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Registration number: 06751125

Railsimulator.com Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2026

 

Railsimulator.com Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 7

Independent Auditor's Report

8 to 11

Consolidated Statement of Comprehensive Income

12

Consolidated Statement of Financial Position

13

Company Statement of Financial Position

14

Consolidated Statement of Changes in Equity

15

Company Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Notes to the Financial Statements

18 to 38

 

Railsimulator.com Limited

Company Information

Directors

G L Brown

R C O'Farrell

M D Ollard

Registered office

3rd Floor North, Fitted Rigging House
Anchor Wharf
The Historic Dockyard
Chatham
Kent
ME4 4TZ

Auditors

Constantin
Statutory Auditor200 Aldersgate Street
London
EC1A 4HD

 

Railsimulator.com Limited

Strategic Report for the Year Ended 31 March 2026

The Directors present their strategic report of Railsimulator.com Limited and its subsidiary company (the 'Group'), and the audited financial statements for the year ended 31 March 2026.

Strategy and business model

Railsimulator.com Limited, which trades as Dovetail Games, develops and publishes high quality interactive entertainment experiences.

The Group operates a premium Games as a Service business model by publishing a series of simulation game franchises that includes an extensive catalogue of downloadable content ('DLC') available to players, comprising over 1,000 items in total.

Principal products of the Group are:

Trains
Train Sim World
Train Simulator Classic

Fishing
Bassmaster® Fishing
Fishing Sim World
The Catch: Carp and Coarse
Euro Fishing

Tabletop Games
CATAN®: Console Edition

The Group has also recently released Thomas & Friends™: Wonders of Sodor in partnership with Mattel, Inc.

The Group's products are published on leading games platforms including PC, Microsoft Xbox, Sony PlayStation, Nintendo Switch and Meta Quest.

Collaboration with the leading real-world brands is integral to its focus on highly authentic simulation experiences. Third party technology providers are used in the development and delivery of the Group's games, including the Unreal engine from Epic which is incorporated into a number of products.

Games for PC are sold principally through Steam, a video game digital distribution platform operated by Valve Corporation. Games for Microsoft Xbox and Sony PlayStation are sold through the distribution platforms operated by Microsoft and Sony respectively. Physical copies of the some of the Group's games are distributed to retailers by third party wholesalers.

The strategy of the Group is to continue to develop highly authentic experiences, expand the catalogue of content available to players and grow the number of players enjoying its products by offering rich and highly engaging experiences.
 

 

Railsimulator.com Limited

Strategic Report for the Year Ended 31 March 2026 (continued)

Fair review of the business

During the year, the Group successfully released new core game for Train Sim World and brought to players Thomas & Friends™: Wonders of Sodor. Regular releases of DLC continued for the Group's franchises, driving revenue and continued player engagement.

The Company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2026

2025

Revenue

£'000

18,828

18,802

Gross margin

%

82

94

Underlying EBITDA *

£'000

12,580

12,871

Underlying EBIT **

£'000

3,662

1,754

Paid Monthly Active Users

'000

304

279

* Underlying Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) adds back to operating profit interest, depreciation, amortisation, impairment, disposal of intangible assets , monitoring fees and exceptional items but includes Video Games Tax Relief credits.

** Underlying Earnings Before Interest and Tax (EBIT) adds back to operating profit interest, monitoring fees and exceptional items but includes Video Games Tax Relief credits.

Principal risks and uncertainties

The principal risks and uncertainties affecting the Group are in the opinion of the Directors:

Global macroeconomic performance and its effect on consumer spending are uncertainties to which the Group is exposed as a participant in the computer games market. At present macroeconomic uncertainty is elevated due to the economic effects of ongoing conflicts and other factors. The Directors believe that the Group's premium games as a service model inherently mitigates macroeconomic risks to some extent, as the market for DLC is less exposed to economic conditions than new game sales. Furthermore, the Group constantly monitors the behaviour of its players and has flexibility to adjust its strategy to reflect changing market conditions.

The continued ability to attract, retain, and motivate the talented team members necessary to deliver high quality products is important to Group's ongoing success. To maintain its position in the labour market the Group invests to develop a distinctive culture and a strong employee value proposition.

As the computer games market evolves continuously the Group is exposed to the risk of an adverse change in the competitive position of its products within their respective vertical markets. Continuous investment in features, content, and technology to maintain and strengthen the differentiation of its products is a high priority for the Group, together with ongoing market and community engagement to understand the needs of its current and future customers.

Distribution to the video games market is concentrated in a small number of digital storefronts. The failure of a storefront or a material change in the business model of a platform operator could impact the Group's ability to market its products. These digital storefronts are operated by large well-capitalised enterprises with good credit standing. The Group publishes across five digital storefronts providing diversification, and also maintains close working relationships with platform operators in in order to understand their commercial agenda and reflect this in the Group's strategy.

