The directors present the strategic report and the financial statements of the company for the year ended 31 December 2024.

During the year end 31 December 2024, Sochitel UK Limited (the "Company") continued to carry out its operations selling electronic gift vouchers, mobile airtime and data. During the year end 31 December 2024, the company's turnover decreased by 7.4% from prior year. Gross profit margin also decreased from 10.2% in 2023 to 7.4% in 2024

Administrative expenses decreased by £1,278,911 during the year, primarily due to a provision for doubtful debts of £1,000,000 which was raised in 2023. The provision; which represents amounts initially advanced to support the Agencies’ initial operational setup and working capital requirements, which will be recovered by future invoicing, but for which the timing of this recoverability is uncertain; remained unchanged in 2024.

Management believes that, as these operations mature and achieve sustainable profitability, there is potential for these Agencies to be integrated into the Group structure. Accordingly, while the provision reflects current uncertainty regarding recoverability, management remains confident in the long-term commercial viability of these arrangements and anticipates potential recovery in future periods.

Foreign exchange losses of £2,031,906 (2023 - £1,483,422) have been recognised resulting, primarily, from the depreciation of the Nigerian Naira. Normal operating expenses reduced by over £750,000 year-on-year.

As a result of these factors, the company recorded a loss before tax of £2,207,596, compared to a loss of £2,736,761 in 2023.

While the directors acknowledge the second year of losses, they continue with the implementation of strategic initiatives aimed at enhancing revenue, improving gross profit margins, and optimising cost control measures. These actions are expected to strengthen the company’s financial position moving forward and year-to-date results for 2025 continue to show a return to profit.

The company operates in a dynamic market and faces certain risks and uncertainties, including:

• The ability to attract and retain key customers.

• Sourcing appropriate and profitable products.

• Competition within the market.

• Ensuring uninterrupted operation of key IT systems.

• Protection of intellectual property and assets.

• Foreign exchange rate fluctuations.

• Managing credit risk from customers with extended credit terms.

• Regulatory risk.

The board actively monitors these risks using key performance indicators and implements risk mitigation strategies to safeguard the company's interests and sustain long-term growth.

The company maintains adequate cash reserves to ensure sufficient working capital for supplier and creditor obligations. Working capital and cash reserves are reviewed weekly, ensuring financial stability. The company predominantly operates on a pre-paid model, where customers pay before receiving airtime, thereby effectively managing credit risk.

Our key financial performance indicators were considered to be the following:

• Revenue of £22,360k (2023: £24,147k);

• Gross profit margin of 7.4% (2023: 10.2%); and

• Loss before taxation of £2,207k (2023: Loss of £2,737k).

The directors continue to assess performance against these indicators while pursuing initiatives to drive long-term profitability.

IDT Telecom, Inc. (IDT) retained its 74.99% shareholding in Sochitel UK Limited throughout 2024. IDT Corporation Inc., a NYSE-listed entity, remains the majority shareholder of the business.

Looking ahead, the company is well-positioned to leverage emerging market trends and technological advancements. Over the next 12 months, we plan to expand our digital voucher offerings, enhancing customer engagement and revenue opportunities.

Aligned with our growth strategy, we are actively exploring new opportunities across Pan-African markets. These expansions are expected to contribute to both revenue growth and long-term profitability. Additionally, we are identifying new products and markets to diversify our portfolio, ensuring continued agility and competitiveness in an evolving industry landscape.

While we remain optimistic about the future, we are mindful of potential risks such as economic fluctuations, foreign exchange volatility, and regulatory changes. The company remains committed to continuously evaluating and adapting its strategies to mitigate these risks and deliver sustained shareholder value.

On behalf of the board

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

The principal activity of the company is the sale of mobile phone airtime, data and other value added services.

The results for the year are set out on page 8. The result for the year was a loss after tax of £2,207,596 (2023: loss £2,373,509 ).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The Group maintains appropriate Directors' and Officers' Liability Insurance on behalf of the directors and Company secretary. In addition, individual qualifying third-party indemnity provisions are given to the directors and Company secretary which comply with the provisions of Section 234 of Companies Act 2006, and were in force throughout the year and up until the signing of the Annual Report.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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.

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.

We have audited the financial statements of Sochitel UK 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, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• 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.

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

We draw attention to the Balance Sheet in the financial statements, which indicates that the company incurred a net loss of £2,207,596 during the year ended 31 December 2024 and, as of that date, the company’s current liabilities exceeded its total assets by £2,742,468. As stated in note 1.2, these events or conditions, along with other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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

In planning and designing our audit tests, we identify and assess the risks of material misstatements within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.

As a result of this assessment, we considered the opportunities and incentives that may exist within the company for fraud and identified that the greatest area of risk was in relation to management override, completeness of income and the recoverability of debtors.

We have obtained an understanding of the legal and regulatory frameworks that the company operates in from discussions with the directors and our knowledge of the company and its industry sector. We have focused on the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

We performed the following audit procedures after consideration of the above risks which included the following:

• enquiry of management of actual and potential litigation and claims;

• reviewing correspondence with HMRC and the company’s legal advisors;

• testing sales transaction reports during the year and after the year end to ensure sales are recorded appropriately and correctly in the relevant accounting period;

• agreeing customer wallet balances to trading platforms;

• reviewing after year end receipts and assessing business forecasts of related agency balances;

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

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

The engagement partner has assessed that all engagement team members were made aware of the relevant laws and regulations and potential fraud risks and were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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. The 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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Sochitel UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ibex House, Baker Street, Weybridge, Surrey, KT13 8AH. The trading office is 3-4 Devonshire Street, London W1W 5DT.

