Dunad Therapeutics Limited
Annual Report and Financial Statements
For the year ended 31 December 2024
Company Registration No. 12544797 (England and Wales)
Dunad Therapeutics Limited
Company Information
Directors
Dr E A Roper
Dr P S Huang
O Slotboom
M Bonney
Dr V K Gupta
(Appointed 28 March 2024)
L E Jones
(Appointed 14 August 2024)
Secretary
Oakwood Corporate Secretary Limited
Company number
12544797
Registered office
The Officers' Mess
Royston Road
Cambridge
United Kingdom
CB22 4QH
Auditor
Moore Kingston Smith LLP
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Dunad Therapeutics Limited
Contents
Page
Directors' report
1 - 3
Independent auditor's report
4 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13 - 14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
Dunad Therapeutics Limited
Directors' Report
For the year ended 31 December 2024
Page 1

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the group continued to be that of research and experimental development on biotechnology.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Dr E A Roper
Dr P S Huang
O Slotboom
C Dimitropoulos
(Resigned 14 August 2024)
R Hodits
(Resigned 28 March 2024)
P T Gunning
(Resigned 31 May 2024)
M Bonney
Dr V K Gupta
(Appointed 28 March 2024)
L E Jones
(Appointed 14 August 2024)
Results and dividends

The group results for the year are set out on page 9.

 

There were no dividends paid, recommended or declared during the current financial year or previous period. No dividends have been declared by the Group since the balance sheet date.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

Dunad Therapeutics Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 2

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going concern

The group made a loss for the year of £12,090,528 (2023: £9,373,003 loss) and at the year-end has net assets of £10,087,693 (2023: £11,964,851), of which £10,181,189 is in cash (2023: £12,647,994). The cash balance as of 31 August 2025 is £4.1 million.

 

The financial statements have been prepared on a going concern basis, which assumes that the group and parent company will continue as a going concern for the foreseeable future, and specifically, as a minimum for a period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the directors have approved, the following;

 

 

Subsequent to the year end, in August 2025, the Company successfully completed a further round of funding from some of its existing investors in the form of a convertible loan note, committing up to £6.0 million of further investment. Of this balance, £2.2 million was received on 12 August 2025. The remaining balance is expected to be received over the course of the next six months as certain scientific milestones are met, however, the second and third tranches of the convertible loan note are dependent on the continued success of the lead program, which is inherently uncertain.

 

The directors have considered a number of cash flow forecast scenarios that will allow the group to progress its research and development efforts, which include slowing spending as needed to extend the company’s cash runway. The result of the additional fundraising will determine the pace the group advances its programs. The directors appreciate the challenging nature of drug discovery and with the relatively short cash runway and the uncertain status of additional fundraising acknowledge a material uncertainty exists in relation to the ability of the group and parent company to continue as a going concern. The Company has identified a number of strategies to reduce costs and continues to explore non-dilutive funding opportunities, such as grants. The current cash balance and the £6m convertible loan note proceeds provide a runway to the end of September 2026 thus management believes a going concern basis of preparation remains appropriate.

 

Based on the Group’s history of strong investor support, ongoing discussions with further interested investors and belief in the science, the directors have a reasonable expectation that the group and parent company will be able to continue to meet its commitments and liabilities as they fall due and to execute its business plan. For these reasons, the directors adopt a going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Dunad Therapeutics Limited
Directors' Report (Continued)
For the year ended 31 December 2024
Page 3
Small companies exemption

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

On behalf of the board
Dr P S Huang
Director
18 September 2025
Dunad Therapeutics Limited
Independent Auditor's Report
To the Members of Dunad Therapeutics Limited
Page 4
Opinion

We have audited the financial statements of Dunad Therapeutics Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024 which comprise the Group Profit And Loss Account, the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows 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 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:

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 Group and Parent 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.

