Preliminary results for the year ended 31 Dec 2024

About this update from Eden Research Plc

[{"type":"text","content":"\n \n 6 May 2025 \n   \n Eden Research \n   \n (\"Eden\" or \"the Company\") \n   \n Preliminary results for the year ended 31 December 2024 \n   \n Eden Research (AIM: EDEN), a leader in sustainable biopesticide and biocontrol technology, announces its preliminary results for the year ended 31 December 2024. \n   \n Commercial and operational highlights \n ·    Authorisation for Mevalone® received in the key US state of California in January 2024. \n ·    Mevalone® authorised for use in new crops and fungal pathogens in Spain in June 2024. \n ·    Authorisation for Mevalone® received in Germany and Czechia (post period-end). \n ·    More than 140 insecticide field trials were run in 2024 by Eden and potential distribution partners, following significant interest in the evaluation of Eden's development insecticide. \n ·    Strengthening of the Commercial Team with the appointment of a skilled team filling roles such as Commercial Lead, Product Management and Marketing Lead and Supply Chain Lead. \n ·    Eden named ESG Company of the Year at the prestigious 2024 Small Cap Network Awards in recognition of its commitment to environmental, social and governance matters and contribution to the green economy. \n   \n Financial highlights \n ·      Revenue for the year grew to £4.3 million (2023: £3.2 million), reflecting a growth rate of 34% year-over-year. \n ·      Operating loss for the year was £2.2 million (2023: £1.9 million) \n ·      Cash position at the year-end was £3.7 million (2023: £7.4 million) \n   \n The Group's full Financial Statements are available at: www.edenresearch.com . \n   \n Lykele van der Broek, Chairman of Eden Research plc, commented: \n   \n \"Eden has seen another strong year of growth with overall revenue up 34% and product sales also up by a similar amount. \n   \n In addition to this, several key milestones were reached in 2024 which will all help to drive revenue in the short and medium term and get Eden to the point of cashflow positivity, which will be a significant milestone for the business. \n   \n I remain very optimistic about Eden's prospects and believe that the Company is making excellent progress toward achieving its goal of becoming a leader in the biological crop protection products and solutions industry. \" \n   \n   \n The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the \"UK MAR\") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. \n   \n For further information, contact: \n   \n \n \n \n \n Eden Research plc \n \n \n \n \n \n \n \n \n Sean Smith (CEO) \nAlex Abrey (CFO) \n \n \n www.edenresearch.com \n 01285 359 555 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cavendish Capital Markets Limited \n(Nominated advisor and joint broker) \n \n \n   \n \n \n \n \n Giles Balleny / George Lawson (corporate finance) \nCharlie Combe (corporate broking) \nMichael Johnson (sales) \n \n \n 020 7220 0500 \n \n \n \n \n \n \n \n \n \n \n \n \n \n Oberon Capital (Joint broker) \n \n \n \n \n \n \n \n \n Nick Lovering \n Mike Seabrook \n Adam Pollock \n \n \n 020 3179 5300 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Hawthorn Advisors (Financial PR) \n \n \n   \n \n \n \n \n Victoria Ainsworth \n \n \n \n \n [email protected]  \n \n \n \n \n   \n Notes to Editors: \n   \n Eden Research  is the only UK-listed company focused on biopesticides for sustainable agriculture. It develops and supplies innovative biopesticide products and natural microencapsulation technologies to the global crop protection, animal health and consumer products industries. \n   \n Eden's products are formulated with active ingredients, based on natural plant defence molecules. To date, the Company's products have been primarily used on high-value fruits and vegetables, improving crop yields and marketability, with equal or better performance when compared with conventional pesticides. Eden has three products currently on the market. \n   \n Based on plant-derived active ingredients,  Mevalone ®   is a foliar biofungicide which initially targets a key disease affecting grapes and other high-value fruit and vegetable crops.  It is a useful tool in crop defence programmes and is aligned with the requirements of integrated pest management programmes, and it is allowed for use in organic agriculture across the EU and in select other countries. It is approved for sale in a growing number of key countries whilst Eden and its partners pursue regulatory clearance in new territories thereby growing Eden's addressable market globally. \n   \n Novellus®+  is an evolution of Mevalone, allowing improved rates in the field, high levels of efficacy and a broader list of plant and disease targets.  This product was formulated to address the specific market demands of certain territories and will be launched in these territories based upon local conditions. \n   \n Cedroz™   is a bionematicide that targets free living nematodes which are parasitic worms that affect a wide range of high-value fruit and vegetable crops globally.  Cedroz is registered for sale on two continents and Eden's commercial collaborator, Eastman Chemical, is pursuing registration and commercialisation of this important new product in numerous countries globally. \n   \n Eden's seed treatment product,  Ecovelex™,  was developed to safely tackle crop destruction caused by birds - a major cause of losses in maize and other crops. Ecovelex works by creating an unpleasant taste or odour that repels birds, leaving the seeds safely intact and the birds unaffected and free to find alternative food sources. The product is based on Eden's plant-derived chemistry, registered in the EU, US and elsewhere, and formulated using Eden's Sustaine ®  microencapsulation system. \n   \n Eden's  Sustaine ®   encapsulation technology is used to harness the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) but can also be used with both natural and synthetic compounds to enhance their performance and ease of use. Sustaine microcapsules are naturally derived, plastic-free, biodegradable micro-spheres derived from yeast. It is one of the only viable, proven and immediately registerable solutions to the microplastics problem in formulations requiring encapsulation. \n   \n Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN. It was awarded the London Stock Exchange  Green Economy Mark  in January 2021, which recognises London-listed companies that derive over 50% of their total annual revenue from products and services that contribute to the global green economy. Eden derives 100% of its total annual revenues from sustainable products and services. \n   \n For more information about Eden, please visit:  www.edenresearch.com . You can also follow Eden's latest developments via its social media channels:  X (Twitter)  and  LinkedIn . \n   \n Chairman's Statement \n   \n I am pleased to report that Eden has seen another strong year of growth with overall revenue up 34% and product sales also up by a similar amount. \n   \n In addition to this, several key milestones were reached in 2024 which will help to drive revenue in the short and medium term and get Eden to the point of cashflow positivity, which will be a significant milestone for the business. \n   \n Authorisation for Mevalone® was received in the key US state of California at the beginning of 2024. Once certain label restrictions have been removed, which the Company is working hard to achieve, the opportunity in the US should prove to be a considerable one. \n   \n Mevalone was also authorised for use in new crops and fungal pathogens in Spain which has increased the addressable market and we are already seeing the benefit of this in 2025. \n   \n More than 140 insecticide field trials were run in 2024 by Eden and a number of potential distribution partners, following significant interest in the evaluation of Eden's developmental insecticide and the team at Eden is now negotiating to conclude commercial arrangements. \n   \n An emergency use authorisation was received for Ecovelex in Italy for the second year running which led to meaningful sales towards the end of 2024. The Company expects full authorisation by the Rapporteur Member State in mid-2025 which, once granted, will lead to approvals from other concerned Member States being sought which will unlock the full potential throughout Europe. \n   \n At the end of 2024, regulatory approval was received for Novellus+, a new, enhanced version of Eden's flagship fungicide, Mevalone, in Mexico. This is an exciting development as Novellus+ represents an evolution of Mevalone, allowing improved rates in the field, high levels of efficacy and a broader list of targets, all contributing to a larger addressable market in select territories. \n   \n As I know from my previous roles, such as Chief Operating Officer of Bayer CropScience, the crop protection industry is heavily regulated, methodical, slow-paced and, as such, often frustrating. However, the evolution of biopesticides is not only a very positive development for the industry, the environment and consumers, but also an increasingly valuable one. \n   \n The industry has seen a significant increase in investment in this area through both internal development as well as M&A activity. It's clear that there is a consensus that biopesticides, and other sustainable solutions, are the future of crop protection. \n   \n As such, I remain very optimistic about Eden's prospects and believe that the Company is making excellent progress toward achieving its goal of becoming a leader in the biological crop protection products and solutions industry. \n   \n I would like to thank Eden's shareholders for their ongoing and much appreciated support. \n   \n Lykele van der Broek \n Non-Executive Chairman \n   \n 2 May 2025 \n   \n Chief Executive Officer's Review for the year ended 31 December 2024 \n   \n Section one: Introduction \n   \n Over the past ten years, I've had the privilege of steering the Company's growth from a business with no registered products to a well-established, independent biopesticide leader, with a strong track record in developing plant-derived crop protection solutions for sustainable agriculture. Today, Eden, unique among its peers, boasts a portfolio of three products, with an additional three in the pipeline, regulatory clearance in 24 markets, and over 101 crop use approvals.  \n   \n The past year encapsulates the Company's evolution to date in more ways than one. Not only have we delivered another year of significant revenue growth, but we have also gained entry into some of the world's most strictly regulated markets in California and Germany, and made significant development advancements to grow our product offering. Advances have also been made in our portfolio as we edge closer towards obtaining regulatory clearance for Ecovelex and prepare for the next steps in the commercialisation of our first bioinsecticide. \n   \n Macroeconomic context \n   \n Demand for our biopesticides continues to rise as the agriculture industry grapples with an increased regulatory clampdown on conventional pesticides with known detrimental effects on the environment and human health. We have seen a clear trend amongst farmers looking to adopt top-tier technology to efficiently maximise their yields and meet or exceed increasing regulatory restrictions, paving the way for innovative alternatives such as Eden's biopesticides. While these factors add wind to the sails for Eden, more urgent action is needed to create a faster regulatory pathway for biopesticides, helping to address the performance and environmental challenges faced by farmers worldwide. \n   \n Across Europe, currently our largest market, product inventories eased somewhat in the 2024 calendar year, following a year of pesticide de-stocking. Purchasing patterns also shifted to a more real-time ordering approach, moving away from the pre-buying trends which became commonplace in the face of supply chain issues following the pandemic. This shift has contributed to greater visibility of the supply chain and distribution channels whilst providing some opportunities for quick sales where regulatory clearances allow.  \n   \n In the US, growers have faced declining commodity prices, which have depressed farm incomes and led to a 10% decline in pesticide expenditures in 2024 compared to the previous year. With no further indication that prices will continue to fall sharply, these appear to have been short-term challenges, primarily affecting the corn and grain market, which Eden has yet to enter in North America. Looking ahead, ongoing antitrust litigation may disrupt the established crop input distribution chain that has long relied on loyalty schemes, providing new opportunities for alternative suppliers to enter the market. As a relatively new supplier to the market in the US, we are well-placed to take advantage of this shift. \n   \n Section two: Delivering on our strategy \n   \n Operating in an industry such as ours requires participants to navigate a plethora of regulatory hurdles, more often than not outside of the Company's control. It presents us with a double-edged sword. On one hand, we are at the mercy of a regulator's timeline. On the other hand, the value of our growth story and investment case depends on the growth of our certification count. These regulatory wins define the pace with which we can move and the size of the markets that we can address. \n   \n Against this backdrop, our Company strategy remains consistent, built on four key objectives: \n   \n a)    Business line diversification \n -     Pursuit of opportunities in seed treatments \n -     Development of insecticides \n -     Expand crops and diseases treated, increasing the addressable market for existing products \n -     Geographic diversification \n   \n b)    Research, development, and operations \n -     Supply chain optimisation \n -     Expansion of in-house screening and field trials capability \n -     Accelerate commercialisation of Sustaine for conventional actives \n -     Increase self-reliance in R&D \n -     Reduce time to market \n   \n c)    Commercial growth \n -     Regulatory clearance in new countries, crops, and diseases \n -     Proactively pursue Sustaine business development \n -     Partnerships for Mevalone and Cedroz in new territories \n -     Pursue collaboration with majors and select national partners \n -     Route to market optimisation \n   \n d)    Strengthening and growing the team \n -     Added capabilities in R&D, including microbiology, plant biology, agronomy, and analytical chemistry \n -     Robust approach to data quality \n -     Expand commercial team \n -     Addition of in-house regulatory expertise - accelerating time to market and reducing regulatory costs \n   \n Taking Ecovelex to market \n   \n Since Ecovelex's launch under emergency authorisation in Italy in 2023, we have seen strong demand for the product from Italian farmers as they contend with the pressures arising from the removal of conventional products from the market. The product has so far meaningfully contributed to our revenue and remains a core part of our sales growth strategy. This is despite recording a smaller-than-expected product order in November 2024 compared to the previous year's order (due to adverse weather conditions) which had a significant impact on the number of hectares planted, a static addressable market, and stock carried over from 2023. \n   \n In November 2024, we were pleased to have been granted an extension to our licence under EU regulation 1107/2009. This extension permits us to continue selling our sustainable seed treatment to Italian farmers under restricted conditions. \n   \n Full, EU-wide authorisation for Ecovelex is currently expected this year, subject to the pace of regulatory review and clearance. The dossier and application have been submitted to the Austrian authorities, who are acting as the interzonal rapporteur member state on behalf of the EU. EU rapporteur member states are then invited to ratify the authorisation or require additional information before granting local authorisations. \n   \n Expanding territorial reach \n   \n The growth of our flagship biofungicide, Mevalone, continues apace as we seek new markets for its sale and use, bringing its benefits to farmers in additional corners of the world. Mevalone now has 10 disease targets, 97 crop uses, and market approval in 21 different territories. \n   \n We were pleased that 2024 commenced with the announcement of regulatory authorisation for Mevalone in California. This approval is particularly noteworthy, as California is the largest wine-producing region in the United States, representing approximately 84% of the nation's total production. Furthermore, the State enforces stringent agricultural regulations that prioritise sustainable farming practices. With the timing of this authorisation, we are positioned to begin distributing Mevalone to grape growers across California through our commercial partner, Sipcam, and we anticipate generating significant revenue in 2025 as we continue to refine our commercial and marketing strategy. Refinements of the current label will yield additional growth opportunities in years to come even as some restrictions do little to dampen enthusiasm for Mevalone in California and beyond. \n   \n We have also had a number of regulatory breakthroughs for Mevalone in Europe and elsewhere in 2024. Notably, Eden received regulatory authorisation for use the use of Mevalone on grape vines to control Botrytis and apples to prevent storage diseases in Germany. This was later complemented by the news in December that Mevalone had been registered as an input for organic farming across the nation. Germany is widely considered as one of the strictest regulatory environments in Europe (and more broadly), and our regulatory success here is clear validation of the strong efficacy of our product, as well as its flexible and environmentally friendly qualities. \n   \n Eden also obtained a label extension in Spain for Mevalone, marketed as Araw in the region. This extension expands the biofungicide's use to include 22 new crops on 4 new fungal diseases. Most notably, these new crop additions include almonds, which is one of the largest tree crops in Spain after olives with the nation ranking third in terms of global production. \n   \n Our newly formulated version of Mevalone, marketed as Novellus+, has achieved regulatory approval following the Mexican authorities' authorisation for the product's use against botrytis on a range of horticultural crops. We expect the addition of Novellus+ to meaningfully contribute to the Company's revenues in the coming seasons. \n   \n Building on our strong partnership with Sumi Agro Europe across central Europe, we were pleased to have appointed the firm as our exclusive distributor for Austria to help grow our market presence in these specialist wine and apple markets. \n   \n The growth potential of our bionematicide was also illustrated by Cedroz's temporary approval in Greece for use on potatoes against wireworms for the 2024 growing season. Wireworms, the larvae of click beetles (Elateridae), are a significant global agricultural pest, particularly in temperate regions. They attack the roots, seeds, and underground stems of crops such as potatoes, corn, wheat, and carrots. The severity of the problem varies depending on the species, soil type, climate, and crop rotation practices. The resultant product approval has helped buoy Cedroz sales and we continue to work with Eastman and the local regulators to secure its long-term authorised use in Greece and elsewhere. Moreover, wireworms represent a significant pest for growers in certain parts of the world. \n   \n Generally, Cedroz sales continue to rebound after a disappointing period caused by production issues which have now been resolved.  