1-1-2025 31-12-2025 31-12-2025 No description of principal activity IRIS Elements Accounts Production 26.4 false 29 31 iso4217:GBP iso4217:USD iso4217:EUR iso4217:JPY iso4217:CHF iso4217:AED xbrli:shares xbrli:pure 03616607 2025-01-01 03616607 2025-12-31 03616607 2025-01-01 2025-12-31 03616607 2024-01-01 03616607 2024-01-01 2024-12-31 03616607 2024-12-31 03616607 ns14:PoundSterling 2025-01-01 2025-12-31 03616607 ns10:FilletedAccounts 2025-01-01 2025-12-31 03616607 ns10:SmallEntities 2025-01-01 2025-12-31 03616607 ns10:SmallCompaniesRegimeForAccounts 2025-01-01 2025-12-31 03616607 ns10:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 03616607 ns10:AuditExemptWithAccountantsReport 2025-01-01 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:AfterOneYear ns5:Non-currentFinancialInstruments 2025-12-31 03616607 ns5:AfterOneYear ns5:Non-currentFinancialInstruments 2024-12-31 03616607 ns5:ShareCapital 2025-12-31 03616607 ns5:ShareCapital 2024-12-31 03616607 ns5:OtherReservesSubtotal 2025-12-31 03616607 ns5:OtherReservesSubtotal 2024-12-31 03616607 ns5:RetainedEarningsAccumulatedLosses 2025-12-31 03616607 ns5:RetainedEarningsAccumulatedLosses 2024-12-31 03616607 ns10:Director1 2025-01-01 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-12-31 03616607 ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:WithinOneYear 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:WithinOneYear ns5:CurrentFinancialInstruments 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2025-12-31 03616607 ns5:CurrentFinancialInstruments ns5:WithinOneYear 2024-12-31 03616607 ns5:AfterOneYear ns5:Non-currentFinancialInstruments 2025-12-31 03616607 ns5:AfterOneYear ns5:Non-currentFinancialInstruments 2024-12-31

| Company registration number: | 03616607
| Annual report and unaudited financial statements
| for the year ended 31 December 2025
| for
| Mentor Communications Consultancy Limited
| Pages for filing with the Registrar

| Company registration number: | 03616607
| Mentor Communications Consultancy Limited
| Balance sheet
| as at 31 December 2025
|  |  | 2025 |  | 2024
|  | Note |  | £ |  | £ |  | £ |  | £
| Fixed assets |  |  |  |  |  |  |  |  |
| Tangible assets | 5 |  | 47,300 |  |  |  | 45,242 |  |
|  |  |  |  |  | 47,300 |  |  |  | 45,242
| Current assets |  |  |  |  |  |  |  |  |
| Debtors | 6 |  | 535,399 |  |  |  | 675,807 |  |
| Cash at bank and in hand |  |  | 744,856 |  |  |  | 547,680 |  |
|  |  |  |  |  | 1,280,255 |  |  |  | 1,223,487
| Creditors: amounts falling due within one year | 7 |  |  |  | (730,214) |  |  |  | (640,380)
| Net current assets |  |  |  |  | 550,041 |  |  |  | 583,107
| Total assets less current liabilities |  |  |  |  | 597,341 |  |  |  | 628,349
| Creditors: Amounts falling due after more than one year | 8 |  |  |  | (963) |  |  |  | (3,370)
| Provisions for liabilities |  |  |  |  | (4,950) |  |  |  | (7,100)
| NET ASSETS |  |  |  |  | 591,428 |  |  |  | 617,879
| Capital and reserves |  |  |  |  |  |  |  |  |
| Called up share capital |  |  |  |  | 77 |  |  |  | 77
| Other reserves |  |  |  |  | 4,498 |  |  |  | 6,423
| Profit and loss account |  |  |  |  | 586,853 |  |  |  | 611,379
| TOTAL EQUITY |  |  |  |  | 591,428 |  |  |  | 617,879
| The company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies for the year ended 31 December 2025.
| The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
| The directors acknowledge their responsibilities to comply with the Companies Act 2006 in respect to accounting records and the preparation of financial statements.
| 1

