The directors present the strategic report for the year ended 31 December 2025.

The principal activity of AKVA Group Scotland Ltd (“the company”), is the supply and support of technology to the UK and Irish aquaculture sector.

The company entered 2025 with an optimistic outlook and healthy order backlog. Several large contracts were won and delivered in 2025 including plastic pen production as well as associated net, net cleaning and mooring solutions. AKVA also supply the complete portfolio of Aquaculture technology including cameras and digital software used for feed optimisation to all main customers predominantly in Scotland. There was a decrease in Sea Based Technology equipment sales, due to curtailed customer capex spend, and an increase rental and digital revenue. A satisfactory performance level was maintained throughout the trading year. The company’s balance sheet position improved with the net asset position strengthening from £3,572k to £3,666k. The directors consider this to be a good result in a competitive marketplace.

AKVA group play a major role in providing solutions to the challenging biological factors that the Aquaculture Sector face year to year in Scotland and we work closely developing technology with our R&D team in Norway and our customer base to help improve salmon farming production.

The market demand for Atlantic Salmon remained strong. We remain dependant on our customer financial capacity and willingness to invest in new technology and sustainable Aquaculture farming solutions. The Company strongly believes that the demand will be driven by increased focus on sustainability and continued demand for quality farmed salmon. With limited consents for new farm sites being approved there is a significant opportunity for upgrading the existing farms with improved technology and replacement infrastructure.

Our ongoing and future innovation program is not only key to our growth, it will also play an important part in improving sustainability within the industry through pen innovations that help improve fish health, reducing CO2 emissions – through Hybrid technologies, improved waste management, and recycling of pen fabrication materials full circle - into new pens. The Group continues an internal process to make our environmental, social and governance (ESG) focus more visible and measurable and to prioritize key ESG actions to undertake to improve overall sustainability.

We continued the personal development programs in 2025 ensuring that our employees have the training, competence and capabilities to further improve the company performance.

We will, with implementation of a group ERP system in 2026 supporting standardisation of our business processes, improve supply chain management and project execution, and increase visibility of information for improved decision making.

These key performance indicators are monitored when assessing the development, performance and financial position of the business. The movements in the current year are in line with expectations given the circumstances described above in the review of the business.

When considering any key business decisions, the directors balance both short and long-term decisions to ensure strategies are carefully balanced.

The company values all stakeholders and understands the importance of investing in people to ensure the highest quality is delivered to external parties. In the year the company supported staff and continued to offer training opportunities focussed on improvement in the workforce.

The company maintains key relationships with our clients understanding their key requirements and aiming to exceed expectations. The directors have a “hands on approach” to ensure relationships are maintained to a high level with all stakeholders.

The company and the directors have a focus on how projects and the company impact both communities and the environment. The company continues to look at further ways we can reduce our carbon footprint.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the company continued to be that of the supply and support of technology to the UK and Irish aquaculture sector.

The results for the year are set out on page 8.

The directors do not recommend the payment of a dividend in 2025 (2024 - £Nil).

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

The group's activities expose it to a number of financial risks.

The financial risks are mainly related to foreign currency exchange risks and credit risks. A reduction in foreign currency exchange risks is sought through matching revenues and costs in the same currency.

The company is exposed to the risk of losses if one or more customers fail to meet their obligations. To mitigate this risk the company trades only with recognised, credit worthy third parties and monitors its exposure to individual customers closely. Historically the company has had low losses from customer receivables.

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.

The directors are responsible for preparing the annual report 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• 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.

We have audited the financial statements of AKVA Group Scotland Ltd (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK-adopted international accounting standards.

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 profit for the year then ended;

• have been properly prepared in accordance with UK adopted international accounting standards; 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 Auditor 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 other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report and financial statements. 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. 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 course of 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 strategic report or the directors' report.

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.

As explained more fully in the directors' responsibilities statement, set out on page 4, 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 is 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.

