Annual Report and Consolidated Financial Statements and Parent Company Financial Statements

The Directors of Jumbo Interactive UK Limited (Group) present their strategic report for the consolidated entity that covers controlled companies that include StarVale Technical Systems Limited, StarVale Management and Technologies Limited, DDPay Limited, Dream Car Giveaways Limited, and MDM Holdings (Midlands) Limited for the year ended 30 June 2026.

The Group is a leading External Lottery Manager (ELM) and digital payments provider offering a full range of Society Lottery (weekly lottery and raffle) and prize draw services to the charity and not-for-profit sector in the UK. This includes devising, planning, building, managing, administering, and maintaining weekly Society lotteries and raffles. StarVale provides services to over 1 million active players across more than 50 charity and non-for-profit clients.

On 14 October 2025, the Group acquired MDM Holdings (Midlands) Limited (MDM) and its wholly-owned subsidiary Dream Car Giveaways Limited (DCG). DCG is a UK-based prize competition operator, offering online prize draws featuring motor vehicles and other high-value prizes to consumers across the United Kingdom. The acquisition extends the Group's offering beyond charity lottery management into the direct-to-consumer prize competition sector, complementing StarVale's existing capabilities.

For the year ended 30 June 2026, the Group generated £24.60 million (2025: £6.18 million) in revenue and £1.67 million (2025: £1.36 million) in net profit before tax.

The Group is continually monitoring the risks the business faces and ensuring the risk response sufficiently mitigates these risks. Some key risk areas identified are as follows:

A deterioration in the broader macro-environment resulting in cost-of-living pressures and changes in consumer behaviour impacting ticket and prize competition entry sales. Historically, lottery ticket sales have proven to be resilient during economic downturns given the relatively low and recurring nature of spend and commitment to good causes. Prize competition entries may be more discretionary in nature and therefore more sensitive to disposable income levels. The Group has worked proactively with its clients and monitors consumer trends across both business lines to sustain revenue.

Risk of a data breach or cyber incident. Data protection and governance continues to be a strong focus area across both the StarVale and DCG businesses, which together process personal and payment data for a significant volume of players and entrants. Contingency and business continuity plans are in place should the business suffer an incident or attack. The information security management system includes ongoing surveillance and active monitoring of the network, including user access controls testing, regular data protection training and external assurance to meet licensing requirements.

Risk of non-compliance or breach of regulatory requirements or failure to comply with licence obligations. The Group operates in regulated sectors including society lotteries (under Gambling Commission licensing) and prize competitions (which must be structured to fall within the statutory exemptions under the Gambling Act 2005). The Group maintains close working relationships with regulators to ensure compliance with all relevant obligations and proactively monitors legislative developments, including any changes to the treatment of prize competitions, to help safeguard future operations. During the year, additional resourcing and oversight was implemented to ensure the robustness of these processes and controls.

Disruption to Information Technology systems and infrastructure resulting in inability to process tickets, entries or draw errors. Ongoing monitoring and backup of servers is a key focus including running dual redundant services, backups and use of cloud storage. Third-party relationships are limited to large and reputable companies.

Loss of key staff or higher than expected turnover impacting productivity and client satisfaction. The Group has a strong employee culture and employee engagement levels. The majority of senior StarVale staff have individual tenure greater than 10 years within the business. A number of people and culture orientated initiatives have been implemented across the enlarged Group to foster strong morale and engagement, including ensuring competitive remuneration levels and supporting the integration of DCG employees into the wider Group.

Integration of acquired businesses:

Risk that the integration of MDM Holdings and Dream Car Giveaways does not deliver the expected operational, commercial or financial benefits, or that management attention is diverted from the underlying businesses during the integration period. The Group has established an integration workstream with defined milestones, and the DCG business continues to operate under its existing management team to preserve operational continuity while alignment with Group processes, controls and reporting is progressed.

DCG holds motor vehicles as inventory for use as competition prizes and for onward sale. The Group is therefore exposed to movements in used and new vehicle prices between the point of purchase and the point at which the prize is awarded or the vehicle is sold. This risk is mitigated by aligning vehicle procurement with competition schedules, limiting the holding period, and monitoring residual values on an ongoing basis. Inventory is carried at the lower of cost and net realisable value.

