The Directors present their Strategic Report for the year ended 31 December 2025.
1. Introduction
This strategic report outlines the performance, strategy, and outlook of Motorway Online Ltd (Motorway) for the financial year ended 31 December 2025. It provides a review of the Group’s business model, market environment, and key strategic priorities.
CEO’s statement
2025 was the year Motorway delivered on the foundations laid in prior years, with strong revenue growth, a substantial reduction in operating losses, and a clear path to profitability now in sight.
The investments made through 2023 and 2024 - in payments infrastructure, profiling technology, transport operations, and the underlying marketplace platform - translated in 2025 into accelerating commercial momentum and meaningful operating leverage. Revenue grew 18% to £78.3 million (2024: £66.4 million), with growth accelerating through the year to 25% year-on-year in the fourth quarter. Operating loss (excluding share-based payments) reduced by 33% to £23.7 million (2024: £35.1 million), reflecting both top-line growth and a material improvement in operational efficiency as transaction volumes scaled on a more disciplined cost base.
Across the marketplace, daily auction listings regularly exceeded 2,000 vehicles, dealer bid volumes were up 20% year-on-year, and our network grew to more than 8,000 verified dealers across the UK. Motorway Pay continued to scale, with cumulative transactions through the platform exceeding £10 billion by year end - making it one of the largest specialist B2B payment rails in the UK automotive sector. Continued automation across operational workflows reduced fixed cost per transaction for the second consecutive year.
Late in the year we completed a £25 million term loan facility, providing additional balance sheet flexibility as the business transitions to sustained profitability. £15.0 million was drawn at close, with a further £10.0 million available for drawdown.
The Board expects 2026 to be the year Motorway is targeting operating profitability, supported by continued momentum in revenue growth and ongoing improvements in efficiency.
Motorway operates a digital marketplace connecting private car sellers to a nationwide network of verified car dealers. Sellers receive an instant valuation, complete a guided profiling journey using AI-driven image capture and damage recording, and enter a daily online auction where dealers bid to purchase their vehicle. Dealers are provided access to thousands of privately owned vehicles with detailed profiles and provenance, enabling them to purchase the right cars for their forecourts. Motorway supports the end-to-end transaction process, including collection, on-site vehicle inspection, payment handling and documentation.
Revenue is generated primarily through a variable fee paid by dealers on each successful purchase. Additional revenue is derived from transportation services through Motorway Move, and other ancillary services such as our dealer guarantee product, Motorway Protect and partnering with third parties to provide stock financing for dealers. Total Car Check, acquired in 2023, provides detailed vehicle history data to individuals and businesses.
Motorway exists to serve both sides of the marketplace. Private sellers benefit from transparency, efficient online selling and competitive valuations, while dealers gain access to high quality stock nationwide, supported by tools, data and transaction infrastructure that enable efficient, repeatable stock sourcing.
3. Strategy
Strategic objectives
Motorway’s strategy is to build the most trusted and rewarding used car marketplace in the UK by:
Deepening value created for dealer partners by improving stock appraisal, volume available, bidding confidence, transaction certainty and post-sale processes.
Expanding market share through increasing the volume and quality of vehicles sold on the platform and investing in brand presence to be the first choice for car sellers nationwide.
Enhancing the seller and dealer experience with faster profiling, accurate pricing and a streamlined end-to-end journey, while delivering powerful tools and services for dealers to make buying stock at scale easy and profitable.
Scaling internal operations and infrastructure to support higher volumes with improved consistency and automation.
Progress against strategic priorities
During 2025, we delivered against the strategic priorities set out in the prior year, while continuing to invest in the core capabilities that underpin our marketplace.
Strengthening the dealer buying experience
Motorway Pay scaled significantly during the year and remains the largest single platform investment of the past three years, processing the majority of transactions on Motorway by the end of 2025 and supporting more than £10 billion in cumulative dealer transactions since launch. We extended the proposition with Motorway 360, a fully managed model in which our operational teams handle post-sale communication, transport and inspection on behalf of dealers, removing one of the biggest sources of post-auction friction. We expanded transport network capacity to support increased volumes, introduced a redesigned dealer purchase flow, launched a dealer performance dashboard providing visibility on account health, and migrated dealer relationship management onto a new CRM platform during the year.
Improving the seller journey
We rebuilt the seller profiling experience, our first end-to-end re-platforming of the seller funnel since 2020. The new platform - now in use across the majority of new sellers - provides a faster, more accurate and more flexible profiling journey, with structured mechanical condition input, improved damage capture and a foundation for further automation. Alongside this we introduced AI-powered service history assessment, significantly reducing review times while improving accuracy of information shared with dealers, and rolled out a 1-5 vehicle grading framework aligned with industry standards to provide clearer condition signals to both sides of the marketplace.
Increasing automation across operational workflows
Automation became a defining feature of the cost base in 2025. We extended automation across vehicle profiling, document review, payments processing and post-sale workflows, materially reducing manual handling and supporting growth in transaction volumes without proportional increases in operational cost. Fixed cost per transaction declined for the second consecutive year as a result.
