The director of the company has elected not to include a copy of the income statement within the financial statements.

For the financial period ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Esferize UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.

The reporting period runs from the date of incorporation, 3 May 2024 to 31 December 2024. The accounting period was shortened to 31 December to coincide with that of the parent company.

The financial statements of Esferize UK Limited have been prepared in accordance with Financial Reporting Standard 101, 'Reduced Disclosure Framework' (FRS 101). In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of International Financial Reporting Standards as adopted by the UK (UK-adopted international accounting standards) but makes amendments where necessary in order to comply with the Companies Act 2006 and to take advantage of FRS 101 disclosure exemptions.

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

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

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of key management personnel compensation;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• comparative narrative information

• for financial instruments measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and

• related party disclosures for transactions with the parent or wholly owned members of the group.

The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. These areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operation existence for the foreseeable future. The directors have assessed the company's financial position and are satisfied that the company has adequate resources to meet its obligations as they fall due. true

The parent company has confirmed its intention to provide financial assistance to the company for at least 12 months from the date of approval of these financial statements, and to not demand repayment of any outstanding balances during this period.

Based on this support and the directors' assessment, the directors believe it is appropriate to prepare the financial statements on a going concern basis. Accordingly, the financial statements do not include any adjustments that would result if the company were unable to continue as a going concern.

Revenue is recognised in accordance with IFRS 15, Revenue from Contracts with Customers. The company recognises revenue to depict the transfer of promised services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those services.

Revenue is recognised when the following five-step model is satisfied:

• Identification of the contract with a customer.

• Identification of the performance obligations in the contract.

• Determination of the transaction price.

• Allocation of the transaction price to the performance obligations.

• Recognition of revenue as the entity satisfies a performance obligation.

Revenue is recognised either at a point in time or over time, depending on the nature of the performance obligation. For performance obligations satisfied over time, revenue is recognised based on the progress towards completion, measured using output methods as appropriate. Revenue is recognised at the net of VAT and trade discounts.

The company recognises revenue from the following major sources:

• Installation of service

• Monthly servicing

The nature, timing or satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Revenue from installation of services is recognised over time when one or more of the following conditions are met:

• The customer received and consumes the benefits as the service is performed

• The installation creates or enhances an asset that the customer controls

• The asset has no alternative us and the company has an enforceable right to payment for work completed to date.

Progress is measured using the input method, based on costs incurred relative to total estimated costs. This method reliably reflects the transfer of service to the customer. Costs directly related to the installation are recognised as expenses when incurred unless they qualify for capitalisation.

The company provides an ongoing monthly servicing services to customers under fixed-term contracts. Revenue from these services are recognised over time, as the customer simultaneously receives and consumes the benefits of the service throughout the contract period.

Revenue is recognised on a straight-line basis over the period, which reflects the consistent pattern of service delivery. Invoices are issued monthly in advance or in arrears, depending on the terms of the contract, and are typically due within standard payment terms.

The performance obligation is satisfied evenly over time, and no significant judgements are required in determining the timing of revenue recognition for these services.

Cash and cash equivalents include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Share capital issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on share capital 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 income statement 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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, except when it relates to items charged or credited directly to 'other comprehensive income', in which case the deferred tax is also dealt with in 'other comprehensive income'. 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 an expense in the income statement. The costs incurred for the No asset is recognised as the allowance does not generate future economic benefits for the company.

Payments to defined contribution retirement benefit schemes are charged as an expense when employees have rendered the service entitling them to the contributions.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transaction. 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 the income statement within administrative expenses.

The average monthly number of persons (including directors) employed by the company during the period was:

All trade receivables have been deemed as recoverable, therefore there are no expected credit losses.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

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 shares have attached to them full voting, dividend and capital distribution rights, including on winding up. They do not confer any rights of redemption.

The following amounts were outstanding at the reporting end date:

During the year, an intercompany loan of £30,000 was granted. The loan is unsecured, interest-free and repayable on demand. No formal repayment schedule has been agreed between parties.

The Company's immediate parent company is Esferize Comunicaciones S.L., a company incorporated in Spain whose registered address is Calle Secyoa, nº 19 3 planta Loc 13-14, 28044, Madrid, Spain. The ultimate controlling party of the group is Israel Agüero Cedillo.