REGISTERED NUMBER: 08650664 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2025

for

LEADSCALE LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other 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:

R J Caller

P D Goacher

E Lee

SECRETARY:

E Lee

REGISTERED OFFICE:

Unit 1 6 Owen Street

London

EC1V 7JX

REGISTERED NUMBER:

08650664 (England and Wales)

AUDITORS:

Whitemoor Audit LLP

5th Floor

111 Charterhouse Street

London

EC1M 6AW

Fair review of the Group's business

During the financial year ended 31 December 2025, Leadscale Limited delivered a strong recovery in financial performance, reflecting both improved market conditions and the strategic actions taken by management during the previous year. Following the challenging trading environment experienced in 2024, the Group entered 2025 with a renewed focus on operational efficiency, profitability and the continued development of its long-term growth initiatives.

Group revenue increased by 12% to £14.8 million compared with £13.2 million in the previous year. Net revenue increased by 19% to £5.4 million, demonstrating the strength of the Group's client relationships and the effectiveness of its service delivery model. This growth was achieved while maintaining total operational costs at broadly the same level as the prior year, resulting in a significant improvement in profitability.

The Group reported a profit before dividends of approximately £488,000, representing a substantial turnaround from the loss of approximately £486,000 reported in 2024. This improvement was achieved through disciplined cost management, improved operational execution and stronger trading performance across the Group's core business activities.

The Group continued to invest in the development of the Leadscale Engine Gen5 platform throughout the year. Significant progress was made in refining the platform's capabilities, architecture and commercial positioning. Management remains confident that Gen5 will provide a differentiated technology offering capable of supporting future growth opportunities across both existing and new markets.

The Board was particularly pleased that the return to profitability enabled the Group to distribute a dividend to shareholders during the year. The Group maintained a strong balance sheet and closed the period with cash reserves of approximately £2 million.

Principal Risks and Uncertainties

The Group continues to operate within a dynamic and competitive marketplace influenced by broader economic conditions and fluctuations in client marketing expenditure. Customer concentration risk, foreign exchange exposure and changing technology purchasing patterns remain areas of ongoing focus.

The rapid emergence of artificial intelligence technologies presents both opportunities and risks across the markets in which the Group operates. Whilst AI is expected to create significant efficiency gains for many organisations, it also introduces uncertainty for certain client sectors and business models. Publicly listed companies operating in areas such as business intelligence, data visualisation and analytics software continue to face increasing investor scrutiny regarding the long-term impact of AI-enabled alternatives on future growth prospects. Such concerns can influence market valuations, investment priorities and technology purchasing decisions, potentially affecting marketing expenditure and demand generation activity across the Group's client base.

The Group continues to monitor these developments closely and enters 2026 with a strong balance sheet, healthy liquidity and a proven ability to adapt to changing market conditions.

Analysis Using Financial Key Performance Indicators

The Group achieved revenue growth of 12% during the year, increasing turnover from £13.2 million in 2024 to £14.8 million in 2025. Net revenue increased by 19% from £4.6 million to £5.4 million.

Total operational costs were maintained at levels broadly consistent with the prior year despite inflationary pressures and continued investment in strategic initiatives. This resulted in a profit before dividends of approximately £488,000, compared with a loss of approximately £486,000 in the previous year.

The Group continued to invest in the Leadscale Engine Gen5 project throughout the year. The Group maintained a strong liquidity position and ended the year with approximately £2 million in cash reserves.

Future Developments of the Group

The continued development and commercialisation of the Leadscale Engine Gen5 platform remains the Group's primary strategic growth initiative.

The Board remains encouraged by the progress achieved within Leadscale Inc. Although the investment required to establish the Group's United States operation has not yet generated positive financial returns, significant progress was made during 2025 in identifying and securing a number of foundational client relationships. These accounts provide an important platform from which to scale the US business and increase recurring revenue. As a result, the Group expects Leadscale Inc. to move materially closer to breakeven during 2026 and anticipates selectively increasing sales capacity within the United States to support future growth, with a target of profitability during 2027.

Artificial intelligence also presents substantial opportunities for the Group. Over many years, LeadScale has accumulated a significant repository of campaign configurations, operational workflows and process outcomes. This creates a unique foundation for the development of expert agentic solutions capable of assisting self-service users in the implementation and optimisation of demand generation campaigns. During 2026, management expects to advance intelligent agent technologies designed to guide customers through complex campaign implementation processes whilst maintaining high standards of quality, governance and accuracy.

These developments have the potential to expand the Group's addressable market significantly and strengthen its position within the SaaS sector. Management believes that the combination of automation, operational accuracy and lower delivery costs will create opportunities to gain market share and develop attractive new pricing models.