Material uncertainty relating to going concern

We draw attention to note 1.3 to the financial statements which indicates that a material uncertainty relating to going concern exists due to the group and parent company’s additional investor funding commitments being dependent on the continued success of the lead program. Whilst the directors are confident based on current and historic development performance and levels of investor funding, as stated in note 1.3, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the group and parent 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 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.

Dunad Therapeutics Limited
Independent Auditor's Report (Continued)
To the Members of Dunad Therapeutics Limited
Page 5

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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Statement of Responsibilities, 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 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 directors are responsible for assessing the Group's and 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 Parent Company or to cease operations, or have no realistic alternative but to do so.

Dunad Therapeutics Limited
Independent Auditor's Report (Continued)
To the Members of Dunad Therapeutics Limited
Page 6
Auditor's 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 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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Dunad Therapeutics Limited
Independent Auditor's Report (Continued)
To the Members of Dunad Therapeutics Limited
Page 7

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

Ÿ

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

Dunad Therapeutics Limited
Independent Auditor's Report (Continued)
To the Members of Dunad Therapeutics Limited
Page 8

Use of our report

This report is made solely to the Parent 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 for no purpose other than to draw to the attention of the Parent Company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the Parent Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Roberts (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
21 September 2025
Chartered Accountants
Statutory Auditor
The Shipping Building
The Old Vinyl Factory
Blyth Road
Hayes
London
UB3 1HA
Dunad Therapeutics Limited
Group Profit and Loss Account
For the year ended 31 December 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
5,214,555
9,221,243
Research and development
(9,044,868)
(10,173,578)
Administrative expenses
(9,657,994)
(10,313,567)
Other operating income
3
228,325
381,461
Operating loss
4
(13,259,982)
(10,884,441)
Interest receivable and similar income
8
372,733
421,296
Interest payable and similar expenses
9
-
0
(59)
Loss before taxation
(12,887,249)
(10,463,204)
Tax on loss
10
844,140
983,955
Loss for the financial year
(12,043,109)
(9,479,249)
Loss for the financial year is all attributable to the owners of the Parent Company.

The notes on pages 17 to 33 form part of these financial statements.

Dunad Therapeutics Limited
Group Statement of Comprehensive Income
For the year ended 31 December 2024
Page 10
2024
2023
£
£
Loss for the year
(12,043,109)
(9,479,249)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(47,419)
106,246
Total comprehensive loss for the year
(12,090,528)
(9,373,003)
Total comprehensive income for the year is all attributable to the owners of the Parent Company.

The notes on pages 17 to 33 form part of these financial statements.

Dunad Therapeutics Limited
Group Balance Sheet
As at 31 December 2024
31 December 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
322,177
328,216
Current assets
Debtors
15
1,662,303
4,044,148
Cash at bank and in hand
10,181,189
12,647,994
11,843,492
16,692,142
Creditors: amounts falling due within one year
16
(2,077,976)
(5,055,507)
Net current assets
9,765,516
11,636,635
Net assets
10,087,693
11,964,851
Capital and reserves
Called up share capital
19
8,528
2,737
Share premium account
36,427,272
26,576,162
Share based payment reserve
18
775,394
418,925
Other reserves
109,314
156,733
Profit and loss reserves
(27,232,815)
(15,189,706)
Total equity
10,087,693
11,964,851

The notes on pages 17 to 33 form part of these financial statements.

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

The financial statements were approved by the board of directors and authorised for issue on 18 September 2025 and are signed on its behalf by:
18 September 2025
Dr P S Huang
Director
Dunad Therapeutics Limited
Company Balance Sheet
As at 31 December 2024
31 December 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
32,180
82,914
Investments
12
-
0
-
0
Current assets
Debtors
15
1,564,290
3,885,908
Cash at bank and in hand
7,996,627
11,623,839
9,560,917
15,509,747
Creditors: amounts falling due within one year
16
(902,998)
(4,341,849)
Net current assets
8,657,919
11,167,898
Net assets
8,690,099
11,250,812
Capital and reserves
Called up share capital
19
8,528
2,737
Share premium account
36,427,272
26,576,162
Share based payment reserve
18
775,394
418,925
Profit and loss reserves
(28,521,095)
(15,747,012)
Total equity
8,690,099
11,250,812

The notes on pages 17 to 33 form part of these financial statements.