The Group is inherently exposed to cybersecurity risks due to the digital nature of its business. Measures are in place to mitigate these risks including internal security procedures and relevant insurance.

As the Group sells globally generating revenues in many currencies it is exposed to change in foreign exchange rates, primarily the US Dollar and Euro. The Group maintains flexibility in its operating model to adjust to changing FX rates.

 

Railsimulator.com Limited

Strategic Report for the Year Ended 31 March 2026 (continued)

The Group is exposed to the effects of general price and wage inflation on the operating costs incurred in the course of its business. To the extent that such cost inflation cannot be recovered from the Group's customers it presents a risk to the financial performance of the Group. As the Group occupies a leading position in its primary vertical market and maintains flexibility in its operating cost base the Directors believe that it has a degree of flexibility to mitigate these risks.

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 

.........................................
R C O'Farrell
Director

 

Railsimulator.com Limited

Directors' Report for the Year Ended 31 March 2026

The Directors present their report and the for the year ended 31 March 2026.

Principal activity

The principal activity of the Group is the creation and publishing of video games.

Directors of the Group

The Directors who held office during the year were as follows:

G L Brown

R C O'Farrell

M D Ollard

J L Rissik (Resigned 7 April 2025)

Dividends
There were no dividends paid during the year.

Directors' Indemnities

The Directors have benefited from qualifying third party indemnity insurance in place during the financial year in respect of this entity, the terms of which are in accordance with the Companies Act 2006.

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 Group and the Company 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 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 Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Railsimulator.com Limited

Directors' Report for the Year Ended 31 March 2026 (continued)

Financial instruments

Financial risk management objectives and policies

The Group makes use of financial instruments comprising cash, borrowings from its parent Company, and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the Group's operations.

The main risks arising from the Group's financial instruments are currency risk, credit risk, and liquidity risk. The Group has no interest in the trade of financial instruments or derivatives.

Price risk, credit risk, liquidity risk and cash flow risk

Currency Risk

The Group maintains bank balances in Pounds Sterling, United States Dollars, and Euros. It has revenue and makes supplier payments in the same currencies. The currency mix of receipts and payments differs, and therefore the Group is exposed to transactional foreign exchange risk. The Group maintains flexibility in its operating model to adjust to changing FX rates.

Credit Risk

The Group is exposed to credit risk through trade debtors due from its customers. The Group operates customer acceptance and credit control processes in order to manage this risk.

Liquidity Risk

The Group seeks to manage liquidity risk by ensuring that sufficient liquid funds are available to meet its expected cash needs.

Interest Rate Risk

The loans from Group companies are under long-term agreements with an agreed interest rate which subsequently mitigates the Group’s exposure to interest rate risk.

Future developments

The Directors expect the Group to continue to grow and develop its business in the forthcoming years by adding to its catalogue of products, expanding the audience for its products by widening their distribution, increasing the engagement of its users by developing richer experiences, and benefiting from the continued growth of relevant video games platforms globally. The Directors further expect the Group to continue to benefit from tax incentives in relation to video game development provided by the UK Government.

Subsequent events

There have been no material subsequent events requiring adjustment to or disclosure in the financial statements.

Going concern

The Board of Directors have assessed a period of not less than 12 months from the date of these financial statements. The Board are of the view that the Group will continue to meet its liabilities as they fall due and therefore that the going concern basis of preparation is appropriate. For further details see note 2 within accounting policies.

 

Railsimulator.com Limited

Directors' Report for the Year Ended 31 March 2026 (continued)

Disclosure of information to the auditor

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 


R C O'Farrell
Director

 

Railsimulator.com Limited

Independent Auditor's Report to the Members of Railsimulator.com Limited

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Railsimulator.com Limited (the ‘Parent Company’) and its subsidiaries (the ‘Group’):

give a true and fair view of the state of the Group's and the Parent Company's affairs as at 31 March 2026 and of the Group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; including Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and

have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements which comprise:

the consolidated statement of comprehensive income;

the consolidated statement of financial position;

the statement of financial position;

the consolidated statement of changes in equity;

the statement of changes in equity;

the consolidated statement of cash flows;

the statement of accounting policies; and

the related notes 1 to 23.

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).

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’s responsibilities for the audit of the financial statements section of our report.

We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.

 

Railsimulator.com Limited

Independent Auditor's Report to the Members of Railsimulator.com Limited (continued)

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Director's 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 Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements were 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, other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the annual report. 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.

Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement, 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 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.

Auditor 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 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 FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Railsimulator.com Limited

Independent Auditor's Report to the Members of Railsimulator.com Limited (continued)

Extent to which the audit was capable of detecting irregularities, including fraud
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 considered the nature of the Group’s industry and its control environment, and reviewed the Group’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and the Directors about their own identification and assessment of the risks of irregularities, including those that are specific to the Group’s business sector.

