ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 04220936 (England and Wales)

DREAMTEK LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024


DREAMTEK LIMITED

COMPANY INFORMATION

Directors	T Gregory
	G Lignelli


Registered number	04220936


Registered office	The Orchard Elvetham Lane
	Elvetham
	Hook
	England
	RG27 8AJ


Independent auditors	ZEDRA Corporate Reporting Services (UK) Limited


DREAMTEK LIMITED

CONTENTS

	Page
Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditors' Report	5 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 26


DREAMTEK LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction

The board of directors of Dreamtek Limited ("the Company") present their Strategic Report for the year ended 31 December 2024.
Principal activity
Dreamtek Limited provides creative video production, staffing, broadcast technology, live and virtual event streaming and production and technical innovation solutions and services to a cross section of corporate customers in varying industries.

Business review

The Company met the turnover expectation set by its Parent Company which was to meet its Budget Target.

	Budget	Actual	Variance	% Achieved
Turnover	£10,530k	£12,970k	£2,440k	123.2%

The Company exceeded its EBITDA expectation set by its Parent Company which was to meet its Budget.

	Budget	Actual	Variance	% Achieved
EBITDA	£950k	£973k	£23k	102.4%

The Company closed the year 2024 in a cash positive position.

Principal risks and uncertainties

The Company does not carry credit risk as the Company is owned and supported by a strong Parent Company.
The business is cautious of changes in client demand for its services in the current economic environment.
We ensure that our quality of service and client relationships are of an exceptionally high standard and that our service becomes a key dependency for our customers.

Financial key performance indicators

Dreamtek Limited considers its financial key performance indicators to be turnover and operating profit.
A summary of the KPIs is below.

	2024	2023	Variance	% Change
Turnover	£12,970k	£10,695k	£2,275k	21.3%
Operating profit	£822k	£639k	£183k	28.6%

Turnover
Provision of staffing turnover increased by £2m. This is mainly due to a number of billable employees transferring from another entity within the System One Holdings LLC Group to Dreamtek Ltd.
The Company also saw its video production and live streaming turnover increase by £0.4m. This is due to increased projects with an existing client and a new global client who was onboarded at the end of 2023.

Page 1


DREAMTEK LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Systems integration and production services turnover fell by £0.2m. This division is heavily dependent on the car manufacturing industry and a number of projects were placed on hold by the clients in 2024. We expect this to continue into 2025.
Conferencing revenue continues to fall due to a decreased demand in this type of service. We are withdrawing from this area of business in 2025.
Operating Profit
The Company’s operating profit increased 28.6% from 2023. The increase is due to the increase in turnover and the Company maintained its gross profit margin at 9.2% (2023 - 9.7%).
Operating expenses - salaries and employer costs increased in 2024. This is due to the full year impact of new hires during 2023. Training costs also increased as the Company invested in a learning and development program for all of its employees. There were cost savings in telephone, computer costs and recruitment as subscriptions/contracts were reviewed with and/or combined with other Companies within the Parent Company’s Group. The Company also ended its lease for one of the floors in its London office which resulted in a drop in operating lease costs for 2024.

Other key performance indicators

The Company considers employee headcount to be its only significant non-financial key performance indicator. Our headcount remained largely unchanged, with average employee headcount having increased from 105 in 2023 to 110 in 2024.

This report was approved by the board and signed on its behalf.

G Lignelli

Director

Date: 23 September 2025

Page 2


DREAMTEK LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024. As permitted by s414c (11) of the Companies Act 2006 certain information that is required to be included in the Directors' Report has otherwise been provided in the Strategic Report.

Directors

The directors who served during the year were:

T Gregory

G Lignelli

D J Moran (resigned 31 January 2025)

Results and dividends

The profit for the year, after taxation, amounted to £590,293 (2023 - £457,262).

No dividends were declared, paid or payable during the reporting period (2023 - £NIL)

Directors' responsibilities statement

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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

Due to a change in Operational Management, the Company is targeting to maintain its 2024 Turnover in 2025 whilst the new structure establishes itself. The Company is targeting to improve its EBITDA to 9.5%, which it hopes to achieve through cost savings by streamlining and aligning its processes with other entities in its Parent Company’s Group.
The Sales and Marketing Strategy is pivoting towards an expansion of AI advisory services in the creative and technical space and continued expansion in virtual events, streaming and cloud production services.

Page 3


DREAMTEK LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board and signed on its behalf.

G Lignelli

Director

Date: 23 September 2025

Page 4


DREAMTEK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DREAMTEK LIMITED

Opinion

We have audited the financial statements of Dreamtek Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, 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 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 Company's affairs as at 31 December 2024 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 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 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.

