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

Quantanite UK Limited provides outsourcing services to enterprises in Retail, Food on Demand, Travel, Home Services and Technology sectors. Our offerings include Customer Experience services as well as Enterprise Operations services, supported by advanced analytical frameworks. Our clients hire our services for the exceptional quality of our human caliber, process expertise and commercial value.

In 2024, we achieved a turnover of £21.06 million (2023: £17.17 million) and operating profit of £3.05 million (15% of revenue) (2023: £3.03 million (18% of revenue). Our key sources of growth include winning new business in our chosen industries as well as expanding revenue from existing clients through strong account management.

During FY24, the Group secured seven new client wins, generating total revenue of £1,770,523 for the year. These new contracts reflect the Group’s ongoing business development activities and contribution to overall revenue growth.

We made significant investments in bolstering our leadership across our service delivery centres, US and UK sales and business development teams. Our technology solutions and support practice, established under our Q Labs umbrella in India, gained strong roots, producing numerous key AI-first solution platforms that proved instrumental in increasing our operational efficiency and work effectiveness across recruitment, employee engagement, quality assurance, customer support and data transcription services.

Our client satisfaction scores and employee satisfaction scores held steady and continue to reflect the quality and positive nature of our client services and workplace environment.

The risk of severe disruption and business downsizing owing to large scale, efficient and affordable adoption of Artificial Intelligence by our clients remains a key risk factor in our growth. Our mitigation approach is to increase investments in increasing our technology offerings and disincentivising our clients to move elsewhere.

We remain vigilant in managing client concentration risk by constantly diversifying our sources of revenue via new clients as well as new service offerings to clients in our installed base.

Our offshore locations are prone to service disruption from geo-political and local/national events of unrest. We have invested and will continue to do so in appropriate business continuity plans.

The core CX (Customer Experience) outsourcing market remains an excessively competitive market prone to service commoditization. We intend to differentiate and protect our profitability by the virtue of our market position of being a compelling high-tech (AI-led) high-expertise provider.

With the increase in digitalization of process outsourcing and rapid adoption of AI in process delivery, the risk of data breach or violation of data privacy policies locally in the markets we operate, could increase our liabilities and cause reputational damage. We protect ourselves from this risk via better contractual and process compliance as well as increased awareness training across the organization.

Revenue: 2024 vs 2023 revenue growth was 23%

Revenue: 2023 vs 2022 revenue growth was 5%

Operating profit 2024 : £3.05 million and 15% of revenue

Operating profit 2023: £3.03 million and 18% of revenue

Our focus will remain on generating growth by harnessing the potential of AI in the outsourcing market. We believe that this technology will fundamentally disrupt the sector - and hence our goal is to increase investments in developing technologies that we embed in our services and increase the overall competitiveness of our service portfolio and market position.

We intend to invest further in technology and go-to-market partners who will add scale to our growth and delivery.

We intend to seek additional growth from new geographies and also view this as a source of mitigating risk of over reliance on current service delivery locations.

The Company is a profitable trading company within the Quantanite Holdings Limited (the ‘Group’), providing outsourcing services to enterprises in Retail, Food on Demand, Travel, Home Services and Technology sectors. As at 31 December 2024, the Company holds net current assets of £8,181,830 (2023: £5,756,616), cash of £3,634,742 (2023: £1,607,527) and made a profit before tax of £2,938,428 (profit before tax 2023: £2,943,954) for the year then ended.

As the Company is included within the group, the directors have reviewed the Group’s cash flow forecast, of which the company is a member, for the next 12 months and they believe that taking into account reasonably possible changes in projected profitability, contracted and recurring revenue, available liquid resources and scheduled repayments of debt, the Company has adequate resources to continue in operational existence for the foreseeable future.

The common directors across the Group are monitoring trading and have considered a worst-case scenario to ensure it fully understands what actions are needed, if appropriate, to ensure it can continue its operations for the foreseeable future. On this basis, the directors are satisfied the Group remains well placed to manage its business risks successfully and provide any required support to the company as needed. Based on the scenario analysis performed, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of 12 months from the date of approval of the financial statements and will continue to be able to meet its obligations as they fall due. Hence, the Company has obtained a letter of support from the parent company Quantanite Holdings Limited so that in the unlikely event the financial position of the Company deteriorated, it would have the financial support of its parent company.