We obtained an understanding of the legal and regulatory framework that the Group operates in, and identified the key laws and regulations that:

had a direct effect on the determination of material amounts and disclosures in the financial statements. This included UK Companies Act and tax legislation; and

do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team including relevant internal specialists such as tax and IT industry specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud the following area, and our procedures performed to address it are described below:

revenue recognition in relation to the cut-off assertion for external sales.

Our procedures involved:

understanding the process and testing the design and implementation of controls in place on
revenue recognition;

obtaining post year end third party evidence and validating the revenue recognition.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Report on other legal and regulatory requirements

 

Railsimulator.com Limited

Independent Auditor's Report to the Members of Railsimulator.com Limited (continued)

Opinion 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 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 Group and of the Parent Company and their environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters 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.

We have nothing to report in respect of these matters.

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.

......................................
Mark Bathgate (Senior Statutory Auditor)
For and on behalf of Constantin
Chartered Accountants and Statutory Auditor

200 Aldersgate Street
London
EC1A 4HD

10 August 2026

 

Railsimulator.com Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2026

Note

2026
£

2025
£

Turnover

3

18,827,797

18,802,414

Cost of sales

 

(3,428,749)

(1,162,910)

Gross profit

 

15,399,048

17,639,504

Administrative expenses before exceptional items

 

(16,665,625)

(19,880,908)

Exceptional expenses

-

-

Administrative expenses

 

(16,665,625)

(19,880,908)

Other operating income

4

4,928,671

3,995,404

Operating profit

5

3,662,094

1,754,000

Other interest receivable and similar income

6

199,898

219,014

Interest payable and similar expenses

7

(276,117)

(270,381)

   

(76,219)

(51,367)

Profit before tax

 

3,585,875

1,702,633

Tax on profit

10

(476,632)

-

Profit for the financial year

 

3,109,243

1,702,633

The Group has no recognised gains or losses for the year other than the results above. The comprehensive income is therefore equal to the profit for the financial year.

 

Railsimulator.com Limited

(Registration number: 06751125)
Consolidated Statement of Financial Position as at 31 March 2026

Note

2026
£

2025
£

Fixed assets

 

Intangible assets

12

10,920,754

10,518,659

Tangible assets

13

342,433

314,791

 

11,263,187

10,833,450

Current assets

 

Debtors

15

11,864,483

10,392,992

Cash at bank and in hand

16

5,008,043

3,825,724

 

16,872,526

14,218,716

Creditors: Amounts falling due within one year

17

(2,876,796)

(3,121,671)

Net current assets

 

13,995,730

11,097,045

Total assets less current liabilities

 

25,258,917

21,930,495

Creditors: Amounts falling due after more than one year

17

(5,748,122)

(5,528,943)

Net assets

 

19,510,795

16,401,552

Capital and reserves

 

Called up share capital

19

15,101

15,101

Share premium reserve

20

2,075,858

2,075,858

Profit and loss account

20

17,419,836

14,310,593

Equity attributable to owners of the Company

 

19,510,795

16,401,552

Shareholders' funds

 

19,510,795

16,401,552

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 


R C O'Farrell
Director


M D Ollard
Director

 

Railsimulator.com Limited

(Registration number: 06751125)
Company Statement of Financial Position as at 31 March 2026

Note

2026
£

2025
£

Fixed assets

 

Intangible assets

12

10,920,754

10,518,659

Tangible assets

13

342,433

314,791

Investments

14

1

1

 

11,263,188

10,833,451

Current assets

 

Debtors

15

9,701,919

12,757,249

Cash at bank and in hand

16

1,877,928

2,062,220

 

11,579,847

14,819,469

Creditors: Amounts falling due within one year

17

(9,294,796)

(11,196,203)

Net current assets

 

2,285,051

3,623,266

Total assets less current liabilities

 

13,548,239

14,456,717

Creditors: Amounts falling due after more than one year

17

(5,748,122)

(5,528,943)

Net assets

 

7,800,117

8,927,774

Capital and reserves

 

Called up share capital

19

15,101

15,101

Share premium reserve

20

2,075,858

2,075,858

Profit and loss account

20

5,709,158

6,836,815

Shareholders' funds

 

7,800,117

8,927,774

The Company made a loss after tax for the financial year of £1,127,657 (2025 - loss of £1,938,168).