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 pound 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.

The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Sochitel UK Limited is a majority owned subsidiary of IDT Corporation and the results of Sochitel UK Limited are included in the consolidated financial statements of IDT Corporation which are available from 520 Broad Street, Newark, New Jersey, 07102, USA.

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern. In assessing the appropriateness of the going concern basis, the directors have considered the company’s financial position, forecast cash flows, and the availability of financial support. The company has incurred operational losses in the current and prior financial years, with revenue continuing to decline due to competitive pressures in the telecommunications and value-added services sector. Margins have decreased marginally and liquidity remains low.

The company’s balance sheet remains insolvent, primarily due to significant loans payable to its parent company, IDT Corporation, which are classified as repayable on demand. While it is assumed that these loans will not be called unless repayment is feasible, no formal assurance has been provided. The reported net asset position is significantly influenced by intercompany receivables and payables, and when these are excluded, the adjusted net assets offer minimal coverage against liabilities.

As such, there is a material uncertainty related to events and conditions that may cast significant doubt on the company’s ability to continue as a going concern. These uncertainties include:

• The absence of a formalised agreement confirming ongoing financial support from the parent company;

• The lack of committed external funding lines;

• The company’s limited financial headroom to absorb further losses or cash flow pressures.

Management has developed plans to address these uncertainties, including actively seeking new investment to fund future plans. This would enable settlement of outstanding amounts payable to IDT Corporation and improve the company’s financial independence. Discussions are ongoing to formalise group support arrangements and defer repayment of on-demand loans until profitability is achieved or the new investment is secured.

The directors believe that these plans, if successfully implemented, will provide the necessary financial flexibility to support the company’s operations.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue is recognised from the provision of mobile airtime. Revenue is recognised when the significant risks and rewards of ownership have transferred to the buyer; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the sale of airtime to wholesale customers is initially deferred and released as end users purchase airtime. Revenue from the sale of prepaid top-up cards and terminal sales vouchers is recognised when redeemed by the end user.

Revenue from the rendering of services relates to platform usage fees charges to other group companies.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

The IT Platform represents Sochitel's internally developed system for mobile airtime transfers, the cost represents labour time and external costs incurred in developing the system which is an integral part of the business and gives rise to future economic benefit.

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

Tangible fixed assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

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

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

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.

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.

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.

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.

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.

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

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

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

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.

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

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

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.

Intercompany transactions relating to the purchase of airtime and data are translated at the parallel rate.

In the application of the company’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Determine whether there are indicators of impairment of the company's intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

A full line by line review is carried out at the end of each month. Whilst every attempt is made to ensure that bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which are ultimately proven to be uncollectable.

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 provision for bad debts is based on management's assessment of the recoverability of agency balances. The provision is measured as the best estimate of the potential loss at the reporting date. Management considers all available information to determine whether an impairment adjustment is necessary and ensures that the provision reflects the probable risk of default.

Due to the uncertainty regarding the future viability of the agencies, the provision is subject to ongoing review. Any changes in circumstances that affect the recoverability of agency receivables are reflected in the financial statements in the period in which they become known.

This assessment includes a review of the creditworthiness of agencies, future business plans and current economic conditions. As of the reporting date, the provision for bad debts was £1,000,000, which represents 82% of the total agency balances receivable.

Foreign exchange losses of £2,031,906 (2023: £1,483,422 losses) are mostly attributable to the fluctuation of the Naira rate during the year.

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 actual charge/(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:

The company has trading losses of £2,941,782 (2023: £719,014) and non trading losses of £23,489 (2023: £891) to carry forward, a timing difference in relation to accelerated capital allowances of £6,647 (2023: £8,259) and other timing differences of £89,424 (2023: £109,514). A deferred tax asset calculated based on a tax rate of 25% (2023: 25%) of £762,012 (2023: £205,290) has not been recognised in the accounts as uncertainty around the timing of future profits remain.

From 1 April 2023, the UK corporation tax rate changed from 19% to 25%, with marginal relief available for profits between £50,000 and £250,000, therefore the effective tax rate last year differs to this year.

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

Amounts owed by group undertakings of £nil (2023: £7,836,829) are considered to be repayable on demand. This balance is unsecured.

£999,852 (2023: £939,602) of amounts owed by group undertakings earns interest of 5% per annum and are considered repayable on demand.

Amounts owed to group undertakings of £1,251,739 (2023: £5,318,808) are considered to be repayable on demand and have no annual interest. This balance is unsecured.

Amounts owed to parent undertakings includes a loan of £1,823,058 (2023: £1,721,783) which is considered to be repayable on demand and has annual interest of 4% and another loan, which carries no interest, for working capital requirements of £1,078,688 (2023: £1,060,387). These amounts are unsecured.

The remaining balance of £322,532 (2023: £320,043) due to parent undertakings is considered to be repayable on demand and has no annual interest. This balance is unsecured.

£76,934 (2023: £76,934) due to parent undertakings is due in greater than one year and has no annual interest. This balance is unsecured.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The amount outstanding at year end to pay over to the pension provider was £29,424 (2023: £36,371).

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 remuneration of the three key management personnel is as follows.

Consultancy services are provided to the company for key management personnel. Consultancy fees of £138,000 (2023: £138,000) were incurred and are not included in the amount above.

During the year the company entered into the following transactions with related parties:

The immediate parent company is IDT International Telecom Inc, a company registered and domiciled in the United States of America.

The ultimate parent undertaking and controlling party is IDT Corporation Inc, a company listed on the New York Stock Exchange. The results for Sochitel UK Ltd have been included in the consolidation of the ultimate parent financial statements.