REGISTERED NUMBER: 09317976 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

HITECH GRAND PRIX LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Income Statement

12

Other Comprehensive Income

13

Statement of Financial Position

14

Statement of Changes in Equity

15

Statement of Cash Flows

16

Notes to the Statement of Cash Flows

17

Notes to the Financial Statements

18

DIRECTORS:

O Oakes

T N Murnane

REGISTERED OFFICE:

Unit 1504 Silverstone Park

Silverstone

NN12 8FU

REGISTERED NUMBER:

09317976 (England and Wales)

AUDITORS:

Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

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

REVIEW OF BUSINESS

Hitech Grand Prix Limited began the financial year operating as a standalone legal entity. On 1 October 2025, the Board approved the sale and transfer of the Company's entire issued share capital by Oliver Oakes to Racing Knowledge HK Limited, a company incorporated in Hong Kong. The Company continues to be led by Oliver Oakes, and now carries the backing of its new ownership into a period of further long-term growth as it looks ahead to the 2026 season and beyond.

Throughout 2025, the Company competed across a broad range of championships, including FIA Formula 2, FIA Formula 3, the GB3 Championship, the FIA-certified F4 British Championship, F4 Middle East, the Formula Winter Series, F1 Academy and the Formula Trophy.

The Company concluded 2025 on a strong footing, achieving 70 podium finishes and race wins across FIA Formula 2, FIA Formula 3, GB3 and Formula 4, underlining the strength of its racing programme across the grid.

The Company's driver and Red Bull Junior Driver, Fionn McLaughlin, was crowned Drivers' Champion in the FIA British F4 Championship, capping an outstanding rookie season in single-seater racing. The Company finished the season as Vice-Champions in the Teams' Championship, a result that reflects the continued strength and depth of the Company's driver development pathway, building on its record in British F4 and reinforcing its reputation for identifying and nurturing exceptional young talent.

Since completing the acquisition and startup of its in-house Paint and Composite Facility at its Brackley unit in early 2024, the Company has continued to benefit from bringing these critical processes under direct control, which has delivered improvements in quality management, operational flexibility and turnaround times. These benefits have grown even more valuable as the Company has expanded the number of championships in which it competes, placing greater demands on capacity and underlining the value of having that flexibility and resource under one roof.

In 2025, the Company expanded into the F1 Academy series, running three cars, two on behalf of the Championship's commercial partners and one as the official wild card entry. This expansion is a further step in the Company's commitment to supporting the development of female talent in motorsport, and reflects its broader commitment to advancing diversity within its own team and across the wider industry, while strengthening its presence across multiple international platforms.

During 2025, the Company also took over as the operating provider for the Aramco F4 Saudi Arabian Championship, the Kingdom's official FIA-certified Formula 4 series, run in partnership with promoter Altawkilat under the Altawkilat Motorsport banner. This appointment, which sees the Company take full responsibility for operating the championship's entire grid, reflects the trust placed in its operational expertise and reinforces its standing as a leading and trusted operator within international motorsport. It has also extended the Company's footprint beyond its existing championship portfolio, and its role in developing Saudi drivers, engineers and mechanics aligns with the Kingdom's broader Vision 2030 objectives.

As 2025 drew to a close, the Company took the strategic decision to expand into the Eurocup-3 Championship with four entries, marking its entry into a new tier of single-seater competition. This step called for significant investment, both in race cars and team equipment and in people, including the recruitment of experienced personnel to lead and support the new programme, positioning the Company to compete strongly from the outset of the 2026 season.

During 2025, the Company also entered into a partnership with Toyota to run and develop two of its young drivers in FIA Formula 2 and FIA Formula 3 for 2026.

The Company continues to provide a complete and structured pathway for aspiring young drivers, supporting progression through every step of the motorsport ladder up to the threshold of Formula One. Driver development remains central to its long-term strategy, with talent identification and nurturing at the heart of its approach.

For the 2025 financial year, Hitech Grand Prix reported turnover of £23,380,654 (2024: £26,194,382) and a loss before tax of £4,262,378 (2024: £669,545 profit). The loss after tax for the year was £3,988,731 (2024: £941,477 profit).

Key Performance Indicators

KPI

2025

2024

Sales Growth

-10.7%

13.9%

Podium Positions**

70

70

Employee Headcount

87

70

The directors consider on-track performance, evidenced by race wins, podium finishes and championship results, together with growth in sponsorship and commercial revenue and a controlled cost base, to be the principal Key Performance Indicators used to assess the Company's progress against its strategic goals.

** The Company competed in over seven championships during the 2025 racing season, compared to five championships in 2024.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the Company's strategy are subject to a range of risks. The key risks affecting the Company are outlined below.