Prize fulfilment and consumer protection:

Risk of dispute, complaint or regulatory intervention arising from the conduct of prize competitions, including the drawing of winners, delivery of prizes, and the clarity of terms and conditions presented to entrants. DCG operates documented procedures for draw governance, independent verification of winners where appropriate, and prompt prize fulfilment, alongside a customer support function to handle entrant queries and complaints.

This statement, which forms part of the strategic report, is intended to show how the Company’s Directors have approached and met their responsibilities under section 172 Companies Act 2006 during the financial year. The statement has been prepared in response to the obligations as set out in the Companies (Miscellaneous Reporting) Regulations 2018.

As required by section 172 of the UK Companies Act 2006, a Director of a Company must act in a way they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole.

In doing this, the Director must have regard to:

We understand that our business can only succeed and grow over the long term if we recognise the views and needs of the business stakeholders. Understanding the businesses stakeholders is key to ensuring Directors can make informed decisions. Information on engagement with key stakeholders during the year is included in the Directors report.

The Group is seeking to build on its strong relationships with charity lottery partners and leverage the proprietary lottery software platform and lottery management expertise now available as part of the Jumbo Interactive Group to deliver increased levels of service to benefit both existing and new charity lottery partners and their customers.

The acquisition of MDM Holdings (Midlands) Limited and Dream Car Giveaways Limited during the year extends the Group's activities into the direct-to-consumer prize competition sector, providing a complementary revenue stream alongside the existing charity lottery management business. The Group intends to grow the DCG business through continued investment in its digital platform, expansion of its prize offering, and by leveraging shared capabilities across the wider Group in areas such as technology, payments, data analytics and marketing. Integration of DCG into the Group's operating and governance frameworks is expected to continue into the next financial year.

The Group is a subsidiary of Jumbo Interactive Limited (Jumbo or ultimate parent) which is listed on the Australian Securities Exchange (ASX ticker: JIN). Jumbo is a digital lottery specialist, providing its proprietary lottery software platforms and lottery management expertise to the charity and government lottery sectors in Australia and globally.

On behalf of the Board

The Directors present their report, together with the financial statements of the Company and the Group, for the year ended 30 June 2026.

The principal activities of the Group in the year under review were the management and fulfilment of lottery operations for charities and other not-for-profit organisations, and the operation of consumer prize competitions featuring motor vehicles and other high-value prizes. The Group also provides direct debit origination services as well as other services linked to the provision of lotteries and fundraising.

The consumer prize competition activity was acquired during the year through the acquisition of MDM Holdings (Midlands) Limited and its wholly-owned subsidiary Dream Car Giveaways Limited in October 2025.

The directors consider that the Group has sufficient resources and trade to enable the Group to continue in the future and the going concern basis has been applied to the preparation of the consolidated financial statements.

In preparing the consolidated financial statements, the directors have considered the ability of the Group to continue as a going concern and continue to monitor the impact of the current economic conditions, on its financial condition, liquidity, operations and workforce to inform their decisions for a period to 31 October 2027.

The Group made a profit before tax for the year ended 30 June 2026 of £1,673,513 (30 June 2025: £1,360,894) and at the balance sheet date had net current liabilities of £-37,247,894 (30 June 2025 net current asset of £8,584,135) and net assets of £23,098,269 (30 June 2025: £22,037,781).

The net current liability position arises principally from intra-group loan balances and contingent consideration on the Dream Car Giveaways Limited acquisitions. Excluding these, the Group holds net current assets of £6,640,737.

Despite wider market challenges, the Group's underlying business performance remained resilient across all operating markets. Revenue streams across both core operations—lottery management service charges and prize draw operations continued to perform strongly, alongside securing new lottery management contracts. The core business has demonstrated consistent stability through broader economic headwinds, with new business wins continuing to support healthy future development.

The directors have reviewed the latest financial performance and prepared detailed cash flow forecasts covering a period to  31 October 2027, aligning with all known contractual cash commitments and existing cash reserves. Sensitivity analysis has been performed on key assumptions; reasonable worst-case scenarios indicate that no material going concern conditions arise, and severe stress-test scenarios have been assessed as remote.