Approved and authorised by the Board on 10 August 2026 and signed on its behalf by:
 


R C O'Farrell
Director


M D Ollard
Director

 

Railsimulator.com Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2026
Equity attributable to the parent company

Share capital
£

Share premium
£

Profit and loss account
£

Total equity
£

At 1 April 2025

15,101

2,075,858

14,310,593

16,401,552

Profit for the year

-

-

3,109,243

3,109,243

At 31 March 2026

15,101

2,075,858

17,419,836

19,510,795

Share capital
£

Share premium
£

Profit and loss account
£

Total equity
£

At 1 April 2024

15,101

2,075,858

12,607,960

14,698,919

Profit for the year

-

-

1,702,633

1,702,633

At 31 March 2025

15,101

2,075,858

14,310,593

16,401,552

 

Railsimulator.com Limited

Company Statement of Changes in Equity for the Year Ended 31 March 2026

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 April 2025

15,101

2,075,858

6,836,815

8,927,774

Loss for the year

-

-

(1,127,657)

(1,127,657)

At 31 March 2026

15,101

2,075,858

5,709,158

7,800,117

Share capital
£

Share premium
£

Profit and loss account
£

Total
£

At 1 April 2024

15,101

2,075,858

8,774,983

10,865,942

Loss for the year

-

-

(1,938,168)

(1,938,168)

At 31 March 2025

15,101

2,075,858

6,836,815

8,927,774

 

Railsimulator.com Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2026

Note

2026
£

2025
£

Cash flows from operating activities

Profit for the year

 

3,109,243

1,702,633

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

8,133,761

7,104,441

Impairment of intangible assets

12

-

1,037,142

Loss on disposal of tangible assets

21,183

323

Loss on disposal of intangible assets

784,093

2,976,163

Finance income

6

(199,898)

(219,014)

Finance costs

7

276,117

270,381

Income tax expense

10

476,632

-

Tax credit shown within other operating income

 

(4,765,693)

(3,901,269)

 

7,835,438

8,970,800

Working capital adjustments

 

(Increase)/decrease in trade debtors

15

(776,151)

655,913

(Decrease)/increase in trade creditors

17

(257,213)

829,377

Cash generated from operations

 

6,802,074

10,456,090

Income taxes received

10

3,879,160

2,432,175

Net cash flow from operating activities

 

10,681,234

12,888,265

Cash flows from investing activities

 

Interest received

4,365

779

Acquisitions of tangible assets

(241,141)

(182,328)

Proceeds from sale of tangible assets

 

-

67

Acquisition of intangible assets

12

(9,127,633)

(12,186,276)

Advances of loans, classified as investing activities

 

(89,906)

(875,834)

Loan advance repaid, classified as investing activities

 

-

799,254

Net cash flows from investing activities

 

(9,454,315)

(12,444,338)

Cash flows from financing activities

 

Proceeds from other borrowing draw downs

 

-

2,100,000

Repayment of other borrowing

 

(44,600)

(5,000)

Net cash flows from financing activities

 

(44,600)

2,095,000

Net increase in cash and cash equivalents

 

1,182,319

2,538,927

Cash and cash equivalents at 1 April

 

3,825,724

1,286,797

Cash and cash equivalents at 31 March

 

5,008,043

3,825,724

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026

1

General information

The Company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
3rd Floor North, Fitted Rigging House
Anchor Wharf
The Historic Dockyard
Chatham
Kent
ME4 4TZ

These financial statements were authorised for issue by the Board on 10 August 2026.

The nature of the Group's operations and its principal activity is set out in the Director's Report.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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.

Statement of compliance

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

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in sterling which is the functional currency of the entity. All amounts in the financial statements have been rounded to the nearest £1.

Summary of disclosure exemptions

The Parent Company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.
(b) No Cash Flow Statement has been presented for the Company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Basis of consolidation

The financial statements consolidate the financial statements of Railsimulator.com Limited and all of its subsidiary undertakings, as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The Parent Company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Going concern

The Board of Directors have assessed a period of not less than 12 months from the date of these financial statements. Taking the actual and expected financial performance, financial position, liquidity, and maturity of debt facilities of the Group into account, the Board of Directors are of the view that the Group will continue to meet its liabilities as they fall due and therefore that the going concern basis of preparation is appropriate.

In forming this view, the Group has prepared forecasts of future revenues, profits, cashflows, and net assets that take into account a range of factors including conditions in the computer games market, the performance of the Group’s games franchises, and macroeconomic conditions, in particular expected general cost and wage inflation.

The Board of Directors have also considered possible cashflow impacts of changes in the release dates of key products, significant variances in revenue performance and timing of other key cash events, such as the timing of tax credits. The Board is comfortable that the ultimate parent company is aware of these items and that they are covered by the letter of support which is in place with the ultimate parent Company, PulluP Entertainment S.A.

Revenue recognition

Revenue includes income from the sale of games and downloadable content for the Group's games. The Group develops, produces and sells video games to digital and physical distributors, who are considered to be the Group's customers when assessing revenue recognition.

The majority of the Company's revenue is received from third party distributors who have a licence to sell the Group's games to consumers. Revenue is recognised at the point at which the distributor sells the content to the consumer. The transaction price is the amount the Company is entitled to in accordance with the contractual agreement with the third party distributor.