Enhancing platform scalability
We continued to invest in the resilience and flexibility of the underlying platform, including modernisation of the profiling, auction and dealer-facing systems. These investments are designed to support both the continued growth of transaction volumes and the pace at which we can deliver further product change.
Advancing AI across the marketplace
AI continued to play an increasing role across the platform during 2025, including in image capture and damage detection, vehicle pricing and reserve setting, service history interpretation, and operational decision support. AI is now embedded across the seller and dealer journeys and is a material driver of both customer experience improvements and operational efficiency.
Future strategy
Our priorities for 2026 are focused on translating the operational and financial momentum of 2025 into sustained profitable growth. Specifically:
Targeting operating profitability while continuing to grow revenue and market share.
Deepening the dealer experience, with continued investment in transaction quality, transparency and the tools that support buying at scale.
Improving conversion and time-to-sale across the seller journey, with further enhancements to profiling, valuation and pricing tools.
Extending the use of AI and automation across operational workflows, building on the efficiency gains delivered in 2025.
Continuing to invest in platform resilience, scalability and security as transaction volumes grow.
4. Market environment
The UK used vehicle market remained resilient in 2025, supported by steady consumer demand, broadly stable retail pricing and continued growth in digital engagement. Despite cost-of-living pressures and a cautious macroeconomic backdrop, the fundamental demand for car ownership held firm, and dealers continued to shift more of their sourcing and retailing activity online.
Key market trends included:
Supply-constrained sweet spot: Ongoing scarcity of nearly-new stock increased the value of platforms offering consistent, nationwide access to privately owned vehicles.
Dealer margin pressure: Higher acquisition, funding and preparation costs reinforced the need for efficient sourcing and accurate valuation tools.
Shift toward independent retailers: Independents gained share as more flexible sourcing strategies proved advantageous in a constrained market.
Electrification accelerating: Used EV demand grew strongly, creating new stock-mix opportunities and increasing the importance of accurate EV appraisal and pricing.
Digital transformation: Consumers continued to shift toward online research and transactions, expanding the addressable opportunity for digital marketplaces.
5. Operational performance
Key highlights
Gross Merchandise Value (GMV) exceeded £2.4 billion in 2025.
Daily auction listings regularly exceeded 2,000 vehicles.
Dealer bid volumes up 20 percent year-on-year.
Dealer network of more than 8,000 verified dealers nationwide.
Customer satisfaction rated as excellent with more than 100,000 Trustpilot reviews.
6. Financial performance
Financial highlights
Revenue of £78.3 million, up 18 percent from £66.4 million in 2024.
Gross profit of £71.0 million with gross margin of 91 percent, consistent with 91 percent in 2024 (2024: £60.2 million).
Operating loss (excluding share-based payments) of £23.7 million (2024: £35.1 million).
Financial analysis
Revenue grew to £78.3 million as the Group continued to scale following the foundational investments in previous years. Transaction volumes and dealer engagement increased year-on-year, with our dealer network continuing to expand to more than 8,000 partners.
Gross margins remained strong at 91 percent, reflecting the scalability and efficiency of the marketplace model. Gross profit increased to £71.0 million from £60.2 million.
Operating costs reduced relative to revenue as the business benefited from the operating leverage emerging across the platform. We continued to invest in core capabilities including Motorway Pay and Motorway Move, while implementing structural improvements to our cost base to support efficient delivery of our strategic priorities. Fixed cost per transaction declined for the second consecutive year, reflecting both volume growth and the impact of automation and process simplification across our operational workflows.
Capital structure and funding
The Group ended the year with cash reserves of £22.5 million and net assets of £14.2 million.
During the year, the Company issued 516,681 ordinary shares at a nominal value of £0.0000001 per share.
During the year, we have strengthened our financial position through the completion of a £25 million term loan facility, providing additional flexibility as we continue our path toward profitability. A principal amount of £15.0 million was drawn at close, with the remaining £10.0 million available for drawdown until 31 December 2026. Full details of the key terms and conditions of the term loan facility are provided in the Notes to the Financial Statements (Note 19 – Borrowings).
7. Corporate responsibility
Sustainability initiatives
Motorway remains committed to reducing its environmental impact. Electric and hybrid vehicles accounted for a growing share of transactions on our platform in 2025, in line with accelerating adoption across the UK used car market.
Streamlined Energy and Carbon Reporting (SECR)
Energy and environmental efficiency
The Group is committed to taking measures to reduce our impact on the environment and, where possible, supporting our consumers and stakeholders with the transition to net-zero. During the financial year, the Group worked with an external third party to calculate several of the Company's Corporate Carbon Footprints (“CCF”).
These results will help monitor and reduce energy consumption and emissions, as well as supporting our wider climate strategy in the future.
The Group continues to work on lowering overall emissions in order to decrease its environmental impact by targeting waste and energy usage reductions, where practicable, through the implementation of environmental initiatives.