Revenue growth in Morocco is particularly noteworthy, as sales there have propelled the country into position as one of Eden's largest commercial markets.  We are encouraged by Eastman's new-found confidence in Cedroz following a challenging period, and it truly gratifying to see growers embrace the product with such enthusiasm, as was evident during a recent marketing trip with Eastman to the north African nation. \n   \n Enhancing existing products \n   \n We are currently working towards a significant label extension for Mevalone to include use on grapes to treat the major crop disease, downy mildew. Given the fast pace with which key competitor products targeting this disease are being removed from the European market, this label extension has the opportunity to dramatically grow Mevalone's addressable market. Subject to regulatory timelines, we anticipate a positive verdict as soon as 2025.  As always, the pace of regulatory action is largely outside of Eden's control, and we hope to update the market as soon as we have news on this process. \n   \n Progressing our development pipeline \n   \n We are also focused on the progression of new products within our development pipeline, which are based on our proprietary terpene-based chemistry and yeast-based microencapsulation technology, though it should be noted that with Eden's newly-developed in-house formulation capabilities, we now possess a great deal of flexibility in terms of how and what we use to formulate our products. \n   \n The most advanced of our new products is our first bioinsecticide which will target key pests such as aphids, spider mites, and whiteflies. In June, we announced encouraging results which involved more than 30 laboratory trials, and more than 140 field trials conducted in Europe and the United States. Results showed strong efficacy against all life stages of the target pests and demonstrated equivalence or superior performance when compared with registered biological reference products produced by some of the world's leading biochemical companies. We are now in the process of negotiating an agreement with potential commercial partners to support our marketing efforts and help bring this product to market. We expect to make an announcement on our progress in due course. Concurrently, we are also working towards regulatory submissions in the US and Europe. Subject to authorisation, first sales of the product could be achieved in the coming year in the US, given our active ingredients have already been registered at a federal level. \n   \n Over the past year, we have also started work on two additional product candidates which are in the early stages of development. The first of which is a second biofungicide which is being formulated to target late blight and similar pathogens primarily on potatoes and a range of other high-value fruits and vegetables. There has already been a considerable amount of interest in this product, and we are actively engaged with a number of industry partners who are in the early stages of screening the product. \n   \n The second of these is another bioinsecticide. This will specifically target Lepidoptera, an important pest target which is not covered by our first bioinsecticide and represents a substantial commercial opportunity for the company where there is a large gap in available sustainable solutions. \n   \n Increasing team capacity and capability \n   \n As our business continues to evolve, we have needed to ensure that Eden has the capabilities and capacity to keep up with the pace of development and regulatory workstreams. Therefore, we are delighted to have made several important hires in strategic areas to guide Eden through its next growth chapter. These include the filling of key regulatory and commercial roles such as Global Commercial Lead, Head of Regulatory Affairs, and Global Product and Marketing Lead, respectively. Each of the individuals that we have hired brings rich industry experience at international agchem companies and strong leadership in their field. \n   \n At Board level, we welcomed Derek McAllan as a new Non-Executive Director and Chairman of the Audit Committee. Derek brings great balance to the Board considering his accounting remit as a Partner of RSM UK and extensive background advising listed and private businesses across the life sciences sector. \n   \n Section three: Financial review \n   \n Revenue for the year was £4.3 million which marked a 34% increase on the previous year (2023: £3.2m). This reflects a significant increase in product sales which were £3.6m, a 38% rise on last year's product sales (2023: £2.6m). \n   \n Our operating loss for the year was £2.2m (2023: loss of £1.9m). \n   \n Administrative expenses increased in line with expansion of the development and commercialisation team to £3.5 million (2023: £3.0 million), while additions to intangible assets, including development costs, increased to £2.5 million from £1.7 million in 2023. \n   \n While the loss before taxation decreased to £2.2m (2023: £6.9m loss), this was driven by a significant non-cash impairment of intangible assets in 2023 of £5.0m which was not repeated in 2024. \n   \n The increased strength of the Pound Sterling against the Euro throughout 2024 (from €1.15 at the beginning of the year to €1.21 per GBP as at 31 December 2024) negatively impacted reported revenue by £0.2 million. \n   \n As forecast, regulatory costs have been relatively high in 2024 due to the costs associated with the renewal of Eden's three active ingredients in the EU. Eden has also invested meaningfully in the development of its product portfolio, both through advancing regulatory submissions (new formulations and label extensions of existing products) and through laboratory and field work to assist in the commercialisation of those products. \n   \n Our cash balance at year-end was £3.7m (2023: £7.4m). \n   \n At present, Eden does not expect to need to raise additional capital to meet its existing working capital requirements for the foreseeable future. \n   \n There is currently no near-term plan to pay a dividend. However, the Board continues to review the Company's dividend policy. \n   \n Section four: 2025 outlook \n   \n On 13 January 2025, we reiterated our £5 million revenue forecast for the 2025 financial year. This has been underpinned by repeat sales of Ecovelex made under extended emergency approval in Italy and other European territories, as well as sales growth of Mevalone and Cedroz due to increased market share and approvals received in 2024. \n   \n There are a number of potential approvals and events that have not been included in the 2025 revenue forecast, which would, if realised, add material upside if these took place. These include the following:  \n   \n ·    Full EU authorisation for Ecovelex well in advance of the year-end, expanding its use beyond Italy on a long-term basis; \n ·    Approval of Mevalone for the treatment of downy mildew in France, marketed locally as Esseva; and \n ·    Signing of a commercial agreement for exclusive distribution rights for Eden's insecticide \n   \n Furthermore, we expect the ban of competitor products to Mevalone and Cedroz to have a positive impact on the Company, where we are well-placed to increase our market share. However, the immediate effects are unpredictable considering the potential stocking (and allowed extended use) of these products before their regulatory ban. \n   \n The Company's overheads are expected to increase in 2025 compared to 2024 as a result of the full-year impact of the commercial and regulatory teams, but investments in regulatory and product development are expected to stabilise due to the reregistration costs for our active ingredients in the EU that took place last year. \n   \n Section six: Summary \n   \n I would like to take the opportunity to thank everyone who has supported our journey to date. The backing of shareholders, regulators, and industry has been outstanding, but it is the efforts and skills of our exceptional workforce that have established a company with such strong foundations and an excellent culture based upon innovation, creativity and the shared purpose of bringing sustainable and effective crop protection to farmers around the world. Eden is very well-placed to continue its growth trajectory and maximise the potential of our upcoming milestones.  \n   \n Sean Smith \n Chief Executive Officer \n   \n 2 May 202 5 \n   \n Consolidated statement of comprehensive income \n For the year ended 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n Notes \n \n \n   \n \n \n 2024 \n £ \n \n \n   \n \n \n 2023 \n £ \n \n \n   \n \n \n \n \n Revenue \n \n \n 4 \n \n \n \n \n \n 4,302,603 \n \n \n \n \n \n 3,192,027 \n \n \n   \n \n \n \n \n Cost of sales \n \n \n   \n \n \n \n \n \n    (2,430,433) \n \n \n \n \n \n (1,426,547) \n \n \n   \n \n \n \n \n Gross profit \n \n \n   \n \n \n \n \n \n 1,872,170 \n \n \n \n \n \n 1,765,480 \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Other operating income \n \n \n \n \n \n \n \n \n 20,866 \n \n \n \n \n \n 20,689 \n \n \n   \n \n \n \n \n Amortisation of intangible assets \n \n \n 12 \n \n \n \n \n \n (364,319) \n \n \n \n \n \n (418,651) \n \n \n   \n \n \n \n \n Administrative expenses \n \n \n   \n \n \n \n \n \n (3,510,068) \n \n \n \n \n \n (2,997,633) \n \n \n   \n \n \n \n \n Share-based payments \n \n \n 22 \n \n \n \n \n \n (204,928) \n \n \n \n \n \n (236,576) \n \n \n   \n \n \n \n \n Operating loss \n \n \n 5 \n \n \n \n \n \n (2,186,279) \n \n \n \n \n \n (1,866,691) \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Interest income \n \n \n 8 \n \n \n \n \n \n 110,483 \n \n \n \n \n \n 34,014 \n \n \n   \n \n \n \n \n Finance costs \n \n \n 9 \n \n \n \n \n \n (10,642) \n \n \n \n \n \n (17,207) \n \n \n   \n \n \n \n \n Foreign exchange (losses)/gains \n \n \n 9 \n \n \n \n \n \n (95,988) \n \n \n \n \n \n (68,802) \n \n \n   \n \n \n \n \n Impairment of intangible assets \n \n \n 12 \n \n \n \n \n \n - \n \n \n \n \n \n (4,968,529) \n \n \n   \n \n \n \n \n Share of profit/(loss) of equity accounted Investee, net of tax \n \n \n 15 \n \n \n \n \n \n 2,279 \n \n \n \n \n \n (33,047) \n \n \n   \n \n \n \n \n Loss before taxation \n \n \n   \n \n \n \n \n \n (2,180,147) \n \n \n   \n \n \n (6,920,262) \n \n \n   \n \n \n \n \n Income tax credit \n \n \n 10 \n \n \n \n \n \n 267,008 \n \n \n   \n \n \n 428,326 \n \n \n   \n \n \n \n \n Loss and total comprehensive loss for the year \n \n \n   \n \n \n \n \n \n (1,913,139) \n \n \n \n \n \n (6,491,936) \n \n \n   \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Loss and total comprehensive loss for the year is attributable to: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n - Owners of the Parent Company \n \n \n   \n \n \n \n \n \n (1,906,591) \n \n \n \n \n \n (6,494,249) \n \n \n   \n \n \n \n \n - Non-controlling interests \n \n \n   \n \n \n \n \n \n (6,548) \n \n \n \n \n \n 2,313 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n (1,913,139) \n \n \n \n \n \n (6,491,936) \n \n \n   \n \n \n \n \n Loss per share \n \n \n 11 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Basic \n \n \n \n \n \n \n \n \n (0.36p) \n \n \n \n \n \n (1.54p) \n \n \n   \n \n \n \n \n Diluted \n \n \n \n \n \n \n \n \n (0.36p) \n \n \n \n \n \n (1.54p) \n \n \n   \n \n \n \n \n   \n The income statement has been prepared on the basis that all operations are continuing operations. \n \n \n \n \n \n \n \n \n \n   \n Consolidated statement of financial position \n   \n As at 31 December 2024 \n \n \n \n \n   \n \n \n   \n Notes \n \n \n   \n \n \n 2024 \n £ \n \n \n   \n \n \n 2023 \n £ \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n 12 \n \n \n \n \n \n 6,886,546 \n \n \n \n \n \n 4,710,511 \n \n \n \n \n Property, plant and equipment \n \n \n 13 \n \n \n \n \n \n 183,595 \n \n \n \n \n \n 230,091 \n \n \n \n \n Right-of-use assets \n \n \n 14 \n \n \n \n \n \n 138,706 \n \n \n \n \n \n 212,437 \n \n \n \n \n Investments \n \n \n 15 \n \n \n \n \n \n 299,476 \n \n \n \n \n \n 297,197 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 7,508,323 \n \n \n \n \n \n 5,450,236 \n \n \n \n \n Current assets \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n 17 \n \n \n \n \n \n 532,650 \n \n \n \n \n \n 964,552 \n \n \n \n \n Trade and other receivables \n \n \n 18 \n \n \n \n \n \n 3,105,842 \n \n \n \n \n \n 2,449,623 \n \n \n \n \n Current tax recoverable \n \n \n 10 \n \n \n \n \n \n 584,209 \n \n \n \n \n \n 317,201 \n \n \n \n \n Cash and cash equivalents \n \n \n   \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n 7,413,107 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 7,897,497 \n \n \n \n \n \n 11,144,483 \n \n \n \n \n Current liabilities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 19 \n \n \n \n \n \n 3,399,502 \n \n \n \n \n \n 2,819,153 \n \n \n \n \n Lease liabilities \n \n \n 20 \n \n \n \n \n \n 109,039 \n \n \n   \n \n \n 142,849 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n 3,508,541 \n \n \n \n \n \n 2,962,002 \n \n \n \n \n Net current assets \n \n \n   \n \n \n \n \n \n 4,388,956 \n \n \n \n \n \n 8,182,481 \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Lease liabilities \n \n \n 20 \n \n \n \n \n \n 59,693 \n \n \n \n \n \n 86,920 \n \n \n \n \n \n \n \n \n \n \n \n \n \n 59,693 \n \n \n \n \n \n 86,920 \n \n \n \n \n Net assets \n \n \n   \n \n \n \n \n \n 11,837,586 \n \n \n \n \n \n 13,545,797 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n   \n Notes \n \n \n   \n \n \n 2024 \n £ \n \n \n   \n \n \n 2023 \n £ \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Called up share capital \n \n \n 23 \n \n \n \n \n \n 5,333,529 \n \n \n \n \n \n 5,333,529 \n \n \n \n \n Share premium account \n \n \n 24 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n Warrant reserve \n \n \n 25 \n \n \n \n \n \n 790,154 \n \n \n \n \n \n 758,234 \n \n \n \n \n Merger reserve \n \n \n 26 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Retained earnings \n \n \n   \n \n \n \n \n \n (720,016) \n \n \n \n \n \n 1,013,567 \n \n \n \n \n Non-controlling interest \n \n \n 27 \n \n \n \n \n \n 20,267 \n \n \n \n \n \n 26,815 \n \n \n \n \n Total equity \n \n \n   \n \n \n \n \n \n 11,837,586 \n \n \n \n \n \n 13,545,797 \n \n \n \n \n   \n \n \n \n \n The financial statements were approved by the Board of Directors and authorised for issue on 2 May 2025 and are signed on its behalf by: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sean Smith \n \n \n \n \n Director \n \n \n \n \n   \n Company statement of financial position \n   \n As at 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n Notes \n \n \n   \n \n \n 2024 \n £ \n \n \n   \n \n \n 2023 \n £ \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Intangible assets \n \n \n 12 \n \n \n \n \n \n 6,820,163 \n \n \n \n \n \n 4,630,856 \n \n \n \n \n Property, plant and equipment \n \n \n 13 \n \n \n \n \n \n 183,595 \n \n \n \n \n \n 230,091 \n \n \n \n \n Right-of-use assets \n \n \n 14 \n \n \n \n \n \n 138,706 \n \n \n \n \n \n 212,437 \n \n \n \n \n Investments \n \n \n 15 \n \n \n \n \n \n 299,476 \n \n \n \n \n \n 297,197 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 7,441,940 \n \n \n \n \n \n 5,370,581 \n \n \n \n \n Current assets \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Inventories \n \n \n 17 \n \n \n \n \n \n 532,650 \n \n \n \n \n \n 964,552 \n \n \n \n \n Trade and other receivables \n \n \n 18 \n \n \n \n \n \n 3,215,693 \n \n \n \n \n \n 2,559,651 \n \n \n \n \n Current tax recoverable \n \n \n 10 \n \n \n \n \n \n 584,209 \n \n \n \n \n \n 317,201 \n \n \n \n \n Cash and cash equivalents \n \n \n   \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n 7,413,107 \n \n \n \n \n \n \n \n   \n \n \n \n \n \n 8,007,348 \n \n \n \n \n \n 11,254,511 \n \n \n \n \n Current liabilities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 19 \n \n \n \n \n \n 3,399,502 \n \n \n \n \n \n 2,819,153 \n \n \n \n \n Lease liabilities \n \n \n 20 \n \n \n \n \n \n 109,039 \n \n \n   \n \n \n 142,849 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n 3,508,541 \n \n \n \n \n \n 2,962,002 \n \n \n \n \n Net current assets \n \n \n   \n \n \n \n \n \n        4,498,807 \n \n \n \n \n \n 8,292,509 \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Lease liabilities \n \n \n 20 \n \n \n \n \n \n 59,693 \n \n \n \n \n \n 86,920 \n \n \n \n \n \n \n \n \n \n \n \n \n \n 59,693 \n \n \n \n \n \n 86,920 \n \n \n \n \n Net assets \n \n \n   \n \n \n \n \n \n 11,881,054 \n \n \n \n \n \n 13,576,170 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n   \n \n \n   \n Notes \n \n \n   \n \n \n 2024 \n £ \n \n \n   \n \n \n 2023 \n £ \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Called up share capital \n \n \n 23 \n \n \n \n \n \n 5,333,529 \n \n \n \n \n \n 5,333,529 \n \n \n \n \n Share premium account \n \n \n 24 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n Warrant reserve \n \n \n 25 \n \n \n \n \n \n 790,154 \n \n \n \n \n \n 758,234 \n \n \n \n \n Merger reserve \n \n \n 26 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Retained earnings \n \n \n   \n \n \n \n \n \n (656,281) \n \n \n \n \n \n 1,070,755 \n \n \n \n \n Total equity \n \n \n   \n \n \n \n \n \n 11,881,054 \n \n \n \n \n \n 13,576,170 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n As permitted by s408 Companies Act 2006, the Company has not presented its own income statement and related notes. The Company's loss for the year was £1,900,044 (2023: loss of £6,496,561). \n   \n \n \n \n \n The financial statements were approved by the Board of Directors and authorised for issue on 2 May 2025 and are signed on its behalf by: \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Sean Smith \n \n \n \n \n Director \n \n \n \n \n Company Registration No. 03071324 \n \n \n \n \n   \n \n \n \n Consolidated statement of changes in equity \n   \n As at 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n   \n \n \n Share Capital \n \n \n \n \n \n Share premium account \n \n \n \n \n \n Merger reserve \n \n \n \n \n \n Warrant reserve \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n Total \n \n \n \n \n \n Non-controlling interest \n \n \n \n \n \n Total \n \n \n \n \n   \n \n \n Notes \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Balance at 1 January 2023 \n \n \n   \n \n \n 3,808,589 \n \n \n \n \n \n 39,308,529 \n \n \n \n \n \n 10,209,673 \n \n \n \n \n \n 701,065 \n \n \n \n \n \n (43,309,440) \n \n \n \n \n \n 10,718,416 \n \n \n \n \n \n 24,502 \n \n \n \n \n \n 10,742,918 \n \n \n \n \n Year ended 31 December 2023: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss and total comprehensive loss \n \n \n   \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (6,494,249) \n \n \n \n \n \n (6,494,249) \n \n \n \n \n \n 2,313 \n \n \n \n \n \n (6,491,936) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners in their capacity as owners: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of share capital - net of costs \n \n \n 23/24 \n \n \n 1,524,940 \n \n \n \n \n \n 7,533,299 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 9,058,239 \n \n \n \n \n \n - \n \n \n \n \n \n 9,058,239 \n \n \n \n \n Capital reduction \n \n \n 24 \n \n \n - \n \n \n \n \n \n (40,428,176) \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 40,428,176 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Transfer of merger reserve \n \n \n 26 \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (10,209,673) \n \n \n \n \n \n - \n \n \n \n \n \n 10,209,673 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Options granted \n \n \n 22 \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 236,576 \n \n \n \n \n \n - \n \n \n \n \n \n 236,576 \n \n \n \n \n \n - \n \n \n \n \n \n 236,576 \n \n \n \n \n Options lapsed \n \n \n 22 \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (179,407) \n \n \n \n \n \n 179,407 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Balance at 31 December 2023 \n \n \n   \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 758,234 \n \n \n \n \n \n 1,013,567 \n \n \n \n \n \n 13,518,982 \n \n \n \n \n \n 26,815 \n \n \n \n \n \n 13,545,797 \n \n \n \n \n   \n \n \n \n \n   \n \n \n   \n   \n \n \n Share Capital \n \n \n \n \n \n Share premium account \n \n \n \n \n \n Merger reserve \n \n \n \n \n \n Warrant reserve \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n Total \n \n \n \n \n \n Non-controlling interest \n \n \n \n \n \n Total \n \n \n \n \n   \n \n \n Notes \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Balance at 1 January 2024 \n \n \n   \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 758,234 \n \n \n \n \n \n 1,013,567 \n \n \n \n \n \n 13,518,982 \n \n \n \n \n \n 26,815 \n \n \n \n \n \n 13,545,797 \n \n \n \n \n Year ended 31 December 2024: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss and total comprehensive loss \n   \n Transactions with owners in their capacity as owners: \n \n \n   \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (1,906,591) \n \n \n \n \n \n (1,906,591) \n \n \n \n \n \n (6,548) \n \n \n \n \n \n (1,913,139) \n \n \n \n \n Options lapsed \n \n \n 22 \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (173,008) \n \n \n \n \n \n 173,008 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n Options granted \n \n \n 22 \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 204,928 \n \n \n \n \n \n - \n \n \n \n \n \n 204,928 \n \n \n \n \n \n - \n \n \n \n \n \n 204,928 \n \n \n \n \n Balance at 31 December 2024 \n \n \n   \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 790,154 \n \n \n \n \n \n (720,016) \n \n \n \n \n \n 11,817,319 \n \n \n \n \n \n 20,267 \n \n \n \n \n \n 11,837,586 \n \n \n \n \n   \n Company statement of changes in equity \n   \n As at 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n   \n \n \n \n \n \n Share Capital \n \n \n \n \n \n Share premium account \n \n \n \n \n \n Merger reserve \n \n \n \n \n \n Warrant reserve \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n Total \n \n \n \n \n   \n \n \n Notes \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Balance at 1 January 2023 \n \n \n   \n \n \n \n \n \n      3,808,589 \n \n \n \n \n \n 39,308,529 \n \n \n \n \n \n 10,209,673 \n \n \n \n \n \n 701,065 \n \n \n \n \n \n (43,249,940) \n \n \n \n \n \n 10,777,916 \n \n \n \n \n Year ended 31 December 2023: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss and total comprehensive loss \n \n \n   \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (6,496,561) \n \n \n \n \n \n (6,496,561) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Transactions with owners in their capacity as owners: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of share capital - net of costs \n \n \n 23/24 \n \n \n \n \n \n 1,524,940 \n \n \n \n \n \n 7,533,299 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 9,058,239 \n \n \n \n \n Capital reduction \n \n \n 24 \n \n \n \n \n \n - \n \n \n \n \n \n (40,428,176) \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 40,428,176 \n \n \n \n \n \n - \n \n \n \n \n Transfer of merger reserve \n \n \n 26 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (10,209,673) \n \n \n \n \n \n - \n \n \n \n \n \n 10,209,673 \n \n \n \n \n \n - \n \n \n \n \n Options granted \n \n \n 22 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 236,576 \n \n \n \n \n \n - \n \n \n \n \n \n 236,576 \n \n \n \n \n Options lapsed \n \n \n 22 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (179,407) \n \n \n \n \n \n 179,407 \n \n \n \n \n \n - \n \n \n \n \n Balance at 31 December 2023 \n \n \n   \n \n \n \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 758,234 \n \n \n \n \n \n 1,070,755 \n \n \n \n \n \n 13,576,170 \n \n \n \n \n   \n \n \n \n \n   \n \n \n   \n   \n \n \n \n \n \n Share Capital \n \n \n \n \n \n Share premium account \n \n \n \n \n \n Merger reserve \n \n \n \n \n \n Warrant reserve \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n Total \n \n \n \n \n   \n \n \n Notes \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Balance at 1 January 2024 \n \n \n   \n \n \n \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 758,234 \n \n \n \n \n \n 1,070,755 \n \n \n \n \n \n 13,576,170 \n \n \n \n \n Year ended 31 December 2024: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Loss and total comprehensive loss \n   \n Transactions with owners in their capacity as owners: \n \n \n   \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (1,900,044) \n \n \n \n \n \n (1,900,044) \n \n \n \n \n Options lapsed \n \n \n 22 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n (173,008) \n \n \n \n \n \n 173,008 \n \n \n \n \n \n - \n \n \n \n \n Options granted \n \n \n 22 \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n \n \n \n 204,928 \n \n \n \n \n \n - \n \n \n \n \n \n 204,928 \n \n \n \n \n Balance at 31 December 2024 \n \n \n   \n \n \n \n \n \n 5,333,529 \n \n \n \n \n \n 6,413,652 \n \n \n \n \n \n - \n \n \n \n \n \n 790,154 \n \n \n \n \n \n (656,281) \n \n \n \n \n \n 11,881,054 \n \n \n \n \n   \n \n \n \n Consolidated statement of cash flows \n   \n For the year ended 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 2024 \n \n \n   \n \n \n   \n \n \n 2023 \n \n \n \n \n \n \n \n Notes \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Cash flow from operating activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash absorbed by operations \n \n \n 31 \n \n \n \n \n \n \n \n \n \n \n \n (1,008,569) \n \n \n \n \n \n \n \n \n \n \n \n (2,130,252) \n \n \n \n \n R&D tax credit received \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n 434,841 \n \n \n \n \n Net cash outflow from operating activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (1,008,569) \n \n \n \n \n \n \n \n \n \n \n \n (1,695,411) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Investing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Development of intangible assets \n \n \n 12 \n \n \n \n \n \n (2,540,060) \n \n \n \n \n \n \n \n \n \n \n \n (1,650,465) \n \n \n \n \n \n \n \n \n \n \n Purchase of property, plant and equipment \n \n \n 13 \n \n \n \n \n \n (48,649) \n \n \n \n \n \n \n \n \n \n \n \n (102,391) \n \n \n \n \n \n \n \n \n \n \n Interest received \n \n \n 8 \n \n \n \n \n \n 110,483 \n \n \n \n \n \n \n \n \n \n \n \n 34,014 \n \n \n \n \n \n \n \n \n \n \n Net cash used in investing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (2,478,226) \n \n \n \n \n \n \n \n \n \n \n \n (1,718,842) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Financing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of share capital - net of costs \n \n \n 23 \n \n \n \n \n \n                  - \n \n \n \n \n \n \n \n \n \n \n \n 9,058,239 \n \n \n \n \n \n \n \n \n \n \n Payment of lease liabilities \n \n \n 20 \n \n \n \n \n \n (145,796) \n \n \n \n \n \n \n \n \n \n \n \n (139,539) \n \n \n \n \n \n \n \n \n \n \n Interest on lease liabilities \n \n \n 20 \n \n \n \n \n \n (9,732) \n \n \n \n \n \n \n \n \n \n \n \n (17,009) \n \n \n \n \n \n \n \n \n \n \n Net cash generated from/(used in) financing activities \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n (155,528) \n \n \n \n \n \n \n \n \n \n \n \n 8,901,690 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net increase/(decrease) in cash and cash equivalents \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (3,642,323) \n \n \n \n \n \n \n \n \n \n \n \n 5,487,437 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash and cash equivalents at beginning of year \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n \n \n \n \n \n \n \n 1,994,472 \n \n \n \n \n Effect of foreign exchange rates \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (95,988) \n \n \n \n \n \n \n \n \n \n \n \n (68,802) \n \n \n \n \n Cash and cash equivalents at end of year \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n Relating to: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Bank balances \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n   \n   \n Non-cash movement on account of financing activities: \n   \n Note \n   \n 14        Right of use asset additions of £63,605 (2023: £14,963). \n   \n 22        Share-based payment charge of £204,928 (2023: £236,576). \n   \n   \n Company statement of cash flows \n   \n For the year ended 31 December 2024 \n   \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n 2024 \n \n \n   \n \n \n   \n \n \n 2023 \n \n \n \n \n \n \n \n Notes \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n \n £ \n \n \n \n \n Cash flow from operating activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash absorbed by operations \n \n \n 31 \n \n \n \n \n \n \n \n \n \n \n \n (1,008,569) \n \n \n \n \n \n \n \n \n \n \n \n (2,130,252) \n \n \n \n \n R&D tax credit received \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n 434,841 \n \n \n \n \n Net cash outflow from operating activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (1,008,569) \n \n \n \n \n \n \n \n \n \n \n \n (1,695,411) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Investing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Development of intangible assets \n \n \n 12 \n \n \n \n \n \n (2,540,060) \n \n \n \n \n \n \n \n \n \n \n \n (1,650,465) \n \n \n \n \n \n \n \n \n \n \n Purchase of property, plant and equipment \n \n \n 13 \n \n \n \n \n \n (48,649) \n \n \n \n \n \n \n \n \n \n \n \n (102,391) \n \n \n \n \n \n \n \n \n \n \n Interest received \n \n \n 8 \n \n \n \n \n \n 110,483 \n \n \n \n \n \n \n \n \n \n \n \n 34,014 \n \n \n \n \n \n \n \n \n \n \n Net cash used in investing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (2,478,226) \n \n \n \n \n \n \n \n \n \n \n \n (1,718,842) \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Financing activities \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of share capital - net of costs \n \n \n 23 \n \n \n \n \n \n - \n \n \n \n \n \n \n \n \n \n \n \n 9,058,239 \n \n \n \n \n \n \n \n \n \n \n Payment of lease liabilities \n \n \n 20 \n \n \n \n \n \n (145,796) \n \n \n \n \n \n \n \n \n \n \n \n (139,539) \n \n \n \n \n \n \n \n \n \n \n Interest on lease liabilities \n \n \n 20 \n \n \n \n \n \n (9,732) \n \n \n \n \n \n \n \n \n \n \n \n (17,009) \n \n \n \n \n \n \n \n \n \n \n Net cash generated from/(used in) financing activities \n \n \n   \n \n \n \n \n \n \n \n \n   \n \n \n (155,528) \n \n \n \n \n \n \n \n \n \n \n \n 8,901,690 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Net increase/(decrease) in cash and cash equivalents \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (3,642,323) \n \n \n \n \n \n \n \n \n \n \n \n 5,487,437 \n \n \n \n \n   \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash and cash equivalents at beginning of year \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n \n \n \n \n \n \n \n 1,994,472 \n \n \n \n \n Effect of foreign exchange rates \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n (95,988) \n \n \n \n \n \n \n \n \n \n \n \n (68,802) \n \n \n \n \n Cash and cash equivalents at end of year \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n Relating to: \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Bank balances \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 3,674,796 \n \n \n \n \n \n \n \n \n \n \n \n 7,413,107 \n \n \n \n \n   \n Non-cash movement on account of financing activities: \n   \n 14        Right of use asset additions of £63,605 (2023: £14,963). \n   \n 22        Share-based payment charge of £204,928 (2023: £236,576). \n   \n   \n   \n Notes to the Group financial statements \n   \n For the year ended 31 December 2024 \n   \n 1           Accounting policies \n   \n Company information \n   \n Eden Research plc (the \"Company\") is a public company limited by shares incorporated in England and Wales. The registered office is 67c Innovation Drive, Milton Park, Abingdon, Oxfordshire, OX14 4RQ. \n   \n The Group is defined as, and consists of, Eden Research plc, its subsidiaries, TerpeneTech Limited (Ireland), Eden Research Europe Limited (Ireland) (see note 16) and its associate company, TerpeneTech Limited (UK) (see note 15). \n   \n The Group and Company's principal activities and nature of its operations are disclosed in the Directors' report. \n   \n   \n 1.1       Accounting convention \n             \n The Group and Company financial statements have been prepared in accordance with UK-adopted international accounting standards (\"IFRS') and as applied in accordance with the provisions of the Companies Act 2006. \n   \n The financial statements are prepared in pound sterling, which is the functional currency of the Group and Company. Monetary amounts in these financial statements are rounded to the nearest £ unless otherwise stated. \n   \n The financial statements have been prepared on the historical cost basis, except for the re-measurement of certain financial instruments that are measured at fair value at the end of each reporting period. The principal accounting policies adopted are set out below. \n   \n The Company applies accounting policies consistent with those applied by the Group except where specified within the accounting policies disclosed below. \n   \n See note 2 for further information on changes to standards adopted during the year and standards that have been issued but are not yet effective at the year end. \n   \n The preparation of the Group and Company financial statements involves making accounting estimates and assumptions concerning the future. The critical accounting estimates and assumptions that have a significant risk to the carrying amounts of assets and liabilities within the next financial year are discussed in note 3. \n   \n   \n 1.2       Basis of consolidation \n   \n The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings up to 31 December each year. The profits and losses of the Company and its subsidiary undertakings are consolidated from the date from which control is achieved. All members of the Group have the same reporting period. \n   \n Subsidiary undertakings are entities controlled by the Company. The Company controls an entity when it is exposed to, or has the right to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. \n   \n Associates \n   \n Associates are those entities in which the Company has significant influence, but not control, over the financial and operating policies. Significant influence is presumed to exist when the Company holds between 20 and 50 percent of the voting power of another entity, or where the Company has a lower interest but the right to appoint a director. The Company acquired 29.9% of TerpeneTech Limited (\"TerpeneTech (UK)\") during 2015; TerpeneTech (UK) is an associated undertaking. \n   \n Application of the equity method to associates \n   \n The investment in TerpeneTech (UK) is accounted for using the equity method. The investment was initially recognised at cost.  The Company's investment includes goodwill identified on acquisition, net of any accumulated impairment losses and any separable intangible assets.  The financial statements include the Company's share of the total comprehensive income and equity movements of TerpeneTech (UK), from the date that significant influence commenced. \n   \n 1.3       Going concern \n   \n The Directors have, at the time of approving the financial statements, a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for at least 12 months from the approval of the financial statements. Thus, the financial statements have been prepared on a going concern basis which contemplates the realisation of assets and the settlement of liabilities in the ordinary course of business. \n   \n The Group has reported a loss for the year after taxation of £1,913,139 (2023: £6,491,936). Net current assets at that date amounted to £4,388,956 (2023: £8,182,481). Cash at that date amounted to £3,674,796 (2023: £7,413,107). \n   \n The Company has reported a loss for the year after taxation of £1,900,044 (2023: £6,496,561). Net current assets at that date amounted to £4,498,807 (2023: £8,292,509). Cash at that date amounted to £3,674,796 (2023: £7,413,107). \n   \n Net cash outflow from operating activities for the Group was £1,008,569 (2023: £1,695,411) and net cash used in investing activities was £2,478,226 (2023: £1,718,842). \n   \n The Directors have prepared budgets and projected cash flow forecasts, based on forecast sales provided by the Group's distributors where available, for a period of at least 12 months from the date of approval of the financial statements and they consider that the Group and Company will be able to operate with the cash resources that are available to it for this period.  \n   \n The forecasts adopted include revenue derived from existing contracts as well as expected new contracts in respect of products not yet available for use. \n   \n The Group has relatively low fixed running costs, as production is undertaken through toll manufacturers, and the Directors have previously demonstrated ability and willingness to delay certain costs, such as research and development expenditure, where required and are willing and able to delay costs in the forecast period should the need arise. A positive cash balance is forecasted to be maintained in this base scenario throughout the entire forecast period. \n   \n The Directors have also considered a downside scenario which includes reductions to revenue derived from existing contracts as well as elimination of revenue from products not yet available for use offset by mitigations around research and development expenditure as well as some reductions in expansionary overheads. Under this scenario, a positive cash balance would be maintained over the forecast period. \n   \n Consequently, the Directors are confident that the Group and Company will have sufficient funds to continue to meet their liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis. \n   \n The Group's achievement of long-term positive cash generation is reliant on the completion of ongoing product development and successful initial approval and registration of these products with various regulatory bodies, as well as the registration of existing products in new territories. \n   \n The Group has planned its cashflows taking into account its current cash availability and is satisfied that it can continue for the foreseeable future, albeit with careful management of the levels of investment in the short term, depending on the positive outcome and/or timing of certain commercial and regulatory events. \n   \n However, given the plethora of opportunities and strong interest that the Group is presented with, the Board of the Company may seek to invest to a greater extent than it is currently able to and to expedite the commercialisation of its product portfolio. To that end, the Board continues to assess all funding and commercial opportunities, taking into account commercial and market conditions. \n   \n   \n 1.4       Revenue \n   \n   \n Revenue received by the Group is recognised net of any taxes and in accordance with IFRS 15. Policies for each significant revenue stream are as follows: \n   \n Milestone payments \n   \n The Group receives milestone payments from other commercial arrangements, including any fees it has charged to partners for rights granted in respect of distribution agreements. \n   \n These agreements are bespoke, and any such revenue is specific to the particular agreement. Consequently, for each such agreement, the nature of the underlying performance obligations is assessed in order to determine whether revenue should be recognised at a point in time or over time. \n   \n Revenue is then recognised based on the above assessment upon satisfaction of the performance obligation. \n   \n The Corteva agreement entered into in 2021 included milestone payments of £141,293 received in 2021, a further £164,148 in 2022 and £195,884 in 2023. In 2024, a milestone payment of £450,904 was recorded in the year. These milestone payments were assessed to relate to a performance obligation being satisfied at a point in time. \n   \n The second performance obligation relates to product sales and will be accounted for in line with the product sales policy disclosed below once the commercial sales have commenced. \n   \n Upfront and annual payments made by customers at commencement and for renewal of distribution and other agreements are recognised in accordance with the terms of the agreement. Where there is no ongoing obligation on the Group under the agreement, the payment is recognised in full in the period in which it is made.  