Having considered the Group's financial forecasts, operational resilience, and available liquidity, the directors have concluded that there are no material uncertainties that cast significant doubt upon the Group's ability to continue as a going concern. Accordingly, it remains appropriate to prepare the consolidated financial statements on the going concern basis.

The Group's ultimate parent has confirmed it will provide financial support as required for at least a period to 31 October 2027, and accordingly the directors do not consider the net current liability position to indicate a material uncertainty.

No dividends were declared or paid during the year ended 30 June 2026 (2025: 3,500,000). See note 22.

The following persons were directors of Jumbo Interactive UK Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

The Group has chosen in accordance with Companies Act 2006, s 414C (11) to set out in the Group's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' report. It has been done in respect of:

- future developments

- financial risk management objectives and policies

Our employees are the foundation of our success. We want our people to feel engaged and empowered to deliver the best possible outcomes for our customers. The Group has undertaken a variety of methods to engage with employees including engagement surveys, an intranet and all-employee strategy days.

Placing customer and client needs at the heart of our strategy is fundamental to driving long-term success, trust, and commercial value.

Fundraising Clients

We support over 50 key client — whom we view as strategic partners — focusing on open, proactive communication to ensure optimal outcomes throughout their fundraising journeys and build enduring relationships.

Prize Draw Customers

For participants across our prize draw platforms, including our popular Dream Car Giveaways, we prioritise transparency, fairness, and seamless user experiences to maintain trust and engagement.

Our suppliers provide the products and services that help us execute our strategy on behalf of the clients we represent. We conduct due diligence and work collaboratively with all suppliers to ensure that the goods and services provided are of the standards required.

On 14 October 2025, the Group acquired the entire issued share capital of MDM Holdings (Midlands) Limited and its wholly-owned subsidiary Dream Car Giveaways Limited. Dream Car Giveaways Limited is a UK-based operator of consumer prize competitions featuring motor vehicles and other high-value prizes.

The acquisition extends the Group's activities into the direct-to-consumer prize competition sector, complementing the existing charity lottery management business.

Further information on the acquisition, including the consideration payable and the fair value of the identifiable assets acquired and liabilities assumed, is set out in note 4 of the consolidated financial statements.

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

The auditors, Ernst & Young LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act

2006.

This report is made in accordance with a resolution of Directors.

On behalf of the Directors

The Directors are responsible for preparing the Strategic Report, Directors' Report and the consolidated and Company's financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare consolidated and Company financial statements for each financial year. Under that law the Directors have elected to prepare the consolidated and Company financial statements in accordance with UK-adopted International Accounting Standards. Under Company Law, the Directors must not approve the consolidated and Company financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company, and the profit or loss of the Group for that year.

In preparing these consolidated financial statements, the directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the consolidated and Company financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In our 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent 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.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be

predicted, this statement is not a guarantee as to the group’s and the parent company’s ability to continue as a going concern.

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.

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

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 course of 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 the other information, we are required to report that fact.

We have nothing to report in this regard.

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or directors’ report.

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 9, 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 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 an auditor’s 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 irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the UK-adopted international accounting standards, Companies Act 2006, Bribery Act 2010, Money Laundering Regulations in the United Kingdom and Gambling Act 2005.

We understood how the parent company and its subsidiaries are complying with those frameworks by making regular enquiries with senior management regarding any non-compliance with laws and regulations and any whistleblowing complaints. We corroborated these discussions by inspecting board minutes maintained during the year and up to the date of our auditor's report, together with management's procedures for preventing and detecting breaches of laws and regulations.

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 inappropriate journal entries, inappropriate revenue recognition and management bias in determining accounting estimates.

Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations, including engaging with internal legal specialists as required. Our procedures involved inspecting board minutes up to date and have held discussions with senior management on the compliance with laws and regulations.

Audit procedures performed by the engagement team included:

• Discussions with management, internal legal specialists and the directors of the parent company, including consideration of known or suspected instances of non-compliance with laws and regulations (including data protection legislation) and fraud;

• Identification and testing of significant manual journal entries;

• Evaluation and, where appropriate, challenging assumptions and judgements made by management in making significant accounting estimates;

• Inspection of board minutes up to date and discussions with senior management on the compliance with laws and regulations.