Greenhouse gas reporting
The CCF is the sum of the CO2 emissions released by the Company within the defined system boundaries over a specified period of time. The calculations were based on the guidelines of the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol).
CO2 emissions were calculated using the Company's consumption data and emission factors and, wherever possible, primary data were used. If no primary data were available, secondary data from credible sources were used instead. Emission factors were taken from scientifically recognised databases such as the UK Government’s Department for Environment, Food & Rural Affairs (“DEFRA”).
Emissions for electricity were calculated using both the market-based method and the location-based method. This dual reporting approach is recommended by the GHG Protocol.
For the market-based method, the Company provided specific emission factors for the electricity purchased, if available. If these specific factors were not available, factors for the residual mix in the country of operation were used, or, if this was unavailable, the average grid mix of the country was used.
For the location-based method, the average electricity grid mix for the country is calculated. This enables a direct comparison of the Company's values with the country-specific average.
System boundaries were established using the operational control approach. The GHG Protocol Value Chain (Scope 3) Standard as well as the UK Government environmental reporting guidance were used in calculating the emissions.
Operational System Boundaries indicate which of the Company's activities are taken into account for the individual carbon footprints of the Group. The various emission sources have been divided into three scopes in accordance with the GHG Protocol:
Scope 1 includes all emissions generated directly by the Group, for example by Company-owned equipment or vehicle fleets.
Scope 2 lists emissions generated by purchased energy, for example electricity and district heating.
Scope 3 includes all other emissions that are not under direct corporate control, such as employee travel or product disposal.
Whilst the Group is only required to disclose energy usage and Scope 1 and 2 emissions for the UK, we have voluntarily disclosed our global results for all, including Scope 3 for full transparency.
The Group measures carbon intensity against revenue and average employees as these are common business metrics for the automotive industry.
The Group delivered a 28% reduction in location-based carbon intensity per £million of revenue compared to 2024; the carbon intensity per employee remained broadly unchanged compared to prior year although trending downwards with 6% reduction.
Total absolute GHG emissions for 2025 decreased 15% to 545 tCO2e (location-based) compared to 2024. Whilst emissions from purchased goods and services and employee commuting have increased, as expected with a scaling business and operations, this has been more than offset through reduced business travel and investing in quality removal and avoidance carbon credits that offset our Scope 1 and 2 emissions.
Section 172(1) statement
The Directors are fully aware of their duty to promote the success of the Company for the benefit of its members as a whole in accordance with section 172 of the Companies Act, and in doing so to have regard to the matters set out in section 172(1) (a) - (f).
The Board delegates day-to-day management and decision-making to its Executive team. However, the Board maintains oversight of the Company's performance and reserves the right to specific matters for approval. By receiving regular updates on business performance, activities and objectives, the Board monitors that management is acting in accordance with agreed strategy. Established and consistent processes are in place to ensure that the Board receives all relevant information to enable it to make well-judged decisions in support of the Company's long-term success.
The Group has identified its key stakeholders as its customers, shareholders, employees, suppliers, and the communities in which the business operates. These relationships are important in allowing the Group to achieve its business goals. Much of the engagement with our stakeholders takes place at an operational level through the Executive team, particularly in respect of our customers, suppliers and employees whom we deal with in the ordinary course of business on a day-to-day basis.
The following sections below describe how the Board and the Executive team engages with its key stakeholders and how it considers their interests when making its decisions.
Our shareholders
The Board recognises the critical importance of open dialogues and fair consideration of the Company's members. Our largest shareholders have representation on the Board with Board meetings held quarterly. The Board also engages regularly with members outside of the Board meeting cycle where there are matters of importance such as business performance, key product and strategy updates, and future fundraising.
Employee engagement
Our employees are the driving force behind our purpose and growth. Our success is driven by the talent and effort of our workforce. We recognise that interaction between the Board and Executive team is crucial for maintaining the welfare of our people and future success. The Board holds regular meetings with the Executive team and in turn department heads are required to engage fully and transparently with their teams.
We engage with our employees across a wide range of platforms along with direct feedback via managers and peers. The results and feedback are reviewed and actioned at Executive and Board level. The Group has regular Company-wide meetings where employees are encouraged to submit questions and views along with posting updates on the Company internal communication platform.
The Group also promotes our core values that employees are encouraged to associate with across all areas of their working practices. The Diversity, Equity and Inclusion strategy is embedded across the whole organisation and is aligned to our business goals. Key initiatives include our DE&I Committee, which brings together employees from different backgrounds and levels of our organisation and plays a key role in shaping our company culture to be more inclusive, welcoming, and diverse.
The Motorway Women’s Chapter is a formalised community providing a safe space, advocacy, and a focus on professional development. Beyond workplace initiatives, DE&I are also embedded in our benefits, ensuring we attract and retain diverse talent. This includes enhancing our parental leave package, fostering a flexible work environment and supporting the mental well-being of our employees.
