REGISTERED NUMBER: 11917016 (England and Wales)

PRACTICE EVOLVE UK LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30TH JUNE 2025

Page

Company Information

1

Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

8

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

to

21

DIRECTORS:

S P Wood

J Espley

J P Sanderson

SECRETARY:

A G Ghiazza

REGISTERED OFFICE:

Unit 7 Circus Road West

Battersea Power Station

London

SW11 8EZ

REGISTERED NUMBER:

11917016 (England and Wales)

AUDITORS:

Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

BANKERS:

Barclays Bank Plc

Leicester

LE87 2BB

The directors present their strategic report for the year ended 30th June 2025.

PRINCIPAL ACTIVITY

The Company's principal activity during the year continued to be the provision of technological services to the legal profession, principally the supply of technology to simplify the conveyancing process, property searches and other associated products.

REVIEW OF BUSINESS

Throughout the year, the business has continued to invest heavily, particularly in staff, to deliver its growth plan, attract new clients and drive significant further growth. As a result the Company has reported revenue of £4,212,511 (2024: £2,854,005), an increase of £1,358,506 (2024: £1,249,111). All of the increase in revenue was organic growth as a result of the company continuing to successfully attract new clients to the Practice Evolve platform.

The key financial and other performance indicators for the year were as follows:

2025

2024

Change

Revenue

£4,212,511

£2,854,005

£1,358,506

Gross Profit %

99%

99%

-

Profit/(Loss) Before Tax

(£465,880

)

£14,048,932

(£14,514,812

)

Average number of employees

49

58

9

The gross profit percentage remained, as expected, over 99%.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the business are summarised below:

Financial Instrument Risks (liquidity risk, credit risk and foreign exchange risk)

Liquidity Risk

Liquidity risk describes the company's ability to meet its liabilities as and when they fall due. The directors manage exposure to liquidity risk in conjunction with the cash flows of the company's subsidiaries as all companies operate under common control. The Company monitors its cash flow closely and has processes in place to forecast both short term and long term cash requirements. The companies hold cash balances that are significantly higher than the forecast cash requirements for their operations and investment.

Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. The Company's policies are aimed at minimising such losses, for example by offering credit terms only to customers with an appropriate payment history and considering whether new customers are credit worthy and agreeing progress payment schedules with interim payments for larger contracts. To further mitigate the risk that customers may not settle their invoices the Company makes provision for any significant overdue items on the debtors' ledger.

Foreign currency exchange risk arises due to fluctuations in foreign currency exchange rates. The company trades primarily in Sterling and aims to minimise its foreign currency exposure.

Competitive Risk

The company operates in a highly competitive market. To mitigate this risk, management spends time refining and improving both the company's products and the services provided to clients to ensure the market offering remains competitive and provides clients with excellent value for a quality service.

Economic Risk

A significant change in the economic outlook for the United Kingdom would impact the company performance. To mitigate this risk the management monitor economic conditions carefully to ensure that the Company has maximum time to adjust to any significant change in circumstances. The nature of the Company's business is such that at any time there is a contracted pipeline of several months' work. Management monitors this pipeline closely to assist in identify changes in economic activity early. Management also continuously monitors the company's growth, financial performance and cash against budget.

SUMMARY OF KEY PERFORMANCE INDICATORS

The directors monitor the progress of the Company's strategy by reference to both financial and non-financial key performance indicators. The directors monitor key performance indicators in the following areas:

- Customer metrics

- Colleague engagement

- Professional Services / Project delivery metrics

- Sales, gross profit and profit before tax performance

- Cash and working capital

- Payment practices

- Statutory and regulatory compliance

DEVELOPMENT AND PERFORMANCE

The Company will continue to develop its market offering, aiming in future to provide more hosted and cloud systems to its clients. It will also continue the investment in growth. Consequently the Company expects to continue to make losses and consume cash in the immediate future. The directors are confident that this is the right strategy to deliver long term shareholder value and that the company has sufficient resources already available to fund the strategic plans that are in place.

ON BEHALF OF THE BOARD:

J P Sanderson - Director

27th November 2025

The directors present their report with the financial statements of the company for the year ended 30th June 2025.

DIVIDENDS

The directors confirm that no interim or final dividend is to be paid.

DIRECTORS

S P Wood has held office during the whole of the period from 1st July 2024 to the date of this report.

Other changes in directors holding office are as follows:

D Hill - resigned 30th April 2025

J Espley and J P Sanderson were appointed as directors after 30th June 2025 but prior to the date of this report.

D Boland ceased to be a director after 30th June 2025 but prior to the date of this report.

