Business
FY 2024 Final Results
FY 2024 Final Results.
About this update from Raspberry Pi Holdings Plc
2 April 2025 Raspberry Pi Holdings plc ("Raspberry Pi" or "the Company") FY 2024 Final Results A resilient FY 2024 against a backdrop of industry-wide destocking post an exceptional FY 2023 Successful product launches, new design partnerships and investment in OEM strategy, establish confidence in our positive outlook Raspberry Pi (LSE: RPI), a leader in high-performance, low-cost computing, is pleased to announce its audited results for the year ended 31 December 2024 ("FY 2024"). Financial Highlights FY 2024 FY 2023 Change Revenue ($m) $259.5m $265.8m -2% Gross profit ($m) $63.2m $66.0m -4% Gross margin (%) 24.4% 24.8% -0.4ppt Adjusted EBITDA* ($m) $37.2m $43.8m -15% Profit before tax $16.3m $38.2m -57% Basic Earnings Per Share (EPS) (c) 6.5¢ 19.5¢ -67% Adjusted EPS (c)* 10.7¢ 19.5¢ -45% Cash ($m) $45.8m $42.2m +9% *The Company uses certain measures in addition to those reported under IFRS, under which the Company reports. These Alternative Performance Measures ("APMs") are not considered a substitute for, or superior to, the equivalent statutory IFRS measures. These APMs are explained, defined and reconciled in the APM section and are applied consistently. Non-Financial KPIs FY 2024 FY 2023 Change Unit volume (m) 7.0 7.4 -5% Number of Products Released 22 6 267% Number of Authorised Resellers 117 104 +13% Engineers as a % of total employees 48% 44% +4.0ppt Operational Highlights A record year for new-product introductions · Completion of a major product transition, with Raspberry Pi 5 selling 1.9m units in FY 2024 following its introduction at the end of October 2023. · A total of 22 product launches in FY 2024, with positive reception from both embedded and enthusiast markets. · Successful launch of debut first-party AI hardware products (Raspberry Pi AI Kit, Raspberry Pi AI Camera), in collaboration with Hailo and Sony. · Production ramp of next-generation RP2350 microcontroller, supporting the introduction of Raspberry Pi Pico 2 and partner hardware products in August. · High-performance Raspberry Pi Compute Module 5 successfully launched in November, with a range of storage and connectivity options. A highly successful IPO · Successful IPO raising £1 43.1 m ($180.0m) to support the Raspberry Pi Foundation and £31.4m ($40.0m) for the Company . The Foundation owns 46.7% of the Company's shares. · FTSE 250 index inclusion confirmed at the September FTSE quarterly review. · Awarded the London Stock Exchange's Green Economy Mark, based on the significant energy efficiency benefits of our computers. Recovery in channel inventory position and end-market demand · Completed recovery from pandemic-related shortages, with all Single Board Computers (SBCs) and Compute Module products freely available in channel. · Channel inventory correction over the course of the summer contributed to temporarily lower unit sales and profits in Q2 and Q3. · Channel and end-market demand improved through Q4 and continues to strengthen. Industrial OEM partnerships · In November, announced a strategic partnership with SECO S.p.A, the leading Italian provider of IoT solutions, payment systems and industrial hardware. · Enhanced public profile in the wake of June's IPO is helping to advance high-level discussions at multiple industrial-focused OEMs. Outlook With channel inventory now normalised, Raspberry Pi anticipates a steady build-up in demand throughout the year, positioning us strongly despite ongoing macroeconomic and geopolitical uncertainties. The projected pace of market recovery, coupled with the timing of embedded design wins, strengthens confidence in solid and sustainable sales growth in full-year 2025. Given the planned product release schedule and mix of sales, gross profit per unit is expected to increase year-on-year. The Company has secured a sufficient supply of memory to meet expected demand into Q4, helping to sustain favourable unit economics for the year ahead. Medium-term fundamentals remain positive, driven by a number of promising direct discussions with major prospective OEM customers, which we expect to make an increasing contribution in 2026 and beyond. Eben Upton, CEO of Raspberry Pi said: "The IPO in June 2024 has undoubtedly extended awareness of Raspberry Pi's value proposition from the engineering department to the C-suite at major OEMs. As our platforms and solutions evolve, we aspire to become the compute partner of choice for these companies, allowing them to outsource the intelligence element at the heart of their products while retaining control of application-specific design and engineering, delivering enhanced performance, functionality and efficiency in their end product. In the second half we released more products than in any prior full year, despite the potential distraction of the IPO, continuing to excite our enthusiast and embedded communities. That flexibility helped us to meet market expectations in a year dominated by the widely reported inventory correction throughout our industry and following an exceptionally strong comparable previous financial year. I am confident that we will continue to see gradual improvements in end-demand during the current year and increased traction with direct-to-OEM engagement, effectively complementing our reseller and licensee channels. This has been a transformative year for Raspberry Pi. The one constant has been the unwavering dedication of our outstanding team, for which I am profoundly grateful." Hybrid analyst and institutional investor briefing Eben Upton, CEO, and Richard Boult, CFO, will host a hybrid analyst and institutional investor briefing today at 09:30 GMT at the offices of Peel Hunt, 7th Floor, 100 Liverpool St, London EC2M 2AT. Those wishing to attend the event in person or online, please register via [email protected]. This announcement contains certain forward-looking statements, including with respect to the Company's current targets, expectations and projections about future performance, anticipated events or trends and other matters that are not historical facts. These forward ‐ looking statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, include all matters that are not historical facts and reflect the directors' beliefs and expectations, made in good faith and based on the information available to them at the time of the announcement. Such statements involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward ‐ looking statement and should be treated with caution. Any forward-looking statements made in this announcement by or on behalf of Raspberry Pi speak only as of the date they are made. Except as required by applicable law or regulation, Raspberry Pi expressly disclaims any obligation or undertaking to publish any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. For more information, please contact: Raspberry Pi Holdings plc Eben Upton, CEO, Richard Boult, CFO Alma Strategic Communications Andy Bryant - IR [email protected] Alma Strategic Communications T: +44 (0)203 405 0205 Josh Royston, Caroline Forde, Hannah Campbell [email protected] Notes to Editor Headquartered in Cambridge, UK, Raspberry Pi's mission is to put high-performance, low-cost, general-purpose computing platforms in the hands of people and organisations all over the world. Raspberry Pi is a full-stack engineering organisation, with research and development capabilities spanning the entire value chain, from semiconductor IP development, through semiconductor and electronic product design to software engineering and regulatory compliance. The high performance, low cost, and proven physical robustness of Raspberry Pi products make them suitable for a wide range of applications, across three distinct markets: Industrial and Embedded, Enthusiast and Education, and Semiconductors. The Company has contributed approximately $230m since inception to support the work of the Raspberry Pi Foundation, a UK charity founded in 2008 and a major shareholder in Raspberry Pi, to enable young