Customer relationships
Our business relies on strong relationships with customers on both sides of the marketplace being consumers selling their car and car dealer purchasing cars. Since inception, the Company has developed many long standing relationships with a large and varied range of dealers across the UK market. Similarly, we are focussed on delivering the best experience for our consumers when selling their car through our platform, driving loyalty, advocacy and repeat use.
Management is regularly briefed on new and existing customer relationships. By nature, our business works in collaboration with our customers. We have a zero tolerance approach to practices which are at odds with our values and culture, for example corruption and bribery. We are committed to acting ethically and with integrity in all business dealings.
Community and environment
The Company is committed to minimising environmental risk and continual improvement of environmental performance through the Company’s operations. During the year the Company has engaged with third parties to review and understand how to reduce our carbon footprint through the Company’s operations. The Board recognises the importance of contributing to the wider industry and community and considers it a vital part of achieving our purpose.
8. Governance
Board Structure
Our board is composed of experienced professionals from diverse backgrounds, ensuring robust oversight and strategic guidance. The performance of the business is assessed using revenue, gross profit, operating loss, and other non-financial and operational metrics. Actual results are regularly compared to budgets and forecasts and material variances are investigated with appropriate actions taken to ensure that the plans are met, as approved by the Board.
9. Risk management
Principal risks
Market conditions
Platform and operational resilience
Cybersecurity
Regulatory compliance
Liquidity and cash flow
Credit and counterparty exposure
Competition and technological change
Risk mitigation
Daily monitoring of marketplace dynamics and diversified dealer network.
Continued investment in platform scalability, automation and operational control.
Regular penetration testing, security reviews and incident response planning.
Ongoing legal oversight and process review.
Strong cash position supported by the £25 million term loan facility (£15 million drawn, £10 million available but not expected to be drawn) and operating cash generation emerging in early 2026.
Settlement risk reduced through Motorway Pay and conservative provisioning.
Continued investment in valuation accuracy, profiling tools and marketplace integrity.
10. Outlook and final remarks
The Directors expect 2026 to be a year of continued revenue growth and targeting operating profitability for the Group. This is supported by the commercial momentum exiting 2025, the operating leverage emerging across the platform, and continued progress against our strategic priorities. The Directors remain confident in the long-term opportunity for the business and the durability of its position in the UK used car market.
On behalf of the board
The Directors present their annual report on the affairs of the Group, together with the consolidated audited financial statements and auditors' report, for the year ended 31 December 202
The results for the year are set out on page 15.
There were no dividends paid in the year (2024: £nil) and the Directors do not recommend payment of a dividend for the year (2024: £nil).
The Directors who held office during the year and up to the date of signature of the financial statements, except as noted, were as follows:
After the year end, the Company issued 110,000 ordinary shares at their nominal value of £0.0000001 per share.
In preparing the financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable IFRSs as issued by the International Accounting Standards Board (IASB) have been followed for the Group financial statements and United Kingdom Accounting Standards, comprising FRS 101 have been followed for the Parent company financial statements, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and parent company will continue in business.
The directors are responsible for safeguarding the assets of the Group and parent company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and parent company and enable them to ensure that the financial statements comply with the Companies Act 2006.
In our opinion:
Motorway Online Ltd’s group financial statements and company financial statements (the “financial statements”) give a true and fair view of the state of the group’s and of the company’s affairs as at 31 December 2025 and of the group’s loss and the group’s cash flows for the year then ended;
the group financial statements have been properly prepared in accordance with UK-adopted international accounting standards;
the company financial statements have been properly prepared in accordance with FRS 101 “Reduced Disclosure Framework”; and
the financial statements 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 ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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 group's and 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.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the company's ability to continue as a going concern.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
Strategic report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' Report for the year ended 31 December 2025 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' Report.
Responsibilities of the directors for the financial statements
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they 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 group’s and 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 group or 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 auditors' 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.
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 our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to Companies Act 2006 and UK tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting manual journal entries to manipulate financial performance. Audit procedures performed by the engagement team included:
Enquiry of management and those charged with governance around any actual or suspected instances of non-compliance with laws and regulation or fraud
Obtaining an understanding of the Group’s policies and procedures on compliance with laws and regulations
Performing procedures to address the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, in particular testing a sample of journals posted with unusual account combinations
Reviewing financial statement disclosures and testing these through to supporting documentation to assess compliance with applicable laws and regulations
Designing audit procedures to incorporate unpredictability around the nature, timing and extent of our testing
Assessing accounting estimates within the financial statements, and substantively testing those with a material risk to the financial statements
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the company or returns adequate for our audit have not been received from branches not visited by us; or
the company's financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made.
We have no exceptions to report arising from this responsibility.
All amounts relate to continuing operations.
The notes on pages 20 to 48 form part of these group financial statements.
The notes on pages 20 to 48 form part of these group financial statements.
The notes on pages 20 to 48 form part of these group financial statements.
The notes on pages 20 to 48 form part of these group financial statements.
Motorway Online Ltd is a private company limited by shares incorporated and domiciled in the UK and registered in England and Wales. The registered office is 12-13 Wells Mews, London, W1T 3HE. The Company's principal activities and nature of its operations are disclosed in the Directors' report.
