Innovate IT Ltd

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Innovate IT Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 04935426 . The registered office is 5th Floor Blok, 1 Castle Park, Bristol, BS2 0JA.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

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

2.2. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery	33% on cost
Motor Vehicles	25% on cost
Fixtures & Fittings	33% on cost
Computer Equipment	33% on cost

2.4. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

2.5. Foreign Currencies

Monetary 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 ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

Page 3

Page 4

Innovate IT Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

2.6. Taxation

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

3. Average Number of Employees

Average number of employees, including directors, during the year was: 7 (2024: 7)

4. Tangible Assets

	Plant & Machinery	Motor Vehicles	Fixtures & Fittings	Computer Equipment	Total
	£	£	£	£	£
Cost
As at 1 November 2024	6,798	128,377	56,088	11,683	202,946
Additions	-	-	-	6,996	6,996

As at 31 October 2025	6,798	128,377	56,088	18,679	209,942

Depreciation
As at 1 November 2024	6,798	64,189	55,390	10,766	137,143
Provided during the period	-	32,094	364	3,249	35,707

As at 31 October 2025	6,798	96,283	55,754	14,015	172,850

Net Book Value
As at 31 October 2025	-	32,094	334	4,664	37,092

As at 1 November 2024	-	64,188	698	917	65,803

Page 4

Page 5

Innovate IT Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

5. Debtors

	2025	2024
	£	£
Due within one year
Trade debtors	161,609	209,832
Prepayments and accrued income	110,117	12,963
Director's loan account	120,000	-

	391,726	222,795

6. Creditors: Amounts Falling Due Within One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	11,862	11,132
Trade creditors	310,581	20,545
Corporation tax	94,290	3,494
Other taxes and social security	15,853	11,536
VAT	46,967	28,193
Other creditors	670	44,039
Accruals and deferred income	269,979	70,327

	750,202	189,266

7. Creditors: Amounts Falling Due After More Than One Year

	2025	2024
	£	£
Net obligations under finance lease and hire purchase contracts	56,938	66,628

8. Obligations Under Finance Leases and Hire Purchase

	2025	2024
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	18,619	18,619
Later than one year and not later than five years	62,359	80,979

	80,978	99,598
Less: Finance charges allocated to future periods	12,178	21,838

	68,800	77,760

9. Share Capital

	2025	2024
	£	£
Allotted, Called up and fully paid	1,000	1,000

Page 5

Page 6

Innovate IT Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 October 2025

10. Directors Advances, Credits and Guarantees

During the year the company advanced the following loans to participators. These are included within Debtors:

Paul Rawlinson - £60,000
Tabitha Rawlinson - £60,000

These were fully repaid after the year end, on the 10th February 2026.

The above loans are unsecured, interest free and repayable on demand.

11. Post Balance Sheet Events

On the 17th March 2026 the company sold 1,050,000 of its shares to Allurity Ab, reflecting 100% of the shareholding (inclusive of 50,000 shares vested from the company EMI scheme).

The consideration was settled personally between the parties and this will therefore not directly impact the financial statements.

12. Share-based Payment Transactions

The company has a share option scheme for stakeholders. The options are settled in equity once exercised. The scheme allows for the exercise of options subject to certain criteria, being an 'event' and subject to certain lengths of time.

A correction has been made during the company year to reflect that a total of 50,000 options have been granted under the Enterprise Management Incentive Scheme, at an exercise price of £0.25 per share. This adjustment is immaterial and has no impact the overall balance sheet position.

This figure remains unchanged as at the 31st October 2025. Prior options granted to employees who have since left the company have been cancelled.

The share options have been valued by a third party and have been based on a PE ratio model. The key assumptions used in this model are a weighted average adjusted profit after tax of £324,518 and a PE ratio of 4.0.

The charge to the Profit and Loss account has no material effect on the financial statements.

The 50,000 options vested and were exercised following the year end, on the 16th March 2026, and then subsequently sold to Allurity Ab. As this occured after the year end there is no impact on the figures within these returns.

Page 6

		2025		2024
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	4		37,092		65,803

			37,092		65,803
CURRENT ASSETS
Debtors	5	391,726		222,795
Cash at bank and in hand		760,913		256,270

		1,152,639		479,065
Creditors: Amounts Falling Due Within One Year	6	(750,202 )		(189,266 )

NET CURRENT ASSETS (LIABILITIES)			402,437		289,799

TOTAL ASSETS LESS CURRENT LIABILITIES			439,529		355,602

Creditors: Amounts Falling Due After More Than One Year	7		(56,938 )		(66,628 )

PROVISIONS FOR LIABILITIES
Deferred Taxation			(9,273 )		(12,502 )

NET ASSETS			373,318		276,472

CAPITAL AND RESERVES
Called up share capital	9		1,000		1,000
Other reserves			8,801		3,733
Profit and Loss Account			363,517		271,739

SHAREHOLDERS' FUNDS			373,318		276,472