REGISTERED NUMBER: 05144546 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2025

for

Happy Finish Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Income Statement

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTORS:

Mr M Grandotto

Mr M Scolari

REGISTERED OFFICE:

Unit BK.204

Brickfields Business Centre

37 Cremer Street

London

E2 8HD

REGISTERED NUMBER:

05144546 (England and Wales)

AUDITORS:

Nordens Audit Limited

Statutory Auditors

The Retreat

406 Roding Lane South

Woodford Green

Essex

IG8 8EY

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

High end digital production.

REVIEW OF BUSINESS

Results and dividends

The loss for the financial year after taxation amounted to £220,414 (2024: loss £107,435).

The directors do not recommend the payment of a dividend.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

Mr M Grandotto

Mr M Scolari

Other changes in directors holding office are as follows:

Ms S E Mchallum ceased to be a director after 31 December 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Nordens Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr M Scolari - Director

11 June 2026

Opinion

We have audited the financial statements of Happy Finish Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Balance Sheet and Notes to the Financial Statements, 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 31 December 2025 and of its loss 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 Auditors' 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 UK, including the FRC'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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:

- had a direct effect on the determination of material amounts and disclosures in the financial statements. These include but are not limited to the Companies Act 2006, GDPR, employment and Health & Safety legislation and tax legislation, and

- do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include operational and employment laws and regulations including health and safety regulations, environmental regulations and GDPR.

We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance frameworks. We corroborated our enquiries through review of correspondence with regulatory bodies and gaining an understanding of the entity level controls of the company in respect of these areas and the controls in place to reduce opportunity for fraudulent transactions.

We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.

Procedures performed to address these were as follows:

- Walkthrough testing was carried out to identify and assess the design effectiveness of controls, management have in place to prevent and detect fraud, including known of suspected instances or non- compliance with laws and regulations and fraud,

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process,

- Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud,

- Assessing the appropriateness of accounting estimates and challenging any significant assumptions or judgements made by management,

- Incorporating testing of manual journal entries that were posted throughout the year. In particular, we focused on material journal entries, journal entries posted with unusual account combinations, and journal entries crediting revenue or cash. These were scrutinised for evidence of unusual entries,

- Selecting specific revenue transactions based on risk criteria and obtaining supporting documentation including sales invoice and corresponding purchase documentations to ensure revenue was appropriately recorded,

- Reviewing specific cost of sale transactions based on risk criteria and reviewing invoice documentation to ensure the expense was appropriately recorded,

- Evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

Due to 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 Report of the Auditors.

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 a Report of the Auditors 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.

Lorraine Curtis (Senior Statutory Auditor)

for and on behalf of Nordens Audit Limited

Statutory Auditors

The Retreat

406 Roding Lane South

Woodford Green

Essex

IG8 8EY

11 June 2026

TURNOVER

2,383,199

4,424,106

Cost of sales

1,458,175

2,740,152

GROSS PROFIT

925,024

1,683,954

Administrative expenses

1,372,812

2,405,667

(447,788

)

(721,713

)

Other operating income

115,635

222,587

OPERATING LOSS

4

(332,153

)

(499,126

)

Interest receivable and similar income

10,479

2,580

(321,674

)

(496,546

)

Gain/loss on disposal of

investment

-

250,000

LOSS BEFORE TAXATION

(321,674

)

(246,546

)

Tax on loss

5

(101,260

)

(139,111

)

LOSS FOR THE FINANCIAL YEAR

(220,414

)

(107,435

)

FIXED ASSETS

Intangible assets

6

22,873

51,596

Tangible assets

7

41,516

48,461

Investments

8

1,800,977

1,800,977

1,865,366

1,901,034

CURRENT ASSETS

Debtors

9

963,316

1,170,102

Cash at bank

759,018

503,684

1,722,334

1,673,786

CREDITORS

Amounts falling due within one year

10

543,049

309,755

NET CURRENT ASSETS

1,179,285

1,364,031

TOTAL ASSETS LESS CURRENT LIABILITIES

3,044,651

3,265,065

CAPITAL AND RESERVES

Called up share capital

400,111

400,111

Share premium

945,118

945,118

Revaluation reserve

12

1,150,977

1,150,977

Retained earnings

548,445

768,859

SHAREHOLDERS' FUNDS

3,044,651

3,265,065

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

The financial statements were approved by the Board of Directors and authorised for issue on 11 June 2026 and were signed on its behalf by:

Mr M Scolari - Director

1.	STATUTORY INFORMATION

Happy Finish Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

The comparative figures cover the period from 1 July 2023 to 31 December 2024 and are therefore not directly comparable with the current year.