The Group consists of Motorway Online Ltd and all of its subsidiaries.
The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
The accounting policies have been applied consistently, other than where new policies have been adopted, due to the changes in the year as mentioned in note 2.
The Parent company financial statements have been prepared in accordance with Financial Reporting Standard 101 - Reduced Disclosure Framework (FRS 101), in conformity with the requirements of the Companies Act 2006.
The consolidated financial statements are prepared in sterling, which is the functional currency of the Group and all values are rounded to the nearest thousand (£'000), except when otherwise indicated.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment;
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers;
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures;
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member; and
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
For the year ending 31 December 2025 the following subsidiary of the Company was entitled to exemption from audit under s479A of the Companies Act relating to subsidiary companies. The guarantee is given by Motorway Online Ltd.
Total Car Check Ltd (company registration number: 07043189)
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
The consolidated group financial statements consist of the financial statements of the Parent Company Motorway Online Ltd together with all entities controlled by the Parent Company (its subsidiaries).
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the Group’s financial statements from the date that control commences until the date that control ceases.
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 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.
A subsidiary is an entity controlled by the Parent Company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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.
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognised initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of comprehensive income for the reporting period in which it arises.
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
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 Group recognises financial debt when the Group 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'.
Derivative financial liabilities (warrants)
Warrants issued in connection with the credit facility are classified as derivative financial liabilities measured at Fair Value Through Profit or Loss (FVTPL). Given the contract features a cashless net-issuance mechanism, the number of ordinary shares to be delivered varies based on the moving Fair Market Value (FMV) of the shares at the date of exercise. Consequently, the instrument fails the strict "fixed-for-fixed" criteria under IAS 32.
The derivative liability is initially recognised at the fair value of the warrants that have contractually vested upon the funding of the facility. The right to subscribe for shares vests pro-rata as the loan is advanced; as of 31 December 2025, 172,869 warrants have vested following the initial £15,000,000 advance.
Unlike equity instruments, the derivative financial liability is subsequently remeasured to fair value at each reporting date using an appropriate option pricing model (Level 3 inputs). Any changes in fair value between reporting periods are recognised immediately in the statement of comprehensive income within finance costs.
Other financial liabilities, including 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 Group’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the Parent 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 payable at the discretion of the Company.
The tax expense represents the sum of the tax currently payable and deferred tax.
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 an appropriate 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 will eventually vest. A corresponding adjustment is made to equity.
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.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
At inception, the Group 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 Group 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 any 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 depreciated using the straight-line method 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. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
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 Group'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 Group 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 remeasured when there is a change in: future lease payments arising from a change in an index or rate; the Group's estimate of the amount expected to be payable under a residual value guarantee; or the Group's assessment of whether it will exercise a purchase, extension or termination option. 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 Group 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.
Interest income
Interest income is recognised when it is probable that the economic benefits will flow to the Group and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Cash flows relating to interest income are classified as cash flows from investing activities in the statement of cash flows, in accordance with IAS7 Statement of Cash Flows. Interest income represents returns generated from the Group’s investment of surplus cash and other financial assets, rather than cash flows arising from the Group’s principal revenue‑generating activities. Accordingly, they are classified as investing activities and the Group applies this policy consistently from period to period.
Finance costs
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
The following new and amended Standards and Interpretations have been issued and are effective for the current financial period of the Group. Their adoption has not had any material impact on the disclosures in, or on the amounts reported in, these consolidated financial statements.
Lack of Exchangeability (Amendments to IAS 21)
The amendments provide guidance in situations where there may be a lack of exchangeability between two currencies. This issue affects relatively few jurisdictions but can have a significant impact on the financial statements of affected entities.
IAS 21 explains that a currency is exchangeable into another currency when an entity is able to obtain the other currency through a market or exchange mechanism in which an exchange transaction would create enforceable rights and obligations, within a time frame that allows for a normal administrative delay. The amendments elaborate on this definition and make it clearer when a currency is not exchangeable. Exchangeability is assessed at a measurement date and for a specific purpose. Exchangeability is not met if the entity is able to obtain no more than an insignificant amount of the other currency at the measurement date for the specified purpose. When a currency is not exchangeable at the measurement date, an entity is required to estimate the spot exchange rate at that date.
There are also new disclosure requirements when a currency is not exchangeable.
There is no impact of these amendments as the Group does not have any foreign currencies where there was a lack of exchangeability.
At the date of authorisation of these financial statements, the following standards and interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective:
Other than the adoption of IFRS 18, the directors do not expect any material impact as a result of adopting the standards and amendments listed above in the financial year in which they become effective.
The preparation of the financial statements requires management to make judgements, estimates, and assumptions that affect the reported amounts for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised if the revision affects only that financial year, or in the financial year of the revision and future financial years if the revision affects both current and future financial years.
The following are the critical judgements and key sources of estimation uncertainty that management has made in the process of applying the Group's accounting policies, which are described in note 1, and that have the most significant effect on the amounts recognised in the financial statements.
