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Registered number: 02062398 LABLOGIC SYSTEMS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
LABLOGIC SYSTEMS LIMITED COMPANY INFORMATION
Directors | R A Brown
| J K Clapham
| P K Clapham
| E Zahirovic
| M L Grainger
Company secretary | M Brown
Registered number | 02062398
Registered office | Innovation House
| 6 Europa View
| Sheffield
| South Yorkshire
| England
| S9 1XH
Independent auditor | Shorts
| Chartered Accountants & Statutory Auditor
| 2 Ashgate Road
| Chesterfield
| S40 4AA
Bankers | Virgin Money (Clyderdale Bank Plc)
| Handelsbanken
LABLOGIC SYSTEMS LIMITED CONTENTS
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditor's Report | 5 - 8
Statement of Income and Retained Earnings | 9
Balance Sheet | 10
Notes to the Financial Statements | 11 - 24
LABLOGIC SYSTEMS LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 30 JUNE 2025
Introduction
The directors present their strategic report for Lablogic Systems Limited ('the Company') for the year ended 30 June 2025.
Business review
The directors report that the market in which the business operates remains competitive in the current economic climate, impacting on the margins achieved on many product lines and pre-tax profitability. The principal activity of the Company throughout the year continued to be that of the design and production of scientific instruments and software.
Principal risks and uncertainties
Sales and Profit risk - the Company operates in a competitive market but retains a good market share and continues to outperform some of its rivals. The Company's aim is to continue growing its turnover by introducing new products and adding to existing ranges and services. Credit Risk - the Company mainly deals with well-established organisations with little risk; where there is risk it alters its payment terms so that the bulk of the debt is paid before delivery. Liquidity Risk - the directors control and monitor the cash flow of the Company on a regular basis. Foreign Exchange Rate Risk - the Company is not immune to changes in the global economic environment and subsequent fluctuations in foreign exchange rates. The directors reduce foreign exchange rate risk by holding funds in foreign exchange and chooses careful when to transfer them to sterling. Employees - In order to meet its objectives it is essential that the Company recruits and retains the highest calibre of employees at every level of the organisation. The employment policies of the Company embody the principles of equal opportunity. The Company gives full and fair consideration to employment for disabled persons. If an employee became disabled, arrangements would be made wherever practicable by identifying employment suited to that person's capabilities and provided necessary retraining.
Financial key performance indicators
The company's key performance indicators for the year are as follows: Turnover - £14,799,109 (2024: £12,185,495) Gross Profit - £10,116,070 (2024: £8,220,469) Gross Margin - 68.4% (2024: 67.5%) Profit before Tax - £4,017,618 (2024: £2,102,071)
Future developments and future strategy
The company continues to operate a sales strategy based on providing new model ranges and increasing and improving existing model ranges. The company continues to review and improve the performance of its products to ensure they remain one of the leading suppliers in the market. The company continues to look to increase its geographical market share by trading in a large number of countries. Page 1
LABLOGIC SYSTEMS LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025 This report was approved by the board on 10 December 2025 and signed on its behalf.
R A Brown Director
Page 2
LABLOGIC SYSTEMS LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 JUNE 2025 The directors present their report and the financial statements for the year ended 30 June 2025.
Results and dividends
The profit for the year, after taxation, amounted to £3,068,739 (2024 - £1,903,831). The total distribution of dividends for the year ended 30 June 2025 was £10,514,431 (2024: £NIL).
Directors
The directors who served during the year were:
R A Brown
J K Clapham
P K Clapham
E Zahirovic
M L Grainger
Directors' responsibilities statement
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙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 to 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.
Directors' indemnity provisions
The directors have been granted a qualifying third party indemnity provision under Section 234 of the Companies Act 2006. This indemnity does not provide cover in the event of a director being proven to have acted fraudulently or dishonestly. Page 3
LABLOGIC SYSTEMS LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2025
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Auditor
The auditor, Shorts, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 10 December 2025 and signed on its behalf.