people to realise their full potential through computing. Raspberry Pi has been recognised with the London Stock Exchange's Green Economy Mark for its work in reducing the carbon intensity of embedded computing. CEO's review Business review 2024 was a remarkable year for Raspberry Pi. Following the successful launch of Raspberry Pi 5 in late 2023, we released a suite of derived products, together with new product variants, accessories and peripherals. These included Compute Module 5, Raspberry Pi Pico 2, and our first AI accelerator products. We continued to build our sales capacity, increasing investment in marketing headcount and trade event participation, growing our Approved Reseller network in underserved markets and working with our Approved Design Partners to better support OEMs. To support a higher rate of new product development, we made selective hires in our engineering teams and accelerated our graduate recruitment efforts. The IPO was a hugely exciting time for the team at Raspberry Pi, offering opportunities for in-depth discussions with investors, many of whom were already familiar with the business and some of whom were enthusiasts themselves. We were delighted with the reception we received. With $40.0 million of new money raised, on top of the $60.0 million raised between 2021 and 2023, we secured funds required to develop the next iterations of our core technology platforms. On a personal note, I am proud that the IPO enabled our major shareholder, the Raspberry Pi Foundation, to raise $180.0 million - supporting its work in curriculum development, teacher training, non-formal learning, and research. I am fortunate to be supported by an exceptional executive team, who kept the business on track during this exciting time. Since the IPO we have focused on releasing new products, and on building out our direct relationships with new and existing OEM customers, while continuing to invest in the development of our supplier and distributor channel partnerships to promote our long-term commercial success. Financial performance Our full year performance was consistent with market expectations, with a gross profit of $63.2 million (2023: $66.0 million), a gross margin of 24.4% (2023: 24.8%), and adjusted EBITDA of $37.2 million (2023: $43.8 million). I am very pleased with this result, which was achieved in the context of an industry-wide inventory correction, and in the aftermath of the global semiconductor supply chain crisis. Performance in the second half of the year was strongly supported by new product introduction, and by a continued focus on cost discipline. Product sales and development In 2024, Raspberry Pi sold 7.0 million SBCs and compute modules (2023: 7.4 million), a temporary adjustment which we attribute to the inventory correction. During the year, we released the 2GB variant of our flagship Raspberry Pi 5 SBC, along with two derivative products: Compute Module 5, intended for use in the embedded market; and Raspberry Pi 500, aimed primarily at our enthusiast and education customers. Our second-generation microcontroller, RP2350, debuted on the $5 Raspberry Pi Pico 2 SBC, and on numerous partner products (including the electronic badge for the 32nd DEF CON security conference) in August 2024. Compared to its predecessor RP2040, RP2350 offers twice the memory, more powerful Arm cores, upgraded interfacing capabilities, new low-power states, and advanced security features, at a similar price point and in a similar footprint. In total, we sold 5.7 million microcontroller units (2023: 3.1 million units) including 1.3 million units (2023: 0.7 million units) for production in Pico boards. In 2025 we may, for the first time, sell more microcontroller units than SBCs and compute modules combined. Over the coming years, our semiconductor business will grow in strategic importance, both in its own right, and as an enabler for our SBC and compute module business, where it will support us in delivering differentiated performance and functionality, enhance unit economics and help to mitigate potential supply chain risks. In the second half, we released a succession of accessory products. These included storage solutions sourced from trusted partners; a second-generation 7" touchscreen display; and, just in time for Christmas, the Raspberry Pi Monitor, which together with Raspberry Pi 500 allows us to offer a complete Raspberry Pi desktop computer from just $200. A new range of AI products - the AI Kit, AI Camera and AI HAT+ - adds support for accelerated inference to machine vision applications on Raspberry Pi. In May, we released a beta version of our Raspberry Pi Connect platform, which provides remote access to Raspberry Pi devices in the field. Free at launch to our enthusiast customers, Connect rapidly reached an installed base of over 100,000 devices. Raspberry Pi Connect for Organisations, a paid tier of the platform targeted at our industrial and embedded customers, was released in December, and saw its first paying subscribers in Q1 of 2025. In November, we announced a strategic partnership with SECO to bring to market a new Human-Machine Interface product based on Raspberry Pi Compute Module 5, and to explore opportunities for other industrial applications, including energy management, smart buildings, healthcare and industrial automation. Sales channel In 2024, we sold 70% of units (2023: 82%) through our direct-to-reseller and direct-to-OEM channels, with the remainder sold by our licensee, Premier Farnell. This reflects our licensee's return to ex-stock availability, and represents a return to the desired balance between our direct and licensee channels. Having temporarily halted the expansion of our Approved Reseller network during the semiconductor supply chain crisis, we added a further 13 Approved Resellers in the year, targeting underserved geographies and market segments. Looking ahead We continue to build a world-class technology company, with deep moats against competition and commoditisation, and to invest in the long-term future of our technology roadmap and distribution channel. We expect demand for our products to continue to improve through the year, from the subdued level of mid-2024. Looking further out, we are highly optimistic that our direct-to-OEM strategy will generate significant incremental sales volume in 2026 and beyond. Dr Eben Upton CBE FREng Chief Executive Officer and Founder 1 April 2025 Financial review The trading of the business as dominated by the first full year of Raspberry Pi 5 sales and the effects of the ending of the industry semiconductor shortages. Across global semiconductor supply the constraints of 2022 and 2023 were superseded by abundant supply in H2 2023 and Q1 2024. Customers and channel partners purchased the newly available products aggressively leading to strong sales for Raspberry Pi. This activity led to channel overstock in Q2 and Q3 of 2024 which weighed on our sales throughout that period. Since Q3 we have seen channel inventory steadily normalise. The Group's listing on the London Stock Exchange in June 2024 was a significant moment in the development of the Group. The listing raised $32.4 million (net of expenses) to continue the development of products and the resilience of our supply chain. The Board believes that the listing should provide access to future funding support and has already helped to raise the profile of our affordable single board computers and compute modules. Overall results Sales normalised in 2024 after the 41% growth in 2023 and benefited from strong demand for Raspberry Pi 5 and accessory sales which increased due to the launch of new products. The gross profit margin of 24.4% (2023: 24.8%) was broadly flat reflecting the increased costs for Raspberry Pi 5. Adjusted EBITDA was in line with guidance and reflected the continued growth in R&D expenditure and increased administrative costs due to the additional requirements of being a public company and the full year effects of resources added in 2023. Adjusted operating profit declined due to