Conclusions relating to going concern

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.

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

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

Page 5


DREAMTEK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DREAMTEK LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

∙the information given in the Strategic Report and the 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.

Matters on which we are required to report by exception

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.

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:

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

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

∙certain disclosures of 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 Directors' Responsibilities Statement set out on page 3, 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 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 Company or to cease operations, or have no realistic alternative but to do so.

Page 6


DREAMTEK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DREAMTEK LIMITED (CONTINUED)

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The 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 as follows:

∙the responsible individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the Company through discussions with management and from our commercial knowledge and experience;

∙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 and taxation;

∙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.

We identified that fraud risk in relation to revenue is a significant risk in line with ISA 240 and designed and implemented appropriate audit procedures in this area. Audit procedures included but were not limited to substantive testing from sales quotes through to the general ledger, performing sales proof in totals from signed customer contracts, reviewing the bank statements for large or unusual transactions external to the normal customer base and performing appropriate year end cut off testing.
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.

Page 7


DREAMTEK LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DREAMTEK LIMITED (CONTINUED)

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.

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 that 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 Auditors' Report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.

Edward Wallis ACA (Senior Statutory Auditor)

for and on behalf of

ZEDRA Corporate Reporting Services (UK) Limited
Chartered Accountants and Statutory Auditors

Birchin Court

5th Floor

19-25 Birchin Lane

London

United Kingdom

EC3V 9DU

Date: 24 September 2025

Page 8


DREAMTEK LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	12,970,485	10,694,742
Cost of sales		(11,771,858)	(9,656,247)
Gross profit		1,198,627	1,038,495
Administrative expenses		(1,551,180)	(1,423,762)
Other operating income	5	1,174,848	1,024,619
Operating profit	6	822,295	639,352
Interest receivable and similar income		51	-
Interest payable and similar expenses		(13,596)	-
Profit before tax		808,750	639,352
Tax on profit	9	(218,457)	(182,090)
Profit for the financial year		590,293	457,262

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on pages 13 to 26 form part of these financial statements.

Page 9


DREAMTEK LIMITED REGISTERED NUMBER:04220936

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

Fixed assets
Intangible fixed assets	10		211,157		331,158
Tangible fixed assets	11		26,316		20,002
Fixed asset investments	12		1,085		1,085
			238,558		352,245
Current assets
Stocks		-		93
Debtors within one year	13	3,304,602		2,161,416
Bank and cash balances		622,792		792,933
		3,927,394		2,954,442
Creditors: amounts falling due within one year	14	(2,116,724)		(1,847,752)
Net current assets			1,810,670		1,106,690
Total assets less current liabilities			2,049,228		1,458,935

Net assets			2,049,228		1,458,935

Capital and reserves
Called up share capital	16	50,000	50,000
Capital contribution reserve	17	199,265	199,265
Profit and loss account	17	1,799,963	1,209,670
		2,049,228	1,458,935

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

G Lignelli

Director

Date: 23 September 2025

The notes on pages 13 to 26 form part of these financial statements.

Page 10


DREAMTEK LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Capital contribution reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	50,000	199,265	752,408	1,001,673
Comprehensive income for the year
Profit for the year	-	-	457,262	457,262

At 1 January 2024	50,000	199,265	1,209,670	1,458,935
Comprehensive income for the year
Profit for the year	-	-	590,293	590,293
At 31 December 2024	50,000	199,265	1,799,963	2,049,228

Page 11


DREAMTEK LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

				2024	2023
			Note	£	£

Cash flows from operating activities
Profit for the financial year		590,293	457,262
Adjustments for:
Amortisation of intangible assets	10	72,861	72,174
Depreciation of tangible assets	11	29,818	41,892
Impairments of fixed assets	10	47,140	-
Loss on disposal of tangible assets	11	9,777	-
Interest paid		12,535	-
Taxation charge	9	218,457	191,810
Decrease in stocks		93	-
(Increase)/decrease in debtors	13	(83,101)	41,632
(Increase) in amounts owed by groups	13	(1,055,086)	(538,600)
(Decrease)/increase in creditors	14	(345,885)	491,074
Increase/(decrease) in amounts owed to groups	14	968,866	(2,070,581)
Corporation tax (paid)		(590,000)	-
Net cash generated from operating activities		(124,232)	(1,313,337)

Cash flows from investing activities
Purchase of tangible fixed assets	11	(45,909)	(2,518)
Purchase of investment properties		-	(1,085)
Net cash from investing activities		(45,909)	(3,603)

Net cash used in financing activities		-	-
Net (decrease) in cash and cash equivalents		(170,141)	(1,316,940)
Cash and cash equivalents at beginning of year		792,933	2,109,873
Cash and cash equivalents at the end of year		622,792	792,933

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	622,792	792,933
	622,792	792,933

Page 12


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	General information

Dreamtek Limited is a private company limited by shares and incorporated in England and Wales. The registered office is The Orchard Elvetham Lane, Elvetham, Hook, England, RG27 8AJ.
The principal activity of the Company is set out in the Strategic Report.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Exemption from preparing consolidated financial statements

The Company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are deemed to be immaterial and thus permitted to be excluded from consolidation under section 405(2) of the Companies Act 2006.

