REGISTERED NUMBER: 09444791 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

BLINK CHARGING HOLDINGS UK LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

Mr A J Calnan

Mrs J L Clark

REGISTERED OFFICE:

45 Grosvenor Road

1st Floor

St Albans

Hertfordshire

AL1 3AW

REGISTERED NUMBER:

09444791 (England and Wales)

AUDITORS:

Kings CAP Ltd

Statutory Auditor

4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Blink is on a mission to make EV charging reliable, convenient and accessible to everyone. The principal activity of the company during the year was the expansion of our UK EV charging network in public and private spaces.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties include:

Legislative and Regulatory changes

- Our Government Affairs resources keep up to date with the changing landscape to ensure we are compliant with new and evolving legislation and regulations.

The impact of energy cost and competition on charging pricing strategy

- Blink consistently analyse the market to ensure drivers charging sessions are priced fairly and competitively.

The emergence of innovative technology in a fast paced and growing industry

- Blink have a dedicated global Technology Team, who keep their finger on the pulse of the evolving technological

landscape. We pride ourselves on our forward-thinking solutions.

Network downtime

- Blink have dedicated resources who monitor our network and deploy fixes where necessary to minimise disruption to our drivers.

FUTURE DEVELOPMENTS

We will continue to work with our valued existing customers and newly acquired customers to provide solutions for

their EV Charging requirements in private and commercial spaces.

ON BEHALF OF THE BOARD:

Mrs J L Clark - Director

19 September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of providing an electric vehicle charging

infrastructure.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

Mr A J Calnan has held office during the whole of the period from 1 January 2024 to the date of this report.

Other changes in directors holding office are as follows:

Mrs J L Clark was appointed as a director after 31 December 2024 but prior to the date of this report.

Mr M M De Haan and Mr B Jones ceased to be directors after 31 December 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Kings CAP Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs J L Clark - Director

19 September 2025

Opinion

We have audited the financial statements of Blink Charging Holdings UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2024 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

Material uncertainty relating to going concern

We draw attention to note 2 in the financial statements which indicates the company's ability to continue as a going

concern despite operational losses. As stated in note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continues 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 evaluation of the directors' assessment of the Group's ability to continue to adopt the going concern basis of accounting included obtaining and reviewing the Group's forecasts and holding discussions with management over the key assumptions therein, and discussions with management surrounding the parent company's future plans for the Group including working capital support.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are 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 directors determine 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 directors are responsible for assessing the group's and the parent 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was to ensure the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity by way of discussions with the directors and from our commercial knowledge and experience in the sector. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, ISO Standards, employment and health and safety legislation.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls we performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Sara Brown (Senior Statutory Auditor)

for and on behalf of Kings CAP Ltd

Statutory Auditor

4 Grovelands

Boundary Way

Hemel Hempstead

Hertfordshire

HP2 7TE

19 September 2025

TURNOVER

3

6,352,341

7,831,968

Cost of sales

4,568,370

6,611,195

GROSS PROFIT

1,783,971

1,220,773

Administrative expenses

7,159,705

7,366,517

(5,375,734

)

(6,145,744

)

Other operating income

-

15,663

OPERATING LOSS

5

(5,375,734

)

(6,130,081

)

Amounts written off investments

7

100

-

(5,375,834

)

(6,130,081

)

Interest payable and similar expenses

8

185

7,783

LOSS BEFORE TAXATION

(5,376,019

)

(6,137,864

)

Tax on loss

9

-

(21,271

)

LOSS FOR THE FINANCIAL YEAR

(5,376,019

)

(6,116,593

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(5,376,019

)

(6,116,593

)

Loss attributable to:

Owners of the parent

(5,376,019

)

(6,116,593

)

Total comprehensive income attributable to:

Owners of the parent

(5,376,019

)

(6,116,593

)

