The directors acknowledge their responsibilities for complying with the requireements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The annual financial statements were approved and authorised for issue by the Board of Directors on 23 April 2026.

Pennsutt Limited is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:

323 Lanark Road

Edinburgh

EH14 2LQ

These annual financial statements have been prepared in accordance with FRS 102 the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland as adapted by Section 1A of FRS 102 and the Companies Act 2006.

The nature of the company's operations and principal activities was the involvement in research and development during the year.

The annual financial statements are prepared in sterling (£) which is the functional currency of the company and rounded to the nearest £.

The financial statements are prepared on a going concern basis. Included in creditors due within one year are directors' loans of £370,434 (2025: £240,434). The directors intend to continue to support the company for the foreseeable future and believe that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.

Research expenditure is written off against profits in the year in which it is incurred.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

Expenditure that does not meet the above criteria is expensed as incurred.

The Company has chosen to adopt Section 11 of FRS102 in respect of financial instruments.

The ordinary share capital of the company is presented as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Other financial assets, including trade debtors for goods sold to customers on short-term credit, are initially measured at the transaction price including transaction costs, and are subsequently measured at the transaction price plus transaction costs not yet recognised, cumulative interest income less repayments and impairment, where there is evidence of impairment.

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.

Other financial liabilities, including trade creditors, are initially measured at transaction price less transaction costs, and are subsequently measured at the transaction price less transaction costs not yet recognised in profit or loss and repayments plus cumulative interest expenses incurred.

At the end of each reporting period, the company assesses whether there is evidence of impairment of any financial assets, including investments, loans, trade debtors and cash. If there is evidence of impairment, impairment losses are recognised in the Profit and Loss account in that financial year.

The directors are satisfied that the development costs are in respect of a clearly defined project, that the project is both technically and commercially viable and that adequate resources exist to complete the project. On this basis, development costs have been capitalised.

Included within other creditors, is a deferred government grant of £82,764 (2025: £82,764). The grant is in respect of the development project, which has been capitalised.

Included in creditors due within one year are directors' loans of £370,434 (2025: £240,434). The loans are interest free and repayable on demand, although the directors are not seeking immediate repayment.

The company also owed £50,000 (2025: £nil) to its parent company, Pennykid & Suttie Holdings Limited, at the year end. This balance is unsecured, interest free and repayable on demand.