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

Founded in 2005, Scott Logic designs, develops and implements software applications, with services including architecture and technical design, bespoke software development, user experience design, data & AI, and agile project delivery. Growing areas of demand include data engineering and analytics, AI. Whilst keeping true to our core quality engineering heritage we continue to grow new skills and capabilities that make us a unique and differentiated proposition to the markets we serve.

Over the years Scott Logic has diversified into multiple sectors, and now has a presence in the financial services, public, private equity and energy and commodities sectors, a strategy aimed at supporting growth ambitions, whilst minimising sector concentricity risk. Financial services represent approximately 44% of our client portfolio, with public sector, private equity and energy and commodities contributing 30%, 13% and 13%, respectively.

Employing over 420 high-calibre permanent, UK-based staff (350 technology consultants) across our headquarters in Newcastle and offices in London, Bristol, Glasgow, Edinburgh and Leeds, we continue to build on our original reputation, retaining long standing relationships with our customer base, whilst attracting new.

Business performance

Historically we have delivered strong performance, supported by a diversified client base and a reputation for high-quality delivery across financial services and the public sector. During FY24 and the first half of FY25, the business experienced a more challenging trading environment than in prior years.

Several environmental and macroeconomic factors impacted performance in 2025. The appointment of the US President for a second term was initially expected to restore confidence and support investment within the financial services sector; however, in practice it contributed to heightened market uncertainty and increased caution around discretionary technology spend. At the same time, increased competition in the public sector created a pronounced “race to the bottom” dynamic, with pricing exerting significant influence over contract awards. In addition, the rapid acceleration of artificial intelligence adoption led clients across all sectors to pause elements of traditional software development and reallocate budgets toward proof-of-concept engagements aligned to emerging AI-driven operating models.

Demand from financial services clients reduced significantly in FY25 H1 as customers deferred or cancelled discretionary technology spend. In parallel, public sector activity was impacted by an unsettled procurement environment, with spending increasingly concentrated into fewer, larger contracts, limiting opportunities for mid-sized suppliers. As a result, in H1 we were unable to fully replace reduced revenues in our core markets, which adversely affected financial performance for the year. These conditions reflected broader market trends rather than business-specific factors.

Of the £37.8m revenue, 44% was attributable to financial services, 30% to public sector, with 26% from other commercial verticals.

In response to prolonged market softness, the Directors continued with their comprehensive review of the Company’s strategy, service offerings, and workforce capabilities during 2025. This phase resulted in a clearer focus on areas of client demand, delivery efficiency, and commercial resilience, whilst heavily investing in strategic initiatives.

Actions taken included the rebalancing of skills within the workforce to align with evolving client requirements and targeted investment in priority technical capabilities. We also continued to review our cost base and delivery model to ensure scalability and flexibility as demand recovers.

The financial year closed with an operating profit before exceptional items of £0.55m and a strong debt free balance sheet position with strong liquidity and a cash balance of £9.0m.

In the later half of 2025 the Directors focused on setting stronger foundations for long-term, sustainable growth than ever before. The focus on evolving deliberately, whilst rooted in our values and craft, but with our sights set firmly on a broader, more strategic horizon. We are building a consultancy that is not only respected for its quality but also valued for its insight and impact. In doing so, we aim to shape a future where we are known not just for delivering great technology, but for driving meaningful change through it.

Artificial Intelligence (AI) presents a significant strategic opportunity for us, particularly through the expansion of AI-enabled consulting, systems integration, automation, and data analytics services. Growing client demand for productivity improvements, cost optimisation, and advanced decision-making is expected to drive increased investment in AI solutions. Harnessing our technical expertise, client relationships, and sector knowledge position us well to support clients in adopting AI responsibly, while also using AI internally to enhance delivery efficiency and operational scalability.

We use a set of KPIs to monitor and assess the Company’s performance, ensuring that our strategy is delivering value to shareholders and stakeholders alike. These KPIs include:

Revenue Growth: Measuring the year-over-year increase in revenue, reflecting our market share and product demand.

Margins: Assessing profitability at various levels, including gross profit margin and operating profit margin, to gauge operational efficiency.

Retention: Measuring the percentage of employees retained overall and within the consultant workforce over the year.

Principal risks and uncertainties

In the course of executing our strategy, the business faces various risks and uncertainties that could impact our financial performance, operations, and long-term growth objectives. While we have put measures in place to mitigate these risks, they remain inherent in the business environment in which we operate. The key risks and uncertainties include:

Economic and Market Volatility: Global economic fluctuations and inflationary pressures may impact demand for our services. Geopolitical instability, changes in trade policies, and macroeconomic trends also present risks to our revenue growth and cost structure.

Competitive Pressures: The market in which we operate is highly competitive, with both established players and new entrants continually innovating and evolving. There is a risk that we may not be able to maintain our market share, especially as new technologies, business models, or product innovations emerge.

