REGISTERED NUMBER: 12058179 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 November 2025

for

Advanced Electric Machines Group Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J Widmer

A E Buchan

N M Tierney

G Debicki

N A Pascoe

J B D North

REGISTERED OFFICE:

Teal House

10 Teal Farm Way

Washington

Tyne and Wear

NE38 8BG

REGISTERED NUMBER:

12058179 (England and Wales)

SENIOR STATUTORY AUDITOR:

Kevin Shotton BA BFP FCA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

The directors present their strategic report of the company and the group for the year ended 30 November 2025.

The principal activity of Advanced Electric Machines Group Limited ('the Group) during the year was the design and manufacture of highly sustainable electric motors, generators and integrated drivetrain technologies. Its core innovation is centred on rare-earth-free electric motor solutions, addressing structural industry challenges relating to cost, supply chain resilience and sustainability within the global electrification market. The Group's technology portfolio is being developed for application across commercial and passenger vehicles, off-highway equipment, rail and marine sectors.

The Group operates a business model combining customer-funded application programmes; early-stage commercial product supply and grant supported innovation. Its strategy is to transition from development-led activities toward scalable commercial production and long-term supply partnerships, while selectively unlocking value from differentiated technology platforms through strategic transactions and partnerships with established industry participants.

REVIEW OF BUSINESS

Total income for the year, including commercial revenue, grant income and other operating income, was £2.77 million (2024: £3.11 million). This is consistent with the previous year and reflects the timing and mix of development programmes and the Group's transition from development activity toward commercial deployment. The Group reported a loss before tax of £4.75 million (2024: £8.34 million), with the year-on-year improvement driven by the absence of exceptional costs (2024: £2.40 million) in the current period and a lower operating cost base following restructuring actions undertaken in response to earlier programme changes; and reflecting continued investment in product development and manufacturing capability.

Operations

Operationally, the Group made significant progress across its core product families;

• HDRM is a robust, scalable, magnet-free traction platform optimised for cost, durability and integration across largely heavy-duty and industrial applications; serving commercial vehicles, off-highway and the industrial segment

• SSRD is a high-speed, ultra-high-performance platform principally targeted at passenger cars

In the period under review, the HDRM150 motor successfully completed validation and the Production Part Approval Process (PPAP), with initial production deliveries commencing in the fourth quarter of 2025 to a well-established European Tier 1 Commercial Vehicle supplier. Development of the HDRM300 platform continued, alongside expansion of the associated commercial pipeline. The performance of this product has been significantly enhanced by the integration of AEM's patented compressed coil technology; re-engineering of its thermal management system; and increasing its voltage capability in line with market trends.

The Group also progressed the development and strategic positioning of SSRD a next-generation electric drivetrain concept targeted at passenger vehicle applications. SSRD remains in the development phase, with ongoing engineering work focused on design maturation, validation planning and alignment with potential customer requirements.

During the year, the Group entered into a contract to with a global Tier 1 supplier to develop a motor for an application within a European OEM's premium vehicle programme. In addition, the Group has engaged with several other Tier 1 suppliers and OEMs who have expressed interest in the underlying technology and its potential application across future electrified platforms.

The Directors consider SSRD to represent a strategically significant element of the Group's technology portfolio with potential applicability across multiple use cases. Further work is required to progress the platform through validation and into commercial readiness; however, its technical approach and alignment with industry requirements are expected to support continued engagement with potential partners.

As part of its broader strategy, the Group continues to evaluate options for the future development and commercialisation of both its technology platforms. In the case of SSRD, this includes ongoing engagement with industry participants to assess potential collaboration structures that could support its further development, validation and eventual deployment. Given the capital requirements and industrial capabilities needed to bring such a platform to market at scale, the Directors believe that partnership with, or involvement from, an established industry participant may represent an effective route to accessing high volume passenger car markets, accelerating its development and maximising long-term shareholder value.