| Company registration number: | 03616607
| Mentor Communications Consultancy Limited
| Balance sheet - continued
| as at 31 December 2025
| The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
| In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered to the Registrar.
| These financial statements were approved by the Board of directors and authorised for issue on 11 August 2026 and signed on its behalf by:
| Mr T Coulsting, Director |  |
| 11 August 2026 |  |
| 2

| Mentor Communications Consultancy Limited
| Notes to the financial statements
| for the year ended 31 December 2025
| 1 | Company information
|  | Mentor Communications Consultancy Limited is a private company registered in England and Wales. Its registered number is 03616607. The company is limited by shares. Its registered office is Mentor Communications Consultancy Ltd, 4 West End, Bristol, Avon, BS2 8NE.
| 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” including the provisions of Section 1A “Small Entities” and the Companies Act 2006. The financial statements have been prepared under the historic cost convention.
|  | Going concern
|  | In preparing these financial statements, the directors have assessed whether there are any material uncertainties related to events or conditions that cast significant doubt upon the company’s ability to continue as a going concern. In making this assessment, the directors take into account all available information about the future which is at least 12 months from the date that the financial statements are authorised for issue.
|  | The directors consider that the company has adequate resources to continue in business for the foreseeable future and that it is appropriate to adopt the going concern basis in preparing the financial statements.
|  | Turnover
|  | Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, Value Added Tax and other sales taxes.
|  | Tangible fixed assets
|  | Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
|  | Plant and machinery etc.:
|  | Fixtures & Fittings | - | 16.67% straight line
|  | Computer equipment | - | 16.67% straight line
| 3

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 2 | Accounting policies - continued
|  | Financial instruments
|  | and share option schemes and employee benefits The company operates an Enterprise Management Initiative share option scheme, under which the company grants share-based payments to certain employees Certain employees of the company receive remuneration in the form of share-based payments, whereby the employees render services in exchange for rights over shares ("equity-settled transactions"). The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date they are granted Fair value is determined by applying a valuation method that reflects the value of the options after allowing for holdings of a minority interest and allowing for the option terms and conditions. In evaluating the fair value of the options, the model adopted also allows for a risk-free interest rate and the expected time to the time that the options might vest. In determining the fair value, the directors have also considered and allowed for the size of the company and the restricted marketability of its share capital and all of the associated subjective valuation variables. The cost of equity-settled transactions is recognised in the Profit and Loss Account, together with a corresponding increase in equity reserves, over the period in which the performance and other conditions are fulfilled (the vesting period). The cumulative expense recognised at each reporting date reflects the extent to which the vesting period has expired and the director’s best estimate of the number of equity instruments that will ultimately vest.
|  | Taxation
|  | Taxation for the year comprises current and deferred taxation. Tax is recognised in the Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
|  | Current or deferred taxation assets and liabilities are not discounted.
|  | Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
|  | Deferred taxation
|  | Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
|  | Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that been enacted or substantively enacted by the balance sheet date and that are expected to apply to the reversal of the timing difference.
|  | Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
| 4

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 2 | Accounting policies - continued
|  | Government grants
|  | Government grants received are credited to deferred income. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants received towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
|  | Research and development
|  | Expenditure on research and development is written off in the year in which it is incurred.
|  | Foreign currencies
|  | Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
|  | Hire purchase and leasing commitments
|  | Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
|  | The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
|  | Retirement benefits
|  | The company operates a defined contribution pension scheme. Contributions payable to the company’s pension scheme are charged to profit and loss in the period to which they relate.
| 3 | Critical accounting judgements and estimates
|  | A) Provision for claims for tax relief in respect of research and development expenditure and related commission-based fees: The accounts include other operating income of £41,773 (2024 £nil) in respect of a tax credit claim for research and development expenditure incurred during the year ended 31 December 2025, for which the claims are in the final stages of completion for submission to HMRC. The accounts include provision for the value of the claims based on the current best estimate of the relevant costs incurred in the year to 31 December 2025 of £208,865. The comparative figures reflect a corporation tax charge after a reduction arising from the tax relief due in relation to research and development expenditure. The tax charge in the year to 31 December 2024 is stated after allowing for relief of £42,417 in respect of relevant research and development costs that amounted to £197,287. Administration costs include provision for costs of £5,875 (2024 £17,755), in respect of commission- based charges that are expected to arise regarding the research and development relief claims.
| 5

