REGISTERED NUMBER: 04170578 (England and Wales)

Strategic Report,

Report of the Director and

Financial Statements

for the Year Ended 31 December 2024

for

LEADSCALE SERVICES LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

Mr R J Caller

SECRETARY:

Mr E Lee

REGISTERED OFFICE:

Unit 1, 6 Owen Street

London

London

EC1V 7JX

REGISTERED NUMBER:

04170578 (England and Wales)

AUDITORS:

JLA (UK) Ltd

42 Lytton Road

Barnet

Hertfordshire

EN5 5BY

The director presents his strategic report for the year ended 31 December 2024.

A Fair Review of the Group's Business

During the financial year ended 31 December 2024, Leadscale Limited operated within a global economic environment marked by caution and inconsistency. While tentative signs of improved sentiment began to emerge in the final quarter, client behaviour throughout much of the year remained characterised by hesitation in the commitment of marketing budgets. A further structural shift was observed in client allocation of spend, with a noticeable reversion to in-person marketing activity-particularly live events and face-to-face engagements-following the accelerated digital transition of the pandemic years. This trend placed sustained downward pressure on digital media and lead generation expenditure, which continues to constitute the Group's core revenue stream.

The trading conditions encountered in the first half of 2024 were particularly challenging. Revenue performance during this period fell materially below internal forecasts and demonstrated a significant year-on-year decline relative to 2023. In response, the Group took a series of proactive and necessary measures to preserve financial resilience and ensure long-term strategic flexibility. These measures included a controlled reduction in workforce and the pausing of commercial investment into non-core areas such as early-stage technology sales and partnership development. The aim was to enable a more focused application of internal resources towards the Group's flagship technology platform-Leadscale Engine Gen5-while reassessing both product-market alignment and commercial strategy.

Upon evaluation of divisional performance, management identified that the Group's Technology Division (Engine) was underperforming in both sales execution and marketing effectiveness. Specifically, the sales function lacked a structured approach to outreach, and there was no coherent account-based marketing (ABM) methodology in place for selecting and engaging target accounts. This absence of rigour contributed to inefficiencies and a failure to capitalise on commercial opportunities. As a result, the Chief Executive Officer made the strategic decision to suspend all Engine-related sales and partnership activity during the second half of 2024. This intervention created space for reassessment, with the intention of relaunching sales efforts-supported by new commercial hires-during the first half of 2025, subject to improvements in overall market conditions.

Despite these operational difficulties, the Group continued to make meaningful progress in pursuing its long-term strategic objective of establishing a presence in the United States. Investment in Leadscale Inc. continued throughout the year, reflecting the importance of the US market as a future growth pillar. Although initial assumptions regarding the pace of commercial traction proved overly optimistic, requiring greater investment than anticipated to build a functional operational base, the Board remains confident that the foundations laid during 2024 will support sustainable growth in future periods.

Although the Group recognised that the year would close in a loss-making position, the business ended the period with tangible momentum. The strong revenue rebound observed in the fourth quarter-returning to levels comparable with those achieved in 2022-highlights the underlying resilience of the business model and client base. Moreover, the Group maintained a robust cash position throughout, ensuring continued operational stability and capacity to invest in future development initiatives.

Principal risks and uncertainties

Revenue generation in the first half of 2024 fell substantially below both internal expectations and the prior year's performance, driven by weakened market conditions and evolving client budget allocations. However, a significant recovery in the fourth quarter restored Group revenues to levels broadly in line with 2022. On a full-year basis, revenue ended approximately 18% below 2023 levels.

The Group reported a full-year operating loss of approximately £500,000. This outcome was driven by reduced revenue in the first half and the continuation of key strategic investments-principally, the US expansion and the development of the Leadscale Engine Gen5 platform. Of the total loss, Leadscale Inc. accounted for approximately £350,000, representing the cost of establishing a fully operational US subsidiary. The Leadscale Engine Gen5 initiative, operated through the Engine division, contributed an additional £100,000 in exceptional costs alone, not including the elevated expenditure associated with developer resources and infrastructure.

Management affirms that these expenditures were intentional and carefully evaluated. The decision to utilise cash reserves to fund these forward-looking investments was taken with full recognition of the financial impact, and in pursuit of longer-term value creation. When considered in isolation from these two strategic initiatives, the underlying business operations remained profitable throughout the year-a testament to the strength and stability of the core business model.

The Group maintained a strong liquidity position, closing the year with approximately £2 million in cash. Working capital was tightly managed throughout the period, with healthy balances maintained across trade debtors and creditors.