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 Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

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

Jumbo Interactive UK Limited is a private company, limited by shares, registered in England and Wales. The consolidated financial statements of Jumbo Interactive UK Limited and its subsidiaries (collectively, the Group) for the year ended 30 June 2026 were authorised for issue in accordance with a resolution of the Directors on 15 October 2026.  Jumbo Interactive UK Limited (the Company or the parent) is a limited company incorporated and domiciled in England and Wales. The registered number is 13841826 and the registered office address is Colony Flint Glass Works, Jersey Street, Ancoats, Manchester, England, M4 6JW.

The Group operates two principal business activities.

On 14 October 2025, the Group acquired the entire issued share capital of MDM Holdings (Midlands) Limited and its wholly-owned subsidiary Dream Car Giveaways Limited. Further information on the acquisition is set out in note 4.

Information on the Group's structure is provided in note 3 and note 4. Information on other related party relationships of the Group is provided in note 27.

The consolidated financial statements of the Group have been prepared in accordance with UK-adopted International Accounting Standards ('IFRS') and the requirements of the Companies Act, 2006.

These consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and liabilities at fair value.

The consolidated financial statements are presented in pound sterling (£) and all values are rounded to the nearest pound, except when otherwise indicated.

The Group has prepared the consolidated financial statements on the basis that it will continue to operate as a going concern.

The directors consider that the Group has sufficient resources and trade to enable the Group to continue in the future and the going concern basis has been applied to the preparation of the consolidated financial statements.

In preparing the consolidated financial statements, the directors have considered the ability of the Group to continue as a going concern and continue to monitor the impact of the current economic conditions, on its financial condition, liquidity, operations and workforce to inform their decisions for a period to 31 October 2027.

The Group made a profit before tax for the year ended 30 June 2026 of £1,673,513 (30 June 2025: £1,360,894) and at the balance sheet date had net current liabilities of £-37,247,894 (30 June 2025 net current asset of £8,584,135) and net assets of £23,098,269 (30 June 2025: £22,037,781).

The net current liability position arises principally from intra-group loan balances and contingent consideration on the Dream Car Giveaways Limited acquisitions. Excluding these, the Group holds net current assets of £6,640,737.

Despite wider market challenges, the Group's underlying business performance remained resilient across all operating markets. Revenue streams across both core operations—lottery management service charges and prize draw operations continued to perform strongly, alongside securing new lottery management contracts. The core business has demonstrated consistent stability through broader economic headwinds, with new business wins continuing to support healthy future development.

The directors have reviewed the latest financial performance and prepared detailed cash flow forecasts covering a period to  31 October 2027, aligning with all known contractual cash commitments and existing cash reserves. Sensitivity analysis has been performed on key assumptions; reasonable worst-case scenarios indicate that no material going concern conditions arise, and severe stress-test scenarios have been assessed as remote.

Having considered the Group's financial forecasts, operational resilience, and available liquidity, the directors have concluded that there are no material uncertainties that cast significant doubt upon the Group's ability to continue as a going concern. Accordingly, it remains appropriate to prepare the consolidated financial statements on the going concern basis.

The Group's ultimate parent has confirmed it will provide financial support as required for at least a period to 31 October 2027, and accordingly the directors do not consider the net current liability position to indicate a material uncertainty.

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2026 reporting periods and have not been early adopted by the Group.

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 30 June 2026. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Specifically, the Group controls an investee if, and only if, the Group has:

To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting.

During the year, MDM Holdings (Midlands) Limited and its wholly-owned subsidiary Dream Car Giveaways Limited were acquired on 14 October 2025 and have been consolidated from that date. Further information is set out in note 4.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. Unrealised gains are fully eliminated, while unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is recognised at fair value.

Contingent consideration liability related to business acquisition is measured at fair value at each reporting date and changes in fair value are recognised in profit or loss in accordance with IFRS 9.

The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual expectations may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying value of assets and liabilities within the next financial year are discussed below.

Estimates and assumptions

The Group tests goodwill and acquired intangible assets for impairment at least annually. The recoverable amount of a cash-generating unit has been determined based on the higher of fair value less costs to sell or value-in-use calculations.

Following the acquisition of MDM Holdings (Midlands) Limited and its subsidiary Dream Car Giveaways Limited ("DCG") during the year, the Group has identified a second cash-generating unit, Prize Competitions, in addition to the existing Managed Services United Kingdom StarVale cash-generating unit.

