Patently Limited

	Page
Balance Sheet	1—2
Notes to the Financial Statements	3—6

1. General Information

Patently Limited is a private company, limited by shares, incorporated in England & Wales, registered number 11092693 . The registered office is Fairfax House, 15 Fulwood Place, London, WC1V 6HU.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The company’s financial statements have been prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the company’s needs. In assessing going concern, the directors have a reasonable expectation that the company will continue as a going concern and is able to meet all of its obligations as they fall due for a minimum of 12 months from the date of approval of these financial statements.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.4. Research and Development

Expenditure on research activities is recognised within profit or loss as an expense is incurred.

Development costs are capitalised only where they can be identified with a specific product or project that will generate probable future economic benefits, the costs can be reliably measured and all the criteria under FRS 102 are met. They are amortised on a straight line basis to profit or loss over their estimated useful life. Amortisation begins when the intangible asset is available for use. All other development costs are expenses as incurred.

Intangibles and Research and Development

Capitalised development costs are reviewed annually, and where future benefits are deemed to have ceased or to be in doubt, the balance is written off to profit or loss.

Capitalised development costs are not treated as a realised loss for the purpose of determining the company’s distributable profits as the costs meet the conditions permitting them to be treated as an asset under FRS 102.

All intangible assets are considered to have a finite useful life. The estimated useful lives are as follows:

Software development – 3 to 4 years on a straight line basis

At each reporting date the company assesses whether there is any indication of impairment. If such indications exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. Any impairment loss is recognised immediately as an expense within profit or loss.

2.5. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Plant & Machinery

over 2 years on a straight line basis

Page 3

Page 4

Patently Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

2.6. Financial Instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction prices less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Impairment of financial assets

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised within profit or loss.

For financial assets that are measured at amortised cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset’s carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

2.7. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.8. Taxation

Income tax expense represents the sum of the tax currently payable.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Current or deferred tax for the year is recognised in profit or loss.

2.9. Pensions

The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

3. Average Number of Employees

Average number of employees, including directors, during the year was as follows: 7 (2024: 6)

4. Intangible Assets

	Development Costs
	£
Cost
As at 1 January 2025	2,488,301
Additions	535,548

As at 31 December 2025	3,023,849

...CONTINUED

Page 4

Page 5

Patently Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

Amortisation
As at 1 January 2025	1,644,415
Provided during the period	377,039

As at 31 December 2025	2,021,454

Net Book Value
As at 31 December 2025	1,002,395

As at 1 January 2025	843,886

5. Tangible Assets

	Plant & Machinery
	£
Cost
As at 1 January 2025	16,318
Additions	2,544

As at 31 December 2025	18,862

Depreciation
As at 1 January 2025	11,466
Provided during the period	2,806

As at 31 December 2025	14,272

Net Book Value
As at 31 December 2025	4,590

As at 1 January 2025	4,852

6. Debtors

	31 December 2025	31 December 2024
	£	£
Due within one year
Trade debtors	115,583	96,365
Amounts owed by group undertakings	36,323	-
Other debtors	370,483	42,112

	522,389	138,477

Page 5

Page 6

Patently Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2025

7. Creditors: Amounts Falling Due Within One Year

	31 December 2025	31 December 2024
	£	£
Trade creditors	87,741	34,950
Bank loans and overdrafts	7,500	10,000
Other creditors	256,557	140,890
Taxation and social security	19,055	-

	370,853	185,840

8. Creditors: Amounts Falling Due After More Than One Year

	31 December 2025	31 December 2024
	£	£
Bank loans	-	7,546
Other creditors	570,000	570,000

	570,000	577,546

The company has issued preference shares which are classified as financial liabilities in accordance with FRS 102, as they are mandatorily redeemable.

The shares are repayable four years from the date of issue, with a fixed repayment amount of £570,000 (the “Preference Return Cap”). If not repaid by this date, interest accrues on the outstanding balance at 2% per annum above the Bank of England base rate, calculated daily, until full settlement.

This liability is presented within Other creditors – amounts falling due after more than one year.

9. Share Capital

	31 December 2025	31 December 2024
	£	£
Allotted, Called up and fully paid	27,500	20,000

10. Pension Commitments

The company operates a defined contribution pension scheme for its employees. At the balance sheet date unpaid contributions of £5,164 (2024: £4,383) were due to the fund. They are included in Other Creditors.

11. Ultimate Parent Undertaking and Controlling Party

The company's immediate and ultimate parent undertaking is UMI Limited . UMI Limited was incorporated in England and Wales with the registered office address of Fairfax House, 15 Fulwood Place, London, WC1V 6HU.

Group consolidated accounts have not been prepared.

Page 6

		31 December 2025		31 December 2024
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	4		1,002,395		843,886
Tangible Assets	5		4,590		4,852

			1,006,985		848,738
CURRENT ASSETS
Debtors	6	522,389		138,477
Cash at bank and in hand		126,026		650,667

		648,415		789,144
Creditors: Amounts Falling Due Within One Year	7	(370,853 )		(185,840 )

NET CURRENT ASSETS (LIABILITIES)			277,562		603,304

TOTAL ASSETS LESS CURRENT LIABILITIES			1,284,547		1,452,042

Creditors: Amounts Falling Due After More Than One Year	8		(570,000 )		(577,546 )

NET ASSETS			714,547		874,496

CAPITAL AND RESERVES
Called up share capital	9		27,500		20,000
Share premium account			2,721,510		1,979,010
Profit and Loss Account			(2,034,463 )		(1,124,514 )

SHAREHOLDERS' FUNDS			714,547		874,496