Chiptech International Limited

	Page
Strategic Report	1—3
Directors' Report	4—5
Independent Auditor's Report	6—8
Statement of Income and Retained Earnings	9
Balance Sheet	10—11
Statement of Cash Flows	12
Notes to the Statement of Cash Flows	13
Notes to the Financial Statements	14—22

The directors present their strategic report for the year ended 31 March 2025.

Principal Activity

The company's principal activity continues to be the design, manufacture, and supply of high-quality telecare products and connected technology that support independent living and safety across communities in the UK and beyond.

Who We Are

Chiptech is a purpose-driven technology company dedicated to improving lives through innovative, reliable, and elegant telecare solutions. Our research and development facilities and manufacturing capabilities ensure that every product we deliver is of the highest quality and competitively priced, combining advanced engineering with practical design. This is further supported through a best-in-class Account Management Team and technical support function.

Chiptech’s digital telecare products are renowned for their safety, elegance, and ease of use. Our talented team of engineers design with a strong focus on automated safety checks, ensuring that events are logged and reported to monitoring centres giving peace of mind that every device will perform exactly as needed in an emergency. Chiptech products work seamlessly into all industry-based alarm receiving platforms and are uniquely placed as being the only product provider will full interoperability giving customers full freedom of monitoring platform choice.

While Chiptech supplies end-to-end solutions, we also collaborate actively with other leading providers to create comprehensive systems tailored to individual needs. All Chiptech digital devices are supported through SmartCare Cloud, our remote fleet management platform that enables live updates and maintenance while devices remain in the field significantly reducing site visits and ensuring optimal system performance.

Review of the Business

Chiptech has grown into a trusted telecare technology leader, now employing 55 talented people. Our success is grounded in a clear strategy: building great products, empowering our people, and delivering meaningful social impact.

The year to 31 March 2025 marked another period of exceptional progress for Chiptech. Turnover increased by 49% to £22.0 million (2024: £14.7 million), alongside a significant improvement in profitability and strong cash generation. This performance reflects the continued strength of our capital and recurring-revenue model, sustained investment in product innovation, disciplined cost management, and the trust we have built with customers and partners across the UK and internationally.

Chiptech today serves over 180 customer groups and Chiptech’s products support 250k elderly and vulnerable people in the UK saving over £2bn to Health and Social Care Services.

Industry Context and Market Leadership

The UK telecare sector is undergoing a major transformation with the analogue-to-digital switchover. Chiptech is proud to be leading this digital transition in Independent Living, holding an estimated 35% share of the UK digital market.

Our pioneering dual SIM technology and advanced roaming algorithms have set new standards for reliability and resilience, enhancing connectivity and safety across both the UK and wider Europe.

Chiptech has also contributed significant expertise to the wider industry. We have dedicated time and leadership to resilience knowledge-sharing within our trade association, the TSA and our technical leader plays an active role within the BSI, helping shape national standards for digital telecare.

Our innovation and leadership have been recognised through multiple awards, including:

Innovation at Scale Award – Technology Services Association (TSA)
Medium Business Award and Scale-Up Award – Red Rose Awards, Lancashire

...CONTINUED

Page 1

Page 2

Chiptech International Limited

Strategic Report (continued)

For The Year Ended 31 March 2025

Review of the Business - continued

Our People and Culture

Our people remain the driving force behind everything we achieve. This year’s employee satisfaction score of over 90% reflects a culture built on respect, innovation, and shared purpose.

We are proud to have achieved an NPS score of 75, demonstrating our commitment to service, trust, and long-term relationships.

We continue to invest in personal and professional development, including leadership training, internships, and academic collaboration. Chiptech also funds research projects with Glasgow School of Art and Lancaster University, nurturing the next generation of design and engineering talent.

Research and Development

Innovation remains central to Chiptech’s success. We continue to invest heavily in R&D, developing new technologies that enhance user safety, system resilience, and long-term sustainability. These innovations strengthen our product portfolio and help shape the future of digital telecare across Europe. Chiptech have increased resources significantly in R&D which is now spread globally to be able to flex and adapt to local market conditions.

