These financial statements and reports have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the statement of comprehensive income has been taken.

The members have not required the company to obtain an audit of its accounts for the year ended 30 November 2025 in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.

The financial statements were approved and authorised for issue by the Board of Directors on 31 July 2026.

Bio-Images Drug Delivery Ltd is a private company limited by shares, registered in Scotland. The address of the registered office and registration number are as below:

Bio Imaging Unit, Basement Medical Block

Within Glasgow Royal Infirmary

84 Castle Street

Glasgow

G4 0SF

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

The nature of the company's operations and principal activity during the year was that of a head office.

The financial statements have been prepared on the historical cost basis.

The accounts are prepared in sterling, which is the functional currency of the entity.

The financial statements have been prepared on a going concern basis. The directors have assessed the Company's ability to continue as a going concern for a period of not less than twelve months from the date of approval of these financial statements. The Company's principal activity is the provision of head-office management services to its wholly owned subsidiaries, BDD Pharma Ltd and Drug Delivery International Ltd, and the management of group facilities including the registered office at Glasgow Royal Infirmary. Revenue (management charges of £228,743) is derived entirely from intragroup recharges. Net assets of £3,911,672 are predominantly represented by amounts owed by group undertakings (£3,989,880), which are in turn dependent on the trading performance of BDD Pharma Ltd. Subsequent to the year end, on 9 February 2026, the Company strengthened its financial position through the allotment of 116,368 ordinary shares at £6.88 per share, raising gross proceeds of £799,448 (total consideration £800,611). These additional funds provided working capital to support the Company's ongoing operations and have been taken into account by the directors in their assessment of the Company's ability to continue as a going concern. Further details in note 10. The directors have prepared and approved a cash flow forecast for the going concern period to not less than twelve months from signing. The forecast reflects management charge income from BDD Pharma Ltd at a rate consistent with the year under review, together with the proceeds of the post year-end equity raise and the continued deferral of intragroup balances. Having considered these matters, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, these financial statements have been prepared on the going concern basis of accounting.

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax.

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Assets under construction are recorded at cost, and no depreciation is recognised. Upon completion of the asset, costs will be transferred to an appropriate category of property, plant and equipment, and depreciation will commence.

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

A financial asset or financial liability is recognised only when the company becomes a party to the contractual provisions of the financial instrument.

Basic financial assets, which include trade and other debtors, amounts due from group undertakings, and cash and bank balances, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument.

Basic financial liabilities, which include trade creditors, bank loans and overdrafts, and other creditors, are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future receipts discounted at the market rate of interest for a similar debt instrument.

At each reporting date the company assesses whether there is objective evidence that any financial asset has been impaired. A provision for impairment is established when there is objective evidence that the company will not be able to collect all amounts due. The amount of the provision is recognised immediately in profit or loss.

BDD Pharma Ltd

Drug Delivery International Ltd

During the year the company recognised an increase in the cost of the investment in its subsidiary, BDD Pharma Ltd. This is to reflect the share based payment in respect of options to subscribe for shares in the company which were awarded to employees of the subsidiary company. The registered office for BDD Pharma Ltd and Drug Delivery International Ltd is Bio Imaging Unit, Basement Medical Block, Glasgow Royal Infirmary, 84 Castle Street, Glasgow G4 0SF.

The following loans are included within creditors: amounts falling due after more than one year:

A bounce back loan of £50,000 was granted to the company in 2022. The UK Government covered the first months of interest and repayments commence after 12 months with an interest rate of 2.5% applied. The loan is structured to be repaid over a 6 year period.

A loan of £250,000 was granted by UMI in 2022; the loan is subject to fixed capital and interest repayments of £7,949.93 per month over a 3 year period. This loan is now fully repaid.

AVPL agreed to lend the company the principal sum of £200,000 in 2024, by way of unsecured interest. Interest on the outstanding loan accrues on a daily basis at an annual rate of 10% from the date the loan is provided to the company. Interest is paid at the same time as the principal sum is repaid.

Scottish Enterprise agreed to lend £400,000 to the company in 2025. The repayment term of this loan is 5 years - with an initial 6 months holiday from both capital and interest repayments, followed by a further 6 months of interest-only payments. Full repayment of capital and interest begins 18 months after the loan drawdown.

The company has an unrecognised deferred tax asset of £277,046 at 30 November 2025 (2024: £232,301) which has arisen from losses carried forward. Its recoverability is dependent upon future profits arising, the likelihood of which cannot at this stage be determined with reasonable certainty.

On 9 February 2026 116,368 ordinary shares were allotted with a purchase price of £6.88 each for a total consideration of £800,611. The shares were issued at premium resulting in £799,448 being credited to the share premium account. This transaction took place after the reporting date and has therefore not been reflected in these financial statements.

At the year-end BDD Pharma Ltd owed £3,713,976 (2024: £3,545,290) to Bio-Images Drug Delivery Ltd. The loan is interest free and there are no fixed repayment terms, although the directors of the parent company have indicated that they will not be seeking repayment of the loan for a period of at least 12 months from signing these financial statements.

At the year-end Drug Delivery International Ltd owed £275,904 (2024: £219,904) to Bio-Images Drug Delivery Ltd. The loan is interest free and there are no fixed repayment terms.

In the opinion of the directors, there is no ultimate controlling party of the Company as at 30 November 2025. No individual shareholder holds a controlling interest in the Company's issued share capital or is able to exercise control over the Company's financial and operating policies.

As at 30 November 2025, the Company had total commitments under non-cancellable operating leases of £222,497 (2024: £221,046).