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 3 | Critical accounting judgements and estimates - continued
|  | B) Evaluation of share-based payments: On the grant of share options, management is required to use an appropriate pricing model, or basis, to value the issue of equity to employees or those providing similar services. Any charge to the profit and loss account is therefore a function of the chosen pricing model or valuation method, which in turn is based on a range of assumptions. When choosing the basis or model to calculate the value of issue of equity and reviewing the subsequent results, the directors have taken into account the size of the entity, the marketability of its share capital, and the significance to the financial statements of the values determined, in relation to the options in equity issued under the scheme. The Directors’ evaluation of the Fair Value of the options granted in March 2019 is an original value, before allowance for the potential of options to lapse, of £15,500. The Directors’ evaluation of the Fair Value of the options granted in June 2020 is an original value, before allowance for the potential of options to lapse, of £1,250. The Directors’ evaluation of the Fair Value of the options granted in April 2023 is an original value, before allowance for the potential of options to lapse, of £2,300. The accounts include a (credit)/charge to the profit and loss account of £(1,925) (2024 charge £25) in relation to the Directors’ calculation of the value attributable during the year. The charge is after allowance for both known past and potential future lapses due to the potential for either non-completion of service or performance conditions (to the options granted to certain employees under the Enterprise Management Incentive Scheme).
| 4 | Average number of employees
|  | During the year the average number of employees was 29 (2024 - 31).
| 5 | Tangible fixed assets
|  |  |  |  |  |  | Plant and machinery etc.
|  |  |  |  |  |  | £
|  | Cost |  |  |  |  |
|  | At 1 January 2025 |  |  |  |  | 112,581
|  | Additions |  |  |  |  | 17,199
|  | Disposals |  |  |  |  | (25,208)
|  | At 31 December 2025 |  |  |  |  | 104,572
|  | Depreciation
|  | At 1 January 2025 |  |  |  |  | 67,339
|  | Charge for year |  |  |  |  | 15,141
|  | Eliminated on disposal |  |  |  |  | (25,208)
|  | At 31 December 2025 |  |  |  |  | 57,272
| 6

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 5 | Tangible fixed assets - continued
|  | Net book value
|  | At 31 December 2025 |  |  |  |  | 47,300
|  | At 31 December 2024 |  |  |  |  | 45,242
| 6 | Debtors
|  |  | 2025 |  | 2024
|  |  | £ |  | £
|  | Trade debtors | 374,268 |  | 421,962
|  | Taxation | - |  | 100,171
|  | Other debtors | 132,155 |  | 132,155
|  | Prepayments and accrued income | 28,976 |  | 21,519
|  |  | 535,399 |  | 675,807
| 7 | Creditors: amounts falling due within one year
|  |  | 2025 |  | 2024
|  |  | £ |  | £
|  | Hire purchase and finance leases | 2,407 |  | 2,444
|  | Trade creditors | 15,759 |  | 17,828
|  | Amounts owed to directors | 16,286 |  | 8,391
|  | Other creditors | 30,561 |  | 16,822
|  | Taxation | 11,109 |  | 803
|  | VAT payable | 97,139 |  | 125,252
|  | Social security and other tax | 60,221 |  | 74,990
|  | Accruals and deferred income | 496,732 |  | 393,850
|  |  | 730,214 |  | 640,380
|  | Other creditors include £11,575 (2024 £5,496) in respect of amounts due to non-director participators.
| 8 | Creditors: amounts falling due after more than one year
|  |  | 2025 |  | 2024
|  |  | £ |  | £
|  | Hire purchase and finance leases | 963 |  | 3,370
|  | All of the amounts due in respect of obligations under hire purchase agreements and finance leases that fall due in more than one year, are wholly repayable within two to five years.
| 9 | Secured debts
|  | Amounts due under Hire Purchase and Finance Lease arrangements are secured against the assets accounted for as acquired under such arrangements.
| 7

