REGISTERED NUMBER: 09193617 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 December 2025

for

IDEX BIOMETRICS UK LTD

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13

Director:

K-A Besseberg

Registered office:

C/o S&W Partners (Manchester) Limited

Pall Mall,1 Pollen Square

King Street

Manchester

M2 4PD

Registered number:

09193617 (England and Wales)

Auditors:

Dunkley's Chartered Certified Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

The director presents his strategic report for the year ended 31 December 2025.

Review of business

The company's activity has been largely in line with plans, with turnover for the year being £2,291,649 (2024 - £5,336,875) with post a post tax loss of £56,780 (2024 - profit £1,784,482). The turnover in the 2024 year included £3,434,779 in respect of the sale of an intellectual property rights package.

The director expects the activity level and number of employees to remain stable in the forthcoming financial year.

Principal risks and uncertainties

Lack of successful completion of saleable intellectual property packages and possible reductions in service deliveries present continuing risks and uncertainties. The director considers the company, with the backing of its holding company, will be able to mitigate such risks and uncertainties and take advantage of opportunities that arise.

Key performance indicator

The company's main key performance indicator is the level of turnover, which as mentioned above, was £2,291,649 for the current financial year.

On behalf of the board:

K-A Besseberg - Director

9 September 2026

The director presents his report with the financial statements of the company for the year ended 31 December 2025.

Principal activities

The principal activity of the company in the period under review was to conduct research and development in the field of fingerprint technology with the aim of providing saleable intellectual property, and to provide engineering, supply chain and other services related to fingerprint imaging and recognition technology and devices.

Going concern

As at 31 December 2025 the company had net liabilities and is dependent upon the continued financial support from its parent company, IDEX Biometrics ASA, to meet its obligations as they fall due.

Per the parent company's filed 2025 accounts:

"Management has assessed the Group's ability to maintain operations for at least twelve months from the expected date of approval of the 2025 financial statements, covering the period until the end of April 2027.

As of 31 December 2025, the Group held USD 0.7m in cash. Two equity issues completed in January and April 2026 raised a total of USD 10 million. A planned reduction in inventory through sales is expected to release liquidity. The Company will also repay the convertible loan in full during 2026.

Management has prepared an adjusted budget for 2026 and forecast for the assessment period. The forecast indicates that operations are expected to generate a positive cash contribution, supported by planned inventory reductions through sales and a strengthened liquidity position throughout the period.

The Group remains exposed to risks related to operating losses, dependence on a limited number of customers, technology adoption cycles and supply chain dependencies.Based on the capital raised during the first four months in 2026, the expected reduction in debt, sales based on forecast including current order backlog, management assesses that these risks do not threaten the Group's ability to meet its obligations during the assessment period.

Based on the liquidity position, expected cash flows and available mitigating actions, the Board of Directors has concluded that the going concern assumption is appropriate and that no material uncertainty exists under IAS 1."

The director of Idex Biometrics UK Limited has received confirmation of continued support from the parent company for at least twelve months from the date of approval of the financial statements. Consequently, the director has formed a judgement, at the time of approving the financial statements, that the company will have sufficient funds to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and has therefore prepared the financial statements on a going concern basis. No adjustments have been made to the financial statements that may be required were the support to be withdrawn'

If the group were unable to continue as a going concern, then the director would reconsider the company's position.

Dividends

No dividends will be distributed for the year ended 31 December 2025.

Future developments

We expect to complete saleable intellectual property packages that can be sold at a profit. The service delivery is expected to remain at current levels.

Directors

The directors who have held office during the period from 1 January 2025 to the date of this report are as follows:

C W G Clausen - resigned 1 December 2025

E Svela - resigned 31 August 2025

V A Graziani - resigned 1 December 2025

K-A Besseberg - appointed 1 December 2025

Financial instruments

Objective and policies

The business' principal financial instruments comprise bank balances, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business' operations.

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

In respect of bank balances, the liquidity risk is managed by maintaining a balance to ensure the continuity of funding.

Trade debtors, which comprise entirely of amounts due from the company's holding company, are managed in respect of credit and cash flow risk by policies concerning the credit offered and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise entirely of loans from the company's holding company. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Statement of director's responsibilities

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement as to disclosure of information to auditors

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

On behalf of the board:

K-A Besseberg - Director

9 September 2026

Opinion

We have audited the financial statements of Idex Biometrics UK Ltd (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of The Auditor's thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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 are procedures are capable of detecting irregularities, including fraud is detailed below:

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies, bonus levels and performance targets;

- any matters we identified, having obtained and reviewed the company's documentation of their policies and procedures relating to:

(a) identifying, evaluating and complying with laws and regulations and whether they were aware of any instances

of non-compliance;

(b) detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or

alleged fraud;

(c) the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas of management override of controls, and revenue recognition.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

- enquiring of management, concerning actual and potential litigation and claims;