As permitted by s408 Companies Act 2006, the Parent Company has not presented its own profit and loss account and related notes. The Parent Company’s loss for the year was £12,774,083 (2023: £11,488,995).

These 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 18 September 2025 and are signed on its behalf by:
18 September 2025
Dr P S Huang
Director
Company Registration No. 12544797 (England and Wales)
Dunad Therapeutics Limited
Group Statement of Changes in Equity
For the year ended 31 December 2024
Page 13
Share capital
Share premium account
Currency translation reserve
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2023
2,726
26,576,162
50,487
-
(5,710,457)
20,918,918
Year ended 31 December 2023:
Loss for the year
-
-
-
-
(9,479,249)
(9,479,249)
Other comprehensive income:
Currency translation differences
-
-
-
-
106,246
106,246
Total comprehensive income for the year
-
-
-
-
(9,373,003)
(9,373,003)
Issue of share capital
19
11
-
0
-
-
-
11
Equity settled share-based payments
-
-
-
418,925
-
418,925
Transfer of currency translation differences
-
-
106,246
-
(106,246)
-
Balance at 31 December 2023
2,737
26,576,162
156,733
418,925
(15,189,706)
11,964,851
Dunad Therapeutics Limited
Group Statement of Changes in Equity (Continued)
For the year ended 31 December 2024
Share capital
Share premium account
Currency translation reserve
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Page 14
Year ended 31 December 2024:
Loss for the year
-
-
-
-
(12,043,109)
(12,043,109)
Other comprehensive income:
Currency translation differences
-
-
-
-
(47,419)
(47,419)
Total comprehensive income for the year
-
-
-
-
(12,090,528)
(12,090,528)
Issue of share capital net of expenses
19
5,791
9,851,110
-
-
-
9,856,901
Equity settled share-based payments
-
-
-
356,469
-
356,469
Transfer of currency translation differences
-
-
(47,419)
-
47,419
-
Balance at 31 December 2024
8,528
36,427,272
109,314
775,394
(27,232,815)
10,087,693

The notes on pages 17 to 33 form part of these financial statements.

Dunad Therapeutics Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Page 15
Share capital
Share premium account
Share based payment reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
2,726
26,576,162
-
(4,258,017)
22,320,871
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(11,488,995)
(11,488,995)
Issue of share capital
19
11
-
0
-
-
11
Equity settled share-based payments
-
-
418,925
-
418,925
Balance at 31 December 2023
2,737
26,576,162
418,925
(15,747,012)
11,250,812
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
-
(12,774,083)
(12,774,083)
Issue of share capital net of expenses
19
5,791
9,851,110
-
-
9,856,901
Equity settled share-based payments
-
-
356,469
-
356,469
Balance at 31 December 2024
8,528
36,427,272
775,394
(28,521,095)
8,690,099

The notes on pages 17 to 33 form part of these financial statements.

Dunad Therapeutics Limited
Group Statement of Cash Flows
For the year ended 31 December 2024
Page 16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(13,892,647)
(13,922,282)
Interest paid
-
0
(59)
Income taxes received
1,365,571
896,320
Net cash outflow from operating activities
(12,527,076)
(13,026,021)
Investing activities
Purchase of tangible fixed assets
(125,458)
(289,930)
Proceeds from disposal of tangible fixed assets
3,514
2,800
Interest received
372,733
421,296
Net cash generated from investing activities
250,789
134,166
Financing activities
Proceeds from issue of shares
9,856,901
11
Net cash generated from financing activities
9,856,901
11
Net decrease in cash and cash equivalents
(2,419,386)
(12,891,844)
Cash and cash equivalents at beginning of year
12,647,994
25,433,592
Effect of foreign exchange rates
(47,419)
106,246
Cash and cash equivalents at end of year
10,181,189
12,647,994

The notes on pages 17 to 33 form part of these financial statements.