Goodwill and acquired intangible assets are allocated to the cash-generating unit expected to benefit from the relevant business combination and are tested for impairment at that level. These calculations require the use of estimates, including forecast cash flows, discount rates and terminal growth rates, as further detailed in note 12.

The estimates applied to the Prize Competitions cash-generating unit are inherently more uncertain given the shorter trading history available to the Group following the acquisition.

Fair value of identifiable intangible assets acquired in a business combination

The acquisition of MDM Holdings Limited and Dream Car Giveaways Limited during the year required the Group to identify and measure at fair value the intangible assets acquired, as part of the purchase price allocation exercise under IFRS 3.

This process involves significant judgement in determining which assets meet the recognition criteria and in estimating their fair values, with key inputs including forecast revenues and margins, customer attrition rates, royalty rates, discount rates and the estimated economic lives of the assets. Changes in these assumptions could materially affect the carrying values of the acquired intangible assets and the residual goodwill recognised on the acquisition. Further information is set out in note 4.

The DCG acquisition required the Group to identify and measure at fair value the intangible assets acquired, as part of the purchase price allocation exercise under IFRS 3.

This process involves significant judgement in determining which assets meet the recognition criteria and in estimating their fair values, with key inputs including forecast revenues and margins, royalty rates and discount rates. Changes in these assumptions could materially affect the carrying values of the acquired intangible assets and the residual goodwill recognised on the acquisition. Further information is set out in note 4.

Estimated useful lives of intangible assets acquired through business combinations

The Group estimates the useful lives of intangible assets acquired in business combinations based on the expected period over which economic benefits from the use of each asset will be derived.

Management reviews useful life assumptions on an annual basis, having given consideration to variables including changes in contract terms and conditions, customer retention patterns, the expected competitive and regulatory environment, and changes in legal and economic conditions.

The amortisation period relating to the customer contracts and relationships acquired on the acquisition of StarVale is ten years. The useful lives assessed for the intangible assets acquired on the DCG acquisition are set out in note 2.9 and note 13.

Useful life assumptions are adjusted prospectively where appropriate.

Estimated useful life of capitalised development costs capitalised for Dream Car Giveaways Limited

Group estimates the useful life of capitalised development costs based on the expected period of time over which economic benefits from the use of the asset will be derived. Group reviews useful life assumptions on an annual basis having given consideration to variables including historical and forecast usage rates, technological advancements and changes in legal and economic conditions.

The amortisation period relating to the capitalised developments costs varies depending on date of capitalisation and expected transition to a new platform planed after October 2028.

Net realisable value of prize inventory

Determining the net realisable value of prize inventory, principally motor vehicles, requires management to estimate the selling price achievable on disposal of unawarded prize stock. This estimate is sensitive to conditions in the used and prestige vehicle market, and to vehicle age, mileage, specification and holding period. The accounting policy and basis of the estimate are set out in note 2.11 and note 17.

Redemption rate for the customer loyalty programme

The deferred income recognised for Dream Points depends on management's best estimate of the proportion of points that will ultimately be redeemed. Actual usage depends on customer habits and may differ from historical redemption patterns, affecting the carrying amount of the deferred income and the timing of revenue recognition. The accounting policy is set out in note 2.6 and further details in note 19.

Judgment in relation to VAT exemption for Dream Car Giveaways Limited

Please refer to note 26 for further details

The Group is in the business of providing lottery management services to charitable and not-for-profit organisations, and operating consumer prize competitions.

Revenue from contracts with customers is recognised when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has assessed the principal versus agent position separately for each revenue stream.

For lottery management services, the Group has concluded that it acts as agent, as it arranges for the provision of lottery services on behalf of the charity or not-for-profit client, and recognises revenue on a net basis.

For consumer prize competitions, the Group has concluded that it acts as principal, as it controls the competition offering before it is provided to the entrant, sets the entry price, and bears the risks and rewards associated with the promotion and fulfilment of the competition, and recognises revenue on a net basis, with cost of prizes deducted.

