The directors present the strategic report for the year ended 31 December 2024.
Lockwood Publishing Limited remain solely focused on the development of Avakin Life. We aim to grow our user base whilst giving users the optimum and safest environment in which to enjoy and express themselves.
Financial performance declined compared to the same 12-month period last year. When comparing the current period results to the comparative 12-month period to December 2023, revenue decreased to £18.321m from £19.128m, Gross profit decreased to £5.693m from £6.857m and EBITDA decreased to (£4.193m) from (£3.739m). The comparative financial performance of the business for 2023, as set out on page 11, is for a 9 month period to December 2023.
The decrease in revenue was driven by £1.106m less brand partnership deals in 2024 compared to 2023, and £286k less advertising revenue, offsetting an increase of £584k of increased revenues across in-app purchases and subscriptions through improved in-game monetisation. The increase in in-app revenues led to an increase of £187k of platform fees, resulting in an overall £995k decrease to NET revenues (revenue less platform fee), £13.368m; £14.363m 2023.
The continuation of improved user acquisition strategy and focus on cost per install and return on ad spend, resulted in a decrease of £240k of spend, from £1.175m to £1.142m 2023. As a result of cost reductions and efficiencies, operating costs reduced by £390k, to £16.316m; £16.706m 2023. The combination of savings on user acquisition and operating costs, limited the impact of £995k less NET revenue, with a £455k decrease in EBITDA, to (£4.193m); (£3.739m).
The loss before tax was (£4.771m), compared to the prior year 9-month accounting period loss before tax of (£2.412m). Loss before tax for the 12-month period to December 2023 was (£4.739m).
Cash at the end of December 2024 was £5.096m, compared to £6.980m at December 2023.
Future Developments
The group continues to focus on improvements to in game content and development of new features, with a view to both improving the experience of our players and strengthening the financial position of the group. Q3-2025 saw the launch of Avakin Life on Steam, bringing the mobile experience to PC, with early access launching in August, and full release expected in Q4-2025.
As noted in the going concern section of this report: improving revenue and EBITDA performance post year end, a decreased cost base of the group and decreased cash requirements mean management are comfortable in the group’s cash position. There is a continued focus through 2025 on improving efficiency and managing cash requirements, while still being positioned for growth and development.
Competitive Environment
Mobile gaming and social applications continue to evolve, with the competition for user’s screen time more demanding than ever. 2024 saw increasing challenges around user acquisition and marketing, with an increasingly competitive mobile gaming environment leading to it becoming harder and more costly to acquire, maintain and grow user numbers. However, we are confident that our product and our longer-term vision will continue to be attractive to consumers, combined with an overhauled user acquisition, monetisation, and content strategy.
User Safety
The group considers the safety of its user’s paramount. As such there is a risk that user’s safety is compromised. To mitigate this risk, we operate best-in-class processes and procedures to ensure user safety is not compromised. We have continued to increase our resourcing on player support and moderation, both in-house and through third party software and services. Age verification launched in October 2023, allowing 18+ year old players the option to verify their age with either facial analysis or legal ID checking, to access additional in-game features and benefits; helping to both further improve player safety as well as player experience across age ranges.
Data and Security Risk
There is a risk that data security is breached. To mitigate this risk, extensive controls are in place to maintain the integrity of our systems, and to ensure that system changes are implemented in a controlled manner. Also, IT recovery processes are tested regularly.
Employee Retention
There is a risk that key employees are not retained. To mitigate this risk, we work to ensure working practices, morale and incentives are of the highest possible quality. We are comfortable that key functions are appropriately spread between numerous employees, and the key individuals suitably incentivised and secured.
Financial Risk Management and Objectives
The group makes little use of financial instruments other than an operational bank account and therefore its exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of the assets, liabilities, financial position and profit or loss of the group.
Going Concern
The accounts have been prepared on a going concern basis, having carried out a detailed review of the company and group position and its forecasts to 31 December 2026 at the date of signing the accounts. Having considered the current economic and wider industry challenges, and the potential impact on the group, the directors are satisfied that the company and group has sufficient cash flows to meet its liabilities as they fall due.
The directors acknowledge the pre-tax loss of (£4.771m) and year end cash position of £5.096m, although highlight the improving trend through Q4-2024, and post year end; with improvements to EBITDA through the 7-months to July 2025 compared to the 7-months to July 2024.