2.3

Going concern

The Company is in a net asset position, having generated a net profit in the year ended 31 December 2024, indicating that the Company is self-sufficient and will be able to continue in operation for at least 12 months from the date of approval of the financial statements.
Should the Company require further financial support, System One Holdings, LLC, the ultimate parent company, has provided written confirmation that it will continue to provide financial support for a period of at least 12 months from the date of signing these financial statements.
In assessing the Company's ability to continue as a going concern, the directors have considered the availability of financing from the ultimate parent company, through a review of the their financial position and the budgeted cash requirements for the Company. The directors are confident that the Company will continue to meet its obligations as liabilities fall due. For these reasons, the directors continue to adopt the going concern basis in preparing the financial statements.

Page 13


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

2.5

Turnover

The Company provides video and media productions support services on fixed term contracts, typically for service periods of 12 months. For provision of staff services and systems integration and production services ("SIPS") turnover is recognised over the term of the contract as the performance obligations are met.
The Company also provides virtual solutions services, video production and events support and conferencing services, where turnover is recognised in full once the performance obligations are completed on project delivery.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 14


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.6

Other operating income

Other operating income represents costs borne by the Company recharged to an affiliate company.

2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.8

Research and development

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. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives of 10 years.
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.

2.9

Pensions

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 balance sheet 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 balance sheet 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; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Development expenditure

years

2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 16


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

2.12

Tangible fixed assets (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.

The estimated useful lives range as follows:

Plant and machinery	-	3	years
Office equipment	-	5	years
Computer equipment	-	3	years

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.

2.13

Impairment of fixed assets

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Amounts owed by group undertakings are intercompany loans measured at cost. No interest is charged on the loans, which are repayable on demand.

2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

2.17

Creditors

Short-term creditors are measured at the transaction price. Amounts owed to group undertakings are intercompany loans measured at cost. No interest is charged on the loans, which are repayable on demand.

Page 17


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements in accordance with FRS 102 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believe to be reasonable under the circumstances.
The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities are addressed below.
Useful economic life of tangible and intangible fixed assets
The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that asset lives and residual values are appropriate.
The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, management consider factors such as technological innovation, product life cycles and maintenance programs.
Intangible fixed asset capitalisation
The directors have confirmed that the capitalisation of intangible fixed assets is calculated on the basis of 15% of allowable R&D expenditure, based on the estimated R&D staff and contractor costs. These estimated R&D costs have been deemed to be a reasonable estimation of the research and development activity that should have been capitalised, as a proportion of staff costs.
Application of Section 405(2)
The Company has a subsidiary, Dreamtek Ireland Limited. This company performs services for the Company and for third parties, however, the directors have deemed that its inclusion in the results of the Company would be immaterial to the users of the financial statements. This is due to the elimination of intercompany transactions on consolidation which would result in only immaterial remaining balances. The directors believe that the financial statements present a true and fair view of the position of the Company and meet the necessary presentation requirements as set out by the Companies Act 2006.

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DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Systems integration and production services	479,917	643,668
Provision of staff	11,135,360	9,132,146
Conferencing services	468	14,457
Virtual solutions revenue	54,360	74,453
Video production and events	1,241,638	830,018
Intercompany recharges	58,742	-
	12,970,485	10,694,742

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	7,587,087	7,050,009
Rest of Europe	1,788,236	1,854,622
Rest of the world	3,595,162	1,790,111
	12,970,485	10,694,742

5.	Other operating income
		2024	2023
		£	£

Other operating income	1,174,848	1,024,619
	1,174,848	1,024,619

Other operating income represents costs borne by the Company, recharged to Dreamtek, Inc.

Page 19


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Exchange differences	35,922	6,506
Operating lease rentals	71,186	80,343
Depreciation - tangible fixed assets	29,818	41,892
Amortisation - intangible fixed assets	72,861	72,174
Auditors' remuneration	11,500	10,600

Wages and salaries	6,457,319	5,913,152
Social security costs	797,397	726,359
Cost of defined contribution scheme	179,796	138,773
	7,434,512	6,778,284

The average monthly number of employees during the year was as follows:

	2024	2023
	No.	No.