FIXED ASSETS

Intangible assets

11

1,155

1,464

Tangible assets

12

6,295,349

5,795,534

Investments

13

-

-

6,296,504

5,796,998

CURRENT ASSETS

Stocks

14

1,735,151

2,389,545

Debtors

15

2,356,452

2,603,657

Cash at bank and in hand

1,018,918

519,826

5,110,521

5,513,028

CREDITORS

Amounts falling due within one year

16

3,663,524

4,587,727

NET CURRENT ASSETS

1,446,997

925,301

TOTAL ASSETS LESS CURRENT LIABILITIES

7,743,501

6,722,299

CREDITORS

Amounts falling due after more than one year

17

5,128,167

5,730,946

NET ASSETS

2,615,334

991,353

CAPITAL AND RESERVES

Called up share capital

19

57,991

15,046

Share premium

24,128,098

17,171,043

Retained earnings

(21,570,755

)

(16,194,736

)

SHAREHOLDERS' FUNDS

2,615,334

991,353

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

Mrs J L Clark - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

100

200

100

200

CURRENT ASSETS

Debtors

15

26,303,631

19,191,822

Cash at bank and in hand

10,325

10,138

26,313,956

19,201,960

CREDITORS

Amounts falling due within one year

16

-

301

NET CURRENT ASSETS

26,313,956

19,201,659

TOTAL ASSETS LESS CURRENT LIABILITIES

26,314,056

19,201,859

CREDITORS

Amounts falling due after more than one year

17

2,479,970

2,279,970

NET ASSETS

23,834,086

16,921,889

CAPITAL AND RESERVES

Called up share capital

19

57,991

15,046

Share premium

24,128,098

17,171,043

Retained earnings

(352,003

)

(264,200

)

SHAREHOLDERS' FUNDS

23,834,086

16,921,889

Company's loss for the financial year

(87,803

)

(416

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2025 and were signed on its behalf by:

Mrs J L Clark - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

2,087

(10,078,143

)

11,184,002

1,107,946

Deficit for the year

-

(6,116,593

)

-

(6,116,593

)

Total comprehensive income

-

(6,116,593

)

-

(6,116,593

)

Issue of share capital

12,959

-

5,987,041

6,000,000

Balance at 31 December 2023

15,046

(16,194,736

)

17,171,043

991,353

Deficit for the year

-

(5,376,019

)

-

(5,376,019

)

Total comprehensive income

-

(5,376,019

)

-

(5,376,019

)

Issue of share capital

42,945

-

6,957,055

7,000,000

Balance at 31 December 2024

57,991

(21,570,755

)

24,128,098

2,615,334

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

2,087

(263,784

)

11,184,002

10,922,305

Changes in equity

Deficit for the year

-

(416

)

-

(416

)

Total comprehensive income

-

(416

)

-

(416

)

Issue of share capital

12,959

-

5,987,041

6,000,000

Balance at 31 December 2023

15,046

(264,200

)

17,171,043

16,921,889

Changes in equity

Deficit for the year

-

(87,803

)

-

(87,803

)

Total comprehensive income

-

(87,803

)

-

(87,803

)

Issue of share capital

42,945

-

6,957,055

7,000,000

Balance at 31 December 2024

57,991

(352,003

)

24,128,098

23,834,086

Cash flows from operating activities

Cash generated from operations

1

(5,012,301

)

(6,496,430

)

Interest paid

(100

)

(3,700

)

Interest element of hire purchase or finance lease rental payments paid

(85

)

(3,787

)

Tax paid

-

21,271

Net cash from operating activities

(5,012,486

)

(6,482,646

)

Cash flows from investing activities

Purchase of tangible fixed assets

(4,822,020

)

(1,140,047

)

Sale of tangible fixed assets

3,133,598

8,466

Net cash from investing activities

(1,688,422

)

(1,131,581

)

Cash flows from financing activities

Capital repayments in year

-

(293

)

Share issue

42,945

12,959

Share premium

6,957,055

5,986,901

Loan from Parent undertaking

200,000

1,599,970

Net cash from financing activities

7,200,000

7,599,537

Increase/(decrease) in cash and cash equivalents

499,092

(14,690

)

Cash and cash equivalents at beginning of year

2

519,826

534,516

Cash and cash equivalents at end of year

2

1,018,918

519,826

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Loss before taxation

(5,376,019

)