R A Brown Director
Page 4
LABLOGIC SYSTEMS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LABLOGIC SYSTEMS LIMITED
Opinion
We have audited the financial statements of Lablogic Systems Limited (the 'Company') for the year ended 30 June 2025, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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, 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 30 June 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 United Kingdom, including the Financial Reporting Council'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. Page 5
LABLOGIC SYSTEMS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LABLOGIC SYSTEMS LIMITED (CONTINUED)
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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the 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 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 Directors' Responsibilities Statement set out on page 3, 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 6
LABLOGIC SYSTEMS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LABLOGIC SYSTEMS LIMITED (CONTINUED)
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. 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: ∙the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; ∙undertaking discussions with the directors and other management and from our commercial knowledge and experience of the sectors that the Company operates in, we identified the laws and regulations applicable to the Company; and ∙focusing on the specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, we assessed the extent of compliance with those laws and regulations identified above through making enquiries of management and inspecting relevant correspondence. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: ∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and ∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: ∙performed analytical procedures to identify any unusual or unexpected movements; ∙reviewed journal entries to identify unusual transactions; ∙assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and where appropriate challenged these assumptions; ∙substantively tested a random sample of income and expenses; and ∙investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: ∙agreeing the financial statement disclosures to underlying supporting documentation; ∙enquiring of management as to actual and potential litigation and claims; and ∙reviewing any correspondence with HMRC and relevant regulators. Page 7
LABLOGIC SYSTEMS LIMITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LABLOGIC SYSTEMS LIMITED (CONTINUED) Auditor's responsibilities for the audit of the financial statements (continued) Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 Auditor's Report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Howard Freeman BSc FCA (Senior Statutory Auditor) for and on behalf of Shorts Chartered Accountants Statutory Auditor 2 Ashgate Road Chesterfield S40 4AA 10 December 2025 Page 8
LABLOGIC SYSTEMS LIMITED STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED 30 JUNE 2025
| 2025 | 2024
Note | £ | £
Turnover | 4 | 14,799,109 | 12,185,495
Cost of sales |  | (4,683,039) | (3,965,026)
Gross profit |  | 10,116,070 | 8,220,469
Administrative expenses |  | (8,003,436) | (7,803,704)
Other operating income | 5 | 1,863,383 | 1,525,940
Operating profit | 6 | 3,976,017 | 1,942,705
Interest receivable and similar income |  | 41,601 | 159,366
Profit before tax |  | 4,017,618 | 2,102,071
Tax on profit | 10 | (948,879) | (198,240)
Profit after tax |  | 3,068,739 | 1,903,831
Retained earnings at the beginning of the year |  | 12,942,722 | 11,038,891
Profit for the year |  | 3,068,739 | 1,903,831
Dividends declared and paid |  | (10,514,431) | -
Retained earnings at the end of the year |  | 5,497,030 | 12,942,722
The notes on pages 11 to 24 form part of these financial statements.
Page 9
LABLOGIC SYSTEMS LIMITED REGISTERED NUMBER: 02062398 BALANCE SHEET AS AT 30 JUNE 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 11 |  | 274,252 |  | 174,513
Current assets |  |  |  |  |
Stocks | 12 | 838,724 |  | 658,605 |
Debtors: amounts falling due within one year | 13 | 4,121,527 |  | 4,697,914 |
Cash at bank and in hand |  | 7,393,230 |  | 14,503,304 |
|  | 12,353,481 |  | 19,859,823 |
Creditors: amounts falling due within one year | 14 | (3,557,796) |  | (3,065,369) |
Net current assets |  |  | 8,795,685 |  | 16,794,454
Deferred income | 16 |  | (3,567,908) |  | (4,021,245)
Net assets |  |  | 5,502,029 |  | 12,947,722
Capital and reserves |  |  |  |  |
Called up share capital | 17 |  | 5,000 |  | 5,000
Profit and loss account | 18 |  | 5,497,029 |  | 12,942,722
|  |  | 5,502,029 |  | 12,947,722
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 December 2025.