the increase in depreciation and amortisation charges principally due to the first full year of amortisation of the development costs of Raspberry Pi 5. $ million 2024 2023 % Change Revenue 259.5 265.8 (2%) Gross profit 63.2 66.0 (4%) Gross margin (%) 24.4% 24.8% (2%) Adjusted R&D costs (8.7) (7.6) 14% Adjusted administration costs (17.3) (14.6) 18% Adjusted EBITDA 37.2 43.8 (15%) Depreciation and amortisation (10.7) (6.2) 73% Adjusted operating profit 26.5 37.6 (30%) Employee share schemes (6.0) - (100%) Non-recurring costs (2.9) - (100%) Statutory operating profit 17.6 37.6 (53%) Basis of preparation of the financial statements These Condensed Consolidated Financial Statements are the first full year report for Raspberry Pi Holdings plc, the newly formed Group. The prior period is presented as though the reorganisation had taken place at 1 January 2023, the start of the comparative 2023 period. For further information see Note 2 of the Condensed Consolidated Financial Statements. Unit sales of single board computers and compute modules and microcontrollers Total board sales volumes decreased by 5% compared to 2023, a year whose H2 benefited from the unwinding of orders which had accumulated during the semiconductor supply shortages. Nonetheless, in the aggregate, volumes in 2024 were lower as channel participants and end customers utilised the inventory they had accumulated as soon as our products were freely available. This was exacerbated by the widely reported challenges in the industrial electronics sector in the last three quarters of 2024. In the last quarter the inventory holdings of partners returned to more normal levels and together with the launch of new products such as Compute Module 5, Raspberry Pi 500 and new accessories we saw an improvement in volumes and gross profits. Million units 2024 2023 % Change Unit sales in direct channel 4.9 6.1 (20%) Unit sales through licensees 2.1 1.3 62% Total unit sales 7.0 7.4 (5%) Direct sales share of total 70% 82% Licensee share of total 30% 18% Microcontroller units 5.7 3.1 84% During the semiconductor shortage, supply to industrial customers was prioritised which resulted in a higher direct share of sales compared to historical performance. In addition to this, 2023 direct sales included the unwinding of backorders which had accumulated during the shortage. As planned, the extensive participation of our licensee in the launch of Raspberry Pi5 also increased the licensee share. Direct sales of 70% in 2024 are in line with management expectations of a share of 70-80%. Microcontroller unit sales, which include those incorporated in other Raspberry Pi products such as Raspberry Pi Pico boards, increased by 81% to 5.7 million units (2023: 3.1 million units) aided by the new products RP2350 and Pico 2 and the continuing adoption of RP2040. Revenue Revenue decreased by $6.3 million, or 2%, from $265.8 million for 2023 to $259.5 million for 2024. The split by category was as follows: $ million 2024 2023 % Change Products 181.2 212.3 (15%) Components 61.2 43.5 41% Royalties 15.9 8.8 81% Publishing 1.2 1.2 -% 259.5 265.8 (2%) Product revenues are generated by supplying SBCs, compute modules, accessories and semiconductors directly to Approved Resellers and original equipment manufacturers ("OEMs"). Royalties are earned per unit on products that Premier Farnell has manufactured (Pi 5) or sold (Pi 4) by licensing our designs and trademarks. The decline in direct product sales largely relates to lower sales of SBCs and compute modules partly as sales of the new Raspberry Pi 5 were directed through our licensee. The increase in the share of licensee sales also drove the growth in component sales and the increase in royalty income. Component sales represent the sale of components used in the manufacture of Raspberry Pi products for our licensee which are then sold to end customers. The increase results from an increase in the volume of chips supplied to meet the licensee's increased sales and production, together with sales by the Group of application processor chips to Sony, also for licensee use. Average selling price ("ASP") per board ASP increased by 7% from $40.6 in 2023 to $43.3 in 2024 due to an increase in the mix of higher priced Raspberry Pi 5 boards, especially with 8GB of memory (launched in Q4 2023), and more compute modules. The improvement in ASP and the increase in accessory sales offset the decline in overall unit sales resulting in an increase in Total Partnership Revenue. Gross profit per board $ per board 2024 2023 % Change SBCs and compute modules 7.4 8.6 (14%) Accessory margin per board 1.2 0.6 100% Board share of gross profit 82% 97% -15ppt SBC and compute module gross profit per board declined by 14% from $8.6 to $7.4 due to the higher costs of the Raspberry Pi 5 including an additional $5 per unit for the initial two million processor chips. The share of unit sales of Pi Zero and Pico increased versus 2023 and with their profit per board in the low single digits this diluted the overall margin per board. The gross profit of accessories increased by 89% to $8.5 million as a result of new products, accessories for the new Raspberry Pi 5 and improved margins on displays. New products included an AI camera, two HATs incorporating AI accelerator chips, and growth in power supplies and cameras. Overall the accessory profit per board improved to $1.2 per board, ahead of our target of $1 per board. Gross profit/(loss) $ million 2024 2023 % Change SBCs and compute modules 51.7 63.7 (19%) Accessories 8.5 4.5 89% Microcontrollers, publishing and others 3.0 (2.2) 236% Reported gross profit 63.2 66.0 (4%) The strong improvement in microcontroller unit sales led to increased profits and resulted in a release of $3.0 million of provisions made for an excess quantity of inventory in 2023. Gross profit decreased by $2.8 million, or 4%, from $66.0 million in 2023 to $63.2 million in the current period due to lower unit sales and profit per board offset by a strong performance from sale of accessories. Gross margin reduced to 24.4% (2023: 24.8%%) as a result of lower gross profit per board but aided by better accessory and microcontroller performance. Adjusted research and development costs Adjusted research and development expenses is a non-IFRS measure used by the Board and management to monitor the Group's performance. $ million Year ended 31 December 2024 Year ended 31 December 2023 Research and development expenses 17.9 10.6 Amortisation (net of capitalised amortisation) (6.3) (3.0) Share-based payment charges (2.3) - NI on share-based payment charges (0.6) - Adjusted research and development expenses 8.7 7.6 Adjusted research and development expenses increased slightly to $8.7 million for the year ended 31 December 2024 from $7.6 million in the prior year. Total research and development expenses rose by 69% to $17.9 million (2023: $10.6 million), reflecting higher investment in innovation. This increase was driven by the expansion of the engineering team in areas of new product development, alongside higher share-based payment charges and associated National Insurance costs. Share-based payments are excluded from the adjusted measure as they are paid for by shareholders' dilution and the charges are not comparable due to fluctuations around the listing process. Amortisation, net of capitalised amounts, also increased to $6.3 million (2023: $3.0 million), reflecting a growing portfolio of capitalised development costs. Adjusted administrative costs $ million Year ended 31 December 2024 Year ended 31 December 2023 Administrative expenses 27.7 17.8 Depreciation (4.4) (3.2) Shared-based payment charges (2.4) - NI on shared-based payment charges (0.7) - Non-recurring costs (2.9) - Adjusted administrative expenses 17.3 14.6 Adjusted administrative expenses increased to $ 17.3 million for the year ended 31 December 2024 from $ 14.6 million in the prior year, driven by higher staff costs and professional fees and reflecting the planned scaling of the business. The increase in staff costs was primarily