The directors present the strategic report for the year ended 31 December 2025.
Despite continued global challenges to the automotive market, our business has successfully grown revenue as our expanding range of products are utilised by our strong customer base.
We have continued to invest in the development of new products that are being successfully rolled out globally by our customers.
The performance being reported for the year ended 31 December 2025 is in line with directors expectations and our forecasts for 2026 reflect continued resilience.
The directors have assessed that the following are the principal risks and uncertainties of the Company.
The global automotive market
The general health of the global automotive industry has a direct impact on the operations of the business. During 2025 the global automotive market experienced a mixed performance with decline across UK and EU, while North America and China saw different trends. The business operates in all these markets and monitors these trends closely with the ability to shift focus if required.
Operations in Moldova
Given that the Company's research and development team are based in Moldova, management have been monitoring the Russia-Ukraine conflict closely. A contingency plan exists if Moldova will be directly impacted by the conflict however it remains unrealistic to make any changes at this time.
Operations in China
As Chinese automakers like SAIC, BYD, and Geely aggressively expand their international footprints across Europe, Southeast Asia, and Latin America in 2026, the business is strategically positioned to support this globalisation. To ensure success in these markets, the Business is leveraging its expertise in helping these brands transition effectively into international markets.
Data & Information Security
As is the case for any online business, the security of our data and IT systems are essential to secure and maintain trust from customers in our service. We continue to invest in our infrastructure and monitoring services to safeguard the Company against data thefts and cyber-attacks. SSO and enhanced employee training are ongoing measures that have been rolled out to mitigate risk and align with global policies.
Financial Risk Management
The directors have assessed that the following as financial risks of the Company.
Foreign exchange transactions currency exposure
The Company is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in non-sterling currencies. The Company's risk management policy is to maintain natural hedges where possible, by matching foreign currency revenue and expenditure. The Company does not enter into forward exchange contracts to mitigate the exposure to foreign currency risk as the Company's currency exposure is not considered significant enough to warrant this.
Liquidity risk
Liquidity risk is the risk arising from the Company not being able to meet its obligations as they fall due. The Company seeks to manage this risk by regularly reviewing cash forecast inflows and outflows due in day-to-day business. Rolling cash flow forecasts are used by the Company to monitor liquidity requirements to ensure it has sufficient cash to meet operational needs.
Customer credit exposure
The Company may offer credit terms to its customers which allow payment of the debt after delivery of the goods or services. The Company is at risk to the extent that a customer may be unable to pay the debt on a specified due date. This risk is mitigated by the following factors:
- Strong on-going customer relationships;
- Credit control monitoring;
- Many of the Company's customers are large well establish companies that are a low credit risk.
The Company is committed to research and development activities in order to secure the continued growth of the Company and to maintain its position in its marketplace. Development activities, consisting mainly of direct labour costs, are amortised on a straight-line basis over their useful economic lives. The estimated useful lives of current development projects is 3 years.
The directors monitor the performance of the Company by reference to a number of both quantitative and qualitative KPIs including:
| 2025 | 2024 |
| £ | £ |
Revenue | 15,210,463 | 13,547,590 |
Profit before tax | 1,541,984 | 4,231,577 |
The directors are satisfied with the performance of the business against these KPIs.
The directors do not consider there to be any other key performance indicators.
The financial statements have been prepared on a going concern basis. The directors expect that the company will continue to successfully manage its business risks to continue to trade for the foreseeable future and they consider it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
The company has considered various factors that affect its business, such as the current economic climate, ongoing investments in new technologies, customer acquisition and retention, and economic uncertainties. It has a strong financing position and a robust risk management framework, which further support its going concern status.
The company is part of Arrive AS and the group fully supports the company's strategic direction and provides access to additional capital support where necessary.
The company acknowledges that its success is dependent on several factors, such as market conditions, operational effectiveness, and strategic execution. Parkopedia Limited has appropriate measures in place to manage these risks and uncertainties, such as diversifying its revenue and customer streams, enhancing its digital capabilities, implementing health and safety measures, and monitoring key performance indicators.