Rendering of managed services

Managed services revenue is recognised as the commission or service fee received from customers when the official draw for each lottery is completed or once the service has been rendered. This includes providing a full range of weekly lottery, and raffle services in the UK. Revenue is derived at a point-in-time with payment terms of between date of invoice to 30 days after invoice date.

Prize competition revenue

Prize competition revenue is derived from the sale of competition tickets, providing customers with entry into competitions to win luxury cars, cash alternatives or other lifestyle prizes. The Group recognises revenue in accordance with IFRS 15 - Revenue from contracts with customers at the point when the competition result is announced net of the prize costs which are considered a payment to the customer.

The Group recognises at the start of the competitions a financial liability for the prize money if the Group is required to do the draw regardless of the number of tickets sold and the customer has an option for a cash prize. With the recognition of the customer prize liability, a contract asset of equivalent value is recognised under IFRS 15 Revenue from Contracts with Customers. This contract asset represents the Group’s costs to fulfill the performance obligation under the contract entered with the customer, where the cost to fulfill relate directly to a contract with the customer and used in satisfying performance obligation on draw date; and these costs are expected to be recovered from future ticket sales proceeds. The contract asset is assessed for impairment at each reporting date. If expected ticket sales are insufficient to recover the contract asset, an immediate impairment loss is recognised in profit or loss.

Proceeds received from the sale of tickets are first applied against the contract asset. Once the contract asset has been fully recovered, any additional ticket sale proceeds are recognised as deferred revenue, reflecting the Group's remaining performance obligations in relation to the draw.

Customer loyalty programme

The Group operates a customer loyalty scheme under which entrants to prize competitions are awarded Dream Points based on their level of participation. Dream Points may be used as consideration towards future competition entries.

The award of Dream Points is assessed as a material right granted to the customer, representing a separate performance obligation under IFRS 15. A portion of the consideration received is allocated to the Dream Points on a relative stand-alone selling price basis, having regard to the value of the entitlement to the customer and the proportion of points expected to be redeemed. The amount allocated is deferred and recognised as a contract liability, and is released to revenue as the points are redeemed or when they expire.

The proportion of points expected to be redeemed is estimated by reference to historical redemption patterns and is reviewed at each reporting date. Changes in the estimated redemption rate are recognised prospectively as an adjustment to the contract liability and to revenue.

2.7 Cash and cash equivalents

Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value.

In the presentation of the consolidated statement of cash flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the consolidated statement of financial position.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.

Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

Capitalised Development Costs

Expenditure during the research phase of a project is recognised as an expense when incurred. Development costs are capitalised only when the Group can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use; ability to use the intangible asset; how the intangible asset will generate probable future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and ability to measure reliably the expenditure attributable to the intangible asset during its development. Development costs have a finite life and are amortised on a straight-line basis matched to the future economic benefits over the useful life. The amortisation period relating to the capitalised developments costs varies depending on date of capitalisation and expected transition to a new platform planed after October 2028.

Useful lives of intangible assets

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the consolidated statement of profit or loss in the expense category that is consistent with the function of the intangible assets.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss.

A summary of the policies applied to the Group’s intangible assets is, as follows:

2.10 Property, plant and equipment

Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management, less depreciation and impairment.

Improvements to leasehold property are recognised as a separate asset. All repairs and maintenance are charged to the profit or loss during the reporting period in which they occur.

Property, plant and equipment are depreciated or amortised from the date of acquisition, or, in respect of internally generated assets, from the time an asset is held ready for use. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

2.11 Inventories

The Group operates prize draw competitions where participants purchase tickets for a chance to win non-cash prizes (such as vehicles, luxury goods, or other physical items). These prizes are usually purchased in advance and held until awarded to competition winners.

Non-cash prizes are recognised as inventory at cost when purchased, in accordance with IAS 2 - Inventories. Cost comprises the purchase price and any directly attributable costs necessary to bring the prize to its present location and condition (such as delivery costs, insurance, or customisation costs). Prize inventory is measured at the lower of cost and net realizable value at each reporting date.

The inventory is derecognised when it is delivered to the winner, at which point the risks and rewards of ownership are transferred, concurrent with the derecognition of the related liability.

When car prizes are subsequently sold (because the winner selected cash alternative) any proceeds from sale are recognised as "proceeds from disposal of prize stock" and carrying value of the prize inventory is recognised as “cost of prize stock disposed” in operating expenses in the statement of profit or loss.