due to salary inflation and additional sales heads. Total administrative expenses rose by 56% to $ 27.7 million ( 2023 : $ 17.8 million), depreciation, share-based payment charges, and non-recurring costs contributed to the overall increase. Depreciation and amortisation $ million Year ended 31 December 2024 Year ended 31 December 2023 Depreciation of PPE and leased assets 4.4 3.2 Amortisation (net of capitalised amortisation) 6.3 3.0 Depreciation and amortisation 10.7 6.2 Depreciation of PPE and leased assets increased by 38% to $4.4 million in 2024 from $3.2 million in 2023, reflecting a full year's depreciation charge on the new head office building, for which the lease commenced in December 2023, and a new warehouse. Amortisation of intangibles charged to the income statement increased by 110% to $6.3 million in 2024 from $3.0 million in 2023, with a full year's amortisation of Raspberry Pi 5, launched in October 2023, and RP2350, launched in August 2024. Total depreciation and amortisation increased by 73% to $10.7 million in 2024 from $6.2 million in 2023. Finance costs and finance income Finance costs have increased due to the finance element of the lease of the new office of $0.2 million, RCF costs and the recognition of the intrinsic discounting on payables with longer than standard credit terms. Share-based payments A share-based payment charge of $4.7 million was recorded in the year. The charge comprises $0.8 million in respect of the charges arising on the pre-IPO scheme, a $1.2 million accelerated charge on vesting and settlement of that scheme and $2.7 million in respect of the post-IPO award of market value options granted on the 11 June 2024 listing date. The market value options were granted to 93 members of staff. The options have a strike price of £2.80, being the price at which shares were issued and sold as part of the listing. The awards have been designed to ensure that, in conjunction with the shares granted on settlement of the pre-IPO scheme, staff continue to be motivated by the success of the Group to the same extent as in the past. Non-recurring costs Costs of $2.9 million have been charged to the income statement in respect of fees and charges arising from the listing process which were incurred to prepare the business for operation after listing. Expenses related to the primary issue of shares of $7.6 million have been charged to the share premium account arising from the share issue. As part of the transaction, costs in relation to secondary offer of shares, $5.3 million, were incurred and borne by the Raspberry Pi Foundation. Taxation The total effective tax rate for 2024 was 28.2%, exceeding the underlying 25.0% due to $2.9 million in non-recurring IPO-related costs, which were largely non-deductible for tax purposes. The 2023 effective tax rate was 17.3%, lower than the underlying 23.5%, due to a controlling shareholder loss relief of $2.3 million. The underlying tax rate aligns with UK corporation tax rates, which increased from 19% to 25% on 1 April 2023. As at 31 December 2024 the Group had a receivable from HMRC in respect of current taxation and Research and Development Expenditure Credits of $6.6 million (2023: $2.2 million). Although the Group is profitable as a UK taxpayer, a current tax asset arises at each reporting date due to the interaction between HMRC's Quarterly Instalment Payment regime and incentives from the Research and Development Expenditure Credits ("RDEC") scheme. Adjusted EBITDA and adjusted operating profit $ million Year ended 31 December 2024 Year ended 31 December 2023 Operating profit 17.6 37.6 Amortisation and depreciation 10.7 6.2 EBITDA 28.3 43.8 Employee share schemes 6.0 - Non-recurring costs 2.9 - Adjusted EBITDA 37.2 43.8 Amortisation and depreciation (10.7) (6.2) Adjusted operating profit 26.5 37.6 Adjusted EBITDA for the year ended 31 December 2024 was $37.2 million, in line with guidance and down 15% from $43.8 million in the prior year, primarily due to higher employee‑related costs and a $2.8 million reduction in gross profit. Adjusted operating profit declined to $26.5 million (2023: $37.6 million), reflecting increased investment in talent and business infrastructure and the higher depreciation and amortisation charges. Operating profit and profit after taxation for the period Operating profit for the period was $17.6 million (2023: $37.6 million), including approximately $12.9 million of non-comparative charges not incurred in the prior year. These comprise $6.0 million (2023: nil) for non-cash charges on employee share schemes, of which $2.7 million related to the post-IPO schemes, $1.3 million for associated National Insurance provisions, and $2.9 million in non-recurring IPO-related expenses, all of which were nil in 2023. Profit after taxation was $ 11.7 million ( 2023 : $ 31.6 million), a decrease of $ 19.9 million primarily owing to the non-comparable charges listed above, combined with higher staff costs, amortisation of launched development projects and the slight reduction in year-on-year gross profit. Earnings per share Basic earnings per share for the year ended 31 December 2024 was 6.48 cents, down from 19.50 cents in the prior year, reflecting a lower profit after tax of $11.7 million (2023: $31.6 million). Diluted earnings per share was 6.20 cents (2023: 17.75 cents), with the impact of unvested employee share options increasing the weighted average number of shares to 188.7 million. Adjusted earnings per share, which excludes the impact of non-recurring costs and share‑based payments net of tax, was 10.69 cents (2023: 19.50 cents). Adjusted diluted earnings per share was 10.23 cents, reflecting an adjusted profit after tax of $19.3 million. Dividends No dividends have been proposed. The current medium-term expectation is that cash generated will be reinvested into the business. Cash flows from operations $ million 2024 2023 Adjusted EBITDA 37.2 43.8 Increase in inventory (51.1) (60.2) Decrease/(increase) in trade and other receivables 3.5 (13.6) Increase in trade and other payables 13.0 54.1 Increase in provisions 0.3 0.4 Non-recurring costs (2.9) - Interest received 1.1 1.4 Tax paid (4.2) (4.7) Other non-cash movements (0.1) (0.1) Net cash flows (used in)/generated from operating activities (3.2) 21.1 Inventory Inventory of finished goods increased to $63.8 million (December 2023: $40.7 million) due to increased holdings of finished boards as holdings of Raspberry Pi 5 boards and compute modules rose to levels needed for expected sales volumes. Inventory levels of other products having risen in the first half have now fallen due to continuing sales and close management of production. Component inventory has increased by $25.5 million. Stock of memory held for future production was kept at similar levels to December 2023, to give greater certainty of future input costs. Stocks of processor chips were increased ensuring certainty of future production and to exploit favourable terms. The Group has sufficient supply of DRAM for the first half of 2025. Including finished goods inventory incorporating memory purchased at this lower cost, the low-cost supply extends well into Q3 2025. Other working capital movements Payables increased compared to December 2023 due to the Group availing itself of favourable extended payment terms for memory and processor chip purchases. The payable balance at December 2023 included a payable for memory of $33.0 million. Investing activities - capital expenditure $ million 2024 2023 Plant and equipment 1.2 1.3 Office and computer equipment 0.5 1.0 Leasehold improvements 0.5 1.6 Tangible fixed assets 2.2 3.9 Internally generated intangibles and intangibles in the course of development 26.6 16.3 Net other intangibles acquired 0.3 9.3 Intangible fixed assets 26.9 25.6 Right-of-use assets - 6.1 Prepaid manufacturing costs - 2.7 Total capital additions 29.1 38.3 Non-cash additions (6.0) (12.5) Total cash capital expenditure 23.1 25.8 Capital additions for the year to 31 December 2024 were $29.1 million (2023: $38.3 million), including