All risks are recorded in a register, which is formally reviewed by the Board and Executive Team. Appropriate mitigation processes are in place to monitor and manage these risks on an ongoing basis.

Competition

The motorsport industry remains highly competitive, not only in terms of on-track performance but also in securing the budgets and resources needed to compete at the highest level. The Company continues to focus on attracting and developing exceptional driver talent, and its ability to offer participation across a constantly expanding range of championships, including its recent expansion into the Eurocup-3 Championship, reinforces its reputation as a leading motorsport organisation. The business continues to balance talent investment against budgetary constraints, particularly as costs rise and competition from teams with significant financial backing intensifies.

Cost Management

Rising costs driven by global economic factors continue to present challenges for the Company. In addition to inflationary pressure from suppliers, the Company has faced increased costs arising from increases in employer's National Insurance contributions, business rates, and import and customs duties, all of which have added to the overall cost base during the year. The Company actively monitors expenditure and identifies opportunities to enhance efficiency, ensuring that cost increases from these various sources are kept to a minimum.

Employees

Employees remain the greatest asset of the Company, which continues to invest in its people by providing opportunities for career development and growth across a diverse range of roles within the business. This commitment has contributed to strong retention rates and stability within its race teams, which remains a critical factor in its ongoing success.

Additionally, the Company initiated a new multi-year training partnership during 2025, focused on the development of young drivers, engineers, and mechanics across its race teams. Beyond supporting individual growth and career progression, this collaboration is expected to embed stronger working practices and drive greater efficiencies across the business, reinforcing the Company's commitment to nurturing talent while strengthening its long-term operational capability.

Financial Risk Management

Hitech Grand Prix generates revenue in multiple currencies, which helps mitigate the risks associated with foreign exchange fluctuations.

Price Risk

Cost inflation from motorsport suppliers and stakeholders remains an ongoing risk, with annual price increases of 4-5% observed and limited flexibility due to long-term supply agreements governed by championship organisers. As many of these are sole suppliers, the Company has no alternative but to continue working with them. The Company mitigates this risk where possible through fixed-price contracts and by sourcing goods and services from multiple suppliers to avoid dependency on a single provider.

Future Developments

The directors remain committed to sustaining the Company's success and reinforcing its reputation as a trusted and competitive team within its Championships. Continued investment both on and off track remains a priority, balancing the pursuit of strong racing results with the need to maintain a viable and sustainable business model.

This report was approved by the Board of Directors and is signed on its behalf.

ON BEHALF OF THE BOARD:

O Oakes - Director

15 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of an international motorsport racing team competing in FIA Formula 2, FIA Formula 3 and Formula 4 championships. The Company also operates an applied technologies division.

DIVIDENDS

The loss for the financial year, after taxation, amounted to £3,988,731 (2024: profit of £941,477).

No ordinary dividends were paid. The Directors do not recommend payment of a final dividend.

RESEARCH AND DEVELOPMENT

Hitech operates a Technologies Division committed to further developing the technological capabilities of the business whilst at the same time ensuring that all projects are commercially competitive.

DIRECTORS

O Oakes has held office during the whole of the period from 1 January 2025 to the date of this report.

Other changes in directors holding office are as follows:

W B Oakes - resigned 13 June 2025

M W C Sanwell-Lewis - appointed 9 May 2025

T N Murnane was appointed as a director after 31 December 2025 but prior to the date of this report.

M W C Sanwell-Lewis ceased to be a director after 31 December 2025 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

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

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Accura Audit Limited (Statutory Auditor), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

O Oakes - Director

15 September 2026

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

Fraud risk assessment

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure on management to commit fraud, or an opportunity to do so. Our risk assessment procedures included:

•enquiries of management and those responsible for finance concerning the company's policies and procedures relating to detecting and responding to the risks of fraud, and the internal controls established to mitigate those risks;

•enquiries of management and those responsible for finance as to whether they had knowledge of any actual, suspected or alleged fraud; and

•discussions among the engagement team regarding how and where fraud might occur in the financial statements, and any potential indicators of fraud. The engagement team includes the audit partner, managers and staff with extensive experience of working with companies in this sector, and this experience was relevant to the discussion of where fraud risks may arise.

Risk communications

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

Fraud risks

As required by auditing standards, we addressed the risk of management override of controls and the risk of fraudulent revenue recognition. In particular, we considered the risk that revenue is recorded in the wrong period, the risk that management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements.