On behalf of the board

The Director presents the Company's annual report and financial statements for the year ended 31 December 2024.

The principal activity of the company continued to be that of provision of data analytics applying Generative Artificial Intelligence systems.

The results for the year are set out on page 9.

No ordinary dividends were paid (2023 - £742,000). The director does not recommend payment of a final dividend.

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

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

The company's financial instruments at the balance sheet comprise cash and liquid resources. The main purpose of these financial instruments are to provide finance for the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, that arise directly from its operations.

The main risks arising from the company's financial instruments are foreign currency, interest and liquidity risk.

We are exposed to liquidity risk in the ordinary course of doing business due to sudden economic downturn, client bankruptcies, or unexpected contract terminations which could disrupt our cash flow. We ensure to meet short-term financial obligations like payroll or operational expenses, as it could lead to service disruptions, employee attrition, and reputational damage. Maintaining sufficient cash reserves and a diversified client base is crucial to mitigate liquidity risks and ensure business continuity.

Our debt exposes us to market risk from changes in interest rates. We perform a sensitivity analysis to determine the effect of interest rate fluctuations on our interest expense.

We are exposed to foreign currency exchange rate risk in the ordinary course of doing business as we transact or hold a portion of our funds in foreign currencies. Accordingly, we periodically evaluate the need for hedging strategies.

The company has committed borrowing facilities.

BDO LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The Director is responsible for preparing the annual report 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;

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

• 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 them 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.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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.

We have audited the financial statements of Quantanite UK Limited ("the Company") for the year ended 31 December 2024 which comprise Statement of comprehensive income, Balance sheet, Statement of changes in equity, Statement of cash flows, and 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

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.

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 included in the strategic report, director's report, other than the financial statements and our auditor’s report 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.

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.

Other Companies Act 2006 reporting

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

• the information given in the Strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic report and the Director's 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 Director’s 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 Director’s 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 Statement of Director’s Responsibilities, 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 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 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 intend to liquidate the Company or to cease operations, or has 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.

Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

• Our understanding of the Company and the industry in which it operates;

• Discussion with management and those charged with governance

• Obtaining an understanding of the Company’s policies and procedures regarding compliance with laws and regulations;

We considered the significant laws and regulations to be United Kingdom Generally Accepted Accounting Practice, the Companies Act 2006 and relevant tax compliance legislation .

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be health and safety legislation, Data Protection Act 2018, Corporation Tax and VAT Act.

Our procedures in respect of the above included:

• Review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;

• Review of correspondence with tax authorities for any instances of non-compliance with laws and regulations;

• Review of financial statement disclosures and agreeing to supporting documentation;

• Review of legal expenditure accounts to understand the nature of expenditure incurred; and

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

• Enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Company’s policies and procedures relating to:

  • Detecting and responding to the risks of fraud; and

  • Internal controls established to mitigate risks related to fraud.

• Review of minutes of meetings of those charged with governance for any known or suspected instances of fraud;

• Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;

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

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of control and specific risk associated with potential fraud in revenue recognition through posting of fictitious revenue related journals during the year.

Our procedures in respect of the above included:

• Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation and assessing the business rational behind the entries;

• Challenging management’s assessments, assumptions and evaluating data used as the basis for making estimates to assess whether judgements made in making accounting estimates are indicative of potential bias by management; and

• Testing unusual combinations to revenue journal entries by agreeing to supporting documentation and assessing the business rational behind the entries.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

All amounts related to continued operations.

The notes on pages 13 to 24 form part of these financial statements.

The notes on pages 13 to 24 form part of these financial statements.

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

The notes on pages 13 to 24 form part of these financial statements.

The notes on pages 13 to 24 form part of these financial statements.

Quantanite UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 45 Albemarle Street, Mayfair, London, England, W1S 4JL.

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.

The Company is a profitable trading company within the Quantanite Holdings Limited (the ‘Group’), providing outsourcing services to enterprises in Retail, Food on Demand, Travel, Home Services and Technology sectors. As at 31 December 2024, the Company holds net current assets of £true8,181,830 (2023: £5,756,616), cash of £3,634,742 (2023: £1,607,527) and made a profit before tax of £2,938,428 (profit before tax 2023: £2,943,954) for the year then ended.