expenditure on intangible assets of $26.9 million (2023: $25.6 million). This included work on the recently launched RP2350, new products and further semiconductor development for use in future boards. In addition to the external purchases the capital expenditure includes the capitalisation of engineering salaries of $14.4 million. Where development licences are purchased for use in new products, these are initially capitalised in intangibles and then amortised. The amortisation amounting to $6.0 million (2023: $1.9 million), as it relates to the development of a new product, was then capitalised in a product development asset for that project. Non-cash additions includes capitalised amortisation and Right-of-Use assets in respect of leased assets. Share reorganisation and proceeds from financing On 11 June 2024, Raspberry Pi Holdings plc was admitted to the premium segment of the London Stock Exchange with unconditional trading from 14 June 2024. Following Admission on 22 September 2024, Raspberry Pi Holdings plc was added to the FTSE 250 index. The Company was incorporated on 12 March 2024 and on 23 May 2024 in exchange for shares, it acquired all the share capital of Raspberry Pi Ltd at a valuation of $288.1 million. On 17 May 2024 a share capital reduction was undertaken reducing share capital and crediting distributable retained earnings by $287.3 million. At listing, 11.2 million new shares were issued raising $40.0 million before fees. At the same time, the Raspberry Pi Foundation sold 45,935,065 shares and employees sold 2,125,115 shares to new investors and our existing investors, Arm and funds managed by Lansdowne Partners. Cash and facilities Cash at 31 December 2024 was $ 45.8 million ( 31 December 2023 : $ 42.2 million). On 24 April 2024, the Group updated its existing Revolving Credit Facility and overdraft with a $40.0 million Revolving Credit Facility and overdraft and extended the facility by one year to 24 April 2027. Following the listing and with the improved profile arising from our listed status, the Group has been able to enter into a new replacement facility of $80.0 million with four banks on terms more suitable for a listed group and at substantially reduced pricing. Refer to events after the reporting period in Note 24. Risks and risk management The Group's approach to risk management and its principal risks are set out in the audited financial statements of Raspberry Pi Holdings plc. A copy of the principal risks is available on the Group's website : www.raspberrypi.com Related party transactions Controlling Shareholder definition and related party transactions are disclosed in Notes 22 and 23 of the financial statements. Post balance sheet events As noted above, on 5 March 2025, the Revolving Credit Facility was replaced, increasing the available funds to $80.0 million (2024: $40.0 million) and the term extended until 4 March 2029 (2024: 24 April 2027). The facility remains undrawn. 2024 has been a year of transformation for the Group requiring enormous contributions from many people. I would like to take this opportunity to thank our advisors at Grant Thornton, Linklaters, PwC, Deloitte, Swan Partners, Jefferies and Peel Hunt for their counsel and support throughout the listing process. The guidance, encouragement and help of my fellow directors through the year has been extraordinary and it has been a privilege to work with such a remarkable group of people. And finally and most importantly to my colleagues in finance and legal who delivered all this, thank you so much for all you have done. Richard Boult Chief Financial Officer 1 April 2025 Condensed consolidated statement of comprehensive income For the year ended 31 December 2024 $ million Notes Year ended 31 December 2024 Year ended 31 December 2023 Revenue 3 259.5 265.8 Cost of sales (196.3) (199.8) Gross profit 63.2 66.0 Research and development expenses 4 (17.9) (10.6) Administrative expenses 5 (27.7) (17.8) Operating profit 17.6 37.6 Finance income 8 1.1 1.4 Finance cost 8 (2.4) (0.8) Profit before taxation 16.3 38.2 Taxation charge 9 (4.6) (6.6) Profit for the year 11.7 31.6 Operating profit 17.6 37.6 Amortisation and depreciation 7 10.7 6.2 EBITDA 28.3 43.8 Employee share schemes 21 6.0 - Non-recurring costs 5 2.9 - Adjusted EBITDA 37.2 43.8 Earnings per share (cents) Basic 10 6.48 19.50 Diluted 10 6.20 17.75 The profit for the year is attributable to the shareholders of Raspberry Pi Holdings plc and is derived from continuing operations. There are no recognised gains or losses other than those presented above. The accompanying notes are an integral part of these Condensed consolidated annual financial statements. Condensed consolidated statement of financial position As at 31 December 2024 Registration number 15557387 $ million Notes At 31 December 2024 At 31 December 2023 Assets Intangible assets 11 73.2 58.6 Property, plant and equipment 12 4.5 5.1 Right-of-use assets 6.1 6.7 Other non-current assets 2.3 2.7 Total non-current assets 86.1 73.1 Inventories 13 156.7 108.1 Trade and other receivables 14 36.2 39.7 Current tax receivables 14 6.6 2.2 Cash and cash equivalents 45.8 42.2 Total current assets 245.3 192.2 Total assets 331.4 265.3 Liabilities Trade and other payables 15 (96.1) (81.2) Provisions (0.7) (0.4) Lease liabilities (1.4) (1.3) Total current liabilities (98.2) (82.9) Provisions (1.9) (0.8) Other non-current liabilities (6.0) (6.4) Lease liabilities (4.8) (5.8) Deferred tax liabilities (10.1) (10.2) Total non-current liabilities (22.8) (23.2) Total liabilities (121.0) (106.1) Net assets 210.4 159.2 Shareholders' equity Share capital 19 0.8 - Share premium 19 32.4 65.4 Merger reserve 19 (221.9) - Share-based payments 20 2.7 1.3 Retained earnings 19 396.4 92.5 Total shareholders' equity 210.4 159.2 T he accompanying notes are an integral part of these Condensed consolidated annual financial statements. The financial statements were approved by the Board of Directors and authorised for issue on [1 April 2025]. They were signed on its behalf by: Dr Eben Upton CBE FREng Richard Boult Chief Executive Officer Chief Financial Officer Condensed consolidated statement of changes in equity For the year ended 31 December 2024 $ million Share capital Share premium Share-based payments Merger reserve Retained earnings Total At 1 January 2023 A - 44.9 1.3 - 60.9 107.1 Profit for the period - - - - 31.6 31.6 Shares issued - 20.5 - - - 20.5 At 31 December 2023 A - 65.4 1.3 - 92.5 159.2 Profit for the period - - - - 11.7 11.7 Share-based payments - - 4.7 - 1.6 6.3 Share issued - 0.8 - - - 0.8 Share reorganisation B 288.1 (66.2) - (221.9) - - Share capital reduction B (287.3) - - - 287.3 - Share listing proceeds C - 40.0 - - - 40.0 Share issuance costs C - (7.6) - - - (7.6) Share scheme settlement - - (3.3) - 3.3 - At 31 December 2024 0.8 32.4 2.7 (221.9) 396.4 210.4 A Comparative period The comparative figures presented from 1 January 2023 align with Raspberry Pi Ltd's 2023 annual accounts on the basis that the Company was not established as the parent entity of Raspberry Pi Ltd until 23 May 2024. The Condensed consolidated accounts are presented as a continuation of Raspberry Pi Ltd's business from 1 January 2023, as the underlying operations and ownership remained unchanged. The reorganisation only affected the share capital structure, not the underlying business. B Share capital reorganisation and reduction On 23 May 2024, Raspberry Pi Holdings plc acquired Raspberry Pi Ltd for $288.1 million in a share-for-share exchange. Also, on 23 May 2024 a special shareholder resolution was passed to immediately reduce the share capital to its nominal value, supported by a Directors' solvency statement. Together with the reorganisation, this reduced share capital with a corresponding increase of $287.3 million in distributable retained earnings. As consideration, shares were issued to the existing share owners, the previous share capital and $66.2 million of share premium were derecognised and the difference on consolidation was recorded in a merger reserve. The