Preparation of consolidated financial statements

The financial statements contain information about Happy Finish Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

Key sources of estimation uncertainty

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

Valuation of investments in subsidiaries

At 31 December 2025, the company held an investment in a subsidiary with a carrying value of £1,800,977 (2024: £1,800,977).

The investment is measured at fair value, which has been determined based on a valuation prepared with reference to an independent external valuation report. The valuation adopts an income approach using discounted cash flow projections.

The key assumptions applied in the valuation include:

forecast revenue growth rates based on approved budgets;

- expected operating profit margins;

- a pre-tax discount rate reflecting current market assessments of the time value of money and risks specific to the subsidiary; and

- long-term growth assumptions.

The valuation was prepared in US dollars and translated into sterling at the closing exchange rate at the balance sheet date.

Due to the inherent uncertainty associated with forecasting future cash flows, changes in these assumptions could lead to a material adjustment to the carrying value of the investment. The directors have performed sensitivity analysis and consider that no reasonably possible change in key assumptions would result in a material impairment at the reporting date.

The directors review the carrying value of the investment at each reporting date for indicators of impairment.

Recoverability of subsidiary debt

Included within debtors is a balance of £63,785 (2024: £188,237) due from the subsidiary. The directors have assessed the recoverability of this balance and consider it to be recoverable based on the continuing trading results of the subsidiary.

Revenue recognition

Revenue from contracts for the provision of services is recognised by reference to the stage of completion or percentage of budgeted costs incurred. See the turnover accounting policy for further details. The total costs to complete the projects is an estimate and the stage of completion based on deliverables is subjective. Therefore management's assumptions and estimates may not prove to be accurate.

Going concern

The financial statements have been prepared on a going concern basis.

The company incurred a loss of £201,931 during the year ended 31 December 2025 and, at that date, had net current assets of £1,197,768.

The directors have prepared detailed cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. These forecasts include assumptions in respect of future trading performance, project pipeline conversion and cost control measures.

The forecasts indicate that the company will have sufficient liquidity to meet its obligations as they fall due. Sensitivity analysis has been performed on key assumptions, including revenue levels and margins, and the directors are satisfied that the company remains within available funding under reasonably foreseeable downside scenarios.

The company is also supported by a fellow group undertaking, which has confirmed in writing its intention to provide financial support for a period of at least 12 months from the date of approval of these financial statements. This support is not legally binding but the directors consider it appropriate to rely on this support based on the financial position of the group and previous support provided.

Based on the above, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future and have therefore adopted the going concern basis in preparing the financial statements.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

Revenue from contracts for the provision of interactive services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Revenue from contracts for the provision of digital imagery and animation services is recognised by reference to the stage of completion determined based on the deliverables provided to the customer.

Amounts invoiced in excess of income are included within deferred income. Income recognised in excess of amounts invoiced is included within amounts recoverable on contracts.

Software development costs

Intangible assets which comprise of software development costs are initially recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Software development costs 20% straight line

Tangible fixed assets

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

Long leasehold

-

over the term of the lease

Plant and machinery

-

20% - 33% straight line basis

Fixtures and fittings

-

20% on reducing balance

Investments in subsidiaries

Interests in subsidiaries are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2024 - 25 ) .

4.	OPERATING LOSS

The operating loss is stated after charging:

Period

1.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Depreciation - owned assets

41,083

105,109

Computer software amortisation

28,722

30,640

5.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

Period

1.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Current tax:

UK corporation tax

(101,260

)

(139,111

)

Tax on loss

(101,260

)

(139,111

)

UK corporation tax has been charged at 25% (2024 - 25%).

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.7.23

Year Ended

to

31.12.25

31.12.24

£

£

Loss before tax

(321,674

)

(246,546

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(80,419

)

(61,637

)

Effects of:

Expenses not deductible for tax purposes

22,694

34,172

Income not taxable for tax purposes

(21,103

)

(22,870

)

Capital allowances in excess of depreciation

(12,281

)

(15,542

)

R&D Expenditure

(31,253

)

(176,952

)

Surrender of tax losses for R&D tax credit refund

2,619

89,996

Foreign Tax Credits

18,483

13,722

Total tax credit

(101,260

)

(139,111

)

The R&D tax credit included within the tax credit for the year represents amounts receivable from HM Revenue & Customs and has been recognised within current taxation.

