The directors present the strategic report for the year ended 31 December 2024.

At 31 December 2024, Core Laboratories (U.K.) Limited (also referred to as the "company") is one of the entities within the "Core Laboratories Group". In this context the term "Core Laboratories Group" and "Companies of the Core Laboratories Group" or "Group companies" means companies in which Core Laboratories Inc., either directly or indirectly, has control either through a majority of the voting rights or the right to exercise a controlling influence or to obtain the majority of the benefits and be exposed to the majority of the risks.

The company is principally engaged in the provision of reservoir description analyses and services to the oil and gas industry. These geological, upstream core analyses, advanced core analyses, reservoir fluids analyses and services are used to characterise the nature and properties of hydrocarbon bearing rock or reservoir formations and associated reservoir fluids. In addition, the company also undertakes proprietary specialised reservoir projects and joint industry projects (JIP’s) involving multiple clients and often state partner stakeholders. The company also holds investments in subsidiary undertakings engaged in various branches of the oil and gas business.

Core Laboratories (U.K.) Limited's main service and laboratory facility in Aberdeen is a designated Advanced Technology Centre and significant, specialised equipment, technologies and expertise reside there. The proprietary and JIP group is mainly located at the company's facility at Redhill in Surrey.

A fire incident in February 2024 at our Aberdeen site was a risk factor on future performance due to the initial disruption and extended timeline to get services re-instated and operational. Temporary arrangements utilising less equipment until the site is rebuilt, created initial challenges in remaining competitive and led to increases operating costs. This is expected to be complete in quarter 4 of 2025. The company closely tracked to budget in 2024 and 2025 year to date and has remained competitively positioned to capitalise on mark demands, therefore this has had no significant long-term impact.

Reservoir core and reservoir fluids (oil, gas & water) are sent to the Aberdeen facility from both emerging and mature oil & gas provinces within the European, African and Asian geographic areas, and also from other Core Laboratories Group international locations.

We continue to invest in the development of our staff through focused training both in-house and externally where appropriate. Particular focus is placed on the identification of future leaders and the formulation of development plans, creating a road map as to how staff can best fulfil their potential within the global Petroleum Services structure.

From a Business Development perspective our strategic focus is in the following areas:

• Increase market share by retaining all clients under contract by utilising enhanced market intelligence, excellent customer service and regularly networking with customers.

• Continue to secure work based on reputation, continuity, quality of service and competitive pricing.

• To negotiate improved market rates with clients for laboratory analysis services.

• To proactively promote new/niche services to our client base.

• Re-engage and personally meet with our local and international clients to strengthen customer relationships and discuss activities and new opportunities.

• Monitor new opportunities in European, Caspian & African regions.

• To continue to look at opportunities within the alternative energies sector and directly related to CCS & CCUS, Formation Damage, Hydrogen Storage, Geothermal and Lithium Extraction projects.

• Evaluate diversification opportunities that utilise our resources within other industries.

• Work closely with our Reservoir Geology team in Redhill to investigate opportunities in the areas of carbon capture.

• Restructure the business as the division's centre of excellence, offering bespoke training to meet internal and client requirements.

The management of the business and the execution of the company's strategy are subject to a number of risks. The oil and gas industry is highly cyclical and demand for our services is substantially dependent upon the level of expenditures by the oil and gas industry for the exploration, development and production of crude oil and natural gas reserves, which in turn are sensitive to oil and natural gas prices and generally dependent upon the industry's view of future oil and gas prices. There are a number of factors affecting the supply of and demand for our services as follows:

• Impact of energy profits levy (windfall tax) on the level of investment and activity by our clients in the UK region;

• The continued Russia/Ukraine conflict;

• General and economic business conditions;

• Market prices of oil and gas and expectations about future prices;

• Cost of producing and ability to deliver oil and natural gas;

• The level of drilling and production activity;

• Mergers, consolidations and downsizing among our clients;

• Coordination by OPEC;