2.12 Financial instruments

Financial assets

The financial assets of the Group arise from the provision of services to clients and customers. Trade receivables are accounted for using amortised cost. They are initially recognised at fair value and are subsequently carried at amortised cost using the effective interest rate method, less expected credit loss provision.

Expected credit loss provisions for current trade receivables are recognised based on the simplified approach within IFRS 9. During this process, the probability of the non-payment of the trade receivables is assessed taking into account forward-looking considerations. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in the profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

There is not expected credit loss provisions recognised at the reporting date as the Group believes that the total amount of such provisions is immaterial due to their short-term nature and high creditworthiness of its debtors.

Financial liabilities

Trade payables and other short term monetary liabilities which are initially recognised at fair value and subsequently amortised using the effective interest rate method. There are no amounts amortised in the financial statements as all short-term liabilities are expected to be paid at the carrying value within a very short time after the year end.

Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Current taxes

The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred taxes

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously.

Value added tax (VAT)

Expenses and assets are recognised net of the amount of VAT, except:

The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position.

The Group’s consolidated financial statements are presented in Pound Sterling (£), which is also the parent company’s and subsidiaries’ functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method.

Leases are recognised as right-of-use assets and corresponding lease liabilities. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract.

Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term.

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

Short term obligations

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period, and they are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the consolidated statement of financial position.

Post-employment obligations

The Group operates a defined contribution pension plan. The Group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

Ordinary shares are classified as equity. Preference shares are classified as liabilities.

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.

The Group’s ordinary shares are classified as equity instruments.

The Company recognises a liability to pay a dividend when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws of England and Wales, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

Finance income/(expense) is recognised using the effective interest rate method. In calculating finance income/(expense), the effective interest rate is applied to the gross carrying amount of the asset, when the asset is not impaired or to the amortised cost of the liability for interest expense.

For financial assets that have been impaired after initial recognition, interest income is calculated by applying the effective interest rate to the amortised cost of the financial asset. If the asset is no longer impaired the interest income calculation reverts to the gross carrying amount.

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.

Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

2.22 Interests in subsidiaries

Interests in subsidiaries are accounted for at cost, less any impairment, in the parent entity. Dividends received from subsidiaries are recognised as other income by the parent entity and its receipt may be an indicator of an impairment of the investment.

2.23 Business combinations

The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired.

The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.

On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.

Where the business combination is achieved in stages, the Group remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss.

Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date at fair value. Subsequent changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.

The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer.

Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value.

Details of the Company’s significant subsidiaries at 30 June 2026 and 30 June 2025 were as follows:

All of the above subsidiaries are incorporated in England and Wales and are included in the consolidated financial statements. The companies are exempt from the requirements of the Act relating to the audit of the individual financial statements under section 479A. Jumbo Interactive UK Limited has provided a guarantee for all the subsidiaries listed in above table.

StarVale Technical Systems Limited and MDM Holdings (Midlands) Limited are held directly by Jumbo Interactive UK Limited.

StarVale Management and Technologies Limited is held as to 16.67% directly by Jumbo Interactive UK Limited and as to 83.33% indirectly through StarVale Technical Systems Limited.

DDPay Limited is held indirectly through StarVale Management and Technologies Limited.

Dream Car Giveaways Limited is held indirectly through MDM Holdings (Midlands) Limited.

The percentages shown represent the Group's effective ownership interest.

On 14 October 2025, the Group acquired 100% of the issued share capital of MDM Holdings (Midlands) Limited and its wholly-owned subsidiary Dream Car Giveaways Limited ("DCG"). DCG is a UK-based operator of consumer prize competitions featuring cars, cash, property and lifestyle products. The acquisition extends the Group's activities into the direct-to-consumer prize competition sector, complementing the existing charity lottery management business and providing access to a new customer base, a proven digital competition platform, and opportunities to leverage shared capabilities across the wider Group.

The Group prepared the acquisition accounting of DGC on provisional basis in accordance with IFRS 3 - Business Combinations.