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

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Use of our report

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

Matthew Dobbins FCA (Senior Statutory Auditor)

for and on behalf of Dunkley's Chartered Certified Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

10 September 2026

Turnover

4

2,291,649

5,336,875

Administrative expenses

(2,416,421

)

(3,753,115

)

Operating (loss)/profit

6

(124,772

)

1,583,760

Interest receivable and similar income

1,844

6,435

(122,928

)

1,590,195

Interest payable and similar expenses

7

(4,146

)

(713

)

(Loss)/profit before taxation

(127,074

)

1,589,482

Tax on (loss)/profit

8

70,294

195,000

(Loss)/profit for the financial year

(56,780

)

1,784,482

Other comprehensive income

-

-

Total comprehensive income for the year

(56,780

)

1,784,482

Fixed assets

Tangible assets

9

27,471

86,380

Current assets

Debtors

10

731,559

644,508

Creditors

Amounts falling due within one year

11

5,889,294

5,804,372

Net current liabilities

(5,157,735

)

(5,159,864

)

Total assets less current liabilities

(5,130,264

)

(5,073,484

)

Capital and reserves

Called up share capital

13

1,000

1,000

Retained earnings

14

(5,131,264

)

(5,074,484

)

Shareholders' funds

(5,130,264

)

(5,073,484

)

The financial statements were approved by the director and authorised for issue on 9 September 2026 and were signed by:

K-A Besseberg - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

1,000

(6,858,966

)

(6,857,966

)

Changes in equity

Total comprehensive income

-

1,784,482

1,784,482

Balance at 31 December 2024

1,000

(5,074,484

)

(5,073,484

)

Changes in equity

Total comprehensive income

-

(56,780

)

(56,780

)

Balance at 31 December 2025

1,000

(5,131,264

)

(5,130,264

)

Cash flows from operating activities

Cash generated from operations

18

(309,994

)

2,107,238

Interest paid

(4,146

)

(713

)

Tax paid

70,294

195,000

Net cash from operating activities

(243,846

)

2,301,525

Cash flows from investing activities

Purchase of tangible fixed assets

-

(119,399

)

Interest received

1,844

6,435

Net cash from investing activities

1,844

(112,964

)

Cash flows from financing activities

New loans in year

260,930

-

Loan repayments in year

-

(2,389,038

)

Net cash from financing activities

260,930

(2,389,038

)

Increase/(decrease) in cash and cash equivalents

18,928

(200,477

)

Cash and cash equivalents at beginning of year

19

(31,109

)

169,368

Cash and cash equivalents at end of year

19

(12,181

)

(31,109

)

1.	Statutory information

Idex Biometrics UK Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Going concern

As at 31 December 2025 the company had net liabilities. The company is dependent upon the support of its holding company, IDEX Biometrics ASA. As with any company placing reliance on other group entities for financial support, the director acknowledges that there can be no certainty that this support will continue although, at the date of approval of these financial statements, he has no reason to believe that it will not do so.

The following is reproduced from the parent company's 2025 audited financial statements:-

"Management has assessed the Group's ability to maintain operations for at least 12 months from the expected date of approval of the 2025 financial statements, covering the period until the end of April 2027.

As of 31 December 2025, the Group held USD 0.7m in cash. Two equity issues completed in January and April 2026 raised a total of USD 10 million. A planned reduction in inventory through sales is expected to release liquidity. The Company will also repay the convertible loan in full during 2026.

Management has prepared an adjusted budget for 2026 and forecast for the assessment period. The forecast indicates that operations are expected to generate a positive cash contribution, supported by planned inventory reductions through sales and a strengthened liquidity position throughout the period.

The Group remains exposed to risks related to operating losses, dependence on a limited number of customers, technology adoption cycles and supply chain dependencies.Based on the capital raised during the first four months in 2026, the expected reduction in debt, sales based on forecast including current order backlog, management assesses that these risks do not threaten the Group's ability to meet its obligations during the assessment period.

Based on the liquidity position, expected cash flows and available mitigating actions, the Board of Directors has concluded that the going concern assumption is appropriate and that no material uncertainty exists under IAS 1."

The director of Idex Biometrics UK Limited has received confirmation of continued support from the parent company for at least twelve months from the date of approval of the financial statements. Consequently, the director has formed a judgement, at the time of approving the financial statements, that the company will have sufficient funds to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and has therefore prepared the financial statements on a going concern basis. No adjustments have been made to the financial statements that may be required were the support to be withdrawn'

If the group were unable to continue as a going concern, then the director would reconsider the company's position.

Turnover

Turnover represents:-

- revenue from services provided to Idex Biometrics ASA, the holding company. The services are charged at cost plus a market-based margin.

- the sale of IP fingerprint technology to Idex Biometrics ASA at a negotiated price. The relevant IP in fingerprint technology has been created by the company.

Tangible fixed assets

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

Instruments and laboratory equipment

-

20% to 33% straight line

Fixtures and fittings

-

20% straight line

Computer equipment and software tools

-

33% straight line

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses.