Procedures to address fraud risks

Our audit procedures included evaluating the design, implementation and operating effectiveness of internal controls relevant to mitigating these risks. We also performed substantive procedures including:

•reviewing journal entries and agreeing them to supporting documentation, including review for any unusual journal descriptions;

•assessing significant accounting estimates for bias;

•obtaining external confirmations for bank balances and material trade receivable and trade payable balances where considered appropriate; and

•assessing when revenue was recognised, particularly focusing on revenue recognised in the days before and after the year end, and whether it was recognised in the correct year.

Laws and regulations: identifying and responding to risks of material misstatement due to non-compliance

Risk assessment

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. Matters considered in this risk assessment included:

•our general commercial and trading industry experience;

•discussion with management of the company, as required by auditing standards;

•Inspection of the company's regulatory and legal correspondence; and

•discussions with the directors and other management about the policies and procedures regarding compliance with laws and regulations.

Risk communications

We communicated identified risks of non-compliance throughout the audit team and remained alert to any indications of non-compliance throughout the audit.

Laws and regulations with a direct effect on the financial statements

The potential effect of laws and regulations on the financial statements varies considerably. The company is subject to UK laws and regulations, such as the Companies Act 2006. Other relevant legislation includes:

•financial reporting legislation, including UK company law; and

•taxation legislation, both direct and indirect, in the company's countries of operation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Other laws and regulations with an indirect effect on the financial statements

The company is also subject to a number of other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through fines, litigation, or harm to the company's ability to operate. We identified the following areas as those most likely to have such an effect:

•health, safety, welfare and fire safety;

•anti-bribery, fraud and corruption;

•anti-money laundering regulations;

•EU and UK employment law; and

•motorsport governing body regulations (Motorsport UK and the FIA).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management, and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of law or regulation is not disclosed to us or evident from relevant correspondence, our audit will not detect that breach.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. In addition, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one arising from error, because fraud may involve deliberate concealment through collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

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

Use of our report

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

Brian M Leighton (Senior Statutory Auditor)

for and on behalf of Accura Audit Limited (Statutory Auditor)

Langley House,

53 Theobald Street,

Borehamwood

WD6 4RT

15 September 2026

TURNOVER

3

23,380,654

26,194,382

Cost of sales

(22,416,125

)

(16,326,821

)

GROSS PROFIT

964,529

9,867,561

Administrative expenses

(5,179,972

)

(9,081,360

)

OPERATING (LOSS)/PROFIT

(4,215,443

)

786,201

Interest receivable and similar income

6

55,400

-

(4,160,043

)

786,201

Interest payable and similar expenses

7

(102,335

)

(116,656

)

(LOSS)/PROFIT BEFORE TAXATION

8

(4,262,378

)

669,545

Tax on (loss)/profit

10

273,647

271,932

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(3,988,731

)

941,477

(LOSS)/PROFIT FOR THE YEAR

(3,988,731

)

941,477

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(3,988,731

)

941,477

FIXED ASSETS

Tangible assets

11

10,075,042

10,734,000

CURRENT ASSETS

Stocks

12

460,217

477,204

Debtors

13

7,839,647

5,054,117

Cash at bank and in hand

14

2,591,479

639,325

10,891,343

6,170,646

CREDITORS

Amounts falling due within one year

15

14,027,365

6,364,283

NET CURRENT LIABILITIES

(3,136,022

)

(193,637

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,939,020

10,540,363

CREDITORS

Amounts falling due after more than one year

16

(1,400,757

)

(1,685,724

)

PROVISIONS FOR LIABILITIES

19

(2,528,540

)

(1,856,185

)

NET ASSETS

3,009,723

6,998,454

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

3,009,623

6,998,354

SHAREHOLDERS' FUNDS

3,009,723

6,998,454

The financial statements were approved by the Board of Directors and authorised for issue on 15 September 2026 and were signed on its behalf by:

O Oakes - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2024

100

6,056,877

6,056,977

Changes in equity

Total comprehensive income

-

941,477

941,477

Balance at 31 December 2024

100

6,998,354

6,998,454

Changes in equity

Total comprehensive income

-

(3,988,731

)

(3,988,731

)

Balance at 31 December 2025

100

3,009,623

3,009,723

Cash flows from operating activities

Cash generated from operations

1

2,397,723

1,508,048

Interest paid

-

(56,387

)

Interest element of hire purchase payments paid

(56,569

)

(60,269

)

Repayments under HP contracts

(704,256

)

-

Tax paid

1,909,438

-

Net cash from operating activities

3,546,336

1,391,392

Cash flows from investing activities

Purchase of tangible fixed assets

(1,741,317

)

(1,943,506

)

Sale of tangible fixed assets

435,991

346,083

Interest received

55,400

-

Net cash from investing activities

(1,249,926

)

(1,597,423

)