As the Company is included within the group, the directors have reviewed the Group’s cash flow forecast, of which the company is a member, for the next 12 months and they believe that taking into account reasonably possible changes in projected profitability, contracted and recurring revenue, available liquid resources and scheduled repayments of debt, the Company has adequate resources to continue in operational existence for the foreseeable future.

The common directors across the Group are monitoring trading and have considered a worst-case scenario to ensure it fully understands what actions are needed, if appropriate, to ensure it can continue its operations for the foreseeable future. On this basis, the directors are satisfied the Group remains well placed to manage its business risks successfully and provide any required support to the company as needed. Based on the scenario analysis performed, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of 12 months from the date of approval of the financial statements and will continue to be able to meet its obligations as they fall due. Hence, the Company has obtained a letter of support from the parent company Quantanite Holdings Limited so that in the unlikely event the financial position of the Company deteriorated, it would have the financial support of its parent company.

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax.

Turnover is attributable to the analysis of a wide range of data applying Generative Artificial Intelligence systems.

Quantanite services revenue is derived from data analytics applying Generative Artificial Intelligence systems recognised at the point of delivery.

Managed services and support contracts income (Growthonics ongoing service) are recognised evenly over the period of the contract.

Turnover includes intercompany revenue from the US entity. In line with the Group’s transfer pricing policy, any net profit earned in excess of 3% by USA from these intercompany transactions is recharged back to the UK entity as a cost. This recharge reflects the support and operational services provided by the Group’s delivery centres in India, South Africa, and Bangladesh, for which costs are ultimately recharged to the UK entity in generating the US revenue.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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, group loans 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 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, advances from group entities 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.

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.

Share options

The Company accounts for share options granted by its parent company to the Company's employees. The cost of these share options is recharged by the parent and recognised as an expense in the Company's profit or loss. The fair value of the share options is measured at the grant date and allocated over the vesting period. The Company recognises a corresponding increase in equity for the recharge from the parent.

In the application of the company’s accounting policies, the director is 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.

In order to monitor potential credit losses, we perform ongoing credit evaluations of our customer's' financial condition. An allowance for doubtful accounts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance.

The Company makes an estimate of the recoverable value of group loans. When assessing the impairment of group loans management considers whether there is objective evidence of impairment including:

• economic or legal reasons relating to the debtors' financial difficulty; and

• observable data indicating that there has been a measurable decrease in the estimated future cash flows from a group of financial assets since the initial recognition of those asset.

The average monthly number of persons (including director) 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 1 (2023 - 1).

As total directors' remuneration was less than £200,000 in the current and prior year, no disclosure is provided for either year in relation to the highest paid director.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

There is no indication that the tax rates are likely to change in the near future.

All balances held within amounts owed by group undertakings are interest free and repayable on demand.

Included within trade debtors is a balance of £1.6 million due from Quantanite USA, a company under common control.

At the year ended 31 December 2024 the corporation tax liability is comprised of both the current and prior year balances.

The long-term loans are secured by fixed charges over the assets of the company as security for the bank loans.

Borrowings are sourced from two external lenders. The first includes a total amount of interest payable of £30,327 and matures on 1 May 2026, while the second includes a total amount of interest payable of £6,991 and matures on 26 February 2027.

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. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has in issue one class of Ordinary share, which holds full voting, dividend, and capital distribution rights.

The company has taken advantage of the disclosure exemptions available in FRS102 section 33 in relation to balances and transactions between wholly owned members.

The immediate parent company is Quantanite Holdings Limited incorporated in Jersey by virtue of 100% ownership of the issued ordinary share capital of the company.

The ultimate controlling party of the company during the year is Mr M. Tamminen by virtue of his controlling ownership of the issued ordinary share capital in the group.

The comparative figures for 2023 have been restated to account for the cost for share options provided by the Parent company in its share capital to the employees of the Company which were not accounted for in the previous year. This adjustment has resulted in an increase in the administrative expenses and share option reserve by £292,765 and a restatement of the brought forward from 2022 of £71,491. There is no impact of this adjustment on the net assets of the previous year