Dunad Therapeutics Limited
Notes to the Group Financial Statements
For the year ended 31 December 2024
Page 17
1
Accounting policies
Company information

Dunad Therapeutics Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales under the Companies Act 2006. The registered office is The Officers' Mess, Royston Road, Cambridge, United Kingdom, CB22 4QH.

 

The Group consists of Dunad Therapeutics Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by s408 Companies Act 2006, the Parent Company has not presented its own profit and loss account and related notes. The Parent Company’s loss for the year was £12,774,083 (2023: £11,488,995).

1.2
Basis of consolidation

The Group's financial statements consist of the financial statements of the Parent Company Dunad Therapeutics Limited together with all entities controlled by the Parent Company (its subsidiaries).

 

All financial statements are made up to 31 December 2024. 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.

 

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.

Subsidiaries are consolidated in the Group’s financial statements from the date that control commences until the date that control ceases.

The Parent Company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The Parent Company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 18
1.3
Going concern

The group made a loss for the year of £12,090,528 (2023: £9,373,003 loss) and at the year-end has net assets of £10,087,693 (2023: £11,964,851), of which £10,181,189 is in cash (2023: £12,647,994). The cash balance as of 31 August 2025 is £4.1 million.

 

The financial statements have been prepared on a going concern basis, which assumes that the group and parent company will continue as a going concern for the foreseeable future, and specifically, as a minimum for a period of at least twelve months from the date of approval of these financial statements. In making this assessment, management have considered, and the directors have approved, the following;

 

 

Subsequent to the year end, in August 2025, the Company successfully completed a further round of funding from some of its existing investors in the form of a convertible loan note, committing up to £6.0 million of further investment. Of this balance, £2.2 million was received on 12 August 2025. The remaining balance is expected to be received over the course of the next six months as certain scientific milestones are met, however, the second and third tranches of the convertible loan note are dependent on the continued success of the lead program, which is inherently uncertain.

 

The directors have considered a number of cash flow forecast scenarios that will allow the group to progress its research and development efforts, which include slowing spending as needed to extend the company’s cash runway. The result of the additional fundraising will determine the pace the group advances its programs. The directors appreciate the challenging nature of drug discovery and with the relatively short cash runway and the uncertain status of additional fundraising acknowledge a material uncertainty exists in relation to the ability of the group and parent company to continue as a going concern. The Company has identified a number of strategies to reduce costs and continues to explore non-dilutive funding opportunities, such as grants. The current cash balance and the £6m convertible loan note proceeds provide a runway to the end of September 2026 thus management believes a going concern basis of preparation remains appropriate.

 

Based on the Group’s history of strong investor support, ongoing discussions with further interested investors and belief in the science, the directors have a reasonable expectation that the group and parent company will be able to continue to meet its commitments and liabilities as they fall due and to execute its business plan. For these reasons, the directors adopt a going concern basis in preparing the financial statements. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 19
1.4
Turnover

Turnover recognised in the financial statements represents licensing and collaboration income.

 

Revenue from licensing income is recognised evenly over the period of the licensing agreement. Sums paid in advance are accounted for as deferred income, are included within creditors: amounts falling due within one year, and amounted to nil (December 2023: £3,140,351).

 

Revenue from collaboration income is recognised in the period in which the work has been incurred, inline with the collaboration agreement.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
5 years straight line
Computers
3 years straight line
Laboratory equipment
5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

In the Parent Company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit or loss.

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Parent Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 20
1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The Group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 Group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow Group companies and preference shares that are classified as debt, 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.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 21
Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the Group are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Parent Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Share-based payments
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
1
Accounting policies
(Continued)
Page 22

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the Group’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 experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The 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.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 23
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:

Research and development tax credit

The tax recoverable balance is calculated based on the Parent Company's expected eligibility to qualify for enhanced tax deductions for research and development under the SME scheme. Eligibility is dependent on both the size of the Parent Company and its ownership structure.