To comply with the going concern assumption the directors have received a letter of financial support from EasyPark Strategy AB and have considered the ability of the provider to be able to provide financial support if required.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
United Kingdom 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.
We have audited the financial statements of Parkopedia Limited (the 'company') for the year ended 31 December 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and directors' report have been prepared in accordance with applicable legal requirements.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
There was no other comprehensive income for 2025 (2024: £Nil).
The notes on pages 12 to 30 form part of these financial statements.
Parkopedia Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, Apex Yard, 29-35 Long Lane, London, SE1 4PL. The company's principal activities and nature of its operations are disclosed in the directors' report.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
inclusion of an explicit and unreserved statement of compliance with IFRS;
presentation of a statement of cash flows and related notes;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
the effect of financial instruments on the statement of comprehensive income;
comparative narrative information;
for financial instruments, investment property and biological assets measured at fair value and within the scope of IFRS 13, the valuation techniques and inputs used to measure fair value, the effect of fair value measurements with significant unobservable inputs on the result for the period and the impact of credit risk on the fair value; and
related party disclosures for transactions with the parent or wholly owned members of the group and key management personnel.
the Company has applied the exemption from the disclosure requirements of IFRS 2 Share-based Payment. Accordingly, the financial statements do not contain the disclosures otherwise required in respect of share-based payment arrangements. Equivalent disclosures are included in the consolidated financial statements of the Company's ultimate parent undertaking, which are publicly available.
The Company has not early adopted new or amended IFRS Accounting Standards that have been issued but are not yet effective.
Applying the disclosure relief available under IFRS 19, the Company has elected not to provide the disclosures otherwise required by IAS 8.30 and IAS 8.31 in respect of standards, amendments and interpretations issued but not yet effective at the reporting date.
Where required, equivalent disclosures are given in the group accounts of Arrive AS. The group accounts of Arrive AS are available to the public and can be obtained as set out in note 24.
The company has taken advantage of the exemption under section 401 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.
Parkopedia Limited is a wholly owned subsidiary of Arrive AS and the results of Parkopedia Limited are included in the consolidated financial statements of Arrive AS (company No 919999055), incorporated in Norway and domiciled at Innspurten 9, 0663 Olso, Norway. Arrive AS is the largest group for which accounts are drawn up of which the company is a member.
Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following have been demonstrated:
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred. •
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
Amortisation is charged as follows:
Development expenditure 3 years
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 recognised in the income statement.
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
it has been incurred principally for the purpose of selling or repurchasing it in the near term, or
on initial recognition it is part of a portfolio of identified financial instruments that the company manages together and has a recent actual pattern of short-term profit taking, or
it is a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The tax expense represents the sum of the tax currently payable and deferred tax.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that they are expected to vest. A corresponding credit is recognised within equity as a capital contribution from the parent company, reflecting that the share options are settled by the parent company.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is reassessed at each financial period end to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Revenue recognition (Note 4)
In determining the license period, where this is not explicitly stated within the contract, management estimates the period over which the service is provided, typically based on the expected lifetime of the vehicle model which is expected to be 5 years.
Impairment of intangible assets (Note 11)
Determine whether there are indicators of impairments of the Company's intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the assets and where it is a component of a larger cash-generating unit, the viability and expected performance of that unit. The directors determine that no impairment is required based on their assessment.
Capitalisation of development costs (Note 11)
In determining the amount of development costs to be capitalised, judgment is applied in estimating the amount of time development employees have spent on development activities. To help estimate the proportion of time spent on development, management receives input from the Chief Technology Officer and refer to working patterns of relevant development staff to approximate the percentage of time capitalised. Management monitors whether the recognition requirements for development costs continue to be met. This is necessary as the economic success of any product development is uncertain. For further information on the amounts capitalised see note 11.
Expected credit losses in respect of amounts owed by group undertakings (Note 14)
Determine whether provisions are required against amounts owed by group undertakings based on management's assessment of: probability of default, loss given default, and exposure at default. The directors determine that no impairment is required based on their assessment.