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 10 | Financial instruments
|  | Obligations under operating leases At 31 December 2025, the Company had total obligations under operating leases or agreements of £681,930 (2024 £750,038), including £678,980 (2024 £746,180) of which is in respect of leases or agreements in relation to land and buildings. Of the above obligations £69,488 (2024 £69,488), including £68,580 (2024 £68,580) in respect of land and buildings, falls due within one year. A further £270,842 (2024 £271,750) of which £268,800 (2024 £268,800) relates to land and buildings, falls due within two to five years. The balance of £341,600 (£2024 £408,800), all in respect of land and buildings, falls due in more than five years. The obligations in respect of land and buildings relate to an agreement which includes an annual break option to take effect on 26 January each year. This requires notice to be provided at least six months prior to the annual break date.
| 11 | Share capital
|  | The share capital of £77 consists of 20,020 "A" Ordinary shares of £0.0025 and 10,780 "B" Ordinary Shares of £0.0025 which are all called up and fully paid. As referred to under the note regarding the fair value reserve, at the financial statement date there were outstanding options in respect of a further 4,160 (2024 4,160) "A" ordinary shares of £0.0025 and 2,240 (2024 2,240) "B" ordinary shares of £0.0025 shares. Under the terms of the options held these shares may be purchased at par if certain market and service conditions are satisfied.
| 12 | Related party transactions
|  | The company trades from premises which it rents from West End Bristol Limited (a company of which the Directors are also directors and shareholders). The Company occupies the premises on a fully repairing basis and pays rent monthly, at what is considered to be a market rent, of £67,200 per annum. The charge in the accounts to 31 December 2025 amounted to £67,200 (2024 £67,200). At the date of the Statement of Financial Position, other debtors include a balance of £132,155 (2024 £132,155) in respect of amounts advanced or loaned to West End Bristol Limited. The balance on the inter-company account represents funding provided to West End Bristol Limited in excess of the rental charge and is interest free and repayable on demand. There were no further transactions with related parties other than in relation to the movement and balances on directors current accounts. The total of creditors falling due within one year include £16,286 (2024 £8,392) in respect of amounts due to the Directors at the Statement of Financial Position date.
| 13 | Provision for liabilities
|  | The provision for liabilities wholly relates to the provision for deferred tax. There has been a release of £2,150 (2024 £200 release) of the provision for deferred tax to the profit and loss account this year.
| 14 | Other reserves and employee equity-based share option scheme
| 8

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 14 | Other reserves and employee equity-based share option scheme - continued
|  | Other reserves consist of: A) £23 (2024 £23) in respect of the Capital Redemption Reserve; and B) £4,475 (2024 £6,400) in respect of a Fair Value Reserve for the Enterprise Management Incentive Scheme. There has been a £1,925 reduction (2024 £25 increase) on the fair value reserve in regard to the share options provided to key employees. The company first issued share options under the terms of an Enterprise Management Incentive Scheme (EMIS), during March 2019. The Actual Market Value, and Unrestricted Market value of each £0.05p share was determined to be £.05p and this value has been agreed with, and formally accepted by, HM Revenue and Customs (HMRC). The company issued further options under the terms of the Enterprise Management Incentive Scheme (EMIS) in June 2020 and April 2023. Under the EMIS, the Company or the Trustees of the employee trust may grant options over shares in the Company to eligible employees. The eligible employees to whom options are granted and the terms of such options will be determined by the Directors of the Company or the Trustees. The employees who are eligible to participate in the EMIS are certain employees (but not currently Directors) of the Company. Options are not transferable. The exercise price of options may not be less than the market value of the Company’s shares (as agreed by HMRC) on the date of grant. If the Trustees or the Directors have determined that the exercise of an option will be satisfied by the issue of ordinary shares, the exercise price may also not be less than the nominal value of ordinary shares. The options may vest on the occurrence of a number of specified market conditions (including the sale of the Company or the sale of its business activities or assets where the exit proceeds exceed £1,250,000) or, otherwise in ten years, on 15 March 2029 (providing that the market value of the Company at that time is at least £1,250,000). This is providing that the individuals remain employed by the company at the time such an event takes place or, otherwise, on 15 March 2029. Share options were initially granted in March 2019 for 338 £0.05p Ordinary shares at £0.05p. Following a subdivision of the shares on 17 December 2019 this equates to total options for 4,394 "A" ordinary shares of £0.0025 at £0.0025p plus 2,366 "B" ordinary shares of £0.0025 at £0.0025p. Further additional options for 494 "A" ordinary shares of £0.0025 at £0.0025p plus 266 "B" ordinary shares of £0.0025 at £0.0025p were granted in June 2020. Further additional options for 494 "A" ordinary shares of £0.0025 at £0.0025p plus 266 "B" ordinary shares of £0.0025 at £0.0025p were granted in April 2023. During the year to 31 December 2019 one of the original six employees to whom options were issued left the company resulting in 494 options for new "A" ordinary shares of £0.0025 and 266 options for new "B" ordinary shares of £0.0025 being forfeited. During the year to 31 December 2020 another of the original six employees to whom options were issued left the company resulting, in a further 728 options for new "A" ordinary shares of £0.0025 and 392 options for new "B" ordinary shares of £0.0025 being forfeited. Based on the six (2024 six) employees that remained eligible to take part in the scheme at the Statement of Financial Position date this might result in a further 4,160 (2024 4,160) "A" ordinary shares of £0.0025 and 2,240 (2024 2,240) "B" ordinary shares of £0.0025 shares being issued at par. The (credit)/charge recognised in the profit and loss account this year was £(1,925) (2024 charge of £25). This represents the directors’ effective valuation of staff cost benefits arising to-date due to the scheme, that they currently anticipate might be expected to vest. This charge represents an appropriate proportion of the value of the options that remain to be allocated to this year as a proportion of the period to March 2029, which the directors currently estimate as the shortest period of time before the options might vest. The period of time to the point the options might vest was extended following the disruption arising as a result of COVID 19 and then further extended to allow for the difficulty foreseen in negotiating a full and successful disposal of the business before the option date. Fair value is determined by applying a valuation method that reflects the value of the options after allowing for holdings of a minority interests and allowing for the option terms and conditions. In evaluating the fair value of the options, the model adopted also allows for a risk-free interest rate and the expected period to the time that the options might vest. In determining the fair value, the directors have also considered the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The Directors’ evaluation of the Fair Value of the initial options at the time of grant (before allowance for any potential lapses) are £17,250 (in respect of the options granted in March 2019), £1,500 (in respect of the options granted in June 2020) and £2,500 (in respect of the options granted in April 2023). The original value of options granted in March 2019 is based on an average share price of £3.83, an exercise price equivalent to £.025 an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 5 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The original value of options granted in June 2020 is based on an average share price of £2.75, an exercise price equivalent to £.025, an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 3.75 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The original value of options granted in April 2023 is based on an average share price of £5.04, an exercise price equivalent to £.025, an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 4 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. An employee non-service discount of 26.3% has been applied (including the actual non-service completion rate to-date of 22.7%), together with a subsequent non-performance discount of 50%.
| 9

