The director presents the strategic report for the period ended 31 December 2024.

Montu Group UK Ltd trading as Alternaleaf (The Company) is an online clinic operating in the United Kingdom specialising in prescribing plant based medicine for diagnosed conditions to patients. Patients are charged Consultancy fees as either a monthly membership subscription fee or pay-as-you-go fees for clinical appointments.

Financial performance and key performance indicators:

The Company experienced steady revenue growth increasing from £190k for the 12 month period ending 30 April 2024 to £495k for the 8 month period to 31 December 2024, a 160% increase period on period. The revenue growth is due to an increasing flow of patients through the clinic as a result of effective product marketing and brand awareness activity. The operating loss increased from £1,984k for the 12 month period to 30 April 2024 to £2,152k for the 8 month period to 31 December 2024, an 8% increase. Operational losses increased due to a 23% increase in administrative expenses from £2,149k to £2,646k. The increase in operating expenses was mostly as a result of a period on period increase of £231k to marketing and due to employment costs increasing by £128k.

The Company also monitors headcount changes which increased from an average of 1 employee for the year to 31 April 2024 to an average of 11 employees for the period to 31 December 2024, as well as cash balances which decreased from £459k as at the end of April 2024 to £315k as at the end of December 2024.

Future plans

The Company forecasts continued revenue growth in 2025 driven by increasing investment in marketing and brand awareness campaigns. To support this growth the Company will increase investment in headcount where required and improving the patient journey.

Main risks and uncertainties:

The main risk the Company face is competitive market pressure to keep Consultancy prices low. This combined with an increasing need to investment in Marketing and Headcount creates a liquidity risk (please refer to the Financial risk management paragraph below for Price risk and Liquidity risk mitigation). The Company's requirement to adhere to the Care Quality Commission (CQC) and The Medicines and Healthcare products Regulatory Agency (MHRA) regulatory requirements and changes to requirements poses a risk to the Company. To mitigate this risk the Company has appointed a Medical Director and a governance team to ensure the Company follows all CQC and MHRA regulations and reacts effectively to all regulatory changes.

Financial risk management

The main financial risks are Price risk due to competitive pricing pressures and Liquidity risk:

Price risk

Competition in the market to attract new patients and keep existing patients is very high resulting in pressure on prices. The Company has increased marketing spend and decreased sales prices during the year to effectively manage the risk.

Liquidity risk

The effects of Price Risk increases to liquidity risk. Liquidity risk management includes maintaining sufficient cash balances to ensure the Company can meet liabilities as they fail due. This is done through continuous working capital management, KPI and financial performance reviews.

On behalf of the board

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

The director of the company has elected not to include a copy of the income statement within the financial statements.

Montu Group UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 140 Wharfedale Road, Winnersh Triangle, Wokingham, Berkshire, England, RG41 5RB.

The financial statements presented are for the eight month period from the date of the last year end, 1 May 2024 to 31 December 2024. This is a shorter reporting period than the standard 12 months.

As a result, the amounts presented in both statement of profit and loss, balance sheet and statement of cash flows are not entirely comparable with the prior year figures, which covered the 12 months to the period ended 30 April 2024.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with the requirements of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

These financial statements have been audited for the first time for the period to 31 December 2024. Comparative financial statements and disclosures for the prior period ended 30 April 2024 have not been audited.

The director has at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources and the ongoing support of connected companies as and when required to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Turnover comprises income arising from the provision of medical clinical services, including patient consultations, ongoing care, and associated administrative services. This excludes the cost of medication supplied to patients, as medicinal products are dispensed by a separate pharmacy service and are not included within membership.

Revenue is measured at the fair value of consideration received or receivable and is shown net of refunds and discounts. The recognises revenue when:

• The significant risks and rewards of the services have transferred to the customer.

• The amount of revenue and associated costs can be measured reliably.

• It is probable that economic benefits will flow to the company.

For membership revenues, performance obligations are satisfied over time, reflecting ongoing access to clinical care. For "Pay As You Go" ("PAYG") services, obligations are satisfied at a point in time, reflecting the completion of each consultation.

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less impairment losses.

The gain on a bargain purchase is recognised in profit or loss in the period of the acquisition.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not subsequently reversed.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

• Over the useful life of 10 years on a straight line basis

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Goodwill has been recognised on the excess of the consideration transferred over the fair value of identifiable net assets acquired on the business combination.

An annual review is carried out as to whether the current carrying value of goodwill is impaired. Detailed calculations are performed based on (i) discounting expected pre-tax cash flows of the relevant cash generating units and discounting these at an appropriate discount rate; and/or (ii) the comparison of carrying value to the net selling price of the cash generating unit; the determination of these factors require the exercise of judgement.

The average monthly number of persons (including directors) employed by the company during the period was:

The director considers that the carrying amount of trade and other receivables differs from fair value as follows:

No significant receivable balances are impaired at the reporting end date.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the period then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

The company is not subject to any externally imposed capital requirements.

The company has taken advantage of the exemption available under IFRS whereby it has not disclosed transactions and balances with any wholly owned group companies.

During the year, there were a number of transaction made with Montu Group Pty Ltd, a partly owned subsidiary of MG Invest Ltd, an entity in which holds the ultimate controlling interest, in which they hold approximately 86% of issued share capital of Montu Group Pty Ltd as at 31 December 2024 (30 April 2024: 86%).

These transactions included recharge costs to Montu Group UK Ltd in relation to the following:

• Advertising amounting to £813,450

• Professional fees amounting to £13,662

All these transactions have been expensed to the Income Statement.

Included within amounts due to group undertakings are amounts owed to Montu Group Pty Ltd as at 31 December 2024 of £4,438,653, with interest being charged on a monthly basis at a rate of 8.27%.

The amount is repayment on demand.

The immediate parent company is Montu UK Holdings Ltd a company registered in England and Wales.

The ultimate parent company is MG Invest Ltd, a company registered in the Hong Kong.