Cash flows from financing activities

Capital repayments in year

(344,256

)

(231,395

)

Net cash from financing activities

(344,256

)

(231,395

)

Increase/(decrease) in cash and cash equivalents

1,952,154

(437,426

)

Cash and cash equivalents at beginning of year

2

639,325

1,076,751

Cash and cash equivalents at end of year

2

2,591,479

639,325

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.25

31.12.24

£

£

(Loss)/profit before taxation

(4,262,378

)

669,545

Depreciation charges

2,542,726

2,637,061

Profit on disposal of fixed assets

(217,455

)

(137,175

)

Other non cash items

-

16,290

Dilapidation write off

54,000

54,000

Finance costs

102,335

116,656

Finance income

(55,400

)

-

(1,836,172

)

3,356,377

Decrease/(increase) in stocks

16,987

(59,372

)

Increase in trade and other debtors

(4,211,101

)

(869,223

)

Increase/(decrease) in trade and other creditors

8,428,009

(919,734

)

Cash generated from operations

2,397,723

1,508,048

2.	CASH AND CASH EQUIVALENTS

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

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

2,591,479

639,325

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

639,325

1,076,751

3.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

639,325

1,952,154

2,591,479

639,325

1,952,154

2,591,479

Debt

Finance leases

(842,671

)

344,256

(498,415

)

Debts falling due after 1 year

(1,151,624

)

-

(1,151,624

)

(1,994,295

)

344,256

(1,650,039

)

Total

(1,354,970

)

2,296,410

941,440

1.	STATUTORY INFORMATION

Hitech Grand Prix Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Functional and presentation currency

The company's functional and presentation currency is £ sterling. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

The financial statements have been prepared on a going concern basis. At 31 December 2025, the Company had net current liabilities of £3,136,022 (2024: (£193,637). The Directors have prepared detailed cash flow forecasts for at least twelve months from the date of approval of these financial statements. These forecasts take into account committed income for the forthcoming racing season, ongoing cost management initiatives, and the availability of financial support from related parties where required.

The forecasts indicate that the Company is expected to have sufficient liquidity, with headroom to manage reasonably possible adverse changes in income or expenditure. On this basis, and having considered the availability of financial resources, the Directors have a reasonable expectation that the Company will be able to meet its liabilities as they fall due for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis and no material uncertainty has been identified that would require disclosure.

Significant judgements and estimates

In applying the company’s accounting policies, the directors are required to make judgements and estimates that affect the amounts recognised in the financial statements.

Judgements involve decisions made when applying accounting policies in situations where the outcome is uncertain. The uncertainty is about how the accounting policy should be applied, rather than the numerical amount to report.

Estimates involve assumptions about future events or conditions that are inherently uncertain. The uncertainty is about quantifying an amount in the financial statements.

The directors base their judgements and estimates on historical experience and other factors they consider reasonable under the circumstances. Actual outcomes may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period of revision if they affect only that period, or in the period of revision and future periods if both are affected.

a) Critical judgments in applying accounting policies

There are no judgements (apart from those involving estimates) that have had a significant effect on the amounts recognised in the financial statements.

b) Key accounting estimates and assumptions

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have the most significant potential impact on the carrying values of assets and liabilities within the next financial year are as follows:

Useful economic lives of tangible fixed assets

The useful economic lives used by the Company in respect of tangible fixed assets are set out in the accounting policies. These estimates are based on past experience and expected performance and are regularly reviewed to ensure they remain appropriate. The net book value of tangible fixed assets as at 31 December 2025 was £10,075,040 (2024: £10,734,000) after a depreciation charge for the year of £2,541,740 (2024: £2,637,061).

Doubtful Debt Provisions

Provisions for doubtful debts are determined based on the directors’ assessment of the recoverability of individual receivables. This assessment considers the ageing of balances, specific knowledge of customers’ financial circumstances, and historical patterns of default. The directors apply a prudent approach in estimating the likelihood of non-recovery.

Revenue

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication 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. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a combination of the straight-line and reducing balance methods.

Depreciation is provided on the following basis:

Freehold land

- not depreciated

Freehold building

- 2% straight line

Assets under construction

- not depreciated

Leasehold improvements

- 11.11% straight line

Motor vehicles

- 20.00% reducing balance

Fixtures and fittings

- 20.00% straight line

Computer equipment

- 33.33% straight line

Race cars

- 20.00% to 33.33% straight line

Race cars are depreciated on a straight-line basis over their estimated useful economic lives. Existing race cars are depreciated over 3 years, while certain race cars acquired under arrangements requiring participation for five racing seasons are depreciated over 5 years.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Financial instruments

The Company has elected to apply the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.