• The impact of commodity prices on the expenditure levels of our clients;

• Financial condition of our client base and their ability to fund capital expenditures;

• The physical effects of climate change, including adverse weather or geological/geophysical conditions;

• The adoption of legal requirements or taxation that lowers the demand for petroleum-based fuels;

• Civil unrest or political uncertainty in oil producing or consuming countries;

• Level of consumption of oil, gas and petrochemicals by consumers;

• Changes in existing laws, regulations, or other governmental actions, including temporary or permanent moratoria on hydraulic fracturing or offshore drilling, and potential moratorium on new exploration;

• The business opportunities (or lack thereof) that may be presented to and pursued by us;

• Availability of services and materials for our clients to grow their capital expenditures;

• Ability of our clients to deliver products to market;

• Availability and increased costs of materials and equipment from key suppliers; and

• Cyber-attacks on our network that disrupt operations or result in lost or compromised critical data.

The oil & gas industry has historically experienced periodic downturns, which have been characterised by diminished demand for our oilfield services and products and downward pressure on the prices we charge. A significant downturn in the oil and gas industry could result in a reduction in demand for oilfield services and could adversely affect our operating results.

The company’s directors monitor progress and strategy by reference to the following KPI’s:

Safety:

The Directors monitor accidents rates in terms of both lost time incidents and recordable incidents as important key performance indicators. The rates are based on OSHA guidelines per 200,000 man-hours worked.

FY 2023:

• Lost time incidents rate: 0.00

• Total recordable incidents rate: 0.00

FY2024:

• Lost time incidents rate: 1.50

• Total recordable incidents rate: 1.50    

During a two-man lift, employee felt lower back pain and immediately stopped the task and sought first aid treatment. Sitewide training was undertaken to re-enforce compliance requirements with training previously provided, and when to undertake supplementary additional risk assessments prior to undertaking tasks of this nature.

Quality Management Systems:

• BS EN ISI 9001: 2015: For the year to December 2024, the company had no material weakness identified by external auditors.

• BS EN ISO 14001; 2015: For the year to December 2024, the company had no material weakness identified by external auditors.

• BS EN ISO 45001; 2018: For the year to December 2024, the company had no material weakness identified by external auditors.

At 31 December 2024, Core Laboratories International B.V is the immediate parent company and at 31 December 2024, Core Laboratories Inc. is the ultimate parent company. The company continues to generate Free Cash Flow for repatriation back to the ultimate parent company.

The directors consider the employees to be the company’s most valuable asset and ensures they are kept informed of performance, progress and developments through regular briefings with management.

We engage with our employees through our talent management system (WorkDay) with focus on (i) the setting of performance goals that are aligned with the company’s strategic objectives and (ii) the setting of employee development goals in a road map to ensure their career aspirations are achievable.

We continue to invest in the development of our employees to ensure they achieve their full potential and can have long and fulfilling careers with us.

During 2024 the company has continued this focus, wherever possible, on the retention and development of the workforce to position the business for stability and sustainable growth as market conditions improve.

Customers are critical to the company’s success with strong relationships maintained through regular interactions to better understand both current and future requirements. This ensures we continue to provide a market leading service whilst working to the same core values, safety and quality standards.

A strong supply chain is similarly critical to the company’s success and we are committed to fair and ethical treatment. Our approved vendor list is reviewed on a regular basis in conjunction with our quality system to identify and resolve any potential supply chain issues and we actively work with suppliers to address and overcome any issues identified.

During 2024 the company has continued to monitor the performance of our suppliers closely both through use of our Non-Conformance and Corrective Action Reporting (NACAR) system and by periodically assessing our Supplier’s performances levels against a variety of our key requirements e.g. technical knowledge, compliance with our site HSE protocols and the acceptable meeting of our specifications.

Other stakeholders

We are committed to protecting and supporting the environments and communities in which we work; to looking after our people and to behaving responsibly in all our business dealings. We execute continuous improvement in environmental management, performance and culture. We understand our impact and responsibilities to the environment and ensure best practise is implemented.