The company has unrelieved tax losses available for offset against future taxable profits. A deferred tax asset has not been recognised in respect of these losses as there is insufficient certainty regarding the timing of future taxable profits against which the losses can be utilised.

6.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 January 2025

108,690

Disposals

(10,791

)

At 31 December 2025

97,899

AMORTISATION

At 1 January 2025

57,094

Charge for year

28,722

Eliminated on disposal

(10,790

)

At 31 December 2025

75,026

NET BOOK VALUE

At 31 December 2025

22,873

At 31 December 2024

51,596

7.	TANGIBLE FIXED ASSETS

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

Totals

£

£

£

£

COST

At 1 January 2025

168,069

205,934

30,702

404,705

Additions

-

35,024

-

35,024

Disposals

-

(4,900

)

-

(4,900

)

At 31 December 2025

168,069

236,058

30,702

434,829

DEPRECIATION

At 1 January 2025

154,384

173,107

28,753

356,244

Charge for year

13,685

26,726

672

41,083

Eliminated on disposal

-

(4,014

)

-

(4,014

)

At 31 December 2025

168,069

195,819

29,425

393,313

NET BOOK VALUE

At 31 December 2025

-

40,239

1,277

41,516

At 31 December 2024

13,685

32,827

1,949

48,461

8.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST OR VALUATION

At 1 January 2025

and 31 December 2025

1,800,977

NET BOOK VALUE

At 31 December 2025

1,800,977

At 31 December 2024

1,800,977

Cost or valuation at 31 December 2025 is represented by:

Shares in

group

undertakings

£

Valuation in 2024

1,800,977

The investment is measured at fair value, determined using a discounted cash flow methodology as described in note 2. The valuation is based on forecast cash flows and appropriate discount rates, and is reviewed annually for indicators of impairment.

9.

DEBTORS

31.12.25

31.12.24

£

£

Amounts falling due within one year:

Trade debtors

490,264

489,163

Amounts owed by group undertakings

149,356

331,701

Other debtors

306,686

318,271

946,306

1,139,135

Amounts falling due after more than one year:

Other debtors

17,010

30,967

Aggregate amounts

963,316

1,170,102

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

£

Trade creditors

34,222

52,598

Taxation and social security

59,111

57,570

Other creditors

449,716

199,587

543,049

309,755

11.	LEASING AGREEMENTS

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

31.12.25

31.12.24

£

£

Within one year

49,830

144,707

Between one and five years

52,322

-

102,152

144,707

The company entered into a new lease agreement for two years in January 2026.

12.

RESERVES

Revaluation

reserve

£

At 1 January 2025

and 31 December 2025

1,150,977

Revaluation reserve

The revaluation reserve of £1,150,977 relates to the cumulative unrealised gains arising on the revaluation of investments in subsidiary undertakings.

The reserve is not distributable. Movements in the reserve arise from changes in fair value recognised in other comprehensive income.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption under FRS 102 Section 33 from disclosing transactions with wholly owned subsidiaries.

During the year, the company entered into transactions with other group entities in the normal course of business. These transactions included the provision of services and management recharges.

Income from group companies during the year amounted to £115,635 (2024: £222,587).

At the balance sheet date, amounts owed by group undertakings totalled £149,356 (2024: £331,701).

All transactions with related parties were undertaken on normal commercial terms and conditions equivalent to those prevailing in arm’s length transactions.

There were no balances or transactions with directors during the year that require disclosure.

14.	POST BALANCE SHEET EVENTS

In January 2026, the company entered into a new operating lease agreement for premises for a period of two years.

The annual financial commitment under this lease is consistent with the company’s ongoing operational requirements and will be reflected in future periods.

As this agreement was entered into after the balance sheet date, it has not been reflected in the amounts recognised in these financial statements.

15.	PARENT COMPANY

At the reporting date the immediate parent company was Happy Finish SRL, a company incorporated in Italy with its registered office at 6, 20159 Milano, Italy. The ultimate parent company continued to be Big Eight SRL, a company incorporated in Italy with its registered office at 6, 20159 Milano, Italy.