REGISTERED NUMBER: 11163019 (United Kingdom)

Unaudited Financial Statements for the Year Ended 31 January 2026

for

DRONE EVOLUTION LIMITED

Page

Balance Sheet

1

Notes to the Financial Statements

3

ASSETS

FIXED ASSETS

Intangible assets

4

6,425

30,110

Tangible assets

5

39,347

15,452

45,772

45,562

CURRENT ASSETS

Stocks

6

271,333

50,138

Debtors

7

215,690

180,654

Cash at bank and in hand

212,991

481,033

700,014

711,825

745,786

757,387

CAPITAL, RESERVES AND LIABILITIES

CAPITAL AND RESERVES

Called up share capital

8

8

8

Share premium

804,325

804,325

Preference share capital

552,500

552,500

Retained earnings

(1,070,606

)

(772,325

)

SHAREHOLDERS' FUNDS

286,227

584,508

CREDITORS

Amounts falling due within one year

9

421,722

110,774

Amounts falling due after more than one year

10

37,837

62,105

459,559

172,879

745,786

757,387

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2026.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2026 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 May 2026 and were signed on its behalf by:

Mr M B V Whittaker - Director

1.	STATUTORY INFORMATION

Drone Evolution Limited is a private company, limited by shares , registered in United Kingdom. The company's registered number and registered office address are as below:

Registered number:

11163019

Registered office:

First Floor

Cambria House

Caerphilly Business Park

Caerphilly

CF83 3ED

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors have reviewed the presentation of the financial statements during the year and have adopted Balance Sheet Format 2, in place of Format 1. This change has been made in order to provide a presentation that the directors consider to be more appropriate to the nature and structure of the company's operations, and to enhance the clarity and usefulness of the financial information for users of the accounts. Comparative figures have been re-presented where necessary to ensure consistency with the current year presentation.

The company have made a loss in the current year of £298,281 (2025: £298,978), but have a positive asset less liability position of £286,227 (2025: £584,508) at the 31st January 2026.

The company continues to have the support of its directors, investors and its financial institutions, and continues to meet its liabilities as and when they fall due, therefore, it is considered appropriate to prepare the financial statements on a going concern basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

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

Plant and machinery

-

33% Straight line

Computer equipment

-

20% Straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers in relation to product sales made in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of

business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Share capital

Ordinary shares are classified 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.

In the previous year, the company has issued 552,500 preference shares of £1 nominal value each. The preference shares issued are classified as equity based on the fact that there is no mandatory redemption obligation, and also that the shares attract a non-cumulative fixed coupon rate of 8%, dependent on the availability of profits, which is considered discretionary. Any related dividends will be recognised as a distribution of profit.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial Instruments

Recognition and measurement

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Debt instruments are subsequently measured at amortised cost.

Impairment

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2025 - 10 ) .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 February 2025

and 31 January 2026

260,952

AMORTISATION

At 1 February 2025

230,842

Amortisation for year

23,685

At 31 January 2026

254,527

NET BOOK VALUE

At 31 January 2026

6,425

At 31 January 2025

30,110

5.	TANGIBLE FIXED ASSETS

Plant and

Motor

Computer

machinery

vehicles

equipment

Totals

£

£

£

£

COST

At 1 February 2025

78,105

2,500

14,827

95,432

Additions

23,225

7,000

19,840

50,065

Disposals

-

(9,500

)

-

(9,500

)

At 31 January 2026

101,330

-

34,667

135,997

DEPRECIATION

At 1 February 2025

68,860

625

10,495

79,980

Charge for year

12,696

1,292

4,599

18,587

Eliminated on disposal

-

(1,917

)

-

(1,917

)

At 31 January 2026

81,556

-

15,094

96,650

NET BOOK VALUE

At 31 January 2026

19,774

-

19,573

39,347

At 31 January 2025

9,245

1,875

4,332

15,452

6.

STOCKS

2026

2025

£

£

Stocks

271,333

50,138

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade debtors

133,710

129,894

Other debtors

39,768

48,234

Prepayments

42,212

2,526

215,690

180,654

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal Value:

2026

2025

£

£

25,852

A Ordinary

£0.0001

2.59

2.59

55,391

B Ordinary

£0.0001

5.54

5.54

8.12

8.12

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Bank loans and overdrafts (see note 11)

4,089

4,089

Other loans (see note 11)

19,387

17,654

Trade creditors

4,814

19,764

Social security and other taxes

70,258

6,223

Other creditors

10,889

45,542

Accruals and deferred income

312,285

17,502

421,722

110,774

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Bank loans (see note 11)

15,329

20,210

Other loans (see note 11)

22,508

41,895

37,837

62,105

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

3,854

11.

LOANS

An analysis of the maturity of loans is given below:

2026

2025

£

£

Amounts falling due within one year or on demand:

Bank loans

4,089

4,089

Other loans

19,387

17,654

23,476

21,743

Amounts falling due between two and five years:

Bank loans - 2-5 years

15,329

16,356

Other loans - 2-5 years

22,508

41,895

37,837

58,251

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

3,854

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2026

2025

£

£

Within one year

51,986

35,817

Between one and five years

176,790

118,800

In more than five years

-

23,400

228,776

178,017