Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025

1	General information

Hyper Island Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1.

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

Whilst the director is confident that the company will have sufficient resources for the foreseeable future, being at least twelve months from the date of approval of the financial statements, this is dependent on continued financial support from its immediate parent company. As the wider group is experiencing financial uncertainty, there remains a material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern. Nevertheless, the director has a reasonable expectation that sufficient funds will be available to enable the company to meet its liabilities as they fall due and has therefore prepared the financial statements on a going concern basis.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and in accordance with the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Hyper Island Capital AB, which may be obtained from Virkesvägen 2, 120 30 Stockholm, Sweden. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement, transactions with group entities and remuneration of key management personnel.

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

2	Accounting policies (continued)

Revenue recognition

Revenue represents amounts chargeable, net of value added tax, in respect of courses provided to
students. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the company and specific criteria have been met. Where payments are received from students in advance of services provided, the amounts are received as deferred income and released as services are provided. Where services have already been provided, but not invoiced, the amounts receivable are estimated and recorded as accrued income.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Taxation

The tax expense for the period comprises current tax. Tax is recognised in the income statement, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the year end.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

Property, plant and equipment

Property, plant and equipment are recorded at historical cost less accumulated depreciation and any provision for impairment. Cost comprises the purchase price together with all expenses directly incurred in bringing the asset to its location and condition ready for use.

Depreciation is provided on all property, plant and equipment at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Asset class	Depreciation method and rate
Office equipment	Straight line over 5 years

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

2	Accounting policies (continued)

Computer equipment

Straight line over 3 years

Cash and cash equivalents

Cash and cash equivalents comprise of bank current account balances and are subject to an insignificant risk of change in value.

Receivables

Trade and other receivables that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if the
company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other payables that are payable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be paid. Those that are payable after more than one year or that constitute a financing transaction are recorded initially at transaction price and subsequently at amortised cost using the effective interest method.

Leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company. Contributions are recognised in the income statement in the period in which they become payable.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

3	Staff numbers

The average number of persons employed by the company during the year, was 3 (2024 - 5).

4	Director's remuneration

The director did not receive any remuneration for services to the company during the year or preceding year. The director is remunerated by other group companies.

5	Property, plant and equipment

	Office equipment £	Computer equipment £	Total £
Cost
At 1 January 2025	798	10,396	11,194
At 31 December 2025	798	10,396	11,194
Depreciation
At 1 January 2025	798	10,396	11,194
At 31 December 2025	798	10,396	11,194
Carrying amount
At 31 December 2025	-	-	-
At 31 December 2024	-	-	-

6	Receivables

Current	2025 £	2024 £
Trade receivables	30,808	38,210
Amount owed by group undertakings	571,675	514,609
Prepayments & accrued income	1,253	7,876
	603,736	560,695

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

6	Receivables (continued)

The amount owed by group undertakings disclosed as falling within one year is unsecured, payable on demand and is non-interest bearing.

7	Cash and cash equivalents

	2025 £	2024 £
Cash at bank	47,753	181,385

8

Payables

	2025 £	2024 £
Due within one year
Trade payables	2,195	5,729
Amounts owed to group undertakings	75,633	19,359
Social security and other taxes	3,184	5,545
Other payables	2,411	3,949
Accrued expenses and deferred income	539,782	589,526
	623,205	624,108

The amounts owed to group undertakings disclosed as falling within one year are unsecured, payable on demand and are non-interest bearing.

9	Share capital and reserves

Allotted, called up and fully paid shares

	2025		2024
	No.	£	No.	£
Ordinary share of £1 each	1	1	1	1

The company has one class of share capital which carries no right to fixed income.

Reserves

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

9	Share capital and reserves (continued)

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

The capital contribution reserve represents a loan conversion agreed with the immediate parent undertaking that carries no rights to repayment or control over usage. This reserve forms part of the company's distributable reserves.

10	Pension scheme

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £8,410 (2024 - £10,105). Contributions totalling £2,411 (2024 - £3,949) were payable to the scheme at the end of the year and are included in payables.

11	Related party transactions

The company is a wholly owned subsidiary member of its group and has therefore taken advantage of the provisions of paragraph 1AC.35 of FRS 102 - Small Entities to not disclose transactions with entities that are wholly owned members of the group.

There were no other related party transactions to disclose.

12	Parent and ultimate parent undertaking

The company's immediate and ultimate parent undertaking is Hyper Island Capital AB, incorporated in Sweden.

The parent of the largest and smallest group in which theses financial statements are consolidated is Hyper Island Capital AB, registered in Sweden. These financial statements are available upon request from Virkesvägen 2, 120 30 Stockholm, Sweden.

13	Audit report

The Independent Auditor's Report was unqualified. We draw attention to Note 2 to the financial statements which explains that the company is dependent on the continued financial support from its immediate parent company which is experiencing financial uncertainty, therefore a material uncertainty exists which may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. .

Hyper Island Limited

Notes to the Financial Statements
for the Year Ended 31 December 2025 (continued)

13	Audit report (continued)

The name of the Senior Statutory Auditor who signed the audit report on 22 May 2026 was Ransford Agyei-Boamah FCA FCCA, who signed for and on behalf of Shaw Gibbs (Audit) Limited.

14	Events after the financial period

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the financial statements.