The Directors monitor the performance of the Group through a combination of financial and operational indicators, including total income, operating profits/losses, cash utilisation, programme delivery milestones and progression of the commercial pipeline. At the current stage of development, priority is given to the successful execution of customer programmes; validation of technology under real-world application conditions; and the conversion of development activity into sustainable commercial revenue streams.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors have considered the Group's key risks and uncertainties and have adopted policies to minimise these risks. Key risks identified are as follows:

Supply chain

The Group operates within a market characterised by evolving customer demand, technological complexity and competitive intensity. Principal risks include variability in the timing and scale of electrification across end markets, execution challenges associated with scaling manufacturing capability, and supply chain optimisation. The Group continues to mitigate these risks through disciplined programme management, close collaboration with customers and the development of broader and more resilient supplier relationships, including longer-term arrangements with key partners.

Funding

The Group has historically relied on external funding to support its development and growth. After the year end, the Group secured £10.9 million of Series B equity funding including £3 million of convertible loan notes issued in November 2025 and now converted into Series B shares. This funding strengthens the Group's financial position and provides the resources required to continue execution of its development, industrialisation and commercialisation strategy. The Group has also secured £5 million of government backed debt.

Going concern

In light of this funding, the Directors are satisfied that the Group has adequate resources to meet its liabilities as they fall for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis.

Looking ahead, the Group's strategic focus is on scaling production of the HDRM platform by converting its commercial pipeline into contracted revenues. In addition, the Group will continue to evaluate opportunities to realise value from the SSRD platform through engagement with OEMs and Tier 1 suppliers, with the objective of accelerating its deployment and ensuring it is supported by the scale, infrastructure and market access required for successful commercialisation.

The Directors believe that the Group is well positioned within an evolving and growing market, supported by strong demand drivers for sustainable and rare earth free propulsion solutions and by increasing engagement with global vehicle ecosystem participants.

ON BEHALF OF THE BOARD:

J Widmer - Director

8 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 30 November 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the research and development, design and manufacture of the business' unique, patented and highly sustainable electric motor, generator and transmission products.

DIVIDENDS

No dividends were distributed for the year ended 30 November 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2024 to the date of this report.

J Widmer

A E Buchan

N M Tierney

G Debicki

N A Pascoe

Other changes in directors holding office are as follows:

A Steven - resigned 9 September 2025

N E Daly - resigned 31 January 2025

K R Pillai - appointed 31 January 2025 - resigned 22 May 2025

J B D North was appointed as a director after 30 November 2025 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

Future developments and financial risk management objectives and policies, which would otherwise be disclosed in the directors' report, are instead disclosed in the strategic report, as permitted by section 414C(11) of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Clive Owen LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

J Widmer - Director

8 July 2026

Opinion

We have audited the financial statements of Advanced Electric Machines Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2025 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 November 2025 and of the group's 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 group 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 group's and the parent 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 Group Strategic Report and 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 group's and the parent 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 group or the parent 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, to detect material misstatements in respect of irregularities, including fraud. Our audit must be alert to the risk of manipulation of the financial statements and seek to understand the incentives and opportunities for management to achieve this.

We undertake the following procedures to identify and respond to these risks of non-compliance:

- Understanding the key legal and regulatory frameworks that are applicable to the group. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. We determined the most significant of these to be financial reporting legislation, taxation legislation, health & safety, employment law, company law and ISO9001 regulations.

- Enquiry of directors and management as to policies and procedures to ensure compliance and any known instances of non-compliance.

- Review of board minutes and correspondence with regulators.

- Enquiry of directors and management as to areas of the financial statements susceptible to fraud and how these risks are managed.

- Challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. These key areas of uncertainty are detailed within note 2 of these financial statements.

- Identifying and testing unusual journal entries, with a particular focus on manual journal entries.

Through these procedures, we did not become aware of actual or suspected non-compliance.