Management has exercised judgement in determining whether the costs associated with the credit facility, including fees paid to advisors and external legal costs, were directly attributable to the acquisition of the liability. In accordance with IFRS 9, management concluded that these costs were incremental and directly necessitated by the transaction. Consequently, the transaction costs have been netted against the initial carrying amount of the loan liability rather than being recognised as an expense in the period.
In determining the lease term for the Group's property leases, management considers all facts and circumstances that create an economic incentive to exercise an extension option, or to exercise a termination (break) option. Under IFRS 16, a lease term is reassessed if a significant event or a significant change in circumstances occurs which affects this assessment and is within the control of the Group.
During the current year, the Group performed a remeasurement of certain property lease liabilities following a change in management’s assessment of a break clause. Management has exercised significant judgement in determining that it is now no longer reasonably certain that the Group will exercise a break option at the specified date, based on a reassessment of the Group’s long-term strategic requirements for the relevant location. This change in the assessed lease term resulted in a remeasurement of both the right-of-use asset and the corresponding lease liability.
The derivative financial liability is measured at fair value at each reporting date using the Black-Scholes option pricing model, which requires significant unobservable (Level 3) inputs. These inputs include the Group's underlying equity value and expected volatility derived from a peer group of comparable quoted companies. A change in these assumptions would result in a direct change to the carrying amount of the derivative liability on the Statement of Financial Position and a corresponding non-cash gain or loss recognised within finance costs in the Statement of Comprehensive Income.
Where the Group cannot readily determine the interest rate implicit in a lease, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.
The determination of the IBR involves significant estimation. For the lease remeasurement arising from the reassessment of the break clause, management updated the IBR applied to the remaining lease term as at the date of the change in assessment. This involved deriving a rate that considers:
Reference rates based on prevailing government bond yields at the date of remeasurement;
Adjustments for the Group's specific credit risk profile; and
Lease-specific factors such as the nature of the underlying asset and the remaining term.
A change in the estimated IBR would result in a different carrying amount for the right-of-use asset and the lease liability, as well as a change in the depreciation and interest expense recognised in the profit or loss.
The parent company periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not recoverable. If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future undiscounted cash flows associated with these subsidiaries would be compared to their carrying amounts to determine if a write-down to fair value is necessary.
Revenue represents the fair value of services provided to customers during the financial year excluding value added tax.
Revenue is wholly attributable to the principal activity of the Group and arises solely within the United Kingdom. An analysis of the Group's revenue is as follows:
The Group has claimed research and development (“R&D”) credits under the Merged R&D Expenditure Credit (Merged RDEC) Scheme, which replaced the prior SME and RDEC regimes for accounting periods beginning on or after 1 April 2024. In accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance the credit is recognised in other operating profit reflecting the fact that it is receivable irrespective of the Group’s taxable profit position.
Tax services include fees for corporate tax, research and development, share based compensation review and capital allowances services.
The directors have agreed with the Group's auditors that the auditors' liability to damages for breach of duty in relation to the audit of the Group's financial statements for the year to 2025 should be limited to the greater of £5 million or 5 times the auditors' fees, and that in any event the auditors' liability for damages should be limited to that part of any loss suffered by the Group company as is just and equitable having regard to the extent to which the auditors, the Group and any third parties are responsible for the loss in question. The shareholders waived the need for approval of this limited liability agreement, as required by the Companies Act 2006, by a resolution dated 3 February 2026.
Their aggregate remuneration comprised:
Key management personnel compensation is equal to the Directors emoluments.
The directors did not receive any pension benefits or any share options during the year. Included in directors remuneration is £nil (2024: £112,000) of compensation for loss of office.
The charge/(credit) for the year can be reconciled to the loss per the statement of comprehensive income as follows:
At 31 December 2025, unrecognised deferred tax assets principally arising from taxable losses carried forwards amounted to £35,050,000 (2024: £29,224,000). Gross taxable losses carried forwards at the year end was £131,298,000 (2024: £108,347,000). No deferred tax asset has been recognised on these losses as it is not yet certain when they will be utilised.
Goodwill arising on the acquisition of Total Car Check Ltd ("TCC") on 17 July 2023 is allocated to the TCC cash-generating unit ("CGU"), which represents the smallest identifiable group of assets that generates independent cash inflows in relation to the goodwill. The TCC CGU is the only CGU to which goodwill has been allocated. Goodwill acquired in a business combination is required to be tested for impairment annually, irrespective of whether any indication of impairment exists.
Other intangibles relates to the technology asset acquired on the acquisition of Total Car Check Ltd. The recoverable amount of the TCC CGU which includes goodwill of £996k is determined based on a value-in-use ("VIU") methodology using discounted cash flows to calculate the present value of the future cash flows the Group expects to derive from the cash-generating unit. The key assumptions used in the estimation of the CGU's recoverable amount are the forecast period, terminal growth rate, and pre-tax discount rate.