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 an auditor’s report 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• UK-adopted international accounting standards

• Companies Act 2006

• UK Corporation Tax legislation

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of the submitted returns, external inspections and relevant correspondence with regulatory bodies.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and assessing judgements made by management in their calculation of accounting estimates for potential management bias;

• Performing testing over the completeness, accuracy and cut off over the various revenue streams, including testing a sample of purchase orders through to subsequent sales invoice and agreeing rental income received to contracts;

• Completion of appropriate checklists and use of our experience to assess the company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and 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.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

AKVA Group Scotland Ltd is a private company limited by shares incorporated and domiciled in Scotland. The registered office and principal place of business is 36f Shore Street, Inverness, IV1 1NF.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The company has adopted all the standards and amendments to existing standards which are mandatory for accounting periods beginning on 1 January 2025. There are no amendments to accounting standards or IFRS interpretations that are effective for the year ended 31 December 2025 that have had a material impact on the financial statements.

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 thousand pounds (£'000).

The company's immediate parent undertaking, Akva Group ASA includes the company in its consolidated financial statements. In preparing these financial statements, the company applies the recognition, measurement and disclosure requirements of UK-adopted International Accounting Standards and has set out below where advantage of the FRS 101 disclosure exemptions has been taken:

• Cash Flow Statement and related notes;

• Certain disclosures regarding revenue;

• Comparative period reconciliations including in respect of share capital, intangible assets and tangible assets;

• The requirement for a lessee to include all lease related disclosures in a single note;

• The requirement to present certain comparative narrative disclosures;

• Disclosures in respect of transactions entered into between two or more members of a group;

• Disclosures in respect of capital management;

• The effects of new but not yet effective International Financial Reporting Standards; and

• Disclosures in respect of the compensation of Key Management Personnel.

The financial statements have been prepared under the historical cost convention. The material accounting policies adopted are set out below.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for at least 12 months from the date of signing the financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

(i) Sale of goods

Turnover from performance obligations for the sale of non-customer specific goods is recognised at a point in time when the customer obtains control of those goods. This is typically at the point of delivery. If the sale is for goods which are specifically designed or manufactured for a customer and there is no readily available alternative use for those goods, and the company has an enforceable right to payment for the performance completed to date, turnover is recognised over time in line with the contract’s progression (assessed on a cost input method) up to the point of delivery.

(ii) Rendering of services

The company recognises turnover for service performance obligations over time as those services are fulfilled. The turnover will be based either on a fixed price or on an hourly/day rate. When a fixed price is used the company assesses the stage of fulfilment based on a cost input method. Where the rendering of services includes rental income which is not considered to be lease income, the rental income element is recognised on a straight-line basis over the contract period in accordance with quoted day rates. Where the contract for rental income meets the definition of a lease, turnover is also recognised on a straight-line basis over the contract period but is disclosed separately from turnover from contracts with customers.

The company provides standard warranties on certain products sold / services provided to customers. These warranties provide assurance that the products comply with agreed specifications and are free from defects at the time of sale. Accordingly, the warranties are not accounted for as separate performance obligations under IFRS 15.

A provision for expected warranty claims is recognised at the time the related products are sold. The provision is measured at the best estimate of the expenditure required to settle the company's obligations, taking into account historical claims experience, the nature of defects identified and current expectations regarding future claims. This is further explained in note 1.11.

Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are amortised from the date they are available for use. The estimated useful lives are as follows:

• Capitalised development costs - 5 years straight line

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in profit or loss.

Inventory is stated at the lower of cost and net realisable value. Cost is based on an average cost principle and includes expenditure incurred in acquiring the inventory, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured inventory and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.

At each balance sheet date, inventory is assessed for impairment. If inventory is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Amounts recoverable on contracts, represents costs incurred on future performance obligations and are included in contract costs.

Cash and cash equivalents include cash in hand and deposits held at call with banks.

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

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

Financial assets are initially measured at fair value plus transaction costs.

Trade debtors and other debtors that have fixed or determinable payments that are not quoted in an active market are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term debtors when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'financial liabilities measured at amortised cost'.

The company had no financial liabilities held at fair value through profit or loss at the reporting date.

Other financial liabilities, including borrowings, trade creditors and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

The 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 net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax is the tax expected to be payable or recoverable on 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, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Right of use assets stated at the present value of the contractual payments due to the lessor over the lease term. Finance leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees.

The company has elected not to recognise right of use assets and lease liabilities for short term and low value assets. The lease payments associated with these leases are recognised as an expense on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging a lease are added to the carrying amount of the leased asset.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in profit or loss for the period.

