The directors present their annual report and financial statements for the year ended 31 March 2026.

The principal activity of the company is the development and provision of payroll and accounting software, together with integrated payroll services, to payroll providers and organisations operating within the wider UK payroll ecosystem.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Business review

The directors are pleased to report another year of strong progress. The company delivered continued growth in revenue, recurring earnings and cash-backed profitability, while making a targeted strategic investment to support the next stage of development.

Recurring revenue increased to £3.4m (FY25: £2.8m), representing growth of 21%. Recurring EBITDA increased to £1.1m (FY25: £0.7m), demonstrating the operational leverage inherent in the company's software model. Operating Profit of £400k includes costs including Amortisation £416k; Depreciation £27k; Non-recurring Board Costs £216k.

Profit after tax was £0.3m after continued investment in product development, operational capacity and strategic market expansion. The figure also reflects a change in government policy on CT relief which has increased the tax charge by £0.1m as overseas development expenditure no longer attracts relief even when the Intellectual Property is owned in the UK.

The quality of earnings remains a defining strength of the business. The company benefits from a high level of recurring revenue, strong customer retention and long-standing customer relationships in a complex payroll market where reliability, compliance and service quality are critical. The recurring nature of the revenue base, combined with disciplined cost management, has continued to generate strong operating cash flow and has delivered a group cash balance of £1.3m at the year end. The company now processes more than 3.5 million payslips annually.

Technology, AI and operational scalability

Technology remains central to the company's competitive advantage. During the year, the company continued to invest in automation, artificial intelligence and product innovation. AI has been harnessed across both software development and quality assurance, helping to improve developer productivity, increase test coverage, accelerate release cycles and enhance the performance of the platform.

The company's development capability is materially strengthened by its 55 head Indian subsidiary, which provides depth, resilience and scalability across software development, testing and quality assurance. This operating model enables the company to access a broader pool of technical talent while maintaining close control over product direction, delivery standards and customer outcomes.

The launch and continued development of My Digital Payroll is an important milestone in the company's product roadmap. The product uses AI to extract data from payroll files and route it through configurable workflows, reducing manual work, improving accuracy and creating a more scalable proposition for payroll teams.

Market development

Historically, the company has built a strong market position within contractor and temporary labour payroll, a niche but complex segment requiring deep domain expertise. This experience provides a strong foundation for expansion into the wider payroll bureau and accountancy market.

The payroll bureau market is materially larger than the contractor payroll market from which the company has emerged. The company's strategy is to apply its proven technology, compliance knowledge and service discipline to this broader market, helping existing customers diversify while also opening a significantly larger addressable opportunity for the company.

Publicly available market commentary released by the company has highlighted that the UK payroll bureau sector services nearly 12 million permanent employees, compared with an estimated 660,000 contractor market. This reinforces the scale of the opportunity as the business broadens its focus beyond its original niche.

Corporate development and third-party validation

The company has continued to receive external validation for its product, market position and growth profile. In 2019, The regional Northern Powerhouse Investment Fund, invested £1.2m in My Digital Accounts to support headcount growth, product development and marketing activity. In 2024, Maven successfully exited its investment following a private management buyout, delivering a successful exit for NPIF and Maven and, a substantial return for the investor.

External recognition has also included multiple industry awards and rankings. My Digital has been recognised at The Contracting Awards, including winning Best Payroll Software in consecutive years, and has been ranked among the fastest-growing technology companies in the North at the GP Bullhound Northern Tech Awards for four consecutive years. The company has also been recognised by BusinessCloud, including a top-three ranking in the BusinessCloud FinTech 50 in 2026. These recognitions provide useful third-party validation of the company's product quality, market relevance and growth trajectory.

The company is also listed as a business partner of the Freelancer & Contractor Services Association (FCSA), further supporting its visibility and standing within the contractor services and payroll compliance ecosystem.

Shareholder value and capital allocation

The directors remain focused on delivering long-term shareholder value. The company has continued its share buyback programme during the year, reflecting confidence in the underlying strength and future prospects of the business, while maintaining a disciplined approach to capital allocation.

The directors will continue to balance investment for growth and acquisitions with cash generation, profitability and prudent financial management. The company's recurring revenue model, cash-backed earnings and scalable operating platform provide a strong base from which to continue investing in product innovation and market expansion.

Future developments

The company will continue to invest in its technology platform, with a particular focus on artificial intelligence, automation, quality assurance and workflow tools that reduce manual effort and improve payroll accuracy. The directors expect these investments to enhance both customer outcomes and internal operating efficiency.

A key strategic priority is the planned expansion into the payroll bureau market. The directors believe the company is well positioned to expand into this larger market opportunity by combining its proven contractor payroll expertise with a broader PAYE payroll product designed for bureaus, accountants and payroll providers seeking a more modern, automated and scalable solution.

Acquisitions

During the year, the company completed the strategic acquisition of Meteor Human Capital, enhancing its ability to provide a broader range of services alongside its software platform. This acquisition also strengthens the company’s operational capability through its UK and Indian entities, supporting both service delivery and ongoing product development.

Accordingly, the consolidated financial statements include the results and financial position of both the UK and Indian Meteor entities.

The company will continue to pursue a strategy of growth through targeted acquisitions as it enters the new financial year and forms an important part of the companies growth plan alongside it’s organic sales strategy.

Outlook

Current trading remains encouraging and the directors are confident in the company's market position. The company has a strong management team, a loyal customer base, growing recurring revenues, a scalable product platform and a deep technical capability supported by its Indian subsidiary. These attributes provide the directors with confidence in the company's ability to continue growing revenue, improving profitability and delivering long-term value for shareholders.