In 2024 we continued our commitment to reducing our impact on the environment pursuing initiatives which included reduction in energy consumption, reduction in water, paper usage and waste and increasing our recycling.

On behalf of the board

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

In addition to the strategic report, the development and position of the company, is discussed in the Group’s annual report and Form 10-K of its ultimate parent, Core Laboratories Inc.

The results for the company show a loss before taxation of £16,412,929 (2023: £637,318 loss before taxation) for the financial year and turnover of £12,092,885 (2023: £11,982,183). The company had cash at bank and in hand of £113,871 (2023: £45,884).

The loss for the financial year amounted to £18,203,660 (2023: £2,801,060 loss) and was transferred to profit and loss.

The financial position of the company is set out on page 12.

The directors proposed and paid a dividend of £8,838,146 (2023: £Nil).

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

The company’s operations are primarily in the UK which exposes the company to financial risks that include foreign exchange risk, credit risk and interest rate risk.

(a) Foreign exchange risk

The company is exposed to foreign currency risk on transactions where sales, purchases and borrowings which are in currencies other than the company’s functional currency. It is not considered that a significant foreign currency risk exists from trading activities as the majority of business transactions are carried out in pounds sterling. The main foreign exchange risk is within the intercompany balances that are maintained in currencies other than the company’s functional currency – primarily US Dollar balances. Management believe that the company’s exposure is manageable and therefore it does not enter into forward exchange contracts.

(b) Credit risk

The company has no significant concentrations of credit risk. The company has implemented policies that require appropriate credit checks on potential customers before sales commence. The company has implemented policies which require only minimum balances to be held locally in cash and deposits with financial institutions.

(c) Interest rate risk

The company has interest bearing assets and liabilities. Interest rate risk arises from the fluctuations in market rates, which may have a negative effect on current and future developments of the company. Management note that the company’s exposure to interest rate risk is restricted to intercompany activities and therefore it does not enter into hedging arrangements.

All directors of the company are covered under our directors and officers insurance policy which is a qualifying third party indemnity provision. This provision was in force during the financial year and also at the date of approval of the financial statements.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Pursuant to section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and Azets Audit Services will therefore continue in office.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Core Laboratories (U.K.) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• 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.

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.

As explained more fully in the directors' responsibilities statement, 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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Core Laboratories (U.K.) Limited (“the company”) is principally engaged in the provision of reservoir description analyses and services to the oil and gas industry. The company is a private company limited by shares and is incorporated and domiciled in England. The registered number is 02924532 and the registered address is 13th Floor, One Angel Court, London, EC2R 7HJ.

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

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

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

This 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:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• 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 the financial statements of Core Laboratories Inc. These consolidated financial statements are available from its registered office, 6316 Windfern Road, Houston, TX 77040, United States.

The company has taken advantage of the exemption from preparing consolidated financial statements afforded by Section 401 of the Companies Act 2006 because it is a wholly owned subsidiary of Core Laboratories Inc. which prepares consolidated financial statements which are publicly available. These financial statements present information about the company as an individual undertaking and not about its group.

The Company’s business activities, together with the factors likely to affect its future development and position, are set out in the Strategic report on pages 1 – 4. The financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the following reasons. true

At the financial year-end, the Company had positive net current assets of £61,013,525, net assets of £102,877,377, cash balance of £113,871 and loss for the year then ended of £18,203,660. This is inclusive of an impairment charge of £27,085,721, exceptional costs of £2,470,614 and exceptional income of £6,649,447. Therefore the company still remains cash generative on its core business activities. The company has no external borrowings.

The nature of the Company’s business is such that there is reasonable visibility as to order books in the next 12 months. Beyond this, there is expected to be greater unpredictable variation in the value and timing of cash inflows from customers.

