IntelliAM AI PLC

22 July 2026

22 July 2026

IntelliAM AI Plc

("IntelliAM" or the "Company")

Final Audited Results

Strong organic revenue growth and doubling of Annual Recurring Revenue

IntelliAM AI plc (AQSE: INT), a leading provider of AI-driven software solutions for the manufacturing and engineering sectors, announces its final results for the year ended 31 March 2026 ("FY26" or the "year").

Financial highlights

·   Group revenue increased by 64% to £5.26m (FY25 reported: £3.21m) and by 35% on an organic⁽³⁾ basis.

·    Reported Platform subscription revenue increased to £0.98m (FY25: £0.19m).

·  At 31^st March 2026 Annual Recurring Revenue (ARR) ⁽¹⁾ doubled to £1.65m (FY25: £0.81m), reflecting continued adoption of the IntelliAM platform and expansion across customer sites.

·  Gross profit increased to £2.33m (FY25: £1.51m), with gross margin of 44% (FY25: 47%), reflecting the mix of deployment, services, hardware and subscription revenue.

·   Adjusted EBITDA⁽²⁾ loss was £0.91m (FY25: loss of £0.16m), reflecting planned investment in product development, sales and customer support, together with the effect of longer sales cycles for larger customer opportunities.

·    Loss before tax was £1.95m (FY25: loss of £0.95m) and loss for the full year was £1.61m (FY25: loss of £0.823m).

·    Cash at 31 March 2026 was £0.10m (FY25: £1.97m), with trade receivables of approximately £1.4m at the year end.

·    Approximately £0.51m of gross equity funding was raised during FY26 to support the SKF co-development programme and general working capital.

Operational highlights

·  Completed the Group's first US platform deployments across three manufacturing sites and entered into a strategic partnership with US-based Connection Technology Center.

·   Signed a co-development agreement with SKF to integrate IntelliAM's machine-learning platform with AI-ready lubrication systems, and co-hosted the inaugural AI Connected Summit.

·   Expanded the commercial relationship with Hovis, with the new engagement representing a ninefold increase on the original contract and extending platform deployment across multiple sites.

·   Entered the building products vertical with customers including Tarmac, Marshalls, H+H and Knauf across the UK and Japan; annualised revenue in the vertical had doubled to more than £0.5m.

·   Secured a multi-site agreement with a major global frozen food manufacturer, with an initial value of at least £0.12m per annum across four UK facilities.

·   The Company's shares moved to the Apex segment of the AQSE Growth Market with effect from 3 November 2025, supporting greater visibility, transparency and liquidity.

Post-year-end developments and current trading

·   Acquired the business and assets of RBM Lubrications & Monitoring Solutions Ltd with effect from 1 April 2026. The acquisition brought seven employees and complementary engineering assets into the Group, extending IntelliAM's reach into the central belt of Scotland.

·   Appointed a US-based Chief Revenue Officer to lead the Group's revenue strategy and accelerate expansion in North America.

·   Announced gross fundraising proceeds of £0.5m on 7 July 2026, comprising a placing of approximately £0.22m and £0.28m of unsecured convertible loan notes. The proceeds will support US expansion, the launch and marketing of the new IntelliAM platform and general working capital.

·   As previously announced, the Board is actively reviewing a potential admission of the Company's shares to trading on AIM during the second half of 2026, with a view to enhancing liquidity and accessing a broader institutional investor base.

·   Secured a £1m non-binding invoice finance facility, increasing working-capital flexibility and enabling the Group to continue investing in product development, customer delivery and growth.

·   Secured initial purchase orders with an aggregate value of more than £0.2m from Q1 FY27 activity, including new customer wins and the successful conversion of former RBM customer relationships onto the IntelliAM platform.

Outlook

·   The Board anticipates continued growth in FY27, with ARR expected to grow faster than overall revenue as the Group expands in the US and continues to develop existing and new UK verticals.

·  Looking ahead, the Board expects continued growth driven by increased rollout across existing customers, further adoption of the Company's platform, and geographic expansion resulting in expected 20% plus revenue growth in each of FY2027 and FY2028. 

·   The Group's priorities are to convert its developing pipeline, launch IntelliAM 53, IntelliAM Decipher and IntelliAM Enigma, progress the SKF co-development programme and maintain disciplined investment and cash management.