Analysis using financial key performance indicators

During the financial year 2024 company sales ended at £10.0m decrease of 17.8% on 2023 revenue. Even with the decrease in turnover, the company recorded a bottom-line profit of £370k compared to 2023 profit of £675K.

The uncertainty in the economy and increased inflation and interest rates has been well managed throughout the year, enabling the company to hold a strong position looking forward into 2025.

Cash held in the bank at the end of the year declined to £1.4m (2023: £2.3m). This is considered an acceptable level of cash reserve for the business.

A fair balance was maintained between trade debtors and trade creditors.

Future Developments of the Group

The continued development and commercialisation of the Leadscale Engine Gen5 SaaS platform remains the Group's primary strategic growth initiative. With technological progress now at an advanced stage, management anticipates a phased market launch during 2025. Preliminary engagement with prospective clients has yielded critical insights, informing refinements to the product, market positioning, and go-to-market strategy.

Leadscale Engine Gen5 is designed to enable advertisers, agencies, and intermediaries operating within the global demand generation ecosystem to build and manage fully automated demand centres. The platform aims to eliminate friction within complex campaign workflows, while strengthening financial control and data governance.

Management believes Leadscale Engine Gen5's differentiated capabilities will significantly enhance Leadscale's competitive positioning and create opportunities to serve clients through both software licensing and managed services models.

Leadscale Inc. remains central to the Group's geographic expansion plans. Although commercial traction in the United States was slower than anticipated, the Group concludes the year with an established US presence, growing client engagement, and a more mature understanding of how best to align commercial efforts with the launch of Leadscale Engine Gen5.

Looking ahead to 2025, the Group adopts a cautiously optimistic outlook. Management is confident in the Group's strategic direction and pleased to report that the business returned to profitability during the first half of 2025. This return to profitability, supported by improving market conditions and the operational groundwork laid in 2024, provides a strong basis for sustainable growth in the periods to come.

ON BEHALF OF THE BOARD:

Mr R J Caller - Director

23 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of advertising agencies.

DIVIDENDS

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

DIRECTOR

Mr R J Caller held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, JLA (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr R J Caller - Director

23 September 2025

Opinion

We have audited the financial statements of Leadscale Services Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the 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 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director 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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner and engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

The 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 on 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 measures in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override 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 that were

indicative of potential bias.

- Performed substantive testing on management expenses and transactions

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

- Agreeing financial statement disclosures to underlying supporting documentation;

- Enquiring of management as to actual and potential litigation and claims

- And reviewing available correspondence with HMRC and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is 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 inspection of regulatory and legal correspondence, if any.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jeffrey Ian Lermer FCA (Senior Statutory Auditor)

for and on behalf of JLA (UK) Ltd

42 Lytton Road

Barnet

Hertfordshire

EN5 5BY

23 September 2025

TURNOVER

10,044,824

12,233,673

Cost of sales

8,211,788

9,830,083

GROSS PROFIT

1,833,036

2,403,590

Administrative expenses

1,515,617

1,770,298

OPERATING PROFIT

4

317,419

633,292

Interest receivable and similar income

52,907

42,077

PROFIT BEFORE TAXATION

370,326

675,369

Tax on profit

5

-

371

PROFIT FOR THE FINANCIAL YEAR

370,326

674,998

PROFIT FOR THE YEAR

370,326

674,998

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

370,326

674,998

FIXED ASSETS

Intangible assets

6

4,712

4,589

Tangible assets

7

3,112

5,845

Investments

8

67,151

67,151

74,975

77,585

CURRENT ASSETS

Debtors

9

4,725,762

3,984,745

Cash at bank

1,403,610

2,281,981

6,129,372

6,266,726

CREDITORS

Amounts falling due within one year

10

2,439,454

2,949,744

NET CURRENT ASSETS

3,689,918

3,316,982

TOTAL ASSETS LESS CURRENT LIABILITIES

3,764,893

3,394,567

CAPITAL AND RESERVES

Called up share capital

11

1

1

Retained earnings

12

3,764,892

3,394,566

SHAREHOLDERS' FUNDS

3,764,893

3,394,567

The financial statements were approved by the director and authorised for issue on 23 September 2025 and were signed by:

Mr R J Caller - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

1

2,719,568

2,719,569

Changes in equity

Total comprehensive income

-

674,998

674,998

Balance at 31 December 2023

1

3,394,566

3,394,567

Changes in equity

Total comprehensive income

-

370,326

370,326

Balance at 31 December 2024

1

3,764,892

3,764,893

Cash flows from operating activities

Cash generated from operations

1

(197,789

)