3
Turnover and other income
2024
2023
£
£
Turnover analysed by class of business
Licence income
3,140,351
3,946,659
Collaboration income
2,074,204
5,274,584
5,214,555
9,221,243
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,214,555
9,221,243
2024
2023
£
£
Other income
Government grants receivable
228,325
381,461
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
61,369
631,517
Research and development costs
6,997,223
10,173,578
Government grants
(228,325)
(381,461)
Depreciation of owned tangible fixed assets
115,740
75,811
Loss on disposal of tangible fixed assets
16,543
40
Share-based payments
356,469
418,925
Operating lease charges
550,144
346,116
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 24
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the Group and Company
28,000
25,000
Audit of the financial statements of the Company's subsidiaries
-
7,210
28,000
32,210
For other services
All other non-audit services
29,050
28,500
6
Employees

The average monthly number of persons (including directors) employed by the Group and Parent Company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Total
28
26
10
13

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,064,868
5,232,229
1,513,416
1,833,534
Social security costs
371,150
333,882
151,532
172,762
Pension costs
162,304
69,129
60,095
69,129
6,598,322
5,635,240
1,725,043
2,075,425
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
736,760
898,969
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
7
Directors' remuneration
(Continued)
Page 25
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
600,093
531,799

During the year the total share-based payment charge recognised in relation to options held by the directors was £219,383 (2023: £190,954).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
372,733
421,296

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
372,733
421,296
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
-
59
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(844,140)
(983,955)
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
10
Taxation
(Continued)
Page 26

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(12,887,249)
(10,463,204)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(3,221,812)
(2,458,853)
Tax effect of expenses that are not deductible in determining taxable profit
2,646,320
1,619,642
Research and development tax credit
(268,648)
(150,644)
Other movements
-
0
5,900
Taxation credit
(844,140)
(983,955)
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Laboratory equipment
Total
£
£
£
£
Cost
At 1 January 2024
40,517
172,306
243,906
456,729
Additions
2,345
-
0
123,113
125,458
Disposals
(18,876)
(9,082)
(3,909)
(31,867)
Exchange adjustments
(23)
929
4,868
5,774
At 31 December 2024
23,963
164,153
367,978
556,094
Depreciation and impairment
At 1 January 2024
5,756
66,374
56,383
128,513
Depreciation charged in the year
8,682
56,016
51,042
115,740
Eliminated in respect of disposals
(4,724)
(6,435)
(651)
(11,810)
Exchange adjustments
12
558
904
1,474
At 31 December 2024
9,726
116,513
107,678
233,917
Carrying amount
At 31 December 2024
14,237
47,640
260,300
322,177
At 31 December 2023
34,761
105,932
187,523
328,216
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
11
Tangible fixed assets
(Continued)
Page 27
Company
Fixtures and fittings
Computers
Laboratory equipment
Total
£
£
£
£
Cost
At 1 January 2024
20,690
102,044
63,684
186,418
Disposals
(372)
(4,826)
-
0
(5,198)
At 31 December 2024
20,318
97,218
63,684
181,220
Depreciation and impairment
At 1 January 2024
4,823
55,163
43,518
103,504
Depreciation charged in the year
4,364
33,633
12,737
50,734
Eliminated in respect of disposals
(372)
(4,826)
-
0
(5,198)
At 31 December 2024
8,815
83,970
56,255
149,040
Carrying amount
At 31 December 2024
11,503
13,248
7,429
32,180
At 31 December 2023
15,867
46,881
20,166
82,914
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
-
0
-
0
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
12
Fixed asset investments
(Continued)
Page 28
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
-
Additions
7,509,868
At 31 December 2024
7,509,868
Impairment
At 1 January 2024
-
Impairment losses
7,509,868
At 31 December 2024
7,509,868
Carrying amount
At 31 December 2024
-
At 31 December 2023
-

The Parent Company holds a 100% investment in 2740376 Ontario Inc., a Canadian holding company. Indirectly the Parent Company holds an interest in a Canadian intermediate holding company 2752591 Ontario Inc. and its Canadian subsidiary 2692372 Ontario Inc. The acquisition was effected using an exchangeable share structure mechanism, under which Dunad Therapeutics Limited will be required to issue 20,000,000 ordinary shares at the point when exchange rights are exercised by the holders of exchangeable nonequity shares that have been issued by 2752591 Ontario Inc.