share capital and share premium amounts shown following the share reorganisation (and the same day capital reduction) reflect those of Raspberry Pi Holdings plc. C London Stock Exchange listing On 11 June 2024, Raspberry Pi Holdings plc listed on the London Stock Exchange, issuing 11.2 million new shares at £2.80 per share, generating $40.0 million gross proceeds and net proceeds of $32.4 million after costs of $7.6 million were deducted from equity. The accompanying notes are an integral part of these Condensed Consolidated Annual Financial Statements. Condensed consolidated statement of cash flows For the year ended 31 December 2024 $ million Notes Year ended 31 December 2024 Year ended 31 December 2023 Cash flows from operating activities 17 (0.1) 24.4 Interest received 1.1 1.4 Tax paid (4.2) (4.7) Net cash flows (used in)/generated from operating activities (3.2) 21.1 Cash flows from investing activities Investment in other assets - (2.7) Purchase of intangible assets (20.9) (19.2) Purchase of property, plant and equipment (2.2) (3.9) Net cash used in investing activities (23.1) (25.8) Cash flows from financing activities Cash proceeds from IPO share issues 40.0 - Share issuance costs of IPO shares (7.6) - Cash proceeds from share issues (from pre-IPO) 0.8 15.1 Repayment of principal on lease liabilities (2.2) (0.3) Payment of interest on lease liabilities (0.4) (0.2) Interest and other financing charges (0.8) (0.6) Net cash generated from financing activities 29.8 14.0 Net increase in cash and cash equivalents 3.5 9.3 Cash and cash equivalents at beginning of period 42.2 32.8 Effect of exchange rates on cash and cash equivalents 0.1 0.1 Cash and cash equivalents 45.8 42.2 The accompanying notes are an integral part of the Condensed consolidated annual financial statements. Notes to the condensed consolidated financial statements For the year ended 31 December 2024 1 General information Raspberry Pi Holdings plc (the "Company") is a public limited company incorporated in England and Wales. The Company's registered office is at 194 Cambridge Science Park, Milton Road, Cambridge, England CB4 0AB, and the company number is 15557387. • On 12 March 2024: Raspberry Pi ListCo Ltd was incorporated as a private limited company. • On 23 May 2024: Raspberry Pi ListCo Ltd acquired Raspberry Pi Ltd for $288.1 million. • On 3 June 2024: The Company was re-registered as Raspberry Pi Holdings plc. • On 11 June 2024: The ordinary share capital was listed on the London Stock Exchange. • On 23 September 2024: The Company was added to the FTSE 250. 2 Basis of presentation and accounting policies Explained below are the key accounting policies of Raspberry Pi Holdings plc and all its subsidiaries (the "Group"). 2.1 Basis of preparation The Condensed consolidated financial statements are prepared in accordance with UK-adopted International Accounting Standards ("IAS") with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and with the requirements of the Companies Act 2006 (the "Act"). These Condensed consolidated financial statements are the first full year report for Raspberry Pi Holdings plc, the newly formed Group . T he prior period is presented as a continuation of the former Raspberry Pi Ltd's UK-IFRS accounts, as though the reorganisation had taken place at the start of the earliest period presented, except for the consolidated reserves of the Group, which were adjusted to reflect the capital reorganisation explained as notes to the Condensed consolidated statement of changes in equity. The condensed set of financial information presented for the years ended 31 December 2024 and 2023 do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the year ended 31 December 2023 is derived from the statutory accounts of Raspberry Pi Ltd for that year which have been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) of the Companies Act 2006. The financial information for the year ended 31 December 2024 and the comparative information have been extracted from the audited condensed consolidated financial statements for the year ended 31 December 2024 prepared under IFRS, which have not yet been approved by the shareholders and have not yet been delivered to the Registrar. The report of the auditors on the consolidated financial statements for 2024 was unqualified and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. These financial statements should be read in conjunction with the annual financial statements of Raspberry Pi Ltd for the year ended 31 December 2023 which have been prepared in accordance with UK-adopted IFRS and the Companies Act 2006 applicable to companies reporting under IFRS. These are available at Companies House and in the investor section of the corporate website. These Condensed consolidated financial statements have been prepared under the historical cost convention unless otherwise stated. The Group's presentation currency is US Dollars, rounded to the nearest point million. Since all material subsidiaries have US Dollars as their functional currency, there is no foreign exchange upon consolidation and hence any cumulative translation reserve. The standalone entity, Raspberry Pi Holdings plc, prepares its individual financial statements in accordance with Financial Reporting Standard 102 ("FRS 102") "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and with the requirements of the Companies Act 2006. No material adjustments are needed to follow the Group's IFRS accounting policies, as they are the same when applied in practice. 2.2 Capital reorganisation On 23 May 2024 Raspberry Pi Holdings plc acquired the entire shareholding of Raspberry Pi Ltd for $288.1 million by way of a share-for-share exchange agreement. This does not constitute a business combination under IFRS 3 "Business Combinations" as both entities were under common control and Raspberry Pi Holdings plc as the listing vehicle did not constitute a business as defined by IFRS 3. The transaction is accounted for as a capital reorganisation of Raspberry Pi Ltd in the financial statements of Raspberry Pi Holdings plc. Under a capital reorganisation, the consolidated financial statements reflect the pre-combination book values of Raspberry Pi Ltd, with comparative information presented for all periods. This differs from a common control business combination using predecessor values, where an entity could elect to account for the acquisition of the acquiree on a prospective basis rather than retrospectively. In a capital reorganisation, the pre-combination book values of the existing entity are transferred into the consolidated financial statements, because no substantive economic change has occurred except that the consolidated reserves of the Group have been adjusted to reflect the statutory share capital of Raspberry Pi Holdings plc with the difference presented in the merger reserve. 2.3 Basis of consolidation The Condensed consolidated financial statements incorporate the financial statements of Raspberry Pi Holdings plc (the "Company") and its subsidiary undertakings. Subsidiaries are entities over which the Group has control. 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. 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. 