Community and Purpose

Beyond technology, we are proud of our community investment, supporting local causes, promoting inclusion, and driving positive impact where we operate. Our purpose remains clear: to design technology that helps people live safely and independently, while ensuring reliability for those who rely on our products most. We are also mindful of our environmental responsibilities. Chiptech incorporates reground plastics within its manufacturing processes where appropriate and has optimised product packaging to maximise shipment volumes. These measures reduce material waste, lower shipping requirements, and help minimise the carbon footprint associated with product distribution, while maintaining the quality and reliability our customers expect.

At the very end of the financial year ending 2024, Chiptech were proud to complete the purchase of our UK headquarters in Dalton Square, Lancaster. The new Chiptech HQ reflects our commitment to creating a workspace that inspires pride, attracts exceptional talent, and embodies our social values at the heart of the city. Through this move, we have deepened our connection with the local community, forming strong relationships with the Electec Innovation Cluster, Lancaster University, the Chamber of Commerce, and Lancaster City Council.

Our growth and contribution to community wellbeing also led to the honour of audiences with New Zealand Prime Minister Christopher Luxon and His Majesty King Charles III, recognising Chiptech’s leadership in digital transformation, sustainability, and social care innovation.

Principal Risks and Uncertainties

The Company’s leadership team, supported by an advisory board and external advisers, actively reviews the principal risks and uncertainties facing the business and the actions in place to mitigate them.

Price risk:

The telecare market remains competitive, with potential downward pressure on margins. We mitigate this through supplier partnerships, value-added services, and maintaining our reputation for innovation and quality.

...CONTINUED

Page 2

Page 3

Chiptech International Limited

Strategic Report (continued)

For The Year Ended 31 March 2025

Principal Risks and Uncertainties - continued

Credit risk:

With trade debtors at £4.62 million, credit control remains a key focus. Rigorous checks, close monitoring, and strong customer relationships ensure low exposure.

Market and economic risk:

Economic uncertainty and changes in public sector budgets can affect procurement cycles. Chiptech mitigates this through diversification, long-term contracts, and expansion into new markets.

Liquidity and cash flow:

Chiptech maintains a robust liquidity position, with operating cash flow of £3.18 million supporting investment in growth, R&D, and infrastructure.

Future Developments

Chiptech enters the next financial year from a position of strength and confidence. Building on our leadership in the UK digital switchover, we will continue to expand across Europe, with the launch of a new entity in Spain and distribution models in other key markets.

Looking ahead, data will play a pivotal role in shaping the future of social care. Chiptech will continue to lead this evolution through secure and interoperable data transmission, underpinned by strong governance, product and manufacturing excellence, and strategic platform partnerships.

Our focus remains on sustainable growth, technological excellence, and continuing to lead the way in digital telecare innovation.

On behalf of the board

Mr David Hammond

Director

16 December 2025

Page 3

Page 4

Chiptech International Limited

Company No. 11928721

Directors' Report For The Year Ended 31 March 2025

Directors' Report

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors

The directors who held office during the year were as follows:

Mr David Hammond

Mr Graeme Moore

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Page 4

Page 5

Chiptech International Limited

Directors' Report (continued)

For The Year Ended 31 March 2025

Independent Auditors

The auditors, Whitehead & Aldrich, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr David Hammond

Director

16 December 2025

Page 5

Page 6

Independent Auditor's Report

to the Members of

Chiptech International Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Chiptech International Limited for the year ended 31 March 2025 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit/(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 entity's ability to continue as a going concern for a period of at least 12 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 6

Page 7

Independent Auditor's Report (continued)

to the Members of

Chiptech International Limited

Opinions on Other Matters Prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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 or 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.

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 4—5, 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.

Page 7

Page 8

Independent Auditor's Report (continued)

to the Members of

Chiptech International Limited

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:

- Enquiries with management, including directors, about any known or suspected instancies of non-compliance with laws or regulations and fraud.