As a result, the directors have prepared projected cash flow information for the twelve months from the date of approval of these financial statements, which includes an additional severe but reasonably plausible downside scenario in which revenues are restricted through lower demand for services throughout the forecasted period; and directors would have taken action to reduce the scale of the business. Based on these cash flow forecasts, the directors consider that the Company has adequate resources to continue in operational existence.

Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

Turnover represents the value of services stated net of value added tax and trade discounts.

The company recognises revenue when (a) the significant risks and rewards of ownership of data have been transferred to the customer, including where they are based on contractual rates; (b) the company retains no continuing involvement or control over the deliverables; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefit will flow to the entity.

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

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

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 credited or charged to profit or loss.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

The company performs impairment reviews in respect of tangible assets and investments whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. Where an indication of impairment exists, the recoverable amount of the asset is estimated. The recoverable amount is the higher of:

• Fair value less costs to sell; and

• Value in use (i.e., the present value of future cash flows expected to arise from the asset).

If the recoverable amount is less than the carrying amount, the carrying amount of the investment is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account.

Impairment losses are reversed only if the reasons for the impairment loss have ceased to apply. The reversal is recognised in profit or loss and is limited to the asset’s carrying amount that would have been determined had no impairment loss been recognised previously.

Impairment losses and reversals of impairment are disclosed separately in the financial statements, along with the events and circumstances that led to their recognition or reversal.

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

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

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

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

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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 company 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 company 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.

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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

Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provision where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

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

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

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

The company provides pensions to all employees through a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. Contributions are charged to the profit and loss account as they become due and payable.

Core Laboratories Inc. grants restricted share awards under a share incentive plan, the 2007 Long-Term Incentive Plan (the "Plan"). Awards under the Plan have been made through a compensation program, the Restricted Share Award Program ("RSAP").

Core Laboratories Inc. issues shares from either treasury stock or authorized shares upon the lapsing of vesting restrictions on restricted stock awards. All restricted share awards are equity settled.

Under the RSAP certain Core Laboratories (U.K.) Limited employees and directors were awarded grants. Each of these grants has a vesting period of principally five years and vest on an annual basis. There are no performance accelerators for early vesting for these awards. Awards under the RSAP are classified as an equity award and recorded at the grant-date fair value and the compensation expense is being recognized over the expected life of the award. A charge is booked to the income statement as an employee benefit expense for the fair value of share awards expected to vest, accrued over the vesting period. The corresponding credit is initially taken to retained earnings, which is subsequently reversed on the recognition of the group recharge in respect of the share based payment expense. All share awards are at a £nil exercise price and the fair value of the share awards is the grant date market value on the date of the award.

Rentals relating to assets held under operating leases are charged to the profit and loss account as incurred.

Research and development expenditure is included in cost of sales and is expensed in the year in which it is incurred.

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.

Interest payable and similar expenses

Interest payable and similar expenses include interest payable on loan notes and net foreign losses. Interest payable is recognised in the profit or loss as they accrue, using the effective interest method.

Interest receivable and similar income

Interest receivable and similar income includes interest receivable on funds invested, intercompany loans and net foreign exchange gains. Interest income is recognised in profit or loss as it accrues, using the effective interest method.

Impairment of financial assets

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

Estimates are continually evaluated and are based on historical experience, forecast information and other external information, such as commodity prices. The most significant estimates relate to those made by management in assessing whether there is an impairment of investments in subsidiaries. These estimates require the use of forecast results for future years, which are highly dependent on the assessment of annual revenue growth, discount rate and achievable margins. The actual results achieved may differ from the forecasts, and this may result in changes in the assessment of the valuation of investment balances in future years. In the current year, there have been impairment charges against investments of £27,085,721 (2023: £3,367,464). There are no other areas of material judgement in these financial statements.

During the year, the company experienced a significant fire at its main business premises, resulting in the destruction of part of the property and certain items of plant, machinery, and equipment.

As a result of the incident, the company incurred a number of exceptional items, which are separately disclosed due to their size and nature. These included:

• Insurance proceeds received of £3,087,847 representing reimbursement for the damaged assets and interruption to business.