The directors believe the business is entering the next stage of its development from a position of strength. Having established itself in the complex contractor payroll market, the company now has the opportunity to apply that expertise to the materially larger payroll bureau market. The board remains optimistic about the company's prospects and committed to executing this strategy with ambition, discipline and focus.

This report has been prepared in accordance with the provisions applicable to groups and companies entitled to the exemptions of the small companies regime.

For the financial year ended 31 March 2026 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.

Directors' responsibilities under the Companies Act 2006:

• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

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

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £244,756 (2025 - £357,312 profit).

For the financial year ended 31 March 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

My Digital Accounts Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Suite 1bb, Landmark House, Station Road, Cheadle Hulme, England, SK8 7BS.

The group consists of My Digital Accounts Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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. The principal accounting policies adopted are set out below.

The consolidated financial statements incorporate the financial statements of My Digital Accounts Limited ('MDA') and its subsidiaries. Subsidiaries are consolidated from the date the Group acquires control. Meteor Human Capital Limited and its subsidiary Meteor Human Capital Pvt Ltd (India) were acquired on 1 August 2025 and their results are consolidated from that date. My Digital India Pvt Ltd has been consolidated throughout both periods.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Revenue represents the value of services provided to customers, net of VAT. Subscription revenue is recognised on a monthly basis over the subscription period. Service revenue is recognised when services are delivered.

Goodwill arising on acquisition of subsidiaries represents the excess of consideration paid over the fair value of the identifiable net assets acquired. Goodwill is capitalised as an intangible asset and amortised on a straight-line basis over its useful economic life of 5 years, representing the directors' best estimate of the period over which benefits will be derived.

Internally generated software development costs meeting the capitalisation criteria in FRS 102 s18 are capitalised and amortised on the following basis:

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:

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

Cash and cash equivalents are basic financial assets and 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.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

The company manages its currency exposure for Indian Rupees using Non-Deliverable Forward Contracts

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax is based on the taxable profit for the year, using rates enacted at the balance sheet date.

Deferred tax is provided in full using the timing difference approach.

The financial statements of foreign subsidiaries are translated into sterling for consolidation as follows: assets and liabilities at the closing exchange rate; income and expenses at the average rate for the period; equity at historic (opening) rates. Exchange differences arising on translation are recognised in the foreign currency translation reserve.

In the application of the group’s accounting policies, the directors are 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Management has assessed the useful economic life of goodwill on the Meteor UK acquisition as 5 years (£4k monthly amortisation charge). This judgement is based on the expected period over which benefits from the acquired business will be realised.

Management reviews development expenditure and capitalises amounts meeting the criteria in FRS 102 s18. Judgement is applied in assessing technical feasibility, probable future economic benefits and reliable measurement of costs.

Where contracts span period ends, judgement is required regarding the timing of revenue recognition. Management considers the service delivery profile when allocating revenue across periods.

On the Meteor UK acquisition, management determined that the fair value of net assets acquired was nil at 1 August 2025, resulting in goodwill of £240,000 being recognised.

Income

In the prior year, income amounting to £300,000 related to sale of a trade asset and therefore exceptional when compared with the core sales stream and current financial year sales. In respect of the sales of trade assets, no income was received during the 2026 financial year.

Expenditure

During the 2025 financial year, costs amounting to £58,418 were incurred in respect of a settlement to the liquidators of a client. The expenditure related to the recovery of income. These costs were exceptional and are not anticipated to be incurred in the future.

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

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 March 2026 are as follows:

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

During the year, 710 ordinary class A shares of £1 each were bought back by the company.

Represents the premium received on the issue of shares above their nominal value.

Accumulated exchange differences arising on translation of foreign subsidiary financial statements from functional to presentation currency.

Cumulative retained profits and losses, net of distributions.

On 1 August 2025 the group acquired 100% percent of the issued capital of Meteor Human Capital Limited, a UK-incorporated payroll services company, together with its 100% subsidiary Meteor Human Capital Pvt Ltd (India). The acquisition strengthens the Group's position in the payroll services market.

Goodwill is amortised on a straight-line basis over an estimated useful economic life of 5 years (£4,000 per month). The amortisation charge for the 8 months from acquisition date to 31 March 2026 was £32,000, leaving goodwill with a net book value of £208,000 at the balance sheet date.

There are no material contingent liabilities at the balance sheet date (2025: none).

There have been no material events between the balance sheet date and the date of approval of these financial statements that require adjustment or disclosure.

The Group has related party transactions with:

- Directors' loan account: no material movements during the year.

- Key management personnel: aggregate compensation disclosed in Notes.

- Intra-group transactions between MDA and its subsidiaries have been eliminated on consolidation and are not disclosed separately.

- No other material related party transactions occurred during the year.

By virtue of the shareholding's in the company, in the opinion of the directors, there is no single ultimate controlling party.

During the year, the company identified that deferred taxation had been omitted from the prior year financial statements. In accordance with Section 10 of FRS 102, the comparative information has been restated to correct this prior period error.

Deferred taxation of £226,468 has now been recognised within provisions for liabilities. As a result of the restatement, retained earnings in the comparative period decreased by £226,468 and provisions for liabilities increased by the same amount.

In addition, the comparative figures have been restated in respect of legal expenses relating to a settlement with the liquidators of a client. These costs were exceptional in nature and are disclosed separately within the relevant note to the financial statements.

Legal expenses of £58,418 had been omitted from the prior year financial statements and have now been recognised. The adjustment resulted in an increase in liabilities and a corresponding reduction in retained earnings and profit for the comparative period of £58,418.

The above corrections have been applied retrospectively through the restatement of the comparative figures presented in these financial statements.