- Challenging assumptions and judgements made by management in their significant accounting estimates.

- Auditing the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness.

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: Competitive nature of the market, government legislation, manufacturers financial stability and influence, UK economy and compliance with employment law.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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

Other matters

The financial statements of the company for the year ended 31st March 2024 were not audited. Accordingly, we do not express an opinion on the comparative figures included in these financial statements.

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 that 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.

Jonathan Hughes-Deane FCA (Senior Statutory Auditor)

for and on behalf of Whitehead & Aldrich , Statutory Auditor

16 December 2025

Whitehead & Aldrich

Chartered Accountants

5 Ribblesdale Place

Preston

Lancashire

PR1 8BZ

Page 8

Page 9

Chiptech International Limited

Statement of Income and Retained Earnings

For The Year Ended 31 March 2025

Statement of Income and Retained Earnings

		2025	2024
	Notes	£	£
TURNOVER	3	22,018,597	14,729,044
Cost of sales		(12,647,452 )	(9,103,830 )

GROSS PROFIT		9,371,145	5,625,214

Administrative expenses		(3,180,807 )	(1,963,503 )
Other operating income		30,612	-

OPERATING PROFIT AND PROFIT BEFORE TAXATION		6,220,950	3,661,711
Tax on Profit	10	(1,560,151 )	(920,040 )

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		4,660,799	2,741,671
OTHER COMPREHENSIVE INCOME FOR THE YEAR		-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR		4,660,799	2,741,671

RETAINED EARNINGS
As at 1 April 2024		5,223,478	2,481,807
As at 31 March 2025		9,884,277	5,223,478

The notes on pages 13 to 22 form part of these financial statements.

Page 9

Page 10

Chiptech International Limited

Balance Sheet

As At 31 March 2025

Balance Sheet

Registered number: 11928721

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	11		14,736		19,648
Tangible Assets	12		1,754,929		144,189

			1,769,665		163,837
CURRENT ASSETS
Stocks	13	3,405,616		776,981
Debtors	14	4,984,675		4,866,773
Cash at bank and in hand		5,116,703		3,557,227

		13,506,994		9,200,981
Creditors: Amounts Falling Due Within One Year	15	(4,877,463 )		(3,907,994 )

NET CURRENT ASSETS (LIABILITIES)			8,629,531		5,292,987

TOTAL ASSETS LESS CURRENT LIABILITIES			10,399,196		5,456,824

Creditors: Amounts Falling Due After More Than One Year	16		(486,619 )		(205,746 )

PROVISIONS FOR LIABILITIES
Deferred Taxation	17		(28,200 )		(27,500 )

NET ASSETS			9,884,377		5,223,578

CAPITAL AND RESERVES
Called up share capital	19		100		100
Profit and Loss Account			9,884,277		5,223,478

SHAREHOLDERS' FUNDS			9,884,377		5,223,578

Page 10

Page 11

Chiptech International Limited

Balance Sheet (continued)

As At 31 March 2025

On behalf of the board

Mr David Hammond

Director

16 December 2025

The notes on pages 13 to 22 form part of these financial statements.

Page 11

Page 12

Chiptech International Limited

Statement of Cash Flows

For The Year Ended 31 March 2025

Statement of Cash Flows

		2025	2024
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	4,281,603	3,354,706
Tax paid		(1,098,909 )	(786,441 )

Net cash generated from operating activities		3,182,694	2,568,265

Cash flows from investing activities
Purchase of intangible assets		-	(24,560 )
Purchase of tangible assets		(1,676,635 )	(142,552 )

Net cash used in investing activities		(1,676,635 )	(167,112 )



Increase in cash and cash equivalents		1,506,059	2,401,153
Cash and cash equivalents at beginning of year	2	3,557,227	1,112,818
Foreign exchange gains on cash and cash equivalents		53,417	43,256