Technology and Cybersecurity Threats: There is an inherent risk of technological obsolescence or disruption from new technologies. Additionally, cybersecurity threats, including data breaches or cyberattacks, could jeopardize our operational continuity, customer trust, and regulatory compliance.

Regulatory and Legal Risks: Changes in laws, regulations, or industry standards—particularly related to environmental compliance, data protection, labour laws, and taxation—could result in increased costs or operational limitations. There is also the risk of potential litigation or regulatory investigations that may impact our reputation and financial position.

Talent and Workforce Management: Our ability to attract, retain, and develop key talent remains crucial to achieving our strategic objectives. A shortage of skilled labour, high employee attrition, or challenges in workforce management could hinder our ability to deliver on growth initiatives and maintain operational efficiency.

Environmental and Sustainability Risks: As environmental regulations tighten and customer preferences shift toward sustainable practices, we may face risks associated with our environmental impact, including regulatory compliance costs and reputational risks.

Execution of Strategic Initiatives: The successful execution of our strategic initiatives, including restructuring efforts and technology investments carries inherent risks. Delays or cost overruns in these initiatives could affect our ability to achieve the projected returns and long-term growth objectives.

Artificial Intelligence: The rapid evolution of AI also introduces risks including increased competition from both traditional consultancies and AI-native firms, potential skills shortages, and the need for ongoing investment in talent, tools, and governance frameworks. Regulatory and ethical considerations, particularly around data privacy, security, model transparency, and intellectual property may increase compliance costs and operational complexity. There is also a risk that failure to adopt or effectively integrate AI technologies could reduce our competitiveness over the medium to long term

To address these risks, our Leadership Team is actively engaged in managing these risks, and we maintain strong governance and compliance processes to ensure we are well-prepared to respond to both current and emerging challenges.

Conclusion

In conclusion, our priority as a company must be to respond decisively and intelligently to the rapidly evolving landscape shaped by AI. As AI transforms and increasingly disrupts traditional software development, we are committed to positioning ourselves at the forefront of this revolution — not as passive observers, but as proactive leaders. By embracing these changes and adapting our capabilities, we will strengthen our value proposition, deepen client partnerships, and establish ourselves as the partner of choice for organisations navigating their own AI-driven transformation.

On behalf of the board

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

The principal activities of the company are the development, implementation and servicing of complex, enterprise-scale expert-user digital systems and the provision of business technology.

The results for the year are set out on page 12.

During the financial year, no dividends were rewarded to shareholders.

No preference dividends were paid.

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

Scott Logic operates within the technology and digital services sector, serving financial services, public sector and commercial clients. Trading conditions during the year were materially more challenging than in previous periods, reflecting a broader slowdown in discretionary technology expenditure across the industry.

Demand from financial services clients reduced significantly as projects were deferred or cancelled in response to market uncertainty. Public sector activity was also impacted by increased competition and a shift towards fewer, larger procurement exercises, resulting in pricing pressures and fewer opportunities for mid‑sized suppliers. In addition, the rapid acceleration of artificial intelligence adoption led several clients to pause elements of traditional software development and reallocate budgets towards exploratory AI‑related initiatives.

These factors contributed to lower revenues and a weaker financial performance compared with prior years. In response, the Directors undertook a wide‑ranging review of the Company’s operations, capabilities and cost base, resulting in targeted actions to align skills with client demand, invest in priority technical areas, and improve delivery efficiency.

Despite the softer trading environment, the Company remained profitable before exceptional items and closed the year with a strong, debt‑free balance sheet and robust liquidity.

The Company’s external auditors, Robson Laidler Accountants Limited, have expressed their opinion on the financial statements for the year. The audit report forms part of the financial statements. The Directors will propose the reappointment of Robson Laidler Accountants Limited at the forthcoming Annual General Meeting.

We are committed to providing detailed energy and carbon reporting, and comprehensive details of our disclosures are included in note 23 to the accounts.

Further disclosures of the methodology used to calculate our disclosures and the energy efficiency initiatives we have made are disclosed in the detailed note.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

We have audited the financial statements of Scott Logic Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;

• obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework, in which the company operates and how the company complies with that legal and regulatory framework

• inquired with management and those charged with governance about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud

• discussed with management and those charged with governance any non-compliance with laws and regulations and how fraud might occur including assessments of how and where the financial statements may be susceptible to fraud.

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Scott Logic Limited is a private company limited by shares incorporated in England and Wales. The registered office is Floor 6, The Lumen, St James Boulevard, Newcastle Helix, Newcastle upon Tyne, Tyne & Wear, NE4 5BZ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in UK sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value, and in accordance with applicable accounting standards. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

Scott Logic Limited is a wholly owned subsidiary of Logical Holdings Limited and the results of Scott Logic Limited are included in the consolidated financial statements of Logical Holdings Limited which are available from the Companies House website.

Turnover and profits on long term contracts for the supply of services are recognised as the right to consideration obtained through the performance of work under the contract. Any unbilled work at a period end is recognised as turnover and accrued income.