 

The Parent Company also owns a wholly owned subsidiary Dunad Therapeutics US, Inc. This was purchased for $0.01 for 1 share of common stock. During the year the Parent Company made a capital contribution of £7,509,868 to Dunad US Inc, which was subsequently impaired to nil. On consolidation this impairment has been added back.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 29
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

100% Held directly
Name of undertaking
Registered office
Nature of Business
Dunad Therapeutics US, Inc.
USA
Research and experimental development on biotechnology
2740376 Ontario Inc.
Canada
Holding company
100% Held indirectly
Name of undertaking
Registered office
Nature of Business
2752591 Ontario Inc.
Canada
Holding company
2692372 Ontario Inc.
Canada
Holding company
14
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Measured at amortised cost
1,443,405
3,583,107
1,370,123
3,578,517
Carrying amount of financial liabilities
Measured at amortised cost
2,077,976
1,915,156
902,998
1,201,498
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
-
0
1,157,988
-
0
1,157,988
Other debtors
1,447,243
2,451,432
1,373,961
2,446,842
Prepayments and accrued income
215,060
434,728
190,329
281,078
1,662,303
4,044,148
1,564,290
3,885,908
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 30
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
814,075
966,543
703,143
903,756
Deferred income
-
0
3,140,351
-
0
3,140,351
Other creditors
17,081
24,042
10,317
-
0
Accruals and deferred income
1,246,820
924,571
189,538
297,742
2,077,976
5,055,507
902,998
4,341,849
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
162,304
69,129

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

18
Share-based payment transactions

The Parent Company has Equity-settled share-based payments which are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model.

 

During the year, the Parent Company recognised total share-based payment expenses of £356,469 (2023: £418,925) which related to equity settled share based payment transactions.

 

As at 31 December 2024 there were outstanding options in respect of 15,544,745 shares relating to 30 employees and advisors to the Parent Company and/or its subsidiaries, past or present. 4,740,011 of these options are vested as of 31 December 2024.

 

Options have been granted at various dates. Option holders acquire the right to exercise the options over a period of one to four years from the date of the vesting commencement date in each option grant. The exercise price of 339,040 options is £.0001, 1,067,808 options is £.05 and the remaining 14,137,897 options is $.07. Options lapse on the tenth anniversary of the option grant date.

 

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 31
19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A1 shares of 0.01p each
13,230,440
10,000,000
1,323
1,000
Ordinary A2 shares of 0.01p each
5,071,024
3,200,000
507
320
Ordinary B1 shares of 0.01p each
15,371,543
9,700,000
1,537
970
Ordinary B2 shares of 0.01p each
44,021,737
-
4,402
-
Ordinary 2 shares of 0.01p each
6,914,199
4,363,110
691
436
Special voting shares of 0.01p each
10
10
-
-
Ordinary shares of 0.01p each
675,179
106,949
68
11
85,284,132
27,370,069
8,528
2,737

The Series A and B shares are entitled to a priority return of capital equal to the amount paid per share (including premium) and may be converted to ordinary shares in accordance with the Articles. The B2 shares rank ahead of all classes of shares. The special voting share confers the right to exercise such number of votes as is equal to the number of exchangeable shares in the capital of 2752591 Ontario Inc. The special voting share does not confer any dividend or redemption rights and rank behind the Series A and B shares but ahead of the ordinary shares and ordinary 2 shares on a return of capital. The ordinary and ordinary 2 shares have attached to them full dividend and voting rights, but do not confer any rights of redemption and rank equally behind the all classes of shares on a return of capital.

