commercial operations. The parent’s Directors have a history of successfully raising funding from new investors and the existing shareholders have been consistently supportive. Whilst there is no certainty, the parent’s Directors are confident that they will be able to raise further amounts as required. The Directors have concluded that the circumstances set forth above indicate the existence of material uncertainty, which may cast doubt about the Company’s ability to continue as a going concern, and therefore, that may be unable to realise its assets and discharge its liabilities in the normal course of business. However, they believe that taken as a whole, the factors described above make it probable that the Company will be able to continue as a going concern for the foreseeable future. The financial statements do not include the adjustments that would result if the Company were unable to continue as a going concern.
Functional and presentation currency
Transactions and balances
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that: • The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; • Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Fair value is measured by the Black-Scholes valuation model. The expected life used in the model has been adjusted, based on management's best estimate, for the effects of non-transferability, exercise restrictions and behavioural conditions. In the Company financial statements, awards, in proportion to the recipients who are employees and consultants of the Company, are treated as an equity-settled share-based payment, as the Company does not have an obligation to settle the award. An expense for the grant date fair value of the award is recognised over the vesting period, with a credit recognised in equity. The credit is treated as a capital contribution, as V-Nova International Limited is compensating the subsidiaries' employees and consultants with no cost to the subsidiaries as there is no expectation to recharge the cost. In V-Nova International Limited's financial statements, there is no share-based payment charge where the recipients are employed by a subsidiary, with V-Nova International Limited recognising an increase in the investment in the subsidiaries as a capital contribution and a credit to equity. 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 profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The estimated useful lives are as follows:
Expenditure on internally developed products is capitalised if it can be demonstrated that:
• the technical feasibility of completing the intangible asset so that it will be available for use or sale; • the intention to complete the intangible asset and use or sell it; • the ability to use or sell the intangible asset; • how the intangible asset will generate probable future economic benefits; • the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and • the ability to measure reliably the expenditure attributable to the intangible asset during its development The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives. In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Financial assets and financial liabilities are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual instrument.
Financial assets and financial liabilities are initially measured at fair value. Financial assets All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets. Financial liabilities and equity Financial liabilities and equity are classified according to the substance of the financial instruments contractual obligations, rather than it's legal form. Financial liabilities (excluding convertible debt) are initially measured at their transaction price (including transaction costs) and subsequently held at amortised cost. The Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses, trade receivables have been grouped based on similar ageing. The Company has concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for each ageing category and customer based on historical debt trends.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Recoverability and useful economic life of tangible and intangible assets The Company makes judgements regarding the nature of certain types of expenditure in recognising additions to intangible assets. Development costs are capitalised only when current evidence indicates that the the expenditure will contribute to the generation of future economic benefits to the Company. In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The majority of expenditure capitalised by the Company is labour costs. There is a degree of judgement in respect of the amount of time staff spend on development projects so management use standard capitalisation percentage rates for the differing job roles. Judgements are also made regarding the useful economic life of tangible and intangible assets. Assets are considered to begin depreciating in value in the same year that they are initially recognised. Factors taken into consideration in reaching a decision on an asset's useful economic life include the economic viability and expected future financial performance of the asset. Where the asset is a component of a larger cash-generating unit, the viability and expected future performance of that unit is also considered. The Company continues to make judgements regarding the expected value recoverable throughout the assets life, and recognises impairment losses to the asset's value where the initial judgements and estimations are no longer reflected by actual circumstances or by revised judgements about the future. Research and development Tax Credits The Company expects to be entitled to claim special tax allowances in relation to qualifying research and development expenditure (e.g. R&D Tax Credits). The Company accounts for such allowances as Tax Credits, when it is probable that economic benefit will flow to the Company and that benefit can be reliably measured.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Judgements in applying accounting policies (continued)
The Directors have made certain estimates and assumptions about the future of the Company, and its ability to continue as a going concern. These are set out in detail in the going concern accounting policy above. Share based payments The Company has issued share options to certain employees and consultants. The Directors have assessed the variable inputs for the Black-Scholes valuation model to determined their fair value at grant date. The Company accounts for these options as having a variable vesting period that should be recognised when it is more likely than not that the exit event will be achieved. Each year the charge will be 'trued-up' to reflect changes in the expect vesting period determined by judgement of the Directors.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
7.Taxation (continued)
Factors that may affect future tax charges
Unrecognised tax losses No tax charge arose in the year due to losses incurred. At the year end the Company had unrecognised tax assets of £12,708,040 (2024: £11,013,939). Deferred tax assets have not been recognised in respect of these losses on the basis that the Company is still investing heavily in research and development and as a result the Company is uncertain as to when they will generate future taxable profits against which the losses would be utilised and to what extent.
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
9.Tangible fixed assets (continued)
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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V-NOVA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The immediate and ultimate parent Company is
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