7-months to July 2025: (£210k)
7-months to July 2024: (£2.306m)
As well as the improving EBITDA performance year on year through 2025, the directors highlight the decreased cost base of the group and decreased cash requirements, with monthly average operating cash burn through the 7-months to July 2025 being £333k lower than the 7-months to July 2024. Cash at 31 July 2025 was £6.648m, compared to £5.095m at 31 December 2024. In addition, attention is drawn to the £2.084m VGTR claim to be submitted in October 2025 for the year ended 31 December 2024.
The company continues to ensure costs are managed, with a view to balancing organisational efficiency and cashflows, with being positioned for growth. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors consider the key performance indicators used to monitor the performance of the company to be Revenue, EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation), Net Cash Reserves, MAU (Monthly Active Users), ARPU (Average Revenue Per User) and ARPPU (Average Revenue Per Paying User). We are satisfied with the performance and trends of these indicators. The comparative financial performance as set out on page 11 is for a 9-month period to December 2023. The below figures are to show 12 months comparability only.
| 12 months to December 2024 | 12 months to December 2023 |
|
|
|
Turnover | £18.321m | £19.128m |
EBITDA loss | £4.193m | £3.739m |
Net cash reserves | £5.096m | £6.980m |
MAU | 1.816m | 2.614m |
ARPU | £0.85 | £0.64 |
ARPPU | £28.90 | £25.83 |
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
UHY were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
We have audited the financial statements of Lockwood Publishing Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise 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).
Basis for 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 group's and parent 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
Audit procedures performed include:
- Enquiry of management regarding any instances of actual or potential fraud during the year;
- Assessment of fraud prevention and detection procedures within the company;
- Reviewing minutes of meetings of those charged with governance;
- Auditing the risk of management override of controls, including through testing journal entries and other
adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the
normal course of business;
- Enquiry of management regarding actual and potential litigation and claims, or any potential breaches of laws and regulations;
- Reviewed the reconciliations of intercompany balances and financial statement disclosures;
- Reviews and audit of different revenue streams by comparing the amounts posted to the source documentation by third parties;
- Review and audit of VGTR claims by considering the appropriateness of amounts classified as qualifying for the claim;
- Reviewing financial statement disclosures prepared by management and testing to supporting documentation to assess cornpliance with applicable laws and regulations.
There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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 so that we might state to the parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and relates notes as it prepares group accounts. The company's loss for the period was £2,796k (2023 - £770k).
The comparative period is not directly comparable as it covers 9 months, whereas the current year reflects a full 12-month period.
Lockwood Publishing Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is . Floor 2, City Buildings, 24-48 Carrington Street, Nottingham, NG1 7FG
The group consists of Lockwood Publishing Limited and all of its subsidiaries.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies are set out below.
The 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 company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 'Statement of Financial Position': Reconciliation of the opening and closing number of
shares:
Section 7 'Statement of Cash Flows': Presentation of a statement of cash flow and related notes and
disclosures;
Section 26 'Share based Payment': Share-based payment expense charged to profit or loss,
reconciliation of opening and closing number and weighted average exercise price of share options,
how the fair value of options granted was measured, measurement and carrying amount of liabilities
for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 'Related Party Disclosures': Compensation for key management personnel.
The financial statements of the company are consolidated in these consolidated financial statements of Lockwood Publishing Limited.
The consolidated group financial statements consist of the financial statements of the parent company Lockwood Publishing 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.
The accounts have been prepared on a going concern basis, having carried out a detailed review of the company and group position and its forecasts to 31 December 2026 at the date of signing the accounts. Having considered the current economic and wider industry challenges, and the potential impact on the group, the directors are satisfied that the company and group has sufficient cash flows to meet its liabilities as they fall due.
The directors acknowledge the pre-tax loss of (£4.771m) and year end cash position of £5.096m, although highlight the improving trend through Q4-2024, and post year end; with improvements to EBITDA through the 7-months to July 2025 compared to the 7-months to July 2024.
7-months to July 2025: (£210k)
7-months to July 2024: (£2.306m)
As well as the improving EBITDA performance year on year through 2025, the directors highlight the decreased cost base of the group and decreased cash requirements, with monthly average operating cash burn through the 7-months to July 2025 being £333k lower than the 7-months to July 2024. Cash at 31 July 2025 was £6.648m, compared to £5.095m at 31 December 2024. In addition, attention is drawn to the £2.084m VGTR claim to be submitted in October 2025 for the year ended 31 December 2024.
The company continues to ensure costs are managed, with a view to balancing organisational efficiency and cashflows, with being positioned for growth. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Turnover is generated through three main sources
In-App purchases (IAP)
Subscriptions (Subs/VIP)
Advertising (Ads)
In-App purchases are purchases of In-App currencies that can then be used by our customers to purchase InApp items and content. Revenue is recognised when the customer purchases the currency, based on sale reports received from the app stores.