Research and development

Research and development expenditure is written off to the profit or loss in the year in which it is incurred and not capitalised.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Financial assets

Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

Financial liabilities

Basic financial liabilities, including trade and other creditors and loans that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

4.

Turnover

The turnover and loss (2024 - profit) before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Services

2,291,649

1,902,096

Intellectual property

-

3,434,779

2,291,649

5,336,875

5.	Employees and directors

2025

2024

£

£

Wages and salaries

1,338,926

2,256,640

Social security costs

175,056

269,539

Other pension costs

192,114

334,710

1,706,096

2,860,889

The average number of employees during the year was as follows:

2025

2024

Operations

4

10

Product engineering

14

18

Administration

1

2

19

30

2025

2024

£

£

Directors' remuneration

-

-

6.	Operating (loss)/profit

The operating loss (2024 - operating profit) is stated after charging:

2025

2024

£

£

Other operating leases

297,001

282,810

Depreciation - owned assets

58,909

93,976

Auditors' remuneration

9,060

8,600

7.

Interest payable and similar expenses

2025

2024

£

£

Other interest

4,146

713

8.

Taxation

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

2025

2024

£

£

Current tax:

UK corporation tax

(110,000

)

(195,000

)

Refund over provision in

prior years

39,706

-

Tax on (loss)/profit

(70,294

)

(195,000

)

UK corporation tax was charged at 25%) in 2024.

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

(Loss)/profit before tax

(127,074

)

1,589,482

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

(31,769

)

397,371

Effects of:

Expenses not deductible for tax purposes

-

(31,487

)

Capital allowances in excess of depreciation

-

(7,018

)

Depreciation in excess of capital allowances

12,982

-

enhanced deduction

Tax losses

18,787

(358,866

)

Research and development tax credit

(110,000

)

(195,000

)

Refund overprovision prior year

39,706

-

Total tax credit

(70,294

)

(195,000

)

The company has trading losses of £2,802,187 (2024 - £2,906,455) to carry forward to offset against any future trading profits.

9.	Tangible fixed assets

Computer

Instruments

equipment

and

Fixtures

and

laboratory

and

software

equipment

fittings

tools

Totals

£

£

£

£

Cost

At 1 January 2025

and 31 December 2025

341,937

64,481

147,298

553,716

Depreciation

At 1 January 2025

266,742

64,256

136,338

467,336

Charge for year

53,064

99

5,746

58,909

At 31 December 2025

319,806

64,355

142,084

526,245

Net book value

At 31 December 2025

22,131

126

5,214

27,471

At 31 December 2024

75,195

225

10,960

86,380

10.

Debtors: amounts falling due within one year

2025

2024

£

£

Amounts owed by group

undertakings

519,796

25,737

Other debtors

149,730

527,774

VAT

20,300

29,903

Prepayments

41,733

61,094

731,559

644,508

11.

Creditors: amounts falling due within one year

2025

2024

£

£

Bank loans and overdrafts (see note 12)

12,181

31,109

Trade creditors

6,698

62,191

Amounts owed to group undertakings

5,810,067

5,549,137

Social security and other taxes

33,620

77,436

Accruals and deferred income

26,728

84,499

5,889,294

5,804,372

12.

Loans

An analysis of the maturity of loans is given below:

2025

2024

£

£

Amounts falling due within one year or on demand:

Bank overdrafts

12,181

31,109

13.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

1,000

Ordinary

£1

1,000

1,000

Each ordinary share ranks equally in respect of dividends, voting rights and all other matters including on a capital distribution.

14.

Reserves

Retained

earnings

£

At 1 January 2025

(5,074,484

)

Deficit for the year

(56,780

)

At 31 December 2025

(5,131,264

)

15.	Ultimate parent company

Idex Biometrics ASA (incorporated in Norway ) is regarded by the director as being the company's ultimate parent company.

The registered office of Idex Biometrics ASA is Henrik Ibsens gate 90, NO-0255, Oslo, Norway. Copies of the consolidated financial statements of Idex Biometrics ASA are available from the company's website www.idexbiometrics.com.

16.	Other financial commitments

At the year end the company had financial commitments of £187,646 (2024 - £297,000) under non-cancellable operating leases.

17.	Related party disclosures

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.

18.	Reconciliation of (loss)/profit before taxation to cash generated from operations

2025

2024

£

£

(Loss)/profit before taxation

(127,074

)

1,589,482

Depreciation charges

58,909

93,976

Finance costs

4,146

713

Finance income

(1,844

)

(6,435

)

(65,863

)

1,677,736

(Increase)/decrease in trade and other debtors

(87,051

)

514,792

Decrease in trade and other creditors

(157,080

)

(85,290

)

Cash generated from operations

(309,994

)

2,107,238

19.	Cash and cash equivalents

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Bank overdrafts

(12,181

)

(31,109

)

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

-

169,368

Bank overdrafts

(31,109

)

-

(31,109

)

169,368