On 27 August 2024 the company issued 3,230,440 Ordinary A1 shares, 1,871,024 Ordinary A2 shares, 5,671,543 Ordinary B1 shares and 2,551,089 Ordinary 2 shares of 0.01p each at par. On this date the company also issued 44,021,737 Ordinary B2 shares of 0.01p each at a price of 23p per share. On 18 November 2024 the company issued 551,266 Ordinary shares of 0.01p each at par. On 23 December 2024 the company issued a further 6,964 and 10,000 Ordinary shares of 0.01p each at a price of 5p and 5.5p each respectively per share.

20
Operating lease commitments
Lessee

At the reporting end date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
336,692
132,028
18,000
102,000
Between two and five years
876,403
8,500
-
8,500
1,213,095
140,528
18,000
110,500
Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 32
21
Events after the reporting date

On 23 January 2025 the company raised further funds of £8,334 in the form of ordinary shares.

 

On 9 May 2025 the company raised further funds of £409,449 in the form of B2 shares.

 

On 12 August 2025 the company raised further funds of £1,913 in the form of B3 shares.

 

On 12 August 2025 the company raised further funds of £2,200,000 in the form of a convertible loan note.

 

On 27 August 2025 the company raised further funds of £4,592 in the form of ordinary shares.

22
Related party transactions

The Parent Company has an exclusive license for the development of the intellectual property owned by 2692372 Ontario Inc.

 

Consultancy fees of £165,869 (2023: £425,183) were invoiced by DT Drug Discovery Consulting Inc. Patrick Gunning is a shareholder of DT Drug Discovery Consulting Inc. At the year end there was a balance of £nil (2023: £4,072) owed by DT Drug Discovery Consulting Inc.

 

CRO fees of £1,414,133 (2023: £4,318,326) were invoiced by Dalriada Drug Discovery Inc. Patrick Gunning is a director and shareholder of Dalriada Drug Discovery Inc. At the year end there was a balance of £88,755 (2023: £287,605) owed to Dalriada Drug Discovery Inc.

 

Fees of £9,831(2023: £12,193) were invoiced from BioGeneration III Services BV. At the year end there was a balance of £994 (2023: £8,942 ) owed to BioGeneration III Services BV.

 

Fees of £11,890 (2023: £1,746) were invoiced from Wellington Partners Life Science. At the year end there was a balance of £178 (2023: ££Nil) owed to Wellington Partners Life Science.

 

Fees of £7,616 (2023: £7,363) were invoiced by Epidarex Capital Ltd (Epidarex Management Ltd). At the year end there was a balance of £697 (2023: £Nil) owed to Epidarex Capital (Epidarex Management Ltd).

 

Fees of £5,214,555 (2023: £9,221,243) were invoiced to Novartis Pharma AG in relation to collaboration and licence income. At the year end there was a balance of £nil (2023: £1,157,988) owed from Novartis Pharma AG, and included within creditors there was a balance of £nil (2023: £3,140,351) in relation to deferred collaboration income.

 

 

23
Controlling party

At the balance sheet date there was no individual controlling party.

Dunad Therapeutics Limited
Notes to the Group Financial Statements (Continued)
For the year ended 31 December 2024
Page 33
24
Cash absorbed by group operations
2024
2023
£
£
Loss for the year after tax
(12,043,109)
(9,479,249)
Adjustments for:
Taxation credited
(844,140)
(983,955)
Finance costs
-
0
59
Investment income
(372,733)
(421,296)
Loss on disposal of tangible fixed assets
16,543
40
Depreciation and impairment of tangible fixed assets
115,740
75,811
Foreign exchange gains on cash equivalents
(4,300)
(132)
Equity settled share based payment expense
356,469
418,925
Movements in working capital:
Decrease in debtors
1,860,414
143,091
Increase in creditors
168,889
271,083
Decrease in deferred income
(3,146,420)
(3,946,659)
Cash absorbed by operations
(13,892,647)
(13,922,282)
25
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
12,647,994
(2,466,805)
10,181,189
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