Details of the consideration paid, the assets acquired and liabilities assumed and the effects on the cash flows of the Group at the acquisition date - 14 October 2025 are as follows:

Details of the acquisition are as follows:

Consideration transferred

The total consideration transferred of £64,862,211 comprises cash paid on completion of £48,703,434 (which also includes payment for cash acquired), equity issues of £5,000,000, and contingent consideration measured at a discounted fair value of £11,158,777.

Part of the consideration was settled by the issue of 1,012,161 ordinary shares in Jumbo Interactive Limited, the ultimate parent, to the vendors, valued at £5,000,000 by reference to the fair value of those shares at the acquisition date. The shares were issued by the ultimate parent on behalf of the Company, and the corresponding obligation to the ultimate parent was settled by set-off against amounts receivable from the ultimate parent (note 27). No shares were issued by the Company and no amount remained outstanding at the reporting date.

The contingent consideration is payable to the vendors subject to the achievement of specified performance targets over the period to 31 December 2026. The fair value at the acquisition date was estimated by reference to the probability-weighted expected payments, discounted at a rate of 6.00%. The maximum undiscounted amount payable is £12,000,000. Subsequent changes in the fair value of the contingent consideration are recognised in profit or loss in accordance with IFRS 9.

Fair value of identifiable intangible assets

The fair values of the identifiable intangible assets acquired have been determined using established valuation methodologies. Customer contracts have been valued using the multi-period excess earnings method, intellectual property using the relief-from-royalty method, and software using the cost approach. Key inputs to the valuations include forecast revenues and margins attributable to the acquired assets, customer attrition rates, royalty rates, discount rates and the estimated economic lives of the assets. A deferred tax liability of £9,649,250 has been recognised in respect of the fair value uplift on the acquired intangible assets and other fair value adjustments.

Goodwill arising on acquisition

Goodwill of £8,576,667 arose on the acquisition, representing the excess of the consideration transferred over the fair value of the identifiable net assets acquired. The goodwill is attributable principally to the assembled workforce of DCG, expected operational synergies from combining DCG with the wider Group, and future growth opportunities in the consumer prize competition market that do not meet the criteria for separate recognition as intangible assets under IAS 38. None of the goodwill recognised is expected to be deductible for tax purposes. The goodwill has been allocated to the Prize Competitions cash-generating unit for the purposes of impairment testing (note 12).

Acquisition-related costs

The Group incurred acquisition-related costs of £336,343 in respect of warranty and indemnity insurance and stamp duty. Other transaction costs, including legal, financial and tax due diligence and advisory fees, were incurred and borne by the ultimate parent, Jumbo Interactive Limited, and have not been recharged to the Group. The acquisition-related costs incurred by the Group have been expensed as incurred and are included within operating expenses in the consolidated statement of profit or loss for the year ended 30 June 2026 in note 7.

All revenue arises in the United Kingdom.

Following the acquisition of Dream Car Giveaways Limited on 14 October 2025, the Group has two revenue streams: lottery management services provided to charity and not-for-profit clients, and consumer prize competitions.

The Group has assessed its position separately for each revenue stream.

For lottery management services the Group acts as agent, as the client retains responsibility for the lottery, sets the ticket price and bears the economic risk of the draw; revenue is recognised net, being the commission or service fee earned.

For prize competitions the Group acts as principal, as it controls the competition offering, sets the entry price, procures and owns the prizes and bears the fulfilment risk. The revenue from sales of the tickets in relation to prize draws is recognised at point-in-time on draw date at the value of cash collected from ticket sales net of prizes won, which represent a consideration payable to Group customers.

Management services recharge represents amounts recharged in respect of shared services provided by the Group. The Parent recharges services to subsidiaries and to Gatherwell Limited, a company under common control; amounts recharged to subsidiary undertakings are eliminated on consolidation, and the consolidated balance represents amounts recharged to Gatherwell Limited (note 27).

Warranty claim income in the prior year represented amounts received from the vendor in settlement of a warranty claim under the StarVale sale and purchase agreement (note 4).

Proceeds from disposal of prize stock represents the amount received on the disposal of vehicles held as competition prize stock which were not awarded. Disposals arise where a prize is not claimed or a winner elects to take a cash alternative. These disposals are incidental to the Group's principal activities and are therefore presented outside revenue. The cost of these vehicles is recognised in note 7.

The average number of employees during the year was as follows: