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Registered number: 05495455 MDA SPACE AND ROBOTICS LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
MDA SPACE AND ROBOTICS LIMITED CONTENTS
| Page
Company information | 1
Balance sheet | 2 - 3
Statement of changes in equity | 4
Notes to the financial statements | 5 - 20
MDA SPACE AND ROBOTICS LIMITED COMPANY INFORMATION
Directors | M P J Greenley
| A Stanniland
Company secretary | Beach Secretaries Limited
Registered number | 05495455
Registered office | Bepo Building, Harwell Campus
| Didcot
| Oxfordshire
| OX11 0GD
Independent auditor | Blick Rothenberg Audit LLP
| Chartered Accountants & Statutory Auditor
| 16 Great Queen Street
| Covent Garden
| London
| WC2B 5AH
Page 1
|  | REGISTERED NUMBER: 05495455
MDA SPACE AND ROBOTICS LIMITED BALANCE SHEET AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 5 |  | 29,855,778 |  | -
Tangible assets | 6 |  | 1,559,832 |  | 1,402,100
Investments | 7 |  | - |  | 2,470,201
|  |  | 31,415,610 |  | 3,872,301
Current assets |  |  |  |  |
Stocks |  | 737,919 |  | 579,348 |
Debtors | 8 | 6,663,066 |  | 17,345,493 |
Cash at bank and in hand |  | 1,175,260 |  | 552,135 |
|  | 8,576,245 |  | 18,476,976 |
Creditors: amounts falling due within one year | 9 | (23,350,375) |  | (29,795,046) |
Net current liabilities |  |  | (14,774,130) |  | (11,318,070)
Total assets less current liabilities |  |  | 16,641,480 |  | (7,445,769)
Provisions for liabilities |  |  |  |  |
Deferred tax | 10 | (5,493,056) |  | - |
Dilapidations provisions | 11 | (337,250) |  | (285,000) |
|  |  | (5,830,306) |  | (285,000)
Net assets/(liabilities) |  |  | 10,811,174 |  | (7,730,769)
Page 2
|  | REGISTERED NUMBER: 05495455
MDA SPACE AND ROBOTICS LIMITED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Capital and reserves |  |  |  |  |
Called up share capital | 12 |  | 7,564 |  | 7,528
Share premium account | 15 |  | 32,176,612 |  | 2,491,209
Other reserves | 15 |  | 1,402,216 |  | 1,236,896
Profit and loss account | 15 |  | (22,775,218) |  | (11,466,402)
Total equity/(net deficit) |  |  | 10,811,174 |  | (7,730,769)
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities. The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. The company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime. The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
A Stanniland
Director
Date: 22 December 2025
The notes on pages 5 to 20 form part of these financial statements. Page 3
MDA SPACE AND ROBOTICS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Share premium account | Other reserves | Profit and loss account | Total equity
| £ | £ | £ | £ | £
At 1 January 2023 | 7,528 | 2,491,209 | 353,406 | (7,725,320) | (4,873,177)
Comprehensive income for the year |  |  |  |  |
Loss for the financial year | - | - | - | (3,741,082) | (3,741,082)
Contributions by and distributions to owners |  |  |  |  |
Shares to be issued | - | - | 822,673 | - | 822,673
Share based payment expense | - | - | 60,817 | - | 60,817
At 1 January 2024 | 7,528 | 2,491,209 | 1,236,896 | (11,466,402) | (7,730,769)
Comprehensive income for the year |  |  |  |  |
Loss for the financial year | - | - | - | (5,489,823) | (5,489,823)
Amortisation of goodwill and other intangibles and related deferred tax between acquisition and hive up date | - | - | - | (5,818,993) | (5,818,993)
Total comprehensive income for the year | - | - | - | (11,308,816) | (11,308,816)
Contributions by and distributions to owners |  |  |  |  |
Shares issued during the year | 36 | 29,685,403 | - | - | 29,685,439
Share-based payment expense | - | - | 165,320 | - | 165,320
At 31 December 2024 | 7,564 | 32,176,612 | 1,402,216 | (22,775,218) | 10,811,174
| The notes on pages 5 to 20 form part of these financial statements.
Page 4
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. | General information
MDA Space and Robotics Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is Bepo Building, Harwell Campus, Didcot, Oxfordshire, England, OX11 0GB. 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 £. 2. Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3). The company was, at the end of the year, a wholly-owned subsidiary of Neptune Operations Limited. The smallest group for which consolidated financial statements are drawn up is headed by MDA Ltd, a company incorporated in Canada, whose registered address is 7500 Financial Drive, Brampton, ON L6Y 6K7, Canada. The company is included in the consolidated financial statements of MDA Ltd. In accordance with the exemption given in Section 401 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated financial statements. The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102: ∙Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows) ∙Section 7 Statement of Cash Flows (inclusion of statement of cash flows); ∙Section 11 Financial Instruments paragraphs 11.39 to 11.48A (disclosures relating to financial instruments); and ∙Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation). The following principal accounting policies have been applied: Page 5
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.2 | Going concern
The financial statements have been prepared on a going concern basis notwithstanding the fact that the company has recorded losses in both the current and prior year and had net current liabilites at 31 December 2024 of £14.8m (2023: £11.3m). Excluding amounts owed to and by group undertakings, the company had net current assets of £3.2m (2023: £1.1m). The directors consider this basis to be appropriate as the company has received a letter of financial support from its ultimate parent company, MDA Ltd, confirming financial support for a period of at least 12 months from the date of approval of the financial statements. The directors have made enquiries as to the financial position and performance of its ultimate parent company and supporting group. As disclosed in the group's most recent consolidated financial statements, the group has a solvent balance sheet and has sufficient cash reserves to finance the subsidiary. Having considered post year end trading, financial results and cash reserves of the ultimate parent undertaking, and after making enquiries, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
| 2.3 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the company has transferred the significant risks and rewards of ownership to the buyer; ∙the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably. Page 6
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.4 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. Tangible fixed assets under contruction are stated at historical cost. Depreciation begins when the assets are available for their intended use. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. Depreciation is provided on the following basis:
|  |  |  | Leasehold improvements | - | 10% |
|  |  |  | Plant and machinery | - | 25% |
|  |  |  | Fixtures and fittings | - | 33% |
|  |  |  | Office equipment | - | 33% |
|  |  |  | Computer equipment | - | 33% |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. Page 7
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.5 | Financial instruments
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments. Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 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. The company’s policies for its major classes of financial assets and financial liabilities are set out below. Financial assets Basic financial assets, including trade and other debtors, cash and bank balances, and intercompany working capital balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. Financial liabilities Basic financial liabilities, including trade and other creditors, and loans from fellow group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Impairment of financial assets Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. Page 8
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued) Financial instruments (continued) If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. Derecognition of financial assets and financial liabilities Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Offsetting of financial assets and financial liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.
| 2.6 | Cash
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
| 2.7 | Share capital
Ordinary shares are classified as equity.
| 2.8 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.9 | Pensions
Defined contribution pension plan The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. Page 9
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.10 | Operating leases: the company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.11 | Foreign currency translation
Functional and presentation currency The company's functional and presentational currency is Sterling (£). Transactions and balances Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses are presented in the profit and loss account within 'administrative expenses'.
| 2.12 | Current and deferred tax
The tax expense for the year comprises current and deferred tax. Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income. Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Page 10
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.13 | Provisions for liabilities
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 2.14 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.15 | Share-based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition. The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received. Page 11
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 2. Accounting policies (continued)
| 2.16 | Intangible assets
Goodwill Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the profit and loss account over its useful economic life. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives as follows:
|  |  |  | Technologies | - | 6 | years
|  |  |  | Goodwill | - | 6 | years
| 2.17 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment. Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit and loss account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. Page 12
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies, which are described in note 2, the key judgments made by the directors are: The recognition of revenue and profit on long-term contracts Long-term contracts are accounted for under FRS 102. The ensuing accounting requires management's judgment to determine the appropriateness of calculating the revenue and profit to be recognised. This includes estimating the total expected costs to complete each contract, the future profitability of the contract and also the percentage of completion at the balance sheet date. Where estimated costs exceed expected revenue of the contract, the expected loss is recognised as an expense immediately. These judgements directly influence revenue, profit and expenses that can be recognised in relation to such contracts. Material changes in these estimates could affect the overall amounts recognised on individual contracts. Goodwill and other intangibles - Useful life and impairment review Goodwill and other intangibles arising on the hive-up transaction are initially recognised at cost, which represents the fair value of the consideration transferred less the net assets acquired at acquisition. Goodwill and other intangibles are amortised over a period of 6 years, reflecting the expected useful life of the acquired business and the anticipated economic benefits arising from the transaction. The judgment in determining the amortisation period of 6 years takes into account factors such as the nature of the acquired business and the estimated period over which the acquired goodwill and other intangibles are expected to contribute to the company's cash flows. Should these factors change, it may result in a review and potential adjustment to the amortisation period or the carrying value of the goodwill and other intangibles. In addition, goodwill and other intangibles are subject to annual impairment reviews or more frequently if there are indications that goodwill and other intangibles may be impaired. The recoverable amount is determined based on the higher of fair value less costs to sell and value in use. These assessments require significant estimates, including projected future cash flows, growth rates, and the discount rate applied. Any changes in these estimates or assumptions could lead to an impairment charge, impacting the carrying value of the goodwill and other intangibles.
4. | Employees
| The average monthly number of employees, including directors, during the year was 68 (2023 - 46).
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MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | Intangible assets
|  | Technologies | Goodwill | Total
|  | £ | £ | £
| Cost |  |  |
| Additions | 24,718,750 | 8,869,000 | 33,587,750
| At 31 December 2024 | 24,718,750 | 8,869,000 | 33,587,750
| Amortisation |  |  |
| Charge for the year | 2,746,528 | 985,444 | 3,731,972
| At 31 December 2024 | 2,746,528 | 985,444 | 3,731,972
| Net book value |  |  |
| At 31 December 2024 | 21,972,222 | 7,883,556 | 29,855,778
| At 31 December 2023 | - | - | -
| Goodwill of £10,136,000 arose at the date of acquisition of MDA Digital Communications Ltd (formerly Satixfy Space Systems UK Limited) and was recognised on the transfer of the trade, assets and liabilities of MDA Digital Communications Ltd on 1 June 2024. In accordance with FRS 102, goodwill recognised at the date of hive up is the amortised amount from the acquisition date being £8,869,000. Technologies of £28,250,000 arose at the date of acquisition of MDA Digital Communications Ltd (formerly Satixfy Space Systems UK Limited) and was recognised on the transfer of the trade, assets and liabilities of MDA Digital Communications Ltd on 1 June 2024. In accordance with FRS 102, intangibles recognised at the date of hive up is the amortised amount from the acquisition date being £24,718,750. £5,818,993 is the difference between goodwill recognised at acquisition and at hive up date after adjusting for deferred tax (and other items). As shown in the statement of changes in equity on page 11, this has been recognised as a movement on reserves in accordance with FRS 102.
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MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. | Tangible fixed assets
|  | Assets under construction | Leasehold improvements | Plant and machinery | Fixtures and fittings | Computer equipment | Total
|  | £ | £ | £ | £ | £ | £
| Cost |  |  |  |  |  |
| At 1 January 2024 | 227,710 | 899,164 | 118,228 | 16,503 | 348,974 | 1,610,579
| Additions | - | 112,983 | 3,216 | 29,199 | 134,782 | 280,180
| Transferred in | - | 35,329 | 78,656 | 2,127 | 10,834 | 126,946
| Transferred between classes | (227,710) | 227,710 | - | - | - | -
| At 31 December 2024 | - | 1,275,186 | 200,100 | 47,829 | 494,590 | 2,017,705
| Depreciation |  |  |  |  |  |
| At 1 January 2024 | - | 89,158 | 82,350 | 1,926 | 35,045 | 208,479
| Charge for the year | - | 72,617 | 11,530 | 8,850 | 156,397 | 249,394
| At 31 December 2024 | - | 161,775 | 93,880 | 10,776 | 191,442 | 457,873
| Net book value |  |  |  |  |  |
| At 31 December 2024 | - | 1,113,411 | 106,220 | 37,053 | 303,148 | 1,559,832
| At 31 December 2023 | 227,710 | 810,006 | 35,878 | 14,577 | 313,929 | 1,402,100
| Assets under contruction were completed during the year and transferred to leasehold improvements..
7. | Fixed asset investments
|  | Investments in subsidiary
|  | £
| Cost |
| At 1 January 2024 | 2,470,201
| dDisposals (see note 13) | (2,470,201)
| At 31 December 2024 | -
| The investment in subsidiary related to MDA Digital Communications Ltd (formerly Satixfy Space Systems UK Limited), a company incorporated in the UK. The trade, assets and liabilities of MDA Digital Communications Ltd were transferred on 1 June 2024.
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MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Due after more than one year |  |
| Other debtors | 439,248 | 391,831
|  | 439,248 | 391,831
| Due within one year |  |
| Trade debtors | 148,232 | 2,362
| Amounts owed by group undertakings | 261,239 | 13,985,439
| Other debtors | 298,914 | 170,966
| Prepayments and accrued income | 3,578,833 | 2,559,756
| Tax recoverable | 1,936,600 | 235,139
|  | 6,663,066 | 17,345,493
| All amounts owed by group undertakings are interest free, unsecured and repayable on demand.
9. | Creditors: amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Payments received on account | - | 827,362
| Trade creditors | 1,033,276 | 133,021
| Amounts owed to group undertakings | 18,340,916 | 26,371,170
| Other taxation and social security | 207,191 | 106,461
| Deferred consideration | 1,652,509 | 1,874,510
| Accruals and deferred income | 2,116,483 | 482,522
|  | 23,350,375 | 29,795,046
| All amounts owed to group undertakings are interest free and repayable on demand. The company has provided a fixed and floating charge over its intellectual property assets in favour of the group's debt providers.