Subscription revenue relates to the customer's purchase of a monthly VIP pass that gives them access to premium, exclusive content and features. Revenue is recognised when the subscription is purchased, base on sales reports received from the app stores.
Advertising revenue related to the number of impressions on advertisements shown in the game by various advertising networks. Revenue is recognised when the advertising impression has occurred, based on sale reports received from the advertising networks.
Project revenue relates to specific contracts with customers to deliver an agreed development of an in-game experience. Revenue is recognised on stage of completion.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
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.
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.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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 company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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, 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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations are discharged, cancelled or they expire.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax. Current tax assets are recognised when tax paid exceeds the tax payable.
Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset. if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.
Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.
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.
Retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
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 on a straight-line basis 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.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
There is 'other income' from sub-letting a property. This is invoiced quarterly, with the one month recognised and two months deferred, released monthly over the remainder of the quarter. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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.
Research and development costs
Research and development expenditure is recognised as an expense in the year in which it is incurred.
VGTR
The company qualifies for video games tax relief (VGTR). The video games tax relief credit is recognised on an accruals basis where there is a reasonable expectation that the balance will be recovered.
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.
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.
The group has substantial tax losses available for carry forward against future tax profits. Management exercise judgement over whether deferred tax assets are recognised in respect of these losses only if the group considers it probable that future taxable amounts will be available to utilise those temporary differences and losses.
Judgement is involved in the review of core expenditure in line with the government guidelines of qualifying expenditure. These are defined as expenditure incurred in designing, producing and testing of games. At least 25% of core expenditure must be incurred on goods or services provided from within the European Economic Area (EEA). Management conduct a thorough review of all expenditure to ensure it meets the criteria for claiming the tax relief.
Share-based payments are valued at the date of grant using a Black Scholes pricing model. The key judgements relate to the inputs to the pricing model which include share price volatility, historical and expected dividends and expected future performance of the entity to which the award relates (refer to note 6 for further information).
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
The number of directors who are entitled to receive shares under long term incentive schemes during the year was 2 (2023 - 2).
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:
Details of the company's subsidiaries at 31 December 2024 are as follows:
Finance lease payments represent rentals payable by the group for computer equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is now within 1 year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The options outstanding at 31 December 2024 had an exercise price of £0.01 (2023 - £0.01) and a remaining contractual life of 3 years (2023 - 3 years).
The share option scheme commenced in November 2020, at which point there was an issue to all staff. Options are granted to all employees of the group, as well as some full-time contractors. The amount of options granted are based on the seniority level of the employees.
In the financial period, share options issued in the prior financial year were cancelled and subsequently reissued. The fair value of the reissued options (per share) has increased, and the vesting period has been lengthened by one year. Given the increase in fair value this is considered to be beneficial to the employee and therefore management have concluded the reissue to be a modification of options issued in the prior year.
The weighted average fair value of options granted in the year was determined by the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the "vesting date").
The expected life used in the model has been adjusted, based on management's best estimate, for the effect of non-transferability, exercise restrictions, and behavioural conditions. Non-vesting conditions and market conditions are taken into account when estimating the fair value of the option at the grant date. Service conditions and non-market performance conditions are taken into account by adjusting the number of options expected to vest at each reporting date. The expected vesting date of the 2021 options has been revised from 2023 to 2026. This has resulted in a share based payment credit in the period in respect of the 2021 options still in issue.
Cumulative profit and loss net of distributions to owners.
Share option reserve
The cumulative share-based payment expense less amounts realised on the exercise or lapse of options.
Share premium
Consideration received for shares issued above their nominal value net of transaction costs.
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:
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
With regards to lessees, the business surrendered the lease after the year end with an effective date of October 2025. The commitment shown is the minimum to and including this date.
With regards to lessors, the tenant filed to surrender the lease during the period so no commitment exists as at the year end date.
Subsequent to the balance sheet date, the Group has initiated plans to wind up its wholly owned subsidiaries located in Vietnam and Lithuania.
These decisions were made as part of a strategic review of the Group’s international operations and are expected to be completed within the next financial year. The financial impact of these windings-up is not expected to be material to the Group’s consolidated financial statements.
The remuneration of key management personnel is as follows.
The remuneration disclosed above is not directly comparable as the number of employees defined as key management personnel has increased in the current year, as well as the current year relating to a 12-month period whereas the prior year relates to a 9-month period only.