TCC is a provider of vehicle data and history-check services operating in a stable, mature market; the forecast period reflects the Directors' expectation of the CGU's near-term growth trajectory as the business continues to operate.
Cash flows beyond the forecast period of five years are extrapolated using the estimated growth rate stated into perpetuity; a modest terminal growth rate of 2% has been applied which is lower than the current rate of inflation in the UK but takes account of longer-term considerations.
The pre-tax discount rate of 14.7% used within the recoverable amount calculation is based upon the weighted average cost of capital (WACC). The WACC reflects the risk profile of TCC as a subsidiary of a well-capitalised group, with highly predictable, predominantly subscription-based recurring revenue, strong EBITDA margins, and minimal capital expenditure requirements. The discount rate is a modest assumption which considers the risk-free rate of return, the market risk premium and beta factor reflecting the average beta for the Group and comparative companies which are used in deriving the cost of equity. Other than as included in the financial forecast, it is assumed that there are no material adverse changes in legislation that would affect the forecast cash flows.
The recoverable amount of goodwill shows significant headroom compared with its carrying value. The Directors have considered the sensitivity of the value in use to changes in the pre-tax discount rate and terminal growth rate. Across all combinations tested, the value in use remained in excess of the CGU carrying amount.
There are no changes to the key assumptions of growth rate or discount rate that are considered by the Directors to be reasonably possible which give rise to an impairment of goodwill relating to the TCC CGU.
Having completed the 2025 impairment review, no impairment has been recognised in relation to the TCC CGU.
Property, plant and equipment includes right-of-use assets, as follows:
See note 18 for details of leases where the Group is a lessee.
Accrued income from contracts with customers is presented within prepayments and accrued income in note 16.
Non-current other receivables relates to rent deposits on office leases.
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
The interest expense included in finance costs in respect of leases for the year is £21,000 (2024: £58,000).
The total cash outflow for leases in the year was £1,192,000 (2024: £1,041,000).
During the year the lease term was reassessed in accordance with IFRS. The lease was initially recognised up to the date of the break clause but the business has decided to carry on with the lease and therefore the term has been reassessed from 5 years to 10 years with 5 years remaining. A prospective adjustment has been made to the lease liabilities and right-of-use assets (note 14).
On 23 December 2025, the Group successfully executed a new £25.0 million Term Loan Facility ("the Facility").
A principal amount of £15.0 million was drawn at close. The remaining £10.0 million is available for drawdown until 31 December 2026.
The Facility matures in 54 months and comprises a 24-month interest-only period followed by a 30-month amortisation period.
The interest rate is floating, calculated as the greater of 11.65% and the Bank of England Base Rate plus 7.90%.
The Group entered into a warrant agreement granting the lender rights to subscribe for up to 288,115 ordinary shares, with vesting linked to amounts drawn under the Facility (note 20).
The total cost includes a 1.00% upfront commitment fee and a 2.75% exit fee on the advanced amount.
The Facility represents a hybrid financial instrument. At initial recognition, the embedded share warrants were separated from the host contract and recognised as a derivative liability at the fair value of £643,000. The host loan contract was initially recorded at a net carrying amount of £13,676,000, representing the gross proceeds of £15,000,000 less the initial warrant fair value split of £643,000 and net of 100% of directly attributable transaction costs of £681,000.
The loan is subsequently measured at amortised cost using the effective interest rate method, with an effective interest rate of 16.9%. A final payment of 2.75% of the advanced amount (£413,000) is due upon maturity and is being accrued over the term of the loan. The host loan carrying amount as at 31 December 2025 is £13,729,000.
The Facility is secured by way of a fixed and floating charge over the assets of the obligors (including the Company and its guarantor subsidiaries).
In connection with the Facility, the Group issued warrants to the lender to subscribe for up to 288,115 ordinary shares at an exercise price of £0.01 per share. The warrants vest proportionately as the loan is advanced. At the reporting date, 172,869 warrants have vested following the initial £15,000,000 advance.
The warrants are classified as a derivative financial liability because the cashless net-issuance mechanism provides for a variable number of shares to be delivered based on fluctuations in the Fair Market Value (FMV) at exercise, and the instrument therefore fails the fixed-for-fixed criterion in IAS 32. The liability is subsequently measured at fair value through profit or loss at each reporting date in accordance with IFRS 9, with any subsequent gains or losses flowing directly through the finance costs line within the statement of comprehensive income. The fair value of the vested warrants at the date of issuance was £643,000, which remains the carrying value as of 31 December 2025.
For fair value measurement, refer to note 31.
The Group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.
Enterprise Management Incentives (“EMI”) and Unapproved Options
The Group has granted Unapproved options with a nominal exercise price over ordinary shares of £0.0000001 each in the Company to employees during the year ended 31 December 2025.
The Group has not granted EMI options during the year ended 31 December 2025. The EMI options granted to employees in previous years had a nominal exercise price over ordinary shares of £0.0000001 each in the Company.
The EMI and Unapproved Options generally vest over a four-year period from the vesting commencement date. 25% of the options vest on the first anniversary of the vesting commencement date, with the remainder of the options vesting in equal monthly tranches up until the fourth anniversary of the vesting commencement date.