625,161

Tax paid

-

(164,851

)

Net cash from operating activities

(197,789

)

460,310

Cash flows from investing activities

Purchase of intangible fixed assets

(1,128

)

(3,584

)

Purchase of tangible fixed assets

(676

)

(3,453

)

Purchase of fixed asset investments

-

(7,682

)

Sale of fixed asset investments

-

7,682

Inter-company loan

(639,652

)

(719,474

)

Interest received

52,907

42,077

Net cash from investing activities

(588,549

)

(684,434

)

Cash flows from financing activities

Amount introduced by directors

7,885

-

Amount withdrawn by directors

(99,918

)

-

Net cash from financing activities

(92,033

)

-

Decrease in cash and cash equivalents

(878,371

)

(224,124

)

Cash and cash equivalents at beginning of year

2

2,281,981

2,506,105

Cash and cash equivalents at end of year

2

1,403,610

2,281,981

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

31.12.24

31.12.23

£

£

Profit before taxation

370,326

675,369

Depreciation charges

4,414

6,242

Finance income

(52,907

)

(42,077

)

321,833

639,534

(Increase)/decrease in trade and other debtors

(9,332

)

13,364

Decrease in trade and other creditors

(510,290

)

(27,737

)

Cash generated from operations

(197,789

)

625,161

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,403,610

2,281,981

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,281,981

2,506,105

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,281,981

(878,371

)

1,403,610

2,281,981

(878,371

)

1,403,610

Total

2,281,981

(878,371

)

1,403,610

1.	STATUTORY INFORMATION

Leadscale Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

The financial statements are prepared to the nearest whole £ GBP.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and Companies Act 2006.

The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

Revenue

Revenue is recognised to the extend that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Rendering of service

Revenue 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 the following conditions are satisfied:

- the amount of revenue 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.

Intangible assets

The company's domain names are initially recognised at cost. After recognition, under the cost model, the Company's domain names are measured at cost less any accumulated amortisation land any accumulated impairment losses.

The estimated useful lives of the Company's domain is 3 years.

Tangible fixed assets

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

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings - 33% straight line

Computer equipment - 33% straight line

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.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.

The value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).

Where the terms and conditions of option are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.

Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.

Interest Income

Interest income is recognised in profit or loss using the effective interest method.

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Valuation of investments

Investment in unlisted company shares, whose market value can be reliably determined, are measured to market value at each balance sheet date. Gains and losses on revaluation are recognised in the statement of comprehensive income for the period, Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Debtors

Short-term debtors are measured at transaction price, less any impairment, loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors

Short-term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

832,093

768,772

Social security costs

95,567

90,613

Other pension costs

19,003

18,849

946,663

878,234

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

31.12.24

31.12.23

Sales

11

9

Admin

3

3

14

12

31.12.24

31.12.23

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Depreciation - owned assets

3,409

4,053

Patents and licences amortisation

1,005

2,188

Auditors' remuneration

10,500

10,500

Foreign exchange differences

(24,225

)

79,039

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

Over/under prov in prior year

-

371

Tax on profit

-

371

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

£

Profit before tax

370,326

675,369

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 25%)

92,582

168,842

Effects of:

Expenses not deductible for tax purposes

12,011

12,827

Depreciation in excess of capital allowances

388

634

Group Relief

(104,981

)

(182,303

)

Under provision in prior year

-

371

Total tax charge

-

371

6.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 January 2024

12,527

Additions

1,128

At 31 December 2024

13,655

AMORTISATION

At 1 January 2024

7,938

Amortisation for year

1,005

At 31 December 2024

8,943

NET BOOK VALUE

At 31 December 2024

4,712

At 31 December 2023

4,589

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2024

48,058

37,948

86,006

Additions

-

676

676

At 31 December 2024

48,058

38,624

86,682

DEPRECIATION

At 1 January 2024

45,687

34,474

80,161

Charge for year

981

2,428

3,409

At 31 December 2024

46,668

36,902

83,570

NET BOOK VALUE

At 31 December 2024

1,390

1,722

3,112

At 31 December 2023

2,371

3,474

5,845

8.	FIXED ASSET INVESTMENTS

31.12.24

31.12.23

£

£

Other investments not loans

67,151

67,151

Additional information is as follows:

Unlisted

investme

£

COST

At 1 January 2024

and 31 December 2024

30,677

NET BOOK VALUE

At 31 December 2024

30,677

At 31 December 2023

30,677

Investments (neither listed nor unlisted) were as follows:

31.12.24

31.12.23

£

£

Other investments b/f

36,474

36,474