Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026

1	General information

Clear Books Limited (the 'company') is a private company limited by share capital, registered in United Kingdom under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page .

2	Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The directors have considered the company’s financial position, liquidity and future performance together with financial projections for the company over the foreseeable future and have also reviewed the availability of banking facilities. After making enquiries, the directors are satisfied that the company has sufficient resources to continue in operation for the foreseeable future, being at least 12 months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the company’s financial statements.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The functional currency of the company is considered to be pound sterling (£) because that is the currency of the primary economic environment in which the company operates. The financial statements are presented in pound sterling (£).

Group accounts not prepared
The company and its subsidiaries comprise a small group. The company has therefore taken advantage of the exemption provided by Section 399 of the Companies Act 2006 to not prepare group financial statements and accordingly these financial statements present information about the company as a single undertaking.

Critical judgements and key sources of estimation uncertainties

There were no key sources of estimation uncertainties or critical judgements made by the directors in the process of applying the company’s accounting policies with significant effect on the amounts recognised in the financial statements.

Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026 (continued)

2	Accounting policies (continued)

Revenue recognition

Revenue receivable by the company is in respect of the provision of software services to customers net of value added tax. Revenue is recognised when the service is provided to the customer. Deferred revenue represents the estimated unearned portion of fees received to the extent that they are considered recoverable.

Taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Property, plant & equipment

Property, plant and equipment is stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of property, plant and equipment includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation is charged so as to write off the cost of assets over estimated useful lives, as follows:

Asset class	Depreciation method and rate
Furniture and fittings	33% straight line

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Investments

Investments in subsidiaries are recorded at historical cost and an annual impairment review is carried out by the directors to ensure the carrying value is appropriate.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and is subject to insignificant risk of change in value.

Page 6

Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026 (continued)

2	Accounting policies (continued)

Receivables

Trade and other receivables that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment.

Payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade and other payables are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade and other payables that are payable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be paid. Those that are payable after more than one year or that constitute a financing transaction are recorded initially at transaction price and subsequently at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026 (continued)

2	Accounting policies (continued)

Defined contribution pension obligation

The company operates a defined contribution pension scheme. The assets of the schemes are held separately from those of the company. Contributions are recognised in the income statement in the period in which they become payable.

Research and development costs
The company expenses all research costs as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new substantially improved processes, is capitalised as an intangible asset if the process is technically and commercially feasible and the company has sufficient resources and the intention to complete development. All other development expenditure and expenditure on research activities are recognised in the Income Statement.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year was 12 (2025 - 12).

Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026 (continued)

4

Taxation

Tax charged/(credited) in the income statement

	2026 £	2025 £
Current taxation
UK corporation tax	288,150	-

The standard rate of UK corporation tax applied to the reported profit before tax for the year is 25% (2025 - 25%).

The difference between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation tax to the profit before tax is as follows:

	2026 £	2025 £
Profit before tax	666,612	616,441
Corporation tax at standard rate	166,653	154,110
Other tax adjustments	121,073	(121,073)
Tax increase from effect of capital allowances and depreciation	401	115
Effect of expense not deductible in determining taxable profit (tax loss)	23	406
Tax decrease from effect of adjustment in research and development	-	(33,558)
Total tax charge	288,150	-

Clear Books Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 March 2026 (continued)

5	Property, plant & equipment

	Fixtures & fittings  £
Cost
At 1 April 2025	53,721
Additions	784
At 31 March 2026	54,505
Depreciation
At 1 April 2025	50,550
Charge for the year	2,387
At 31 March 2026	52,937
Carrying amount
At 31 March 2026	1,568
At 31 March 2025	3,171

6	Investments

	2026 £	2025 £
Investments in subsidiaries	105,526	1