| Mentor Communications Consultancy Limited
| Notes to the financial statements - continued
| for the year ended 31 December 2025
| 14 | Other reserves and employee equity-based share option scheme - continued
|  | Other reserves consist of: A) £23 (2024 £23) in respect of the Capital Redemption Reserve; and B) £4,475 (2024 £6,400) in respect of a Fair Value Reserve for the Enterprise Management Incentive Scheme. There has been a £1,925 reduction (2024 £25 increase) on the fair value reserve in regard to the share options provided to key employees. The company first issued share options under the terms of an Enterprise Management Incentive Scheme (EMIS), during March 2019. The Actual Market Value, and Unrestricted Market value of each £0.05p share was determined to be £.05p and this value has been agreed with, and formally accepted by, HM Revenue and Customs (HMRC). The company issued further options under the terms of the Enterprise Management Incentive Scheme (EMIS) in June 2020 and April 2023. Under the EMIS, the Company or the Trustees of the employee trust may grant options over shares in the Company to eligible employees. The eligible employees to whom options are granted and the terms of such options will be determined by the Directors of the Company or the Trustees. The employees who are eligible to participate in the EMIS are certain employees (but not currently Directors) of the Company. Options are not transferable. The exercise price of options may not be less than the market value of the Company’s shares (as agreed by HMRC) on the date of grant. If the Trustees or the Directors have determined that the exercise of an option will be satisfied by the issue of ordinary shares, the exercise price may also not be less than the nominal value of ordinary shares. The options may vest on the occurrence of a number of specified market conditions (including the sale of the Company or the sale of its business activities or assets where the exit proceeds exceed £1,250,000) or, otherwise in ten years, on 15 March 2029 (providing that the market value of the Company at that time is at least £1,250,000). This is providing that the individuals remain employed by the company at the time such an event takes place or, otherwise, on 15 March 2029. Share options were initially granted in March 2019 for 338 £0.05p Ordinary shares at £0.05p. Following a subdivision of the shares on 17 December 2019 this equates to total options for 4,394 "A" ordinary shares of £0.0025 at £0.0025p plus 2,366 "B" ordinary shares of £0.0025 at £0.0025p. Further additional options for 494 "A" ordinary shares of £0.0025 at £0.0025p plus 266 "B" ordinary shares of £0.0025 at £0.0025p were granted in June 2020. Further additional options for 494 "A" ordinary shares of £0.0025 at £0.0025p plus 266 "B" ordinary shares of £0.0025 at £0.0025p were granted in April 2023. During the year to 31 December 2019 one of the original six employees to whom options were issued left the company resulting in 494 options for new "A" ordinary shares of £0.0025 and 266 options for new "B" ordinary shares of £0.0025 being forfeited. During the year to 31 December 2020 another of the original six employees to whom options were issued left the company resulting, in a further 728 options for new "A" ordinary shares of £0.0025 and 392 options for new "B" ordinary shares of £0.0025 being forfeited. Based on the six (2024 six) employees that remained eligible to take part in the scheme at the Statement of Financial Position date this might result in a further 4,160 (2024 4,160) "A" ordinary shares of £0.0025 and 2,240 (2024 2,240) "B" ordinary shares of £0.0025 shares being issued at par. The (credit)/charge recognised in the profit and loss account this year was £(1,925) (2024 charge of £25). This represents the directors’ effective valuation of staff cost benefits arising to-date due to the scheme, that they currently anticipate might be expected to vest. This charge represents an appropriate proportion of the value of the options that remain to be allocated to this year as a proportion of the period to March 2029, which the directors currently estimate as the shortest period of time before the options might vest. The period of time to the point the options might vest was extended following the disruption arising as a result of COVID 19 and then further extended to allow for the difficulty foreseen in negotiating a full and successful disposal of the business before the option date. Fair value is determined by applying a valuation method that reflects the value of the options after allowing for holdings of a minority interests and allowing for the option terms and conditions. In evaluating the fair value of the options, the model adopted also allows for a risk-free interest rate and the expected period to the time that the options might vest. In determining the fair value, the directors have also considered the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The Directors’ evaluation of the Fair Value of the initial options at the time of grant (before allowance for any potential lapses) are £17,250 (in respect of the options granted in March 2019), £1,500 (in respect of the options granted in June 2020) and £2,500 (in respect of the options granted in April 2023). The original value of options granted in March 2019 is based on an average share price of £3.83, an exercise price equivalent to £.025 an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 5 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The original value of options granted in June 2020 is based on an average share price of £2.75, an exercise price equivalent to £.025, an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 3.75 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. The original value of options granted in April 2023 is based on an average share price of £5.04, an exercise price equivalent to £.025, an expected volatility rate of 50%, a risk-free interest rate of 5% and an expected option life of about 4 years. A 40% discount was then applied to allow for the size of the company, the restricted marketability of its share capital and all of the associated subjective valuation variables. An employee non-service discount of 26.3% has been applied (including the actual non-service completion rate to-date of 22.7%), together with a subsequent non-performance discount of 50%.
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