Contract liabilities relating to revenue are classified as deferred income within trade and other payables, which totalled £18,863,147 (2024: £18,791,740).
During the year, the Company recognised £7,968,569 (2024: £6,546,022) of revenue that was included in contract liabilities at the beginning of the period.
The deferred income balance is expected to be recognised in revenue as follows:
In less than 1 year £7,665,518 (2024: £7,968,569)
In more than 1 year £11,197,629 (2024: £10,823,171)
Contract assets relating to revenue are classified as accrued income within trade and other receivables, which totalled £675,638 (2024: £432,282).
Fees payable to the company's auditors in respect of non-audit services equated to £nil (2024: £8,400) in relation to taxation compliance services and £nil (2024: £5,960) in relation to accounts preparation services.
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 1 (2024 - 1).
The directors are considered to be key management personnel.
The charge for the year can be reconciled to the profit per the income statement as follows:
Development expenditure relates to qualifying costs incurred that are capitalisable under IAS 38. The costs themselves relate to the development and enhancement of the Company's primary products and services.
The directors have performed an impairment assessment and are satisfied that no provision for impairment is required.
Details of the company's subsidiaries at 31 December 2025 are as follows:
Parkopedia Parking Services SRL is incorporated in Moldova.
Parkopedia Inc is incorporated in the USA.
Parkopedia Japan KK is incorporated in Japan.
Parkopedia Shanghai Limited is incorporated in China.
Amounts owed by group undertakings are unsecured and interest free except for the Japanese subsidiary where interest is charged at a rate of Japanese base rate plus 0.375%.
Tax recoverable relates to research and development tax credits.
Provision for expected credit losses recorded at 31 December 2025 was £nil (2024: £nil).
Amounts owed to group undertakings are unsecured, are interest free and are repayable on demand.
The company entered into a lease as a lessee in relation to UK leasehold property, being the property from which the Company operates. The lease extends for a term until June 2027.
The following are the deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Ordinary shares carry full voting, dividend and capital distribution rights.
Share premium reserve
The share premium reserve represents the premium arising on issue of equity shares, net of issue expenses.
Capital contribution reserve
The capital contribution reserve relates to push down of share-based payments charges from the ultimate parent company.
Retained earnings
Retained earnings represents cumulative profit or losses, net of dividends paid and other adjustments.
Share options reserve
The share options reserve represents the cumulative expense recognised in respect of equity‑settled share‑based payment arrangements.
The Company has applied the disclosure reliefs provided by IFRS 19 Subsidiaries without Public Accountability: Disclosures. Accordingly, the Company has not provided certain disclosures otherwise required by IFRS Accounting Standards, including the disclosure of key management personnel compensation required by IAS 24 Related Party Disclosures.
The Company has taken advantage of the exemption contained within FRS 101 at paragraph 8(k) not to disclose the transactions or balanced entered into with other wholly owned group companies.
The business provided a loan to employees who were also shareholders in the company during a prior period. This loan amount plus interest payable as at 31 December 2025 totals £243 (2024: £5,838).
During the financial year, the Directors reassessed the classification of deferred income received under multi-year contracts. Previously, the full balance of deferred income was presented within Current Liabilities.
To accurately present the settlement timeline in accordance with financial reporting standards, deferred income has been split between Current Liabilities (due within 12 months) and Non-Current Liabilities (due after 12 months).
Comparative figures for the prior year ended 31 December 2024 have been restated to reflect this non-current element on the Balance Sheet totalling £10,823,171. This reclassification has no impact on profit, net assets, total liabilities, or opening retained earnings for either period.
During the current reporting period, management identified that certain intercompany loan balances had been incorrectly classified as long-term debtors in the prior year financial statements. These loans should have been presented as short-term debtors as they were repayable on demand.
As a result, the comparative figures for the prior year have been restated to correct the classification. This restatement has resulted in a decrease in long-term receivables and a corresponding increase in short-term receivables of £18,505,367.
This reclassification affects only the presentation of assets and has no impact on net assets or profit reported for the prior year. The impact is shown in the "Changes to the statement of financial position" reconciliation above.