2.4 Going concern The Condensed consolidated financial statements have been prepared on a going concern basis, assuming the Group can meet its liabilities as they fall due. This assessment is supported by proceeds from the recent listing, access to the extended Revolving Credit Facility ("RCF"), and strong relationships with key customers and suppliers. Profitability and financial position: The Group reported a profit of $11.7 million for the year. Net current assets were $147.1 million, and net current financial liabilities totalled $14.1 million. Cash proceeds from listing: On 11 June 2024, Raspberry Pi Holdings plc raised $32.4 million net of transaction costs by issuing 11.2 million new shares at £2.8 per share, further strengthening its financial position with year-end cash and cash equivalents of $45.8 million. Extension of Revolving Credit Facility: On 5 March 2025, the RCF was extended, increasing available funds to $80.0 million (2024: $40.0 million) and extending the term to 4 March 2029 (2024: 24 April 2027), providing additional liquidity to support operations. Liquidity and cash flow forecasts: The Board's cash flow forecasts and projections confirm the Group can operate within its cash and committed facilities for the period to 30 April 2026. Available liquidity, including both cash and committed facilities, has been considered in this assessment. The Directors have deemed this period to be appropriate for the going concern assessment. No plausible events or conditions beyond the assessment period that may cast significant doubt on the Group's ability to continue as a going concern have been identified. Sensitivity analysis and stress testing: Sensitivities applied to forecasts include a 20% reduction in unit sales and a general liquidity reduction. Even under these combined scenarios, the Group expects to meet its funding needs for 2025 and 2026, confirming its ability to continue operations. Reverse stress testing: A reverse stress test modelled the sales decline required to exhaust liquidity and breach banking covenants. This scenario was deemed implausible. Conclusion: Based on these considerations, the Board concludes the Group can operate within its committed facilities and cash resources for the foreseeable future. Accordingly, the Directors have adopted the going concern basis in preparing the Condensed consolidated financial statements. 2.5 Critical accounting judgements and estimates (not relating to the IPO) In preparing these Condensed consolidated financial statements, critical judgements in the application of accounting policies can have a significant effect on the financial results. Any changes in critical estimates and assumptions made could materially impact the amounts of assets, liabilities, revenue and expenses reported next year as actual amounts and results could differ from those estimates or those estimates could change in future. 2.5.1 Critical judgement: Capitalisation of internal and external development costs We prioritise in-house development with a small, highly skilled engineering team, releasing new core hardware every three to four years and developing successors to Raspberry Pi 5 and Raspberry Pi Pico, alongside semiconductor products such as the RP2350 launched this year. The Group exercises significant judgement in determining whether internal and external development costs for pipeline products meet the capitalisation criteria within IAS 38 "Intangible Assets". Costs are capitalised only when they are directly attributable, reliably measurable and relate to future new products that are considered technically feasible, commercially viable and supported by the necessary skilled resources and internal commitment to completion. Forecasted profit margins must exceed capitalised costs. Management makes judgements when these capitalisation criteria are met and continue to be met for active pipeline development projects. The costs associated with the Group's efforts to develop new products are made up of directly attributable internal employee costs for those working on development, costs of external materials and services consumed in development and amortisation of licences (software or designs) used directly in development as per below. $ million 2024 Capitalised 2024 Total % 2023 Capitalised 2023 Total % Internal costs 8.1 17.6 46% 5.5 10.9 50% External costs 12.5 14.6 86% 8.9 11.1 80% Directly attributable R&D - cash 20.6 32.2 64% 14.4 22.0 65% Amortisation 6.0 7.4 81% 1.9 2.3 83% Total directly attributable R&D 26.6 39.6 67% 16.3 24.3 67% Overall R&D investment has increased, with total costs rising from $24.3 million in 2023 to $39.6 million in 2024. Capitalisation of R&D costs in 2024 is 67% of total costs capitalised (2023: 67%). Given the Group's rapid growth, the value of costs being capitalised exceeds amortisation by $19.2 million (2023: $14.0 million). All costs associated with the research phase of projects are expensed as incurred. Any development costs relating to maintaining and fixing bugs in the software are also expensed as incurred. Capitalised employee costs of engineers exclude any share-based payments and termination payments as they are not considered directly attributable to the development projects. 2.5.2 Critical judgement: Identification of cash-generating units ("CGUs") for impairment testing of pipeline development costs Identifying CGUs is a critical step in the impairment review and can have a significant impact on its results. The objective of identifying CGUs is to identify the smallest identifiable group of assets that generates largely independent cash inflows. CGUs are identified at the lowest level to minimise the possibility that impairments of one asset or group will be masked by a high‑performing asset. The Group has three CGUs: Pi 5, semiconductors, and cameras. The Group has assessed that projects within each CGU reflect significant interdependencies, where designs and outputs are shared and integrated, making individual cash flows inseparable without arbitrary assumptions. The recoverability of intangible assets arising from pipeline development activities are materially all part of the semiconductor cash-generating unit ("CGU"). The recoverable amount of the semiconductor CGU is assessed based on the collective earnings of all products in then CGU. 2.5.3 Critical estimate: Net realisable value of inventory The valuation of inventory is a significant area of estimation uncertainty for the Group due to the rapid pace of technological advancements and the risk of product obsolescence inherent in the computer industry. Inventory is measured at the lower of cost and net realisable value, which requires significant management judgement and estimation. In determining net realisable value, the Group evaluates several factors, including market demand and pricing trends, assessing the likelihood of future sales and the impact of declining prices on older inventory. Technological obsolescence is also considered, with management assessing whether inventory remains relevant in light of new product launches and advancements. Additionally, expected selling costs, such as promotional discounts or clearance pricing, are factored into the valuation. The Group reviews inventory balances on a regular basis, taking into account recent sales trends , the ageing of inventory, and the condition of items, including damaged, slow-moving or obsolete stock. Future sales projections over a three-year period, based on management-prepared financial budgets, are used to support these assessments. For the year ended 31 December 2024, the total inventory provision was $6.2 million (2023: $8.9 million). A 10% decrease in estimated future demand would increase the provision by $0.5 million. Given the inherent uncertainties, changes in market conditions, technological developments, or consumer preferences could materially impact the carrying value of inventory. 2.5.4 Critical estimate: Taxation Accounting for taxation requires significant judgement in determining taxable profit, tax bases, and the recognition of deferred tax assets and liabilities. Key estimates include interpreting complex tax regulations, assessing potential challenges from tax authorities, and evaluating the recognition of Research & Development Expenditure Credit ("RDEC") claims. Determining the appropriate RDEC claim involves significant judgement in identifying qualifying R&D activities and expenditures. Uncertainties in these areas can lead to variations between estimated and actual credits received. The Group maintains detailed records of R&D activities and consults with external tax advisers to ensure compliance with legislation. Additionally, changes in facts and circumstances between the preparation of these accounts and the final tax submission, expected in approximately nine months, may impact the final tax position. Any changes in tax laws or interpretations thereof could materially affect future amounts recognised. Whilst there are a variety of possible outcomes Management believes that it is reasonably plausible that the actual tax claims submitted could vary to the accounting estimate by approximately $1.5 million in any accounting period. 