DRIFT ENERGY LTD


Directors	LACY, Peter Michael
	MEDLAND, Ben Stuart
	MUNRO, Mathew Hamilton


Registered Address	Runway East - Kings Court
	Parsonage Lane
	Bath
	BA1 1ER


Registered Number	13475016 (England and Wales)

Notes to the Financial Statements
for the year ended 30 June 2026

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	The financial statements have been prepared in accordance with the Companies Act 2006 and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities.

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Going concern
	In preparing the financial statements for the year ended 30 June 2026, the directors have considered the Company's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Principal events and conditions - At the balance sheet date the Company held cash of £924,298. Since then, cash has reduced to £691,430 as at 21 September 2026, a reduction of £232,868 over the period, reflecting the Company's continued investment in its development programme ahead of further investment and revenue generation. Based on the trailing two complete months (July and August 2026), the Company's current net operating cash outflow is running at approximately £115,000–£120,000 per month. On this run-rate, and before any further mitigating action, the Company's cash position would reduce to approximately £290,000 by 31 December 2026. This represents a material uncertainty that casts doubt on the Company's ability to continue as a going concern without further funding or a reduction in the rate of cash outflow. Directors' actions - The Board has approved, and is in the process of implementing, a programme of actions to reduce the Company's rate of cash outflow and extend its runway. These include reduction of non-core 3rd Party spend, payroll management, admin overheads e.g. office rental etc. The directors are monitoring the cash position and the effect of these actions monthly. In parallel, the Company continues to pursue further funding, including R&D Tax Credits, grant income, equity investment and potential revenue streams in calendar Q3 & Q4. Directors' conclusion - The directors have a reasonable expectation that, taking into account the actions described above and the funding currently being pursued, the Company will have adequate resources to continue in operational existence for the foreseeable future, and accordingly continue to adopt the going concern basis in preparing the financial statements. However, as set out above, the Company's current cash position represents a material uncertainty which may cast significant doubt on that ability. The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.

Going concern

In preparing the financial statements for the year ended 30 June 2026, the directors have considered the Company's ability to continue as a going concern for a period of at least twelve months from the date of approval of these financial statements.

Principal events and conditions - 
At the balance sheet date the Company held cash of £924,298. Since then, cash has reduced to £691,430 as at 21 September 2026, a reduction of £232,868 over the period, reflecting the Company's continued investment in its development programme ahead of further investment and revenue generation.

Based on the trailing two complete months (July and August 2026), the Company's current net operating cash outflow is running at approximately £115,000–£120,000 per month. On this run-rate, and before any further mitigating action, the Company's cash position would reduce to approximately £290,000 by 31 December 2026.

This represents a material uncertainty that casts doubt on the Company's ability to continue as a going concern without further funding or a reduction in the rate of cash outflow.

Directors' actions - 
The Board has approved, and is in the process of implementing, a programme of actions to reduce the Company's rate of cash outflow and extend its runway. These include reduction of non-core 3rd Party spend, payroll management, admin overheads e.g. office rental etc. The directors are monitoring the cash position and the effect of these actions monthly.  In parallel, the Company continues to pursue further funding, including R&D Tax Credits, grant income, equity investment and potential revenue streams in calendar Q3 & Q4.

Directors' conclusion - 
The directors have a reasonable expectation that, taking into account the actions described above and the funding currently being pursued, the Company will have adequate resources to continue in operational existence for the foreseeable future, and accordingly continue to adopt the going concern basis in preparing the financial statements. However, as set out above, the Company's current cash position represents a material uncertainty which may cast significant doubt on that ability. The financial statements do not include any adjustments that would result if the Company were unable to continue as a going concern.

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

	Revenue from sale of goods
	Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Revenue from sale of goods

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

	Employee benefits
	Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Current taxation
	Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income. Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable. Research & Development tax credits are not estimated for the initial submission, however amended accounts will be submitted once a final figure is calculated.

Current taxation

Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income.

Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

Research & Development tax credits are not estimated for the initial submission, however amended accounts will be submitted once a final figure is calculated.

	Research and development
	All research costs are expensed. Costs related to the development of products are capitalised when they meet the criteria stated in FRS 102, Section 18 Intangible assets other than Goodwill. All other development expenditure is recognised as an expense in the period in which it is incurred.

	Tangible fixed assets and depreciation
	All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet. They are depreciated over the shorter of their useful lives or the term of the lease.

	Share capital
	Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. Share Premium has been adjusted in accounts based on Capital Ordinary Shares nominal shares 1,452,811 @ £0.001 nominal value

2.	Average number of employees


		2026		2025
	Average number of employees during the year	12		12

3.	Tangible fixed assets

	Plant & machinery	Office Equipment	Total
	£	£	£
Cost or valuation
At 01 July 25	45,869	12,654	58,523
Additions	-	2,047	2,047
At 30 June 26	45,869	14,701	60,570
Depreciation and impairment
At 01 July 25	45,869	3,900	49,769
Charge for year	-	3,676	3,676
At 30 June 26	45,869	7,576	53,445
Net book value
At 30 June 26	-	7,125	7,125
At 30 June 25	-	8,754	8,754

4.	Debtors: amounts due within one year

	2026	2025
	£	£
Other debtors	256,007	524,527
Total	256,007	524,527


	R&D Tax Credit Provision £225k, Rent deposit £19.7k & VAT rebate £9.8k

5.	Creditors: amounts due within one year

	2026	2025
	£	£
Trade creditors / trade payables	4,035	247,473
Taxation and social security	28,577	23,104
Other creditors	2,729	2,420
Total	35,341	272,997


	PAYE & Pensions £31k

6.	Share capital
	Share Premium has been adjusted in accounts based on Capital Ordinary Shares nominal shares 1,452,811 @ £0.001 nominal value

	Notes	2026		2025
		£	£	£	£
Fixed assets
Tangible assets	3		7,125		8,754
			7,125		8,754
Current assets
Debtors	4	256,007		524,527
Cash at bank and on hand		924,298		1,910,843
		1,180,305		2,435,370
Creditors amounts falling due within one year	5	(35,341)		(272,997)
Net current assets (liabilities)			1,144,964		2,162,373
Total assets less current liabilities			1,152,089		2,171,127
Net assets			1,152,089		2,171,127
Capital and reserves
Called up share capital			1,453		1,453
Share premium			4,779,554		4,779,554
Profit and loss account			(3,628,918)		(2,609,880)
Shareholders' funds			1,152,089		2,171,127