We planned and performed our audit in accordance with auditing standards but owing to the inherent limitations of procedures required in these areas, there is an unavoidable risk that we may not have detected a material misstatement in the accounts. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve concealment, collusion, forgery, misrepresentations, or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

Kevin Shotton BA BFP FCA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

8 July 2026

TURNOVER

3

2,629,028

2,883,292

Cost of sales

(2,153,460

)

(1,848,490

)

GROSS PROFIT

475,568

1,034,802

Administrative expenses

(5,400,293

)

(7,325,559

)

(4,924,725

)

(6,290,757

)

Other operating income

138,679

224,217

OPERATING LOSS

5

(4,786,046

)

(6,066,540

)

Exceptional costs

6

-

(2,394,808

)

(4,786,046

)

(8,461,348

)

Interest receivable and similar income

7

59,592

51,100

(4,726,454

)

(8,410,248

)

Interest payable and similar expenses

8

(22,281

)

(33,702

)

LOSS BEFORE TAXATION

(4,748,735

)

(8,443,950

)

Tax on loss

9

883,208

-

LOSS FOR THE FINANCIAL YEAR

(3,865,527

)

(8,443,950

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(3,865,527

)

(8,443,950

)

Loss attributable to:

Owners of the parent

(3,865,527

)

(8,443,950

)

Total comprehensive income attributable to:

Owners of the parent

(3,865,527

)

(8,443,950

)

FIXED ASSETS

Intangible assets

11

758,186

404,229

Tangible assets

12

377,213

559,746

Investments

13

-

-

1,135,399

963,975

CURRENT ASSETS

Stocks

14

386,998

410,694

Debtors: amounts falling due within one year

15

1,837,088

1,544,442

Cash at bank

3,565,680

5,255,788

5,789,766

7,210,924

CREDITORS

Amounts falling due within one year

16

(1,729,919

)

(2,031,035

)

NET CURRENT ASSETS

4,059,847

5,179,889

TOTAL ASSETS LESS CURRENT LIABILITIES

5,195,246

6,143,864

CREDITORS

Amounts falling due after more than one year (including convertible debt)

17

(2,755,199

)

-

PROVISIONS FOR LIABILITIES

21

(122,284

)

(81,410

)

NET ASSETS

2,317,763

6,062,454

CAPITAL AND RESERVES

Called up share capital

22

3,076,616

3,076,616

Share premium

23

25,732,423

25,732,423

Other reserves

23

220,226

99,390

Retained earnings

23

(26,711,502

)

(22,845,975

)

SHAREHOLDERS' FUNDS

2,317,763

6,062,454

The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2026 and were signed on its behalf by:

J Widmer - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

30,273,883

27,926,139

30,273,883

27,926,139

CURRENT ASSETS

Debtors: amounts falling due within one year

15

38,318

8,083

Cash at bank

1,201,285

807,823

1,239,603

815,906

CREDITORS

Amounts falling due within one year

16

(151,513

)

(19,194

)

NET CURRENT ASSETS

1,088,090

796,712

TOTAL ASSETS LESS CURRENT LIABILITIES

31,361,973

28,722,851

CREDITORS

Amounts falling due after more than one year

17

(2,755,199

)

-

NET ASSETS

28,606,774

28,722,851

CAPITAL AND RESERVES

Called up share capital

22

3,076,616

3,076,616

Share premium

23

25,732,423

25,732,423

Other reserves

23

220,226

99,390

Retained earnings

23

(422,491

)

(185,578

)

SHAREHOLDERS' FUNDS

28,606,774

28,722,851

Company's loss for the financial year

(236,913

)

(19,356

)

The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2026 and were signed on its behalf by:

J Widmer - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 December 2023

3,076,616

(14,402,025

)

25,732,423

136,935

14,543,949

Changes in equity

Total comprehensive income

-

(8,443,950

)

-

-

(8,443,950

)

Grant share option

-

-

-

(37,545

)

(37,545

)

Balance at 30 November 2024

3,076,616

(22,845,975

)

25,732,423

99,390

6,062,454

Changes in equity

Total comprehensive income

-

(3,865,527

)

-

-

(3,865,527

)

