ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

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.

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

Page 16

LABLOGIC SYSTEMS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2025

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.

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).

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)

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.

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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

Page 21

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

Page 22

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

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.

Page 24