2.6 Critical accounting judgements and estimates (relating to the IPO) As this is the year of the IPO there were several non-recurring accounting judgements that have been made. These are detailed below. 2.6.1 Critical judgement: Determination of the functional currency of the parent entity The Directors assessed the Company's functional currency and concluded that since Raspberry Pi Holdings plc was originally formed with the sole purpose of operating as a holding company for its trading subsidiary, Raspberry Pi Ltd, it is appropriate that the functional currency of the Company aligns with that of its subsidiary. 2.6.2 Critical judgement: Determination of the grant date share price and option life for IPO share awards On 11 June 2024, share awards for employees were approved and finalised prior to the Company's Admission to the London Stock Exchange. IFRS 2 prescribes that the fair valuation of these awards should be calculated at the grant date. Management determined the offer price of £2.80 ($3.56) as the appropriate share price for valuation on the grant date. According to IFRS 2, the grant date is defined as the date when both the Company and the participants have a mutual understanding of the Board-approved key terms of the award, which was confirmed to employees prior to Admission on the morning of 11 June 2024. Therefore, the fair value of the share-based payment awards has been measured using the offer price on this date, in accordance with paragraph 16 of IFRS 2. Given the subsequent increase in share price after the initial offer, using a later grant date would have significantly altered the valuation of the awards. The value of the awards and therefore the IFRS 2 charge depends on the grant date share price. A 20% increase in the market price at grant date would increase the fair value of the awards by a total of $5.1 million, while a 30% rise would add $7.7 million. These amounts would then be charged to the Condensed consolidated Statement of Comprehensive Income over the three-year vesting period. Furthermore, IFRS 2 "Share-based Payment" requires management to estimate the option life of the share-based payments which, once the three-year service period is met, can be exercised up to ten years from the date of grant. Having benchmarked comparable assumptions and applied the employee attrition rate evenly through the exercise period, it is expected that the average life will be five years. If this assumption were to move by plus or minus one year, the impact is approximately $1.7 million over the three-year vesting period. 2.6.3 Critical judgement: Classification of transaction costs associated with the issue of shares The Group incurred $10.3 million in costs related to the IPO, with $7.6 million deducted from share premium, and $2.9 million expensed as non-recurring administrative costs. Costs were classified based on whether they directly related to new share issuance of the broader listing process. Directly attributable costs, such as underwriting, brokerage, and advisory fees were deducted from equity, while expenses for wider listing requirements such as corporate finance and costs of legal support were expensed. Of the total $6.4 million for the global primary and secondary offer, 82% or $5.3 million related to the secondary offer and was paid by the Foundation. As these costs were directly attributable to the equity transaction, including $7.6 million that has been deducted from the gross proceeds of $40.0 million, the net proceeds of $32.4 million are recognised in share premium. $2.9 million was presented as non-recurring transaction costs in administrative expenses. Management determined that legal and finance fees associated with upgrading policies and procedures for post-listing requirements, the costs of internal corporate finance, legal support, and advice on share schemes and wider incentives were not directly attributable to the issue of shares and therefore these expenses are recognised in the Condensed consolidated Statement of Comprehensive Income as non-recurring items. 2.7 Alternative performance measures ("APMs") Alternative performance measures ("APMs"), which are used in these financial statements, are also used by the Board and management for planning and reporting. These measures are also used in discussions with the investors. APMs are not displayed with more prominence, emphasis or authority than IFRS measures. Adjusted EBITDA is a non-IFRS measure comprising operating profit adding back amortisation and depreciation, share-based payments charges and non-recurring items. Adjusted operating profit is a non-IFRS measure comprising operating profit adding back share-based payments charges and non-recurring items. Adjusted research and development expense is a non-IFRS measure comprising research and development expense adding back amortisation and depreciation, share-based payments charges and non-recurring items. Share-based payments are excluded as they are paid for by shareholders dilution and the charges are not comparable due to fluctuations around the listing process. Adjusted administrative expense is a non-IFRS measure comprising administrative expenses adding back amortisation and depreciation, share-based payments charges and non-recurring items. Share-based payments are excluded as they are paid for by shareholders' dilution and the charges are not comparable due to fluctuations around the listing process. Non-recurring items are presented whenever significant expenses are incurred or income is received because of events considered to be outside the normal course of business, where the unusual nature and expected infrequency merits separate presentation to assist comparisons with previous years. To arrive at adjusted results, certain adjustments are made for normalised and non-recurring items that are individually significant, and which could, if included, distort the understanding of the performance of the year and the comparability between periods. 2.8 Accounting policies and new and amended accounting standards The set of Condensed consolidated financial information has been prepared using accounting policies consistent with those in Raspberry Pi Ltd's Annual Report and Accounts 2023 except for the following standards, amendments and interpretations which have been adopted from 1 January 2024. Newly adopted accounting standards From 1 January 2024, the following standards became effective for the Group's consolidated financial statements: • Amendments to IAS 1 "Non-current Liabilities with Covenants". • Amendments to IAS 1 "Classification of Liabilities as Current or Non-current". • Amendments to IFRS 16 "Leases on Sale and Leaseback". • Amendments to IAS 7 and IFRS 7 "Supplier Finance Arrangements". The following standards were in issue but were not yet effective at the balance sheet date. These standards have not yet been early adopted by the Group: • Amendments to IAS 21 "Lack of Exchangeability" (mandatorily effective 1 January 2025). • IFRS 18 "Presentation and Disclosure in Financial Statements" (mandatorily 1 January 2027). The adoption of the standards and interpretations listed above has or will not lead to any material impact on the financial position or performance of the Group. The Group has not early adopted other standards, amendments to standards or interpretations that have been issued but are not yet effective 3 Revenue The total revenue for the Group derives from its principal activity: the development, marketing, manufacture and sale of cost-effective programmable computing devices. $ million - by category Year ended 31 December 2024 Year ended 31 December 2023 Products 181.2 212.3 Components 61.2 43.5 Royalties 15.9 &nb...
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