Employees	110	105

8.	Directors' remuneration
	During the year, the directors of Dreamtek Limited were paid by other group entities. Management determine that the share of remuneration relevant to the services performed in their capacity as directors of Dreamtek Limited is insignificant to the business.

Page 20


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Corporation tax
Current tax on profits for the year	212,193	191,810
Adjustments in respect of prior periods	11,263	-

Total current tax	223,456	191,810

Deferred tax
Origination and reversal of timing differences	(1,030)	(9,720)
Adjustments in respect of prior periods	(3,969)	-
Total deferred tax	(4,999)	(9,720)


	Tax on profit	218,457	182,090

Profit on ordinary activities before tax

808,750

639,352

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)	202,188	150,376
Effects of:
Expenses not deductible for tax purposes	30,145	32,290
Capital allowances for year in excess of depreciation	1,356	-
Adjustments to tax charge in respect of prior periods	(15,232)	-
Changes in provisions leading to a (decrease) in the tax charge	-	(576)
Total tax charge for the year	218,457	182,090

Page 21


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

9.Taxation (continued)

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

10.	Intangible assets

		Development expenditure
		£
	Cost
	At 1 January 2024	721,752
	At 31 December 2024	721,752
	Amortisation
	At 1 January 2024	390,594
	Charge for the year on owned assets	72,861
	Impairment charge	47,140
	At 31 December 2024	510,595
	Net book value
	At 31 December 2024	211,157
	At 31 December 2023	331,158

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DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

11.	Tangible fixed assets

	Plant and machinery	Office equipment	Computer equipment	Total
	£	£	£	£
Cost or valuation
At 1 January 2024	60,362	5,385	114,519	180,266
Additions	-	-	45,909	45,909
Disposals	-	(2,947)	(73,093)	(76,040)
At 31 December 2024	60,362	2,438	87,335	150,135
Depreciation
At 1 January 2024	50,585	5,385	104,294	160,264
Charge for the year on owned assets	9,777	-	20,041	29,818
Disposals	-	(2,947)	(63,316)	(66,263)
At 31 December 2024	60,362	2,438	61,019	123,819
Net book value
At 31 December 2024	-	-	26,316	26,316
At 31 December 2023	9,777	-	10,225	20,002

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DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

12.	Fixed asset investments

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 January 2024	1,085
	At 31 December 2024	1,085

	Net book value
	At 31 December 2024	1,085
	At 31 December 2023	1,085

Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
Name	Registered office	Class of shares	Holding

Dreamtek Ireland Limited

1st Floor, 16/17 College Green, Dublin, Ireland D02 V078

Ordinary

100%

13.

Debtors

					2024	2023
					£	£


Trade debtors	1,432,176	1,239,333
Amounts owed by group undertakings	1,715,382	660,296
Other debtors	-	45,724
Prepayments and accrued income	139,345	203,363
Deferred tax	17,699	12,700
	3,304,602	2,161,416

Page 24


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	Creditors: Amounts falling due within one year
		2024	2023
		£	£

Trade creditors	187,459	510,106
Amounts owed to group undertakings	969,072	206
Corporation tax	27,162	381,171
Other taxation and social security	707,246	506,689
Other creditors	74,161	76,445
Accruals and deferred income	151,624	373,135
	2,116,724	1,847,752

15.	Deferred taxation

		2024
		£

	At beginning of year	12,700
	Charged to profit or loss	4,999
	At end of year	17,699

The deferred tax asset is made up as follows:
	2024	2023
	£	£

Fixed asset timing differences	(3,404)	(4,434)
Short term timing differences	21,103	17,134
	17,699	12,700

16.	Share capital
		2024	2023
		£	£

Allotted, called up and fully paid

50,000 (2023 - 50,000) Ordinary shares of £1.00 each	50,000	50,000

Page 25


DREAMTEK LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.

Reserves

Capital contribution reserve

Amounts recognised in the capital contribution reserve relate to amounts paid by Dreamtek, Inc., on behalf of the Company. There is no intention for this amount to be repaid and therefore has been considered as a capital contribution.

Not later than one year	190,417	220,154
Later than one year and not later than five years	493,333	683,310
	683,750	903,464

19.	Controlling party

System One Holdings, LLC, is the parent company of the smallest group for which consolidated financial statements are drawn up of which the Company is a member. The registered office of the parent company is 850 New Burton Road, Suite 201, Dover, DE, 19904.

20.	Post balance sheet events

There were no adjusting or non-adjusting events occuring between the end of the reporting period and the date these financial statements were approved.

Page 26