In the application of the company’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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The judgements and assumptions which have a material risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The company occasionally engages in manufacturing activity that spans the year end. Accounting for such contracts requires management to make judgements that such products are not bespoke and, as such, are recognised as 'point in time' sales under IFRS 15. They are required to calculate work in progress for manufactured items in inventory at year-end, which includes elements of in-house labour hours, as well as direct costs from purchase invoices. (note 12)

Inventory is valued at the lower of cost and net realisable value. This includes any provision for slow moving or obsolete inventory. Calculation of such provisions requires judgements to be made on various aspects of inventory based on forecasts and historical trading. Total inventory provisions as at 31 December 2025 are £348k (2024: £378k). (note 12)

In determining the lease term the directors assess whether they are reasonably certain to exercise, or not to exercise, options to extend or terminate a lease. This assessment is made at the start of the lease and is re-assessed if significant events or changes in circumstances occur that are within the lessee's control.

The directors applied a discount rate between 3.5% and 5.5% depending on the class of asset. The rate applied represents the company's incremental cost of borrowing at the date of inception of the new lease contracts. The carrying amount of the lease liabilities is disclosed in note 18.

Details of performance obligations and payment terms are disclosed in accounting policy Turnover with details of contract assets and liabilities recognised at the year end included in note13.

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

Their aggregate remuneration comprised:

The above wages costs excludes those amounts capitalised within stock of £180k (2024: £209k).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

Raw materials are stated after provisions for impairment of £348k (2024 - £378k).

In some contracts the company receives payments from customers based on explicit billing schedules. Contract assets primarily relate to the company's conditional right to consideration for completed performance obligations under those contracts. These are transferred to debtors (trade debtors) once this right has become unconditional. Contract liabilities relate to payments received in advance of performing the obligations under a contract and exist where significant costs are expected to be incurred prior to the fulfilment of a performance obligation where turnover is to be recognised at a later point in time.

The aggregate amount of the transaction price (contracted turnover value) allocated to performance obligations that are unsatisfied (or partially unsatisfied) as at 31 December 2025 totals £4,300k (2024 - £2,311k). The company expects these to be satisfied in 2026.

No material debtor balances are impaired at the reporting date.

Amounts owed by group undertakings are unsecured, interest-free and repayable on demand.

Amounts owed to group undertakings are unsecured, interest-free and repayable on demand.

Loans included in the prior year were unsecured with interest payable at a rate equal to 3 months SONIA + interest margin of 2.75% per annum.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

The total cash outflow for leases during the year was £151k (2024: £193k).

The company has elected to apply the exemptions available in Paragraph 6 of IFRS 16 to not apply the requirements of Paragraphs 22-49 to short-term arrangements. The net expense recognised in respect of such arrangements during the year was £63k (2024: £10k).

Provisions for defect rectifications also includes warranty provisions relates to snagging costs arising on completed contracts which are likely to be settled within the subsequent financial period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.

Profit and loss reserve represents accumulated profits less distributions.

The company leases certain items of plant and machinery to third parties. These non-cancellable leases have remaining terms of between 2-7 years.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

The company is responsible for carrying out the upkeep and maintenance of assets leased out, this is to ensure the assets are returned to the company on cessation of the lease term with a guaranteed residual value.

The company's assets are secured via a bond and floating charge for borrowing facilities of other group undertakings.

During the year the company entered into the following transactions with related parties:

All related party transactions have been made on terms equivalent to those that prevail in arm's length transactions.

The following amounts were outstanding at the reporting end date:

Transactions undertaken with other related parties are conducted at appropriate market rates.

Other related parties relate to fellow group companies which are not wholly owned within the group. Amounts due to other related parties are unsecured, interest free and payable within 30 days.

The company has taken advantage of the exemption under paragraph 8(k) of FRS 101 not to disclose transactions with fellow wholly owned subsidiaries.

Den Norske Nominees Limited hold legal ownership of the shares as part of a security arrangement over the bank borrowings of Akva Group ASA. Akva Group ASA is the company's immediate parent undertaking, a company incorporated in Norway. The company is included in the consolidated financial statements of Akva Group ASA and these can be obtained from https://www.akvagroup.com/investors/financial-info/annual-reports/.

The company's ultimate parent undertaking and controlling party is Egersund Group ASA, a company incorporated in Norway.