• A gain on disposal of damaged assets of £3,561,600 arising where insurance proceeds exceeded the carrying value of the assets written off.

• Fire costs relate to demolition, site clearance and other related costs to the fire incident of £2,470,614, which were necessary to make the site safe, prepare it for future redevelopment and for the business to remain operational. These costs have been expensed to the profit and loss account as they do not meet the criteria for capitalisation under FRS 102.

These items are presented separately in the profit and loss account to aid understanding of the company’s financial performance and are not part of the normal course of business.

The average monthly number of persons (including directors) employed by the 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).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is required.

The actual charge 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:

The main rate of corporation tax increased from 19% to 25% on 1 April 2023. This increase in rate will have an impact on the company’s future tax charges. The company’s deferred tax balances as at 31 December 2024 have been calculated based on the rate of 25%.

During the year, the company made capital contributions to its subsidiaries of £29,879,375 (2023: £28,425) for the purpose of supporting the company's ongoing operations.

Following the annual impairment review the company wrote down the value of its investments by £27,085,721 (2023: £3,367,464) at 31 December 2024. The write down was based on management’s judgement that the underlying assets had experienced a reduction in value. The write down is itemised as Amounts written off investments on the statement of comprehensive income.

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

Other debtors includes amounts relating to proceeds from insurance owed of £3,115,524 which were agreed in the year and received post year end.

Amounts owed by group undertakings are unsecured and repayable on demand. Amounts are interest free with the exception of amounts owed by Core Laboratories Canada Limited and Core Laboratories Inc. The amounts owed by Core Laboratories Inc bear an interest rate based on SOFR plus a margin and Core Laboratories Canada Limited bear interest at 6.50% per annum and an interest rate based on SOFR plus a margin. At 31 December 2024, the amount subject to interest was £57,576,437 (2023: £35,623,477). Amounts owed by group undertakings include £58,282,022 (2023: £60,977,261) expected to be recovered after more than one year.

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. There were outstanding premiums at the year-end amounting to £nil (2023: £nil).

At 31 December 2024, certain Core Laboratories (U.K.) Limited employees and directors hold share awards in the ultimate parent company, Core Laboratories Inc. Awards have been made through a compensation program, the Restricted Share Award Program ("RSAP"). The charge in the profit and loss account for this program is £97,937 (2023: £111,342). All long-term incentive compensation is exclusively in the form of restricted share awards and no share options were granted during 2024 (2023: nil).

The terms and conditions of the grants are as follows:

(a) Each of the RSAP grants has a vesting period of principally five years and vest on an annual basis. There are no performance accelerators for early vesting for these awards. Awards under the RSAP are classified as an equity award and recorded at the grant-date fair value and the compensation expense is being recognized over the expected life of the award. All share awards are at a £nil exercise price and the fair value of the share awards is the grant-date market value on the date of the award.

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

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

The company has taken advantage of the exemption available under FRS 102 ‘Related party’ disclosure not to disclose transactions with other group companies being a wholly owned subsidiary of Core Laboratories Inc. Related party disclosures are included in the financial statements for that group.

The immediate parent undertaking is Core Laboratories International B.V.

On 1 May 2023, the group under went a redomestication process with the aim of simplifying the group structure. The former ultimate parent company, Core Laboratories N.V., merged with Core Laboratories Luxembourg S.A (another group company). Subsequently, Core Laboratories Luxembourg S.A was redomesticated into Delaware, USA. This company then changed name to become Core Laboratories Inc. and therefore the new ultimate parent undertaking and controlling party.

At 31 December 2024 the ultimate parent undertaking and controlling party is Core Laboratories Inc., a company incorporated in The United States of America.

Core Laboratories Inc. is the parent undertaking of the largest and smallest group in which the results of the company are consolidated. The consolidated financial statements of Core Laboratories Inc. are available from 6316 Windfern Road, Houston, TX 77040, United States.