Chief Executive Officer Tom Clayton said:

"FY26 was a year of strong growth and deliberate investment. Revenue increased by 35% against the prior year's pro forma result and ARR doubled to £1.65m, demonstrating continued adoption of our software platform and our primary KPI as we demonstrate our pivot to software. While larger customer opportunities extended sales cycles, underlying demand remains strong and the quality and scale of our pipeline continue to improve.

We have entered FY27 with a broader customer base, a stronger product offering and commercial platform, and clear routes to growth in the UK and US. The RBM acquisition gives us a valuable position in the central belt of Scotland, while the recent £0.5m financing and £1m non-binding invoice finance facility increase our working-capital flexibility. Alongside our review of a potential AIM admission, these steps are intended to support disciplined investment in product rollout, US expansion and recurring revenue growth."

The 2026 Annual Report will shortly be available on the Company's Investor Relations website athttps://intelliam.ai/reports-presentations/

Enquiries:

Investor questions on this announcement

We encourage all investors to share questions on this announcement via our investor hub: https://investors.intelliam.ai/link/PGX0Yy

IntelliAM AI plc Tom Clayton, Chief Executive Officer Daud Khan, Chief Financial Officer	+44 114 299 5007
Cavendish Capital Markets Limited - AQSE Corporate Adviser and Broker Giles Balleny / Elysia Bough	+44 20 7220 0500
Square1 Consulting - Financial PR David Bick	+44 7831 381201

Definitions

1.ARR is the annualised value of recurring software subscription contracts in force at the reporting date, calculated using monthly subscription revenue at 31 March 2026 multiplied by 12 together with contracted annual subscription revenue in the coming year linked to sensor sales in FY26.

2.Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation, adjusted to exclude share-based payments and exceptional items.

3. Organic revenue growth is defined as the year-on-year revenue growth from FY25 to FY26 assuming that 53 Degrees North Engineering was part of the Group from the start of FY25. This aids in providing a more comparable growth metric going forward.

Chairman's Statement

Independent Chairman

Introduction

I am honoured to have been appointed Chairman of IntelliAM on 1st July 2025, having joined the Board in May 2025.

This annual report covers a year in which the Company continued to make significant progress. During the year, IntelliAM delivered organic revenue growth of 35%^, doubled Annual Recurring Revenue ("ARR") to £1.65 million, completed an equity raise of approximately £0.5 million, held its inaugural joint conference with SKF, the world's largest bearing manufacturer, and commenced a joint development project with SKF.

While larger deal opportunities demonstrated a greater appetite for the IntelliAM platform, it led to lengthening sales cycles and thus impacted the timing of revenue during the period. However, the market opportunity remains significant and the Board's confidence in the long-term prospects of the business remains high. Continued expansion within existing accounts, growth into new verticals and the development of international opportunities provide a strong platform for future growth.

Since joining the Board, I have been impressed by the resilience of the business, the clarity of its strategic direction and the depth of expertise across the Board and executive team. During the year, we strengthened the Board through the appointment of two additional Non-Executive Directors: Victoria Clarke Brown, who chairs the Audit & Risk Committee, and Max Deeley, who chairs the Remuneration Committee. These appointments bring additional experience and oversight appropriate for the Company's growth ambitions and strategic objectives.

My priorities as Chairman have been to support strong governance, maintain a constructive and cohesive relationship between the executive and non-executive directors, and ensure that the Board continues to support, challenge and oversee the strategic ambitions of the business in the interests of long-term shareholder value.

Another Year of Strong Revenue Growth

The financial year ended 31 March 2026 was another year of strong revenue growth for IntelliAM. ARR doubled year-on-year to £1.65 million (vs. £810,000 in FY25), reflecting increasing demand for our AI-driven machine learning platform across the manufacturing and engineering sectors.

The Company saw particularly strong traction in the UK FMCG sector, underpinned by its strategic "land and expand" approach. This enables customers to adopt the platform quickly and then deepen their engagement as their operational needs evolve. During the year, we also entered new verticals, including building services, demonstrating the broader applicability of the platform beyond our initial core markets.