The Board further believes that the architecture of Leadscale Engine Gen5 is particularly well positioned to support the next generation of enterprise data operations. Built within Microsoft Azure and supported by ISO27001-aligned governance principles, the platform has been designed to orchestrate increasingly sophisticated data journeys across multiple systems, stakeholders and business processes. Management refers to these as composable journeys: flexible, configurable workflows capable of assembling disparate technologies, data assets and operational processes into coherent and auditable outcomes.

Beyond the Group's established expertise in lead and demand generation, management believes there is a growing market opportunity to support clients seeking automated first-party data solutions. The Group's heritage in clean-room style data environments, together with the highly granular user and permissions architecture embedded within Leadscale Engine Gen5, provides a strong foundation for these future services. The platform's multi-tenant and increasingly multi-agent architecture is expected to enable organisations to deploy both human and AI-assisted workflows within secure governance frameworks.

Whilst the Group expects the first half of 2026 to be loss-making due to a temporary reduction in revenue levels, management remains confident that performance will improve during the second half of the year. The financial recovery achieved during 2025, together with the Group's strong cash position, has provided the resources necessary to continue investing in technology, automation and product innovation. Management believes these investments will position Leadscale to capitalise on emerging market opportunities and support sustainable growth over the next five years.

ON BEHALF OF THE BOARD:

R J Caller - Director

15 July 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

DIVIDENDS

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

R J Caller

P D Goacher

E Lee

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Whitemoor Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R J Caller - Director

15 July 2026

Opinion

We have audited the financial statements of Leadscale Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other 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 31 December 2025 and of the group's profit 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner and engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining on how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of

actual, suspected and alleged fraud;

- And considering the measures in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override controls, we:

- Performed analytical procedures to identify any unusual or unexpected relationships;

- Tested journal entries to identify unusual transactions

- Assessed whether judgements and assumptions made in determining the accounting estimates that were

indicative of potential bias.

- Performed substantive testing on management expenses and transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- Agreeing financial statement disclosures to underlying supporting documentation;

- Enquiring of management as to actual and potential litigation and claims

- And reviewing available correspondence with HMRC and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Neal Brand, FCCA ACA (Senior Statutory Auditor)

for and on behalf of Whitemoor Audit LLP

5th Floor

111 Charterhouse Street

London

EC1M 6AW

16 July 2026

TURNOVER

3

14,813,735

13,205,333

Cost of sales

10,133,479

9,462,339

GROSS PROFIT

4,680,256

3,742,994

Administrative expenses

4,307,750

4,391,091

372,506

(648,097

)

Other operating income

88,384

106,468

OPERATING PROFIT/(LOSS)

5

460,890

(541,629

)

Interest receivable and similar income

42,279

52,907

503,169

(488,722

)

Interest payable and similar expenses

7

(2,246

)

(974

)

PROFIT/(LOSS) BEFORE TAXATION

505,415

(487,748

)

Tax on profit/(loss)

8

84,567

819

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

420,848

(488,567

)

Profit/(loss) attributable to:

Owners of the parent

420,848

(488,567

)

PROFIT/(LOSS) FOR THE YEAR

420,848

(488,567

)

OTHER COMPREHENSIVE INCOME

Share based payment

31,806

37,543

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

31,806

37,543

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

452,654

(451,024

)

Total comprehensive income attributable to:

Owners of the parent

452,654

(451,024

)

FIXED ASSETS

Intangible assets

11

7,445

8,265

Tangible assets

12

24,656

45,068

Investments

13

447,499

424,743

Investment property

14

936,173

936,173

1,415,773

1,414,249

CURRENT ASSETS

Stocks

15

287,184

215,899

Debtors

16

3,996,836

3,512,472

Cash at bank

1,912,044

1,988,303

6,196,064

5,716,674

CREDITORS

Amounts falling due within one year

17

3,355,030

3,053,382

NET CURRENT ASSETS

2,841,034

2,663,292

TOTAL ASSETS LESS CURRENT LIABILITIES

4,256,807

4,077,541

CAPITAL AND RESERVES

Called up share capital

18

138

138

Other reserves

90,317

58,511

Retained earnings

4,166,352

4,018,892

SHAREHOLDERS' FUNDS

4,256,807

4,077,541

The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2026 and were signed on its behalf by:

R J Caller - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

23,917

41,956

Investments

13

345,869

345,869

Investment property

14

-

-

369,786

387,825

CURRENT ASSETS

Debtors

16

3,265,005

2,791,949

Cash at bank

109,333

158,276

3,374,338

2,950,225

CREDITORS

Amounts falling due within one year

17

2,591,512

2,235,646

NET CURRENT ASSETS

782,826

714,579

TOTAL ASSETS LESS CURRENT LIABILITIES

1,152,612

1,102,404

CAPITAL AND RESERVES

Called up share capital

18

138

138

Other reserves

90,317

58,511

Retained earnings

1,062,157

1,043,755

SHAREHOLDERS' FUNDS

1,152,612

1,102,404

Company's profit/(loss) for the financial year

291,790

(148,418

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 15 July 2026 and were signed on its behalf by:

R J Caller - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2024

138

4,507,459

20,968

4,528,565

Changes in equity

Total comprehensive income

-

(488,567

)

37,543

(451,024

)

Balance at 31 December 2024

138

4,018,892

58,511

4,077,541

Changes in equity

Dividends

-

(273,388

)

-

(273,388

)

Total comprehensive income

-

420,848

31,806

452,654

Balance at 31 December 2025

138

4,166,352

90,317

4,256,807

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2024

138

1,192,173

20,968

1,213,279

Changes in equity

Total comprehensive income

-

(148,418

)

37,543

(110,875

)

Balance at 31 December 2024

138

1,043,755

58,511

1,102,404

Changes in equity

Dividends

-

(273,388

)

-

(273,388

)

Total comprehensive income

-

291,790

31,806

323,596

Balance at 31 December 2025

138

1,062,157

90,317

1,152,612

Cash flows from operating activities

Cash generated from operations

1

92,111

(1,136,798

)

Interest paid

2,246

974

Tax paid

(5,151

)

(819

)

Net cash from operating activities

89,206

(1,136,643

)

Cash flows from investing activities

Purchase of intangible fixed assets

(5,270

)

(2,474

)

Purchase of tangible fixed assets

(19,394

)

(8,596

)

Purchase of fixed asset investments

(32,838

)

(30,321

)

Sale of fixed asset investments

10,082

-

Interest received

42,279

52,907

Net cash from investing activities

(5,141

)

11,516

Cash flows from financing activities

Amount introduced by directors

-

7,885

Amount withdrawn by directors

(7,126

)

(99,918

)

EMI options granted

31,806

37,543

Government grants

88,384

106,468

Equity dividends paid

(273,388

)

-

Net cash from financing activities

(160,324

)

51,978

Decrease in cash and cash equivalents

(76,259

)

(1,073,149

)

Cash and cash equivalents at beginning of year

2

1,988,303

3,061,452

Cash and cash equivalents at end of year

2

1,912,044

1,988,303

1.	RECONCILIATION OF PROFIT/(LOSS) FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

Profit/(loss) for the financial year

420,848

(488,567

)

Depreciation charges

45,981

97,155

Government grants

(88,384

)

(106,468

)

Finance costs

(2,246

)

(974

)

Finance income

(42,279

)

(52,907

)

Taxation

84,567

819

418,487

(550,942

)

(Increase)/decrease in stocks

(71,285

)

118,645

Increase in trade and other debtors

(474,918

)

(58,084

)

Increase/(decrease) in trade and other creditors

219,827

(646,417

)

Cash generated from operations

92,111

(1,136,798

)

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 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

1,912,044

1,988,303

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,988,303

3,061,452

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank

1,988,303

(76,259

)

1,912,044

1,988,303

(76,259

)

1,912,044

Total

1,988,303

(76,259

)

1,912,044

1.	STATUTORY INFORMATION

Leadscale Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

The financial statements are prepared to the nearest whole £ GBP.

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.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Inter-company transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated Statement of Comprehensive Income from the date on which control is obtained. They are de-consolidated from the date control ceases.

Critical accounting judgements and key sources of estimation uncertainty

The Group has recognised leads as stock with a carrying value of £287,184. The leads are initially recognized at cost and are subsequently adjusted to net realizable value at the year end at the following rates:

a. Cost incurred up to 7 months prior to the year - 0% net realisable

b. Cost incurred up to 8 months prior to the year - 10% net realisable

c. Cost incurred up to 9 months prior to the year - 25% net realisable

d. Cost incurred up to 10 months prior to the year - 50% net realisable

e. Cost incurred up to 11 months prior to the year - 75% net realisable

f. Cost incurred during last month of year end - 90% net realisable

The directors have used their knowledge of the business to determine the point at which the data held in a lead becomes obsolete and have determine the write down rates that they believe to be reasonable estimates of the value of leads.

Revenue

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extend that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of service

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:

- the amount of revenue can be measured reliably

- it is probable that the Company will receive the consideration due under the contract

- the stage of completion of the contract at the end of the reporting period can be measured reliably, and

- the costs incurred and the costs to complete the contract can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

Straight line over 3 years

Computer equipment

-

Straight line over 3 years

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.