Cash and cash equivalents at end of year	2	5,116,703	3,557,227

Page 12

Page 13

Chiptech International Limited

Notes to the Statement of Cash Flows

For The Year Ended 31 March 2025

Notes to the Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2025	2024
	£	£
Profit for the financial year	4,660,799	2,741,671
Adjustments for:
Tax on profit	1,560,151	920,040
Amortisation of intangible assets	4,912	4,912
Depreciation of tangible assets	65,895	32,269
Foreign exchange gains	(53,417)	(43,256)
Movements in working capital:
(Increase)/decrease in stocks	(2,628,635 )	77,463
Increase in trade and other debtors	(117,902 )	(2,612,538 )
Increase in trade and other creditors	789,800	2,234,145

Net cash generated from operations	4,281,603	3,354,706

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2025	2024
	£	£
Cash at bank and in hand	5,116,703	3,557,227

3. Analysis of changes in net funds

	As at 1 April 2024	Cash flows	As at 31 March 2025
	£	£	£
Cash at bank and in hand	3,557,227	1,559,476	5,116,703

Page 13

Page 14

Chiptech International Limited

Notes to the Financial Statements

For The Year Ended 31 March 2025

Notes to the Financial Statements

1. General Information

Chiptech International Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11928721 . The registered office is Palatine Hall, Dalton Square, Lancaster, LA1 1PW.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Significant judgements and estimations

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements and estimations that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

- The estimated useful life of the intangible fixed assets and the amortisation rates used thereon.

- The estimated useful life of the tangible fixed assets and the depreciation rates used thereon.

- The net realisable value of slow moving stock.

- The recoverability of the debtors.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Intangible Fixed Assets and Amortisation - Other Intangible

Other intangible assets are domain names. It is amortised to profit and loss account over its estimated economic life of 5 years.

Page 14

Page 15

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	No depreciation on freehold property
Leasehold improvements	4% on cost
Motor vehicles	25% on WDV
Fixtures, fittings and equipment	25% on cost

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.8. Foreign Currencies

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

2.9. Taxation

Income 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 profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing 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. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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.

...CONTINUED

Page 15

Page 16

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

2.9. Taxation - continued

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.10. Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis.

3. Turnover

Analysis of turnover by class of business is as follows:

	2025	2024
	£	£
Sale of goods	22,018,597	14,729,043

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

4. Other Operating Income

	2025	2024
	£	£
Other operating income	30,612	-

	30,612	-

5. Operating Profit

The operating profit is stated after charging:

	2025	2024
	£	£
Research and Development Costs	33,249	39,649
Operating lease rentals	56,472	34,193
Depreciation of tangible fixed assets	65,895	32,269
Amortisation of intangible fixed assets	4,912	4,912

Page 16

Page 17

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

6. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2025	2024
	£	£
Audit Services
Audit of the company's financial statements	16,500	-


Other Services
Other non-audit services	3,340	8,935

7. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2025	2024
	£	£
Wages and salaries	2,045,525	1,242,356
Social security costs	217,352	129,978
Other pension costs	53,982	33,220

	2,316,859	1,405,554

8. Average Number of Employees

Average number of employees, including directors, during the year was as follows:

	2025	2024
Office and administration	12	7
Sales, marketing and distribution	22	16
Research and Development	2	-

	36	23

9. Directors' remuneration

	2025	2024
	£	£
Emoluments	437,638	369,335
Company contributions to money purchase pension schemes	4,017	3,864

	441,655	373,199

The number of directors to whom retirement benefits were accruing was as follows:

	2025		2024
Money purchase pension schemes	1		1

Page 17

Page 18

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

Information regarding the highest paid director was as follows:

	2025	2024
	£	£
Emoluments	437,638	369,335
Company contributions to money purchase pension schemes	4,017	3,864

	441,655	373,199

10. Tax on Profit

	Tax Rate		2025	2024
The tax charge on the profit for the year was as follows:
	2025	2024	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	1,559,451	894,440
Deferred Tax
Deferred taxation			700	25,600


Total tax charge for the period			1,560,151	920,040


The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2025	2024
			£	£
Profit before tax			6,220,950	3,661,711