Turnover and profits from one-off engagements of short term duration are recognised on the completion of the relevant work. The costs incurred on unfinished work are included within work in progress at cost, less a provision for any loss anticipated on the contract.

Turnover from software support provided to customers is recognised over the term of the agreement.

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

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

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

Investments in subsidiary undertakings are recognised at cost.

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Cash and cash equivalents comprises cash in hand and current balances with banks and other institutions, which are readily convertible to known amounts of cash and which are subject to insignificant risk of change in value. This definition is also used for the cash flow statement.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

Neither current nor deferred taxation assets and liabilities are discounted.

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

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 the financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit in the period to which they relate.

Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the lease term, unless the rental payments are structured to increase in line with expected general inflation, in which case the group recognises annual rent expense equal to amounts owed to the lessor. The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis.

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

Current asset investments

Investments in equities are shown at fair (market) value.

The investments are valued by an investment managers, having due regard to latest dealings, professional valuation, asset values and other appropriate financial information.

The fair value movement credited to the profit and loss for the year is £878 (2024: £39,740).

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

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

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Details of the company's subsidiaries at 31 December 2025 are as follows:

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

In the event of winding up, the first £60m is distributed to the Ordinary A shareholders. In all other respects, the shares rank pari-passu.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Logical Holdings Limited (incorporated in England and Wales) is regarded by the directors as being the company's ultimate parent company.

A copy of the consolidated financial statements can be obtained via the Companies House website.

The ultimate controlling party is G Scott.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Scott Logic is committed to creating sustainable prosperity and safeguarding the future of the natural environment. We aspire not only to mitigate the risk of rising emissions from our own fast-growing business, but also to demonstrate climate leadership amongst our peers, industry and clients by going beyond minimum requirements. We recognise that our global operations have an environmental impact and we are committed to monitoring and reducing our emissions year-on-year; to play our part in tackling the climate crisis. We are also aware of our reporting obligations under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018.

In 2022 we aligned Scott Logic with the Paris Agreement goal of limiting global warming to 1.5°C compared to pre-industrial levels, with the intention to accelerate our progress towards net zero ahead of 2050. To achieve this, we are focusing both on how we run our business and how we contribute to wider climate action.

We believe that collective action to combat the climate crisis is vital, and are taking proactive steps to lead and support the network of businesses committed to fighting the climate crisis. We are an active member of Tech Zero, a UN Race To Zero partner climate action group, and have committed to validated Science Based Targets. We will continue to work with our clients, suppliers, employees, neighbours and local communities to share best practice and help each other safeguard the future of the natural environment.

We have committed to:

• 2026: 90% reduction of scope 1 and 2 baseline emissions

• 2027: Engage with the top 75% of our supply chain (spend- based) to provide carbon impact measurement

• 2028: Achieve Carbon Neutrality

• 2030: 50% reduction of all baseline emissions

• 2040: Achieve Net Zero

In 2022, we published these commitments publicly on our website.

2025 Performance

The following high level observations can be made about our environmental impact in 2025 compared to previous years:

• Total absolute emissions across the business decreased by 11% compared to 2024. This reduction places the organisation ahead of its projected trajectory for achieving long-term net zero targets. Emissions have reduced by 69% across Scope 1, 2 and 3 against baseline (targeted 50% by 2030), and the organisation achieved a carbon positive position during the year (with carbon neutrality targeted for 2028). The emissions intensity ratio per employee also continued to decline.

• Emissions associated with employee commuting decreased during the year, despite an increase in office attendance. This reduction is consistent with increased use of lower-carbon transport options, including public transport and active travel.

• The organisation achieved its target of procuring 100% renewable or low-carbon electricity across all operations in 2025. However, reported emissions associated with energy consumption remained broadly unchanged, reflecting ongoing developments in industry methodologies and emissions factors.

• The organisation did not meet its target to engage with the top 50% of its supply chain (by spend) to obtain carbon impact data. This was primarily due to changes in organisational capacity within procurement functions and varying levels of supplier maturity in emissions reporting.

Energy Efficiency Initiatives

During the reporting period, Scott Logic implemented the following energy efficiency and emissions reduction initiatives:

• Implementation of an ISO 14001-certified Environmental Management System across the organisation, supporting a consistent approach to environmental performance management and formally embedding continuous improvement.

• Establishment of an overarching Environmental Policy to provide a coherent framework across existing environmental policies and initiatives.

Methodology

The methodology used to calculate the GHG emissions is in accordance with the requirements of the following standards:

• World Resources Institute (WRI) Greenhouse Gas (GHG) Protocol (revised version)

• Defra’s Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting requirements (March 2019).

• UK office emissions have been calculated using the Defra 2025 revised issue of the conversion factor repository.

Following an operational control approach to defining our organisational boundary, our calculated GHG emissions from business activities fall within the reporting period of 1st January 2025 to 31st December 2025.

Emissions and Energy Usage