(6,137,864

)

Depreciation charges

1,070,883

670,562

Loss on disposal of fixed assets

117,038

27,894

Finance costs

185

7,783

(4,187,913

)

(5,431,625

)

Decrease/(increase) in stocks

654,394

(908,267

)

Decrease/(increase) in trade and other debtors

248,200

(1,926,828

)

(Decrease)/increase in trade and other creditors

(1,726,982

)

1,770,290

Cash generated from operations

(5,012,301

)

(6,496,430

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,018,918

519,826

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

519,826

534,516

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

519,826

499,092

1,018,918

519,826

499,092

1,018,918

Total

519,826

499,092

1,018,918

1.	STATUTORY INFORMATION

Blink Charging Holdings UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The Group's financial statements have been prepared on a going concern basis, which assumes that the

Group will be able to realise its assets and discharge its liabilities in the normal course of business. The Group recorded a loss from operations for the year of £5,375,834 (2023: £6,130,081) and as at 31

December 2024 had cash of £1,018,918 (2023: £519,826).

Blink Holdings BV (the ultimate Parent), are a wholly owned subsidiary of Blink Charging Co, a leading owner, operator and provider of electric vehicle (EV) charging equipment. Blink Charging Co is based in Maryland, USA and listed on the NASDAQ Capital Market: BLNK. The Parent has substantially invested in the Group as it strategically expands its operational markets to the UK as part of its European growth strategy. During the year the Group received a total £7,000,000 equity investments from the Parent.

The Group's core markets remain firmly positioned within a high-growth sector Electric Vehicle (EV) charging infrastructure. The UK EV market continues to expand rapidly, with battery electric vehicles (BEVs) accounting for over 20% of all new car registrations as of mid-2025, marking a year-on-year growth of nearly 30%. This momentum is driven in part by the UK's Zero Emission Vehicle (ZEV) mandate, which requires 28% of all new car sales in 2025 to be zero-emission, as well as ongoing consumer demand and manufacturer investment.

While the 2030 ban on new petrol and diesel car sales remains a key target, recent developments including the implementation of the Expensive Car Supplement (ECS) and revised vehicle tax structures signal a shift toward more complex policy frameworks. Nevertheless, government support remains strong, as evidenced by the £650 million LEVI (Local Electric Vehicle Infrastructure) Fund and new grant schemes focused on accelerating local charging rollout.

The Group is well positioned to support this accelerating transition by delivering reliable, scalable EV charging solutions across both public and private sector projects nationwide, helping clients meet their sustainability goals and respond to rising demand for accessible and future-proof infrastructure.

Based on the above, the Directors are confident that the Group and Company have adequate resources to continue to operate for at least twelve months from the date of approval of these financial statements and have, therefore, continued to adopt the going concern basis in preparing the Directors' Report and Financial Statements.

Basis of consolidation

The consolidated financial statements incorporate those of Blink Charging Holdings UK Ltd and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 31 December 2024.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Impairment of Stock

The directors have applied their judgement in impairing slow moving stock to its net realisable value, based on sell by dates and customer demand.

Impairment of Trade Debtors

Some customers are offered credit accounts based on a credit review and historical trading information available. The debtors ledger is reviewed frequently and provision made where necessary. When assessing the impairment of trade debtors management considers factors including the current credit rating of the debtor, the ageing profile of debts and historical experience.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is measured at the fair value of the consideration receivable, derived from ordinary activities, stated net of VAT.

Turnover from the rendering of services is recognised on a systematic basis over the period to which it is provided except to the extent that they relate to long-term contracts.

Long term contract accounting is applied when the risks and rewards of goods are substantially transferred. Related revenues and expenses are recognised by way of reference to the stage of the completion of the project activity at the end of the reporting period by reference to the performance targets as they are met. If the outcome of the project cannot be estimated reliably, all related project costs that are incurred are immediately expensed and revenues are only recognised to the extent of the costs being recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

Straight line over 7 years

Fixtures and fittings

-

Straight line over 5 years

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.