Tax on profit at 25% (UK standard rate)			1,555,238	915,428
Goodwill/depreciation not allowed for tax			(2,498 )	(24,871 )
Expenses not deductible for tax purposes			6,711	1,853
Capital allowances			5,700	25,600
Short term timing differences			(5,000 )	2,030

Total tax charge for the period			1,560,151	920,040

Page 18

Page 19

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

11. Intangible Assets

	Domain name
	£
Cost
As at 1 April 2024	24,560

As at 31 March 2025	24,560

Amortisation
As at 1 April 2024	4,912
Provided during the period	4,912

As at 31 March 2025	9,824

Net Book Value
As at 31 March 2025	14,736

As at 1 April 2024	19,648

12. Tangible Assets

	Land & Property
	Freehold	Leasehold improvements	Motor vehicles	Fixtures, fittings and equipment	Total
	£	£	£	£	£
Cost
As at 1 April 2024	-	13,046	48,199	128,477	189,722
Additions	1,574,649	-	33,400	68,586	1,676,635
Disposals	-	(13,046 )	-	(37 )	(13,083 )

As at 31 March 2025	1,574,649	-	81,599	197,026	1,853,274

Depreciation
As at 1 April 2024	-	435	9,735	35,363	45,533
Provided during the period	-	12,611	13,059	40,225	65,895
Disposals	-	(13,046 )	-	(37 )	(13,083 )

As at 31 March 2025	-	-	22,794	75,551	98,345

Net Book Value
As at 31 March 2025	1,574,649	-	58,805	121,475	1,754,929

As at 1 April 2024	-	12,611	38,464	93,114	144,189

13. Stocks

	2025	2024
	£	£
Goods for resale	3,405,616	776,981

Page 19

Page 20

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

14. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	4,620,267	4,768,157
Other debtors	364,408	98,616

	4,984,675	4,866,773

15. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Trade creditors	1,009,835	1,156,222
Other creditors	17,986	10,824
Corporation tax	809,451	348,909
Taxation and social security	1,304,559	581,678
Accruals and deferred income	1,735,632	1,810,361

	4,877,463	3,907,994

Included in accruals and deferred income is £1,575,476 (2024 - £1,489,266) of deferred income.

16. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Accruals and deferred income	486,619	205,746

Included in accruals and deferred income is £486,619 (2024 - £205,746) of deferred income of which £71,208 (2024 - £nil) fall due after more than five years.

17. Deferred Taxation

The provision for deferred tax is made up as follows:

	2025	2024
	£	£
Accelerated capital allowances	33,200	27,500
Other timing differences	(5,000)	-

	28,200	27,500

Page 20

Page 21

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

18. Provisions for Liabilities


	Deferred Tax	Total
	£	£
As at 1 April 2024	27,500	27,500
Additions	700	700

Balance at 31 March 2025	28,200	28,200

19. Share Capital

	2025	2024
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1 each	100	100

20. Other Commitments

The total of future minimum lease payments under non-cancellable operating leases are as following:

	2025	2024
	£	£
Not later than one year	1,930	35,000
Later than one year and not later than five years	-	46,667

	1,930	81,667

21. Pension Commitments

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

During the year the charge to the profit and loss account in respect of defined contribution schemes was £53,982 (2024: £33,220).

At the balance sheet date contributions of £37,926 (2024: £10,824) were due to the fund and are included in creditors.

22. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

Page 21

Page 22

Chiptech International Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 March 2025

23. Related Party Disclosures

Chiptech Limited

Chiptech Limited (New Zealand) is a related party by virtue of being controlled by Mr G. Moore. The transactions during the year and balances at 31st March 2025 are as follows:

(a) Purchases - £9,349,175

(b) Trade creditors - £398,089

24. Controlling Parties

The company's ultimate controlling party is Chiptech International Limited (New Zealand) by virtue of their interest in the share capital of the company. This company does not trade and is 100% owned by Mr G. Moore.

Page 22