Equity component of

convertible loan

-

-

-

103,265

103,265

Grant share option

-

-

-

17,571

17,571

Balance at 30 November 2025

3,076,616

(26,711,502

)

25,732,423

220,226

2,317,763

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 December 2023

3,076,616

(166,222

)

25,732,423

136,935

28,779,752

Changes in equity

Total comprehensive income

-

(19,356

)

-

-

(19,356

)

Grant share option

-

-

-

(37,545

)

(37,545

)

Balance at 30 November 2024

3,076,616

(185,578

)

25,732,423

99,390

28,722,851

Changes in equity

Total comprehensive income

-

(236,913

)

-

-

(236,913

)

Equity component of

convertible loan

-

-

-

103,265

103,265

Grant share option

-

-

-

17,571

17,571

Balance at 30 November 2025

3,076,616

(422,491

)

25,732,423

220,226

28,606,774

Cash flows from operating activities

Cash generated from operations

1

(4,645,295

)

(8,425,813

)

Interest paid

(22,281

)

(33,702

)

Tax credit

883,208

-

Net cash from operating activities

(3,784,368

)

(8,459,515

)

Cash flows from investing activities

Purchase of intangible fixed assets

(18,968

)

-

Purchase of tangible fixed assets

(169,242

)

(554,875

)

Development costs incurred

(496,948

)

-

Interest received

59,592

51,100

Net cash from investing activities

(625,566

)

(503,775

)

Cash flows from financing activities

Loan repayments in year

(138,638

)

(393,652

)

New loans net of issue costs

2,858,464

63,140

Net cash from financing activities

2,719,826

(330,512

)

Decrease in cash and cash equivalents

(1,690,108

)

(9,293,802

)

Cash and cash equivalents at beginning of year

2

5,255,788

14,549,590

Cash and cash equivalents at end of year

2

3,565,680

5,255,788

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Loss before taxation

(4,748,735

)

(8,443,950

)

Depreciation charges

513,734

270,989

Share option charge

17,571

(37,545

)

Finance costs

22,281

33,702

Finance income

(59,592

)

(51,100

)

(4,254,741

)

(8,227,904

)

Decrease in stocks

23,696

378,971

Increase in trade and other debtors

(292,646

)

(243,999

)

Decrease in trade and other creditors

(121,604

)

(332,881

)

Cash generated from operations

(4,645,295

)

(8,425,813

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2025

30.11.25

1.12.24

£

£

Cash and cash equivalents

3,565,680

5,255,788

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

5,255,788

14,549,590

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank

5,255,788

(1,690,108

)

3,565,680

5,255,788

(1,690,108

)

3,565,680

Debt

Debts falling due within 1 year

(694,837

)

138,638

(556,199

)

Debts falling due after 1 year

-

(2,755,199

)

(2,755,199

)

(694,837

)

(2,616,561

)

(3,311,398

)

Total

4,560,951

(4,306,669

)

254,282

1.	STATUTORY INFORMATION

Advanced Electric Machines Group Ltd 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 General Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

Reduced disclosures

FRS 102 allows a qualifying entity certain disclosure exemptions. The company meets the definition of a qualifying entity in respect of its separate (non-group) financial statements and has taken advantage of the exemptions relating to disclosure of key management personnel compensation and the preparation of a cash flow statement. The equivalent information on a consolidated basis is included within these financial statements.

Basis of consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings. All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Going concern

The group is scaling and moving into series production. It has historically met its day to day working capital requirements through loan facilities and the support of equity investors.

Post year end, funding of £6.45m has been received and the group is in discussions with new and existing investors for further funding. The directors believe it is likely that the funds to meet the group's financial obligations for the foreseeable future will be secured.

The company has undertaken to continue to provide sufficient financial support to its subsidiaries following investment by shareholders and has no intention to request repayment of the creditor balance in the 12 months following date of approval of the financial statements.

Whilst there is no certainty in relation to these matters the directors believe it is appropriate to prepare the accounts on the basis of a going concern.