Where there is an ongoing obligation on the Group, the separate performance obligations under the agreement are identified and revenue allocated to each performance obligation.  Revenue is then recognised when a corresponding performance obligation has been met. \n   \n R&D charges \n   \n The Group sometimes charges its partners for R&D costs that it has incurred which usually relate to specific projects and which it has incurred through a third party. \n   \n Upon agreement with a partner, or if a specific milestone is met, then the Group will raise an invoice which is usually payable between 30 and 120 days. Revenue is recognised upon satisfaction of the underlying performance obligation. \n   \n Royalties \n   \n The Group receives royalties from partners who have entered into a licence arrangement with the Group to use its intellectual property and who have sold products, which then gives rise to an obligation to pay the Group a royalty on those sales. \n   \n Generally, royalties relate to specific time periods, such as quarterly or annual dates, in which product sales have been made. Revenue is recognised in line with when these sales occur. \n   \n Once an invoice is raised by the Group, following the period to which the royalties relate, payment is due to the Company in 30 to 60 days. \n   \n Sales-based royalty income arising from licences of the Group's intellectual property is recognised in accordance with the terms of the underlying contract and is based on net sales value of product sold by the Group's licensees.  It is recognised when the underlying sales occur. \n   \n Data sharing \n   \n The Group receives revenue generated from partners who wish to access certain data and/or studies that Eden has generated for its own registration purposes. \n   \n The partner will pay an agreed fee to get access to, and use of, the data for their own commercial and regulatory purposes. \n   \n This revenue is recognised when the data has been shared, and a Data Sharing Agreement signed, with the partner. \n   \n   \n Product sales \n   \n Generally, where the Group has entered into a distribution agreement with a partner, the Group is responsible for supplying product to that partner once a sales order has been signed. \n   \n At that point, the Group has the product manufactured through a third-party, toll manufacturer.  At the point at which the product is finished and is made available to the partner to collect, or, if the Group is responsible for the shipping, the product has been delivered to the partner, the partner is liable for the product and obliged to pay the Group.  Normal terms for product sales are 90 to 120 days.  Returns are accepted and refunds are only made when product supplied is notified as defective within 60 days. \n   \n The Group does not have any contract assets or liabilities other than the liability in respect of the Corteva milestone payments noted in the milestone section (2023: none, other than the Corteva milestone payment). \n   \n Product sales are recorded once the ownership and related rights and responsibilities are passed to the customer and the product is made available to the partner to collect, or, if the Group is responsible for the shipping, the product has been delivered to the customer. \n   \n No warranty provision is required as products are sold on the basis of meeting an agreed specification, confirmation of which is provided by way of a certificate of analysis. \n   \n Segmental information \n   \n The Group reports on operating segments in a manner consistent with the internal reporting provided to the chief operating decision-maker in accordance with IFRS 8. Please see note 4 for further details. \n   \n   \n 1.5       Intangible assets other than goodwill \n             \n Intellectual property, which is made up of patent costs, trademarks and development costs, is capitalised and amortised on a straight-line basis over its remaining estimated useful economic life of 6 years (2023: 7 years) in line with the remaining life of the Group's master patent, which was originally 20 years, with additional Supplementary Protection Certificates having been granted in the majority of the countries in the EU in which the Group is selling Mevalone® and Cedroz.  The useful economic life of intangible assets is reviewed on an annual basis. \n   \n An internally generated intangible asset arising from the Group's development activities is recognised only if all the following conditions are met: \n   \n •           the project is technically and commercially feasible; \n •           an asset is created that can be identified; \n •           the Group intends to complete the asset and use or sell it and has the ability to do so; \n •           it is probable that the asset created will generate future economic benefits; \n •           the development cost of the asset can be measured reliably; and \n •           there are sufficient resources available to complete the project. \n   \n Internally-generated intangible assets are amortised on a straight-line basis over their useful lives from the date they are available for use.  Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period in which it is incurred. \n   \n 1.6       Property, plant and equipment \n             \n Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. \n   \n Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following straight-line basis: \n   \n   \n \n \n \n \n Leasehold land and buildings \n \n \n Over the term of the lease \n \n \n \n \n Fixtures and fittings \n \n \n 5 years \n \n \n \n \n Motor vehicles \n \n \n Over the term of the lease \n \n \n \n \n   \n   \n The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement. \n   \n   \n 1.7       Impairment of tangible and intangible assets \n   \n The Directors regularly review the intangible assets for impairment and provision is made if necessary.  Assets that are subject to amortisation and those that are under development are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.  The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.  For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date. See note 12 for further details in the intangible asset impairment review completed in the year. \n   \n 1.8       Inventories \n   \n Inventories are stated at the lower of cost and estimated selling price, less costs to complete and sell. Cost is based on the first-in-first-out principle.  Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. \n   \n 1.9       Financial instruments \n   \n (i)            Recognition and initial measurement \n   \n Trade receivables are initially recognised when they are originated. All other financial assets and financial liabilities (including trade payables) are initially recognised when the Group becomes a part to the contractual provisions of the instrument. \n   \n A financial asset (unless it is a trade receivable with a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (\"FVTPL\"), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. \n   \n   \n             (i)         Classification and subsequent measurement \n   \n Financial assets \n (a)        Classification \n On initial recognition, a financial asset is classified as measured at amortised cost or FVTPL. \n   \n Financial assets are not reclassified subsequently to their initial recognition unless the Group changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. \n   \n A financial asset is measured at amortised cost if it meets both of the following conditions: \n -           It is held within a business model whose objective is to hold assets to collect contractual cash flows; and \n -           Its contractual terms give rise on specific dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. \n   \n Investments in associates accounted for using the equity method and subsidiaries are carried at cost less impairment. \n   \n (a)        Subsequent measurement and gains and losses \n Financial assets at amortised cost are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. \n   \n Cash and cash equivalents \n Cash and cash equivalents comprise cash balances and short-term highly liquid investments with an original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. \n   \n Financial liabilities and equity \n Financial instruments issued by the Group are treated as equity only to the extent that they meet the following two conditions: \n   \n (a)   they include no contractual obligations upon the Group to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Group; and \n   \n (b)   where the instrument will or may be settled in the Group's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the Group's own equity instruments or is a derivative that will be settled by the Group's exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. \n   \n To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the Group 's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares. \n   \n Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. \n   \n Where a financial instrument that contains both equity and financial liability components exists these components are separated and accounted for individually under the above policy. \n   \n (iii)       Impairment \n   \n The Group recognises loss allowances for expected credit losses (ECLs) on financial assets measured at amortised cost. \n   \n The Group measures loss allowances at an amount equal to lifetime ECL, except for other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition, which are measured as 12-month ECL. \n   \n Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECL. During the year, an expected credit loss provision of £nil (2023: £nil) has been recognised on trade receivables over 12 months old, on which payment is uncertain. \n   \n When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forward-looking information. \n   \n The Group considers a financial asset to be in default when: \n - the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held); or \n - the financial asset is more than 120 days past due. \n   \n Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. \n   \n 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). \n   \n The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk. \n   \n Measurement of ECLs \n ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset. \n   \n Credit-impaired financial assets \n At each reporting date, the Group assesses whether financial assets carried at amortised cost are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. \n   \n Write-offs \n The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. \n   \n 1.10     Taxation \n The tax expense represents the sum of the tax currently payable and deferred tax. \n   \n   \n Current tax \n The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. The current tax charge includes any research and development tax credits claimed by the Group. \n   \n R&D tax credits are accounted for on an accruals basis by reference to IAS 12 and are calculated based on development costs incurred by the Group through third party contractors, as well as members of staff who are involved in research and development of the Group's products. \n   \n Deferred tax \n Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. \n   \n Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interest in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. \n   \n The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. \n   \n Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised based on the tax rates that have been enacted or substantively enacted by the end of the reporting period.  Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. \n   \n Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. \n   \n 1.11     Employee benefits \n   \n The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets. \n   \n The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. \n   \n Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits. \n   \n A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement in the periods during which services are rendered by employees. \n   \n   \n 1.12     Retirement benefits \n   \n Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. \n   \n   \n 1.13     Share-based payments \n   \n The Company has applied the requirements of IFRS 2 Share-Based Payments. \n   \n Unapproved share option scheme \n   \n The Company operated an unapproved share option scheme for executive directors, senior management and certain employees up to September 2017. \n   \n Long-Term Incentive Plan ('LTIP') \n   \n In  2017, the Company established a LTIP to incentivise the Executives to deliver long-term value creation for shareholders and ensure alignment with shareholder interest.  Awards were made annually and were subject to continued service and challenging performance conditions usually over a three-year period.  The performance conditions were reviewed on an annual basis to ensure they remained appropriate and were based on increasing shareholder value.  Awards were structured as nil cost options with a seven-year lift after vesting. \n   \n Other than in exceptional circumstances, awards were up to 100% of salary in any one year and granted subject to achieving challenging performance conditions set at the date of the grant.  A percentage of the award vested for 'Threshold' performance with full vesting taking place for equalling or exceeding the performance 'Target'. In between the Threshold and Target there was pro rata vesting.  \n   \n The LTIP was adopted by the Board of Directors of the Company on 28 September 2017. \n   \n   \n Long-Term Incentive Plan ('LTIP') (continued) \n   \n Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of Comprehensive Income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that ultimately the cumulative amount recognised over the vesting period is based on the number of options that eventually vest.  Market vesting conditions are factored into the fair value of the options granted, as long as other vesting conditions are satisfied.  The cumulative expense is not adjusted for failure to achieve a market vesting condition. \n   \n Where the terms and conditions of options are modified before they vest, the increase in fair value of the options, measured immediately before and after the modification is also charged to the Statement of Profit or Loss and Other Comprehensive Income over the remaining vesting period. \n   \n In June 2021, the Company made changes to the LTIP. \n   \n The changes to the LTIP have been treated as a modification of the existing plan for financial reporting purposes which means that the Fair Value of previous awards has been recognised over their remaining term and the incremental Fair Value of the new options granted has been recognised separately over their own vesting period. \n   \n The Company issued options under the modified LTIP, details of which can be found in note 22. These include graded vesting. \n   \n Share options which vest in instalments over a specified vesting period (graded vesting) where the only vesting condition is service from grant date to vesting date of each instalment are accounted for as separate share-based payments. Each instalment's fair value is assessed separately based on its term and the resulting charge recognised over each instalment's vesting period. \n   \n Other share options \n   \n In addition to the LTIP grants, the Company awarded certain employees approved options. Details of these options can be found in note 22. The accounting treatment for these options is consistent with that indicated under the LTIP section at the start of this page. \n   \n   \n 1.14     Leases \n   \n At inception, the Group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the Group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property. \n   \n The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at, or before, the commencement date, plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received. \n   \n The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. \n   \n The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the Group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease. \n   \n The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the Group's estimate of the amount expected to be payable under a residual value guarantee; or the Group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. \n   \n   \n The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term. \n   \n   \n 1.15     Functional and presentation currency \n   \n The Group's consolidated financial statements are presented in pound sterling, which is the Group's functional currency due to its own operations and assets being based in the UK. 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. \n   \n   \n 1.16     Research and development \n   \n Expenditure on research activities is recognised as an expense in the period in which it is incurred. \n   \n   \n 1.17     Financial risk management \n   \n The Group's activities expose it to a variety of financial risks: market risks (including currency risk and interest rate risks), credit risk and liquidity risk.  Risk management focuses on minimising any potential adverse effect on the Company's financial performance and is carried out under policies approved by the Board of Directors. See note 30 for further information. \n   \n 1.18     Transactions and balances \n   \n Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation (where items are remeasured). Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Foreign exchange gains and losses resulting from the settlement of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. All foreign exchange gains and losses are presented in the income statement within administrative expenses. \n   \n Translation differences related to items classified through other comprehensive income are recognised in other comprehensive income (OCI), while remaining translation differences are recognised in the income statement. \n   \n Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e. translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss respectively). \n   \n In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) or the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Group initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of advance consideration. ...

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