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MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | Deferred taxation
|  | 2024
|  | £
| Charged to profit or loss | (5,493,056)
| At end of year | (5,493,056)
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Intangible assets acquired in a business combination | (5,493,056) | -
| Deferred tax of £7,062,500 arose at the date of acquisition of MDA Digital Communications Ltd (formerly Satixfy Space Systems UK Limited) and was recognised on the transfer of the trade, assets and liabilities of MDA Digital Communications Ltd on 1 June 2024. In accordance with FRS 102, deferred tax recognised at the date of hive up is the amortised amount from the acquisition date being £5,493,056.
11. | Provisions
|  | Dilapidations provision
|  | £
| At 1 January 2024 | 285,000
| Charged to the profit or loss | 52,250
| At 31 December 2024 | 337,250
| The dilapidations provisions represents the directors' assessment of the value of dilapidations work which the company is legally obliged to perform under two rental agreements on its premises. The provision brought forward is expected to be utilised in July 2026 and December 2031. The charge to profit and loss corresponds to a new lease and is expected to be utilised in March 2027.
12. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 756,460 (2023 - 752,852) Ordinary shares of £0.01 each | 7,564 | 7,528
On 31 December 2024, to provide additional working capital the company issued 3,608 ordinary shares of £0.01 each at a price of £8,227.67 per share. Page 17
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | Group restructure
| On 1 June 2024 the trade, assets and liabilities of MDA Digital Communications Ltd (formerly Satixfy Space Systems UK Ltd), a 100% owned subsidiary of the company, were transferred into MDA Space and Robotics Limited. At 31 December 2024, MDA Digital Communications Ltd was dormant and 100% owned by the company. The details of the value of the assets/liabilities are summarised in the acquisition table below:
|  | Vendor book value | Fair value adjustments | Fair value to the company
|  | £ | £ | £
| Assets and liabilities acquired |  |  |
| Intangible fixed assets | 29,600,000 | - | 29,600,000
| Tangible fixed assets | 126,946 | - | 126,946
| Trade and other debtors | 1,012,000 | - | 1,012,000
| Cash at bank and in hand | 342,000 | - | 342,000
| Trade and other creditors | (1,518,000) | - | (1,518,000)
| Accruals and deferred income | (317,946) | - | (317,946)
| Deferred Tax | (7,075,000) | - | (7,075,000)
| Total | 22,170,000 | - | 22,170,000
14. | Amortisation charge
|  | £
| Amortisation between acquisition and hive up | 1,267,000
| The goodwill recognised at the date of hive up is the amortised amount from the acquisition date.
| Satisfied by
|  | £
| Consideration |
| Cash | 14,803,000
| Deferred consideration | 17,503,000
| Total | 32,306,000
| Deferred consideration of £16,046,875 was paid between 30 November 2023 and 28 May 2024. £1,456,125 of remaining deferred considertion is due to be repaid by 30 April 2025.
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MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
|  | £
| Goodwilll arising on hive up | 8,869,000
15. | Reserves
Share premium account The share premium account represents the difference between the issue price and the nominal value of shares issued. Other reserves Included in other reserves, in the current and comparative period, is a capital contribution of £1,176,079 contributed by the company's parent undertaking. Also included in other reserves is a share option reserve of £226,137 at 31 December 2024 in respect of equity-settled share based payments. Profit and loss account The profit and loss account comprises the cumulative profits for all the periods to date which have been retained by the company.
16. | Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £233,870 (2023: £59,817). Contributions totalling £48,041 (2023: £15,274) were payable to the fund at the balance sheet date and are included in creditors.
17. | Commitments under operating leases
| At 31 December 2024 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Not later than 1 year | 481,754 | 416,453
| Later than 1 year and not later than 5 years | 792,006 | 1,152,873
| Later than 5 years | 241,774 | 362,661
|  | 1,515,534 | 1,931,987
18. Other financial commitments At 31 December 2024 the company had group financing arrangements which were secured by fixed and floating charges over the assets of the company. Page 19
MDA SPACE AND ROBOTICS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | Related party transactions
| The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
20. | Parent undertaking
The immediate parent undertaking is Neptune Operations Ltd., incorporated in Canada. The smallest group for which consolidated financial statements are drawn up is headed by MDA Space Ltd., a public company, whose registered office is 7500 Financial Drive, Brampton, ON L6Y 6K7, Canada. The consolidated financial statements can be obtained from the parent company's website: mda-en.investorroom.com.
21. | Auditor's information
The auditor's report on the financial statements for the year ended 31 December 2024 was unqualified. The audit report was signed on 22 December 2025 by Nicholas Winters (senior statutory auditor) on behalf of Blick Rothenberg Audit LLP.
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