The EMI and Unapproved Options are not subject to any performance conditions.
As the EMI and Unapproved Options have a nominal exercise price, and the Company does not currently pay dividends, the fair value is broadly equal to the share price at the grant date. As such, it is not necessary to use an option pricing model to calculate the fair value of the EMI and Unapproved Options. Given options are required to be valued using an option pricing model under IFRS 2, the awards have been valued using a Black-Scholes option pricing model, using the model inputs as outlined in the section below.
Company Share Option Plan (“CSOP”) Options
The Group has not granted share options over ordinary shares under a CSOP arrangement during the year ended 31 December 2025. All CSOP Options granted to employees in previous years had an exercise price of £1.37 per share which has been considered equal to the tax market value of the ordinary shares on grant.
The CSOP Options generally vest monthly over a four-year period from the vesting commencement date.
The CSOP Options are not subject to any market based performance conditions and therefore a more complex Monte Carlo model is not required. We have therefore valued the CSOP Options using a Black-Scholes model.
Growth Shares
The Group has not issued Growth Shares to employees during the year ended 31 December 2025. All Growth Shares issued to employees in previous years had a nominal subscription price of £0.0000001 per share.
The Growth shares are subject to a hurdle which must be achieved for the participants to receive any value for the shares. If the hurdle is achieved then the Growth shares will participate in value equally with the ordinary shares.
The Growth Shares vest 25% on the first anniversary of the vesting commencement date, with the remainder of the Growth Shares vesting in equal monthly tranches up until the fourth anniversary of the vesting commencement date.
The Growth Shares are not subject to any performance conditions aside from the requirement for the Growth Share Hurdle to be met.
Although the Growth Shares are not share options they are economically very similar to a share option that has been granted over an Ordinary Share, with a share price target. This is on the basis that the Growth Shares have no value until the Hurdle amount has been achieved, but once the Hurdle has been achieved they are immediately worth the same amount as an Ordinary Share. The Hurdle amount can therefore be considered a market-based performance condition under IFRS 2.
The inputs into the respective valuation model for grants in the year were as follows:
As the Group is not listed, employees are only able to realise value for the awards on a future exit event such as a sale or IPO of the Group. For simplicity, we have used a constant expected term at each grant date.
Risk-free rate varies depending on the grant date of the option with a life in line with the expected term assumptions noted above. The risk free rate input does not impact on the fair value of the Unapproved Options as the options only have a nominal exercise price.
The Group does not expect to pay any dividends to shareholders over the period prior to an exit event.
Expected volatility was determined based on the historical volatility of a group of comparable quoted companies on the grant date during 2025 over a historical period in line with the expected term of the awards. The volatilities of the comparator companies have remained broadly unchanged over the course of 2025.
The expected volatility input does not impact on the fair value of the Unapproved Options as the options only have a nominal exercise price.
The Group recognised total expenses of £2,244,000 and £4,011,000 related to equity-settled share based payment transactions in 2025 and 2024 respectively.
During the year, the Company issued 516,681 ordinary shares at a nominal value of £0.0000001 per share and 126,265 growth ordinary shares were redesignated to growth deferred shares.
Other reserves relates to a share-based payment reserve which represents the charge to profit or loss for services received in relation to equity settled share based payments not yet settled (note 22).
The remuneration of key management personnel, including Directors, is set out in note 9 in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note.
The Group have no other related party transactions to disclose.
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s Statement of Cash Flows as cash flows from financing activities.
Breakdown of total contractual cash flows:
Principal repayments: £15,000,000 (starting Jan 2028).
Total interest (at 11.65%): Approximately £5,650,000 over the remaining 53.7 months.
Final payment (exit fee): £413,000 (due June 2030).
As of 31 December 2025, the loan facility’s interest rate is determined as the higher of 11.65% or the Bank of England (BoE) Base Rate + 7.90%.
As of 31 December 2025, with the BoE Base Rate at 3.75%, the margin-based rate is exactly 11.65% (3.75% + 7.90% = 11.65%). This means the loan is sitting exactly on the "Floor."
The Group issued 288,115 warrants to subscribe for ordinary shares in connection with its credit facility. As of 31 December 2025, 172,869 of these warrants have vested. The warrants are classified as a Derivative Financial Liability at Fair Value Through Profit or Loss (FVTPL) and are remeasured at each reporting date.
The fair value of the warrants was determined using the Black-Scholes Option Pricing Model. This model requires the use of highly subjective assumptions, including the expected volatility of the Group’s share price.
The following table summarises the key assumptions used in the Black-Scholes model for warrants vested during the period:
The notes on pages 52 to 56 form part of these parent financial statements.
The notes on pages 52 to 56 form part of these parent financial statements.
Property, plant and equipment includes right-of-use assets, as follows:
Details of the Company's subsidiaries at 31 December 2025 are as follows:
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
The Company information for derivative financial liabilities is the same as the Group information and is shown in note 20.