We were also pleased to see the first US manufacturing sites deploy the IntelliAM platform, leveraging an existing customer relationship in the UK. This early progress gives the Board confidence in the opportunity to expand in the US market. Following the year end, the Company appointed a US-based Chief Revenue Officer with extensive experience selling into the manufacturing industry, which further supports our international growth ambitions.

Looking Ahead

As we move into the financial year ending 31 March 2027, the Board remains positive about the outlook for IntelliAM. The Company is focused on scaling its presence both domestically and internationally, with a particular emphasis on the US market.

Our international strategy will primarily be based on a direct-to-market approach, supported where appropriate by integration partners who can help the Company scale efficiently. We have already announced our first US customer, and our relationship with our strategic hardware partner in the US, Connection Technology Center Inc. ("CTC"), continues to deepen.

The Board anticipates continued growth in FY27, with ARR expected to grow faster than overall revenue as the Company benefits from commercial expansion in the US and continued growth in the UK across both existing and new verticals. With a developing customer pipeline, new product launches and a strengthened leadership team, the Board believes IntelliAM is well-positioned to continue building long-term shareholder value.

Chief Executive Officer's Report

Introduction

The year ended 31 March 2026 was another important period of progress for IntelliAM AI Plc. We continued to grow revenue and annual recurring revenue, deepen our relationships with leading manufacturers, and invest in the platform, people and partnerships that support our long-term opportunity.

While larger opportunities led to the lengthening of sales cycles and therefore impacting the timing of deal closures, the underlying direction of the business remains positive. Customers are increasingly seeking integrated, data-driven operating models, and IntelliAM is well positioned to support that transition through the combination of our AI platform and deep manufacturing domain expertise.

Review of the Year's Performance

The Group delivered strong revenue growth through FY26 while continuing to invest in the capabilities required to scale. Key highlights of the year include:

·       Group Revenue grew by 64% to £5.26 million (vs. reported £3.21m in FY 25), and 35% organic revenue growth

·       Annual Recurring Revenue grew 100% to £1.65 million, compared with £810,000 at the end of FY25.

·       Adjusted EBITDA loss was £906k (vs FY25: loss £157k)

·       The Group continued to broaden its customer base, including progress in FMCG, building products and the US market.

Strategic Vision and Market Expansion

Our strategic priority remains to build IntelliAM into a leading AI platform for industrial productivity, asset reliability and operational decision-making. The market need is clear: manufacturers are under pressure to improve output, reduce downtime, manage energy and sustainability targets and make better use of the data already generated across their factories.

During the year, we made progress in expanding both our sector reach and geographic opportunity. In FMCG, we continued to work with a high-calibre customer base and saw deeper engagement from existing customers. In building products, annualised revenue including subscription doubled to over £500,000 by year end, with customers including Tarmac, Marshalls, H+H and Knauf across the UK and Japan.

We also took meaningful steps in the US market. Our first US customer order covered three major manufacturing sites, and the strategic partnership with Connection Technology Center Inc supported the integration of world-class sensing hardware with the IntelliAM AI platform. These developments strengthen our ability to support customers with richer real-time data and scalable deployment models.

Financial Highlights

Financially, FY26 was a year of revenue growth, recurring revenue expansion and continued investment. Group Revenue grew by 64% to £5.26 million (vs. £3.21m in FY 25), and organically by 35% (vs. FY 25 pro-forma revenue of £3.92 million). ARR doubled to £1.65 million, providing further evidence of the shift towards sustainable, high-quality recurring revenue streams.

The loss at the Adjusted EBITDA level was £906k (vs. £157k in FY25). This reflects the material investment made during the period in product development, sales and customer support. These investments are intended to support future growth, improve delivery capability and strengthen the customer experience as larger and more complex engagements progress through the pipeline.

The move towards larger average deal sizes, particularly in the second half, lengthened sales cycles and affected the timing of revenue recognition. However, underlying demand remained strong and continued to rise, and the Company remains focused on disciplined investment, cash management and converting pipeline opportunities into long-term recurring value.

Product Development and Innovation

Product development remained central to our progress during the year. We delivered significant advances in the IntelliAM platform, most notably through the development of our Unified Namespace. This capability connects data from sensors, machines, lines and other systems, adds context and naming structure, and publishes that data so applications can subscribe to it. It helps customers turn disconnected factory data into actionable insight without adding unnecessary integration burden.