R A Brown
Director
The notes on pages 11 to 24 form part of these financial statements. Page 10
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
1. | General information
Lablogic Systems Limited is a private company limited by shares, incorporated in England and Wales (registered number: 02062398). Its registered office is Innovation House, 6 Europa View, Sheffield, South Yorkshire, England, S9 1XH. 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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d); ∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); ∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; ∙the requirements of Section 33 Related Party Disclosures paragraph 33.7. This information is included in the consolidated financial statements of Paradigm Holdingco Limited for the year ended 30 June 2025 and these financial statements may be obtained from Companies House. Page 11
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 2.Accounting policies (continued)
| 2.3 | Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised: Sale of goods Turnover 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 turnover 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 Turnover 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 turnover 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 12
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 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. 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:
|  |  |  | Motor vehicles | - | 25% |
|  |  |  | Fixtures and fittings | - | 20% |
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.
| 2.5 | Operating leases
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | R&D expenditure credit scheme
Research and Development expenditure credit ('RDEC') is recognised as other income in profit or loss. Page 13
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 2.Accounting policies (continued)
| 2.7 | Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as bank and cash balances, trade and other accounts receivable and payable, loans from banks and other third parties and loans to and from related parties. Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. 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.
| 2.8 | Foreign currency translation
Functional and presentation currency The Company's functional and presentational currency is pounds 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.
| 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 14
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 2.Accounting policies (continued)
| 2.10 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. 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 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 except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
| 2.11 | Research and development
Research and development expenditure is recognised in the year in which it is incurred.
| 2.12 | Provisions for liabilities
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
| 2.13 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 15
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the greatest level of uncertainty are addressed below: (i) Impairment of debtors The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. The amount of trade debtors after making such provision is presented per note 13 to the financial statements. (ii) Stock provisioning The company makes an estimate of the recoverable value of stock of finished goods and goods for resale. When assessing impairment of stock, management considers factors such as market conditions, aging profile of stock and historical experience. The amount of stock after making such provision is presented per note 12 to the financial statements.
4. | Turnover
The turnover and profit before taxation are attributable to the principal activity of the Company. Analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 6,099,999 | 5,061,838
| Rest of Europe | 3,310,578 | 2,821,373
| Rest of World | 5,388,532 | 4,302,284
|  | 14,799,109 | 12,185,495
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Management charges to group companies | 1,548,507 | 1,525,940
| R&D tax credit | 314,876 | -
|  | 1,863,383 | 1,525,940
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LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | 226,557 | 44,442
| Depreciation | 81,131 | 56,720
| Loss on sale of tangible assets | (13,501) | (15,500)
7. | Auditor's remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 22,250 | 19,250
| The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 4,673,602 | 4,927,746
| Social security costs | 580,145 | 613,506
| Cost of defined contribution scheme | 180,390 | 185,368
|  | 5,434,137 | 5,726,620
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Mangement and administration | 28 | 23
|  | Production and quality | 33 | 33
|  | Sales, service and support | 25 | 26
|  |  | 86 | 82
Page 17
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 2,374,316 | 2,938,543
| Company contributions to defined contribution pension schemes | 35,813 | 25,072
|  | 2,410,129 | 2,963,615
| During the year retirement benefits were accruing to 4 directors (2024 - 4) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £643,538 (2024 - £670,075).
| The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £8,000 (2024 - £8,000).
10. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 977,479 | 198,240
| Adjustments in respect of previous periods | (5,115) | -
| Total current tax | 972,364 | 198,240
| Origination and reversal of timing differences | (23,485) | -
| Total deferred tax | (23,485) | -
| Tax on profit | 948,879 | 198,240
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LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 10.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 4,017,618 | 2,102,071
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 1,004,404 | 525,518
| Effects of: |  |
| Expenses not deductible for tax purposes | 5,084 | 15,162
| Adjustments to tax charge in respect of prior periods | (5,115) | -
| Non-taxable income | (48,379) | -
| Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge | - | (331,436)
| Movement in deferred tax not recognised | (7,115) | (11,004)
| Total tax charge for the year | 948,879 | 198,240
| Factors that may affect future tax charges
The Company's ongoing expenditure into research and development may result in reduced tax charges in the future. Page 19
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
11. | Tangible fixed assets
|  | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £
| Cost |  |  |
| At 1 July 2024 | 343,605 | 193,329 | 536,934
| Additions | 180,870 | - | 180,870
| Disposals | (43,500) | - | (43,500)
| At 30 June 2025 | 480,975 | 193,329 | 674,304
| Depreciation |  |  |
| At 1 July 2024 | 171,315 | 191,106 | 362,421
| Charge for the year | 78,908 | 2,223 | 81,131
| Disposals | (43,500) | - | (43,500)
| At 30 June 2025 | 206,723 | 193,329 | 400,052
| Net book value |  |  |
| At 30 June 2025 | 274,252 | - | 274,252
| At 30 June 2024 | 172,290 | 2,223 | 174,513
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LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
12. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Raw materials and consumables | 838,724 | 658,605
13. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 3,569,061 | 2,717,723
| Amounts owed by group undertakings | 430,863 | 1,849,804
| Other debtors | 1,630 | 3,383
| Prepayments and accrued income | 96,488 | 127,004
| Deferred taxation | 23,485 | -
|  | 4,121,527 | 4,697,914
14. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade creditors | 500,159 | 350,661
| Amounts owed to group undertakings | 508,251 | -
| Corporation tax | 554,347 | 198,240
| Other taxation and social security | 206,285 | 209,477
| Other creditors | 1,738,782 | 2,261,692
| Accruals | 49,972 | 45,299
|  | 3,557,796 | 3,065,369
15. | Deferred taxation
|  | 2025
|  | £
| Charged to profit or loss | 23,485
| At end of year | 23,485
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LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025 15.Deferred taxation (continued)
| The deferred tax asset is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | 23,485 | -
|  | 23,485 | -
16. | Deferred income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Deferred income | 3,567,908 | 4,021,245
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LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
17. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 100 (2024 - 100) Ordinary shares of £0.0025 each | 0.25 | 0.25
|  | 1,999,900 (2024 - 1,999,900) Ordinary B shares of £0.0025 each | 4,999.75 | 4,999.75
|  |  | 5,000.00 | 5,000.00
18. | Reserves
Profit and loss account The profit and loss account represents all current and prior retained profits and losses and is all considered to be distributable.
19. | Contingent liabilities
The Company has no contingent liabilities as at 30 June 2025 or 30 June 2024.
20. | Capital commitments
The Company has no capital commitments as at 30 June 2025 or 30 June 2024.
21. | 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 £180,390 (2024: £186,368). Contributions totalling £29,972 (2024: £30,621) were payable to the fund at the balance sheet date and are included in creditors. Page 23
LABLOGIC SYSTEMS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2025
22. | Commitments under operating leases
| At 30 June 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 21,000 | 57,500
| Later than 1 year and not later than 5 years | 21,000 | -
| Later than 5 years | 54,500 | -
|  | 96,500 | 57,500
23. | Related party transactions
| During the year the Company had the following transactions with Lablogic Systems Inc, a fellow subsidiary:
|  | 2025 | 2024
|  | £ | £
| Sales | 2,137,560 | 2,837,679
| Purchases | 33,237 | 46,064
| In addition, cross charges of £1,130,771 were made from the Company to Lablogic Systems Inc during the year (2024: £999,900). The balance due from Lablogic Systems Inc at the year end was £67,510 (2024: debtor of £24,297). The Company has taken advantage of exemption, under the terms of FRS 102, not to disclose related party transactions with other wholly owned subsidiaries within the group.
24. | Controlling party
The immediate parent Company is Lablogic Group Holdings Limited. The largest and smallest group preparing consolidated financial statements including the Company is headed by Paradigm Holdingco Limited, whose registered office is Innovation House, 6 Europa View, Sheffield, South Yorkshire, England, S9 1XH. The group financial statements are publicly available from Companies House. The majority of the share capital of the Company is held by Lablogic EOT Limited ("the Trust"). The Trust holds shares for the future benefit of the Company's employees.
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