FINANCIAL INSTRUMENTS

The company's financial statements comprise advance receipts in respect of the ordinary activities of the group, cash and liquid resources and various other items such as trade debtors and trade creditors that also arise directly from its operations.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J P Sanderson - Director

27th November 2025

Opinion

We have audited the financial statements of Practice Evolve UK Ltd (the 'company') for the year ended 30th June 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 30th June 2025 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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.

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 the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

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:

Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates.

To address the risk of fraud through management bias and override of controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships.

- Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.

- Investigated the rationale behind significant or unusual transactions.

- Challenged assumptions and judgements made by management in determining significant accounting estimates.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:

- Agreeing financial statements disclosures to underlying supporting documentation.

- Discussions with management of known or suspected instances of non-compliance with laws and regulations.

- Reading the minutes of meetings of those charged with governance.

- Reviewing correspondence with HMRC and relevant regulators.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

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

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 a Report of the Auditors 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.

Thomas Bond ACA (Senior Statutory Auditor)

for and on behalf of Thomas Coombs Limited

Statutory Auditor

Chartered Accountants

3365 The Pentagon

Century Way

Thorpe Park

Leeds

West Yorkshire

LS15 8ZB

27th November 2025

TURNOVER

3

4,212,511

2,854,005

Cost of sales

35,119

16,832

GROSS PROFIT

4,177,392

2,837,173

Administrative expenses

4,088,498

4,730,156

OPERATING PROFIT/(LOSS)

5

88,894

(1,892,983

)

Loss on foreign exchange

6

(778,904

)

-

Loss on disposal of fixed asset investments

6

-

(19,721,206

)

(690,010

)

(21,614,189

)

Income from fixed asset investments

-

35,433,673

Interest receivable and similar income

7

224,130

233,598

224,130

35,667,271

(465,880

)

14,053,082

Interest payable and similar expenses

8

-

4,150

(LOSS)/PROFIT BEFORE TAXATION

(465,880

)

14,048,932

Tax on (loss)/profit

9

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(465,880

)

14,048,932

(LOSS)/PROFIT FOR THE YEAR

(465,880

)

14,048,932

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(465,880

)

14,048,932

FIXED ASSETS

Tangible assets

11

40,600

47,336

CURRENT ASSETS

Debtors

12

698,570

8,121,531

Cash at bank

1,365,535

5,614,660

2,064,105

13,736,191

CREDITORS

Amounts falling due within one year

13

1,212,510

1,297,218

NET CURRENT ASSETS

851,595

12,438,973

TOTAL ASSETS LESS CURRENT LIABILITIES

892,195

12,486,309

CAPITAL AND RESERVES

Called up share capital

14

1

1

Retained earnings

15

892,194

12,486,308

SHAREHOLDERS' FUNDS

892,195

12,486,309

The financial statements were approved by the Board of Directors and authorised for issue on 27th November 2025 and were signed on its behalf by:

J P Sanderson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st July 2023

1

(1,562,624

)

(1,562,623

)

Changes in equity

Total comprehensive income

-

14,048,932

14,048,932

Balance at 30th June 2024

1

12,486,308

12,486,309

Changes in equity

Dividends

-

(11,128,234

)

(11,128,234

)

Total comprehensive income

-

(465,880

)

(465,880

)

Balance at 30th June 2025

1

892,194

892,195

Cash flows from operating activities

Cash generated from operations

1

6,669,800

(4,218,105

)

Interest paid

-

(4,150

)

Net cash from operating activities

6,669,800

(4,222,255

)

Cash flows from investing activities

Purchase of tangible fixed assets

(14,821

)

(24,775

)

Interest received

224,130

233,598

Net cash from investing activities

209,309

208,823

Cash flows from financing activities

Loan repayments in year

(11,128,234

)

-

Net cash from financing activities

(11,128,234

)

-

Decrease in cash and cash equivalents

(4,249,125

)

(4,013,432

)

Cash and cash equivalents at beginning of year

2

5,614,660

9,628,092

Cash and cash equivalents at end of year

2

1,365,535

5,614,660

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

(Loss)/profit before taxation

(465,880

)

14,048,932

Depreciation charges

21,557

16,696

Loss on disposal of investments

-

19,721,206

Finance costs

-

4,150

Finance Income

(224,130

)

(35,667,271

)

(668,453

)

(1,876,287

)

Decrease/(increase) in trade and other debtors

7,422,961

(2,260,854

)

Decrease in trade and other creditors

(84,708

)

(80,964

)

Cash generated from operations

6,669,800

(4,218,105

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30th June 2025

30/6/25

1/7/24

£

£

Cash and cash equivalents

1,365,535

5,614,660

Year ended 30th June 2024

30/6/24

1/7/23

£

£

Cash and cash equivalents

5,614,660

9,628,092

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/24

Cash flow

At 30/6/25

£

£

£

Net cash

Cash at bank

5,614,660

(4,249,125

)

1,365,535

5,614,660

(4,249,125

)

1,365,535

Total

5,614,660

(4,249,125

)

1,365,535

1.	STATUTORY INFORMATION

Practice Evolve UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The nature of the group's operations and principal activities are software developers of legal business management software.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements are presented in Sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

At the time of signing these accounts, having considered the economic climate, the directors expectations and intentions for the next 12 months, and the availability of working capital, the directors are of the opinion that the company will remain viable for the foreseeable future and accordingly these financial statements have been prepared on the going concern basis.