We also developed new Asset Pages, bringing asset metadata, telemetry, maintenance history, reliability insights and configuration information into a single tree-structured view. This creates a clearer and more intuitive user experience and forms a foundational step towards fully contextualised asset management.

Additional progress included enhanced reliability dashboards, configurable insight feeds, wired monitoring trials ahead of the "Decipher" module rollout providing contexualised insights, and work to connect machine learning outputs with OpenAI tools to support advanced planning and workflow management. Alongside our CTC and global manufacturer partnerships, these developments strengthen the platform's ability to scale across customers, sites and equipment types.

Customer Growth and Success

Our land and expand strategy continued to show its value during FY26. Customers often begin with reliability, condition monitoring and operational insight use cases, then expand as the platform becomes more embedded in site governance and day-to-day performance management.

The expansion with Hovis was an example of this model. Following the initial engagement, Hovis awarded IntelliAM a substantially expanded contract (a ninefold increase on the original agreement). The expanded scope included deployment of the IntelliAM AI platform across multiple manufacturing sites, integration of smart sensor interfaces and ongoing consultancy services to drive measurable improvements in reliability, productivity and asset availability.

Our SKF-related co-development activity and the AI Connected Summit also created a stronger platform for future growth. The summit brought together representatives from a significant portion of the world's largest FMCG companies and contributed to an increased pipeline of opportunities. The co-development work is intended to combine industrial hardware capability with IntelliAM's analytics and machine learning architecture, opening the potential for broader recurring software revenues over time.

Leadership and Team Development

As the business scaled, we continued to invest in colleagues across product development, sales, customer support and delivery. Headcount increased during the year, including investment in the commercial team.

We also strengthened the profile and governance framework of the business. IntelliAM became eligible to move to the Apex segment of the AQSE Growth Market, increasing visibility and reinforcing the importance we place on transparency, liquidity and strong corporate governance. In March 2026, Cavendish Capital Markets was appointed as AQSE Corporate Adviser and Broker.

Outlook and Future Plans

We enter the new financial year with growing momentum across the business. Demand for integrated, data-driven manufacturing operations continues to grow, particularly among larger customers that are seeking to improve reliability, productivity and operational decision-making across multiple sites.

The lengthening of sales cycles during FY26 reflects the increasing scale and strategic nature of the opportunities we are pursuing. While this can affect the timing of revenue, larger engagements also have the potential to create more meaningful long-term value when converted.

Our focus for the year ahead will be to convert pipeline opportunities, deepen relationships with existing customers, continue developing the platform, and maintain disciplined investment in the capabilities that support scalable growth. We remain positive about the outlook and confident in the Group's long-term opportunity.

Risks

As a fast-growing business operating in an evolving market, IntelliAM faces the normal risks associated with customer decision cycles, macroeconomic conditions, competitive activity and the pace of technology adoption. During the year, we saw some increased competitive activity in predictive maintenance, particularly around partial sensor based solutions, although this has not resulted in customer attrition or a material impact on new customer acquisition.

We continue to manage these risks through disciplined execution, customer focus, product differentiation and prudent financial management. The Board remains focused on balancing growth investment with operational control and on ensuring that IntelliAM continues to deliver measurable value to customers.

Conclusion

I would like to thank every member of the IntelliAM team for their hard work, commitment and belief in our mission. FY26 was a year of growth, investment and strategic progress. We have strengthened the platform, deepened key customer relationships, expanded into new verticals and continued to build the foundations for long-term recurring revenue growth.

The opportunity ahead remains significant. Manufacturers are increasingly looking for practical, measurable ways to use AI and machine learning to improve performance, and IntelliAM is well placed to help them do that.

Strategic Report

Business Model and Strategy

Business Model

IntelliAM AI Plc is an industrial technology group providing AI-driven asset intelligence, predictive maintenance and operational optimisation solutions for manufacturing and process-led organisations. The Group's platform enables customers to connect operational data from industrial assets, sensors, PLCs (programmable logic controllers), wired and wireless condition-monitoring systems, and wider production environments into a single intelligence layer that supports better maintenance, production and asset-management decisions.