Periodically, the Company enters into contracts for a fixed amount of revenue in exchange for making a game available to a third-party games platform for their customers to use for an agreed period of time, with minimal future performance obligations arising for the Company. The fixed amount is recognised upon satisfying the performance obligation of providing the game licence to the relevant games platform, being the date the game is first made available on the platform. To the extent that such platform licences include an element of variable consideration this is recognised when received, unless it is able to be reliably estimated.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Revenue recognition (continued)
Revenue from pre-order sales is deferred, then recognised when the Group meets its performance obligations upon commercial release of the game.

For royalties receivable, income is recognised in the period in which it is earned.

Video Games Tax Relief Credit

Video Games Tax Relief credits ('VGTR') are only recognised where it is the Directors' belief that a tax credit will be recoverable. This is based upon the Group's experience of obtaining the required certification to facilitate its titles in development to qualify for VGTR and success at previous claims.

VGTR is recognised in other operating income in the Statement of Comprehensive Income.

Exceptional items

Exceptional items are presented separately due to their size or incidence.

Tax

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the Statement of Financial Position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Asset class

Depreciation method and rate

Leasehold improvements

7 years

Fixtures and fittings

5 years

Office equipment

3 years

Impairment

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.

Intangible assets

Intangible assets: software development

Expenditure on internally developed software products and substantial enhancements to existing software products is recognised as an intangible asset only when all of the following criteria are met:

it is technically feasible to develop the product to be used or sold;

there is an intention to complete and use or sell the product;

the Company is able to use or sell the product;

use or sale of the product will generate future economic benefits;

adequate resources are available to complete the development; and

expenditure on the development of the product can be measured reliably.

The capitalised expenditure represents costs directly attributable to the development of the asset from the point at which the above criteria are met up to the point at which the product is ready for use. If the qualifying conditions are not met, such development expenditure is recognised as an expense in the period which it is incurred.

Development costs largely relate to employment costs of internal development teams and amounts paid to external service providers.

Capitalised development expenditure is reviewed at the end of each accounting period for the conditions set out above and indicators of impairment. Intangible assets that are not yet available for use are tested for impairment annually by comparing their carrying amount with their recoverable amount based on cash flow forecasts for the relevant products.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Amortisation

Costs are amortised upon release of the relevant item over its estimated useful life. The amortisation period is determined by the type of item, ranging from 1 to 4 years. Amortisation is calculated to reflect the pattern of consumption of future economic benefits of the relevant item which is either time-weighted to reflect its expected sales profile or if this is not possible on a straight-line basis.

Amortisation is recognised within the Administrative Expenses within the Statement of Comprehensive Income.

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Asset class

Amortisation method and rate

Development costs

1 to 4 years

Bespoke software

3 years

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the Statement of Financial Position, bank overdrafts are shown within borrowing or current liabilities

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Provisions

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Operating leases as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Financial instruments

The Group 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/from related parties and investments in ordinary shares.
 
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially
and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at
the present value of future cash flows discounted at a market rate of interest for a similar debt instrument at amortised cost.


For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Estimates include:

Measurement, useful lives and impairment of intangible assets

After assessing the carrying value of each intangible asset which is not yet ready for use at the reporting date, which is shown net of any impairment charge posted, the Directors are confident that the forecast cash generation is in excess of the intangible asset held. The forecast cash generation is taken from the Group’s forecasts which cover the trading expectations for a minimum of two years
after the reporting date. The forecast revenue and cash generation from each intangible asset are separately identifiable within the forecasts. The forecast cash generation represents significant assumptions regarding its commercial performance, should the assumptions prove to be significantly incorrect there would be a risk of material adjustment in the financial year following the release of that product.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

2

Accounting policies (continued)

Amortisation of capitalised development costs

Capitalised development costs are amortised upon release of the relevant item over its estimated useful life as per the accounting policy. The amortisation period is determined for each type of item and ranges from 1 to 4 years. Amortisation is calculated to reflect the pattern of consumption of future economic benefits of the relevant item which is either revenue-weighted to reflect the expected sales
profile or on straight-line basis. This policy is reviewed periodically and adjusted as needed to reflect changes in the underlying product lifecycle.

Items are classified as either core games, content, or core technology. Within each franchise core games are typically superseded by a new iteration after a period and for this reason are normally amortised over 12 months from release. Content typically remains on sale for the life of the franchise and is not usually superseded by a subsequent release. Sales are expected to decline over time as content ages, and therefore amortisation is weighted based on expected revenue.

Weightings for the existing catalogue are 65% in the first year of release, 20-25% in the second year, 10-15% in the third year. Core technology that is common across a franchise is amortised on a straight-line basis over 4 years. Further details are shown in note 13 within these financial statements.

Judgements

In the course of preparing these financial statements, judgements have been made in the process of applying the accounting policies that have had a significant effect in the amounts recognised in the financial statements. The following are areas requiring the use of judgements that may significantly impact the financial statements.

Revenue recognition

The Directors have reviewed the contractual agreements with its distributors. This is a material judgement as the disclosure of revenue is significantly different between a principal and agent. The
Directors have concluded that the end third-party distributors are responsible for fulfilling the contract and have discretion in setting prices for end users. As such, the Directors have assessed under FRS
102 from Contracts with Customers that it is appropriate to treat the Distributor as the Group's customer.

Capitalisation of development expenditure

The Directors have to make judgements as to whether development expenditure has met the criteria for capitalisation or whether it should be expensed in the year. Development expenditure is capitalised
only when it can be demonstrated that the criteria are met.

3

Turnover

The analysis of the Group's turnover for the year from continuing operations is as follows:

2026
£

2025
£

Sales, UK

4,089,154

4,441,324

Sales, Europe

455,190

43,166

Sales, Rest of the World

14,283,453

14,317,924

18,827,797

18,802,414

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

4

Other operating income

The analysis of the Group's other operating income for the year is as follows:

2026
£

2025
£

Miscellaneous other operating income

4,928,671

3,995,404

Other operating income includes £4,765,693 (2025 - £3,902,269) in respect of Video Games Tax Relief credit.

5

Operating profit

Arrived at after charging/(crediting)

2026
£

2025
£

Amortisation expense

7,941,445

6,933,762

Depreciation expense

192,316

170,679

Impairment loss

-

1,037,142

Loss on disposal of property, plant and equipment

21,183

323

Loss on disposal on internally generated software development costs

784,093

2,976,163

Foreign exchange losses

6,741

33,285

Research and development cost

734,535

243,323

Audit of the financial statements

67,400

60,000

Operating lease expense

232,548

196,724

Pension costs, defined contribution scheme

211,772

191,959

6

Other interest receivable and similar income

2026
£

2025
£

Interest income on bank deposits

36

779

Other finance income

199,862

218,235

199,898

219,014

7

Interest payable and similar expenses

2026
£

2025
£

Interest expense on other finance liabilities

276,117

270,381

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

8

Staff costs

The aggregate payroll costs (including Directors' remuneration), stated after amounts capitalised to intangible assets, were as follows:

 

Group

Company

2026
£

2025
£

2026
£

2025
£

Wages and salaries

8,704,312

8,245,856

8,704,312

8,245,856

Social security costs

1,006,883

836,878

1,006,883

836,878

Pension costs, defined contribution scheme

211,772

191,959

211,772

191,959

Amounts capitalised

(5,666,378)

(5,402,638)

(5,666,378)

(5,402,638)

 

4,256,589

3,872,055

4,256,589

3,872,055

The average number of persons employed by the Group (including Directors) during the year, analysed by category was as follows:

2026
No.

2025
No.

Corporate

3

4

Studio

114

110

Marketing

25

24

QA & Localisation

21

21

Business support services

22

20

185

179

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

9

Directors' remuneration

The Directors' remuneration for the year was as follows:

2026
£

2025
£

Remuneration

703,627

831,725

Contributions paid to money purchase schemes

17,560

20,395

721,187

852,120

During the year the number of Directors who were receiving benefits and share incentives was as follows:

2026
No.

2025
No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid Director:

2026
£

2025
£

Remuneration

237,920

226,231

Company contributions to money purchase pension schemes

6,090

5,103

 

244,010

231,334

The Directors are considered to be the key management personnel of the Group.

10

Taxation

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2025 - lower than the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below:

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

10

Taxation (continued)

2026
£

2025
£

UK corporation tax

476,632

-

Group Video Games Tax Relief credits repayable

(4,765,693)

(3,901,269)

Group Video Games Tax Relief credits classified as other operating income

4,765,693

3,901,269

Total current tax

476,632

-

The Group has unused corporation tax losses carried forward at the year-end of £9,205,457 (2025: £8,494,509). Deferred tax not recognised on these losses as at 31 March 2026 is £2,301,364 (2025: £2,123,627).

2026
£

2025
£

Profit before tax

3,585,875

1,702,633

Corporation tax at standard rate

896,469

425,658

Fixed asset differences

14,329

6,552

Non-taxable income

(685,742)

96

Expenses not deductible for tax purposes

2,549

(975,317)

Deferred tax not recognised

240,870

303,174

Video game development tax profit adjustment

(2,983,816)

(3,639,806)

Adjustment to tax charge in respect of previous periods

-

(22,234)

Other permanent differences

-

615

Reclassification of video games tax credit to other operating income

2,991,973

3,901,262

Total tax charge

476,632

-

Future tax rate changes

The main rate of corporation tax in the UK is 25%.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

11

Parent Company (loss)/profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £1,127,657 (2025 - £(1,938,168) loss).

12

Intangible assets

Group

Internally generated software development costs
 £

Bespoke software
£

Total
£

Cost or valuation

At 1 April 2025

54,088,227

59,500

54,147,727

Additions

9,125,008

2,625

9,127,633

Disposals

(784,093)

-

(784,093)

At 31 March 2026

62,429,142

62,125

62,491,267

Amortisation

At 1 April 2025

43,629,068

-

43,629,068

Amortisation charge

7,920,810

20,635

7,941,445

At 31 March 2026

51,549,878

20,635

51,570,513

Carrying amount

At 31 March 2026

10,879,264

41,490

10,920,754

At 31 March 2025

10,459,159

59,500

10,518,659

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

12

Intangible assets (continued)

Company

Internally generated software development costs
 £

Bespoke software
£

Total
£

Cost or valuation

At 1 April 2025

54,088,227

59,500

54,147,727

Additions

9,125,008

2,625

9,127,633

Disposals

(784,093)

-

(784,093)

At 31 March 2026

62,429,142

62,125

62,491,267

Amortisation

At 1 April 2025

43,629,068

-

43,629,068

Amortisation charge

7,920,810

20,635

7,941,445

At 31 March 2026

51,549,878

20,635

51,570,513

Carrying amount

At 31 March 2026

10,879,264

41,490

10,920,754

At 31 March 2025

10,459,159

59,500

10,518,659

Software development costs relate to the direct employment and overhead costs of the internal development teams, and other external software development costs. Amortisation of software development costs commences upon release of the game and is recognised within administrative expenses in the Statement of Comprehensive Income. Included within software development costs as at 31 March 2026 is £5,790,779 (2025 - £3,081,803) relating to intangible assets under production for which amortisation has not yet commenced.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

13

Tangible assets

Group

Leasehold improvements
£

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 April 2025

339,359

192,667

1,146,582

1,678,608

Additions

48,108

-

193,033

241,141

Disposals

(63,526)

(14,067)

(7,516)

(85,109)

At 31 March 2026

323,941

178,600

1,332,099

1,834,640

Depreciation

At 1 April 2025

276,205

183,093

904,519

1,363,817

Charge for the year

36,131

5,086

151,099

192,316

Eliminated on disposal

(43,650)

(12,945)

(7,331)

(63,926)

At 31 March 2026

268,686

175,234

1,048,287

1,492,207

Carrying amount

At 31 March 2026

55,255

3,366

283,812

342,433

At 31 March 2025

63,154

9,574

242,063

314,791

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

13

Tangible assets (continued)

Company

Leasehold improvements
£

Fixtures and fittings
£

Office equipment
£

Total
£

Cost or valuation

At 1 April 2025

339,359

192,667

1,146,582

1,678,608

Additions

48,108

-

193,033

241,141

Disposals

(63,526)

(14,067)

(7,516)

(85,109)

At 31 March 2026

323,941

178,600

1,332,099

1,834,640

Depreciation

At 1 April 2025

276,205

183,093

904,519

1,363,817

Charge for the year

36,131

5,086

151,099

192,316

Eliminated on disposal

(43,650)

(12,945)

(7,331)

(63,926)

At 31 March 2026

268,686

175,234

1,048,287

1,492,207

Carrying amount

At 31 March 2026

55,255

3,366

283,812

342,433

At 31 March 2025

63,154

9,574

242,063

314,791

14

Investments

Group

The group has no investments.

Company

Shares in Group undertaking
£

Cost or valuation

At 1 April 2025

1

At 31 March 2026

1

Impairment

At 1 April 2025

-

At 31 March 2026

-

Carrying amount

At 31 March 2026

1

At 31 March 2025

1

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

14

Investments (continued)

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2026

2025

Subsidiary undertakings

Dovetail Games (Scotland) Limited

Suite 2, Ground Floor, Orchard Brae House, 30 Queensferry Road, Edinburgh EH4 2HS

Scotland

Ordinary £1

100%

100%

Subsidiary undertakings

Dovetail Games (Scotland) Limited

The principal activity of Dovetail Games (Scotland) Limited is video game development.

15

Debtors

   

Group

Company

Current

Note

2026
£

2025
£

2026
£

2025
£

Trade debtors

 

396,674

137,915

396,674

137,915

Amounts owed by related parties

22

4,157,667

3,872,228

6,322,695

9,961,291

Other debtors

 

4,534,177

4,058,642

206,585

333,836

Prepayments

 

276,456

211,101

276,456

211,101

Accrued income

 

2,499,509

2,113,106

2,499,509

2,113,106

   

11,864,483

10,392,992

9,701,919

12,757,249

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

15

Debtors (continued)

Group

Amounts owed by Group related parties of £4,157,667 (2025 - £3,872,228) are repayable on demand. Interest is due on outstanding amounts at the reference rate of paragraph 1.3° of Article 39 of the French “Code General des Impots” corresponding to the annual average of the average effective rates charged by credit institutions for variable-rate loans to businesses with an initial term of more than two years.

Within other debtors is an amount of £4,288,930 (2025 - £3,879,029) which represents Video Games Tax Relief due to the Group. The amount due to the Company is £20,189 (2025 - £248,036).

Within other debtors is an amount of £58,851 (2025 - £81,387) in respect of Value Added Tax due to the Group. The amount due from the Company is £37,526 and is included in creditors (2025 - £56,394 creditor).

16

Cash and cash equivalents

 

Group

Company

2026
£

2025
£

2026
£

2025
£

Cash at bank

5,005,521

3,823,238

1,875,406

2,059,734

Short-term deposits

2,522

2,486

2,522

2,486

5,008,043

3,825,724

1,877,928

2,062,220

17

Creditors

   

Group

Company

Note

2026
£

2025
£

2026
£

2025
£

Due within one year

 

Trade creditors

 

555,296

665,852

350,179

439,872

Amounts due to related parties

22

-

-

6,890,877

8,496,455

Social security and other taxes

 

220,472

187,907

257,998

244,301

Other payables

 

3,124

8,549

3,124

8,549

Accruals

 

2,097,904

2,259,363

1,792,618

2,007,026

 

2,876,796

3,121,671

9,294,796

11,196,203

Due after one year

 

Amounts due to related parties

22

5,748,122

5,528,943

5,748,122

5,528,943

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

17

Creditors (continued)


Included within creditors: amounts falling due after more than one year is an amount of £5,748,122 (2025 - £5,528,943) in respect of liabilities payable or repayable, other than by instalments which fall due for payment after two years but within five years from the reporting date. The creditor is in respect of a loan from the Company's immediate parent Company (see note 22). Interest is due on outstanding amounts at the reference rate of paragraph 1.3° of Article 39 of the French “Code General des Impots” corresponding to the annual average of the average effective rates charged by credit institutions for variable-rate loans to businesses with an initial term of more than two years.

18

Pension and other schemes

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £211,772 (2025 - £191,959).

19

Share capital

Allotted, called up and fully paid shares

2026

2025

No.

£

No.

£

Ordinary 1 shares of £0.01 each

1,044,809

10,448

1,044,809

10,448

A1 Ordinary shares of £0.01 each

383,378

3,834

383,378

3,834

A2 Ordinary shares of £0.01 each

81,942

819

81,942

819

1,510,129

15,101

1,510,129

15,101

Rights, preferences and restrictions

Ordinary 1, A1 Ordinary and A2 Ordinary shares rank pari passu in terms of dividend and of voting rights. Upon winding up or liquidation of the Company, A1 Ordinary and A2 Ordinary shares shall receive a priority balance of surplus assets.

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

20

Reserves

Profit and loss account
The profit and loss account represents cumulative profits and losses, net of dividends paid and other adjustments.

Share premium account
The share premium account includes the premium on issue of equity shares, net of any issue costs.

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2026
£

2025
£

Not later than one year

180,455

143,395

Later than one year and not later than five years

627,293

-

807,748

143,395

Company

Operating leases

The total of future minimum lease payments is as follows:

2026
£

2025
£

Not later than one year

180,455

143,395

Later than one year and not later than five years

627,293

-

807,748

143,395

22

Related party transactions

At the year-end an amount of £4,157,667 (2025 - £3,872,228) was owed by the parent Company of the Group. Interest incurred during the year amounted to £195,533 (2025 - £218,235). An amount of £42,225 (2025 - £12,930) was also owed by the parent Company of the Group, which is included within Trade debtors and amounts re-charged in the year amounted to £119,201 (2025 - £89,309).

At the year-end an amount of £5,748,122 was owed to the immediate parent Company (2025 - £5,528,943). Interest incurred during the year amounted to £276,117 (2025 - £270,381).

 

Railsimulator.com Limited

Notes to the Financial Statements for the Year Ended 31 March 2026 (continued)

23

Controlling party

No one individual had control over the Group as at 31 March 2026.

 The Company's immediate parent is Dovetail Games Holding Limited, incorporated in Guernsey.

 The ultimate parent is PulluP Entertainment S.A., incorporated in France. The address of the Company is Parc de Flandre, "Le Beauvaisis" Building 28, 11 rue de Cambrai, 75019 Paris.

The parent of the smallest Group in which these financial statements are consolidated is Dovetail Games Holding Limited.

 The most senior parent entity producing publicly available financial statements is PulluP Entertainment S.A.. These financial statements are available upon request from https://www.infogreffe.fr/entreprise .