Preparation of consolidated financial statements

This information is included in the consolidated financial statements of ultimate parent company, ATI Global Limited which are publicly available and can be obtained from the Australian Securities & Investments Commission (ASIC), at asic.gov.au. or from the ATI Global Ltd registered office Lvl 8, 135 King Street, Sydney, 2000, NSW, Australia.

Related party exemption

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Accounting estimates and judgements

The Preparation of the financial statements requires management to make estimates that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates.

The key areas of judgement and estimation uncertainty relate to bad debt provision and deferred income. However, the directors do not believe that any reasonable change in assumptions would result in a material adjustment to the carrying values of assets and liabilities.

Turnover

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Software subscriptions

When the outcome of a transaction can be estimated reliably, turnover from hardware and software licences are recognised over the life of the contract on a monthly basis from the date the software or hardware has been installed.

Support and maintenance income

Turnover for the provision of support and maintenance services is recognised in the period in which the support services are provided.

Software upgrades

Turnover from software upgrades is recognised when the upgrade is installed, finalised and is available for use by the customer.

Other Income

Income for additional software training is recognised when the training is provided.

Income for commissions is recognised in the period in which the commission was earned.

Income for other services is recognised in the period the service was provided.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant & machinery etc - 25%-33% on cost

Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes cost directly attributable to making the asset capable of operating as intended.

Financial instruments

The company only enters into transactions in ‘basic’ financial instruments which result in the recognition of assets and liabilities; these include trade and other debtors and creditors, bank balances, loans from banks and other third parties, and loans to related parties. These are recognised in the company’s balance sheet when it becomes party to the contractual provisions of the instrument.

Basic financial assets (other than those classified as payable within one year) are initially measured at cost and are subsequently carried at cost or amortised cost using the effective interest method, less any impairment losses. Basic financial assets classed as receivable within one year are not amortised.

Basic financial liabilities (other than those classified as payable within one year) are initially measured at present value of future cash flows and subsequently at amortised cost using the effective interest method. Basic financial liabilities classed as payable within one year are not amortised.

Financial assets and liabilities are offset, with the net amount reported 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

3.

TURNOVER

The turnover and loss (2024 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Subscriptions

3,022,781

1,493,637

Rendering of services

702,722

1,091,067

Commissions

487,008

269,301

4,212,511

2,854,005

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

4,212,511

2,854,005

4,212,511

2,854,005

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

3,234,613

3,730,191

Other pension costs

109,544

117,415

3,344,157

3,847,606

The average number of employees during the year was as follows:

2025

2024

Average number of employees

49

58

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT/(LOSS)

The operating profit (2024 - operating loss) is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

21,557

16,696

Auditors' remuneration

12,250

8,100

Foreign exchange differences

(6,831

)

12,132

6.	EXCEPTIONAL ITEMS

2025

2024

£

£

Dividends received from group

undertakings

-

35,433,673

Loss on foreign exchange

(778,904

)

-

Loss on disposal of fixed asset investments

-

(19,721,206

)

(778,904

)

15,712,467

During the previous financial year the Company and its two non-trading subsidiaries, Linetime Holdings limited and Widcombe Limited, were restructured with the aim of simplifying the Group's legal structure and reducing future compliance costs. The restructuring involved the repayment of intercompany loans totalling £35,433,673 to the subsidiaries, and a simultaneous receipt of dividends totalling £35,433,673 from the subsidiaries. Immediately following the dividend receipts, the Company's investment in the two subsidiary companies was written off, resulting in a loss of £19,721,206.

In aggregate, this restructuring resulted in a credit of £15,712,467 being recognised in the Company's profit and loss account for the prior year.

Following the restructuring, the Directors of Linetime Holdings Limited and Widcombe Limited applied for the two subsidiaries to be struck off and the strike-offs were completed on 7 May 2024 and 21 May 2024 respectively.

The final intercompany loan was paid off in the year, leading to a foreign exchange loss of £778,904.

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Interest received

224,130

233,598