The Group's core proposition remains the application of machine learning and domain-specific engineering expertise to reduce unplanned downtime, improve asset reliability, optimise maintenance activity and deliver measurable operational value to customers. This is supported by the integration of 53 Degrees North Engineering, which provides the Group with deep industrial asset-management capability, customer relationships and practical engineering expertise across manufacturing environments.

The Group's revenue model is focused on Annual Recurring Revenue through subscription access to the IntelliAM platform, alongside engineering, implementation, monitoring and related service revenues. This blended model allows the Group to generate recurring software revenues while maintaining close operational engagement with customer sites through engineering-led deployment and support. ARR remains the key forward-looking metric for platform adoption and subscription revenue growth, while total revenue captures the broader contribution from services and related sales.

During FY26, the Group continued to develop the IntelliAM platform from predictive maintenance and operational insight capabilities toward a broader industrial intelligence platform. In particular, the ability to bring industrial operational data into the IntelliAM platform and allow it to be interrogated using large language models and AI-driven analytics.

Key Strategic Objectives

Market Expansion: The Group remains focused on expanding its presence across the UK industrial and manufacturing base, with FMCG continuing to represent a core market given the strength of IntelliAM's existing customer relationships and the clear operational need for improved asset reliability, production continuity and predictive maintenance across high-volume manufacturing environments. This focus builds on the Group's existing strategy of targeting FMCG, manufacturing and other key industrial sectors.

During FY26, the Group also made meaningful progress in broadening its addressable market beyond FMCG, entering the manufacturing and building materials sector. This represents a significant opportunity for IntelliAM, as building materials customers typically operate asset-intensive, high-throughput production environments where downtime, maintenance efficiency and production resilience are material business issues. The Group has already established an early revenue base in this sector, and the Board believes there is a substantial opportunity to deepen penetration across existing and adjacent sites.

The Group's strategy remains to deepen relationships with existing customers while selectively targeting larger enterprise customers where the IntelliAM platform can be deployed across multiple sites, production lines and geographies. This "land and expand" model is particularly relevant where UK-based deployments can create a route into international sister sites or parent-company operations.

International expansion will be a key area of focus in FY27. The appointment of a Chief Revenue Officer strengthens the Group's ability to accelerate growth in North America. The immediate focus will be on US market penetration; where he brings more than 17 years' asset-management experience and will lead scalable sales processes, go-to-market strategy and US expansion.

The Board sees a specific opportunity to deploy IntelliAM across the US Midwest by leveraging relationships already established with US-owned customers operating UK sites, as well as UK customers with US sister sites. This provides a lower-friction route to market by building on existing operational credibility, customer references and proven use cases. The successful rollout to Baxters' first US customer sites provides an early proof point for this strategy, with reported benefits including improved productivity, stronger asset reliability and a more proactive maintenance strategy.

Product Innovation: The Group continues to invest in the IntelliAM platform, moving beyond automated data capture and predictive maintenance towards a broader operational intelligence proposition. During FY26, product development increasingly focused on repositioning the platform around three core product layers: IntelliAM 53, IntelliAM Decipher and IntelliAM Enigma. This architecture is designed to give customers a clearer pathway from reliability intelligence, through operational interpretation, to advanced AI-enabled decision support.

During FY26, the Group also strengthened its strategic partnership activity through its collaboration with SKF. IntelliAM partnered with SKF to deliver an industrial AI and manufacturing summit, introducing customers to the potential of AI-enabled manufacturing, predictive maintenance and industrial intelligence in asset-intensive environments. This initiative supported the Group's wider objective of educating customers on the practical application of AI in manufacturing and building stronger engagement around reliability, automation and operational performance.

Building on this relationship, the Group signed a co-development agreement with SKF during FY26 to combine SKF's established industrial hardware capability with IntelliAM's AI intelligence layer. The objective of the agreement is to develop AI-driven automated lubrication systems that can use asset data, condition insight and intelligent decision support to improve lubrication effectiveness, asset reliability and maintenance efficiency. The Group expects to continue this development work, with a focus on progressing the product towards completion and future commercial deployment going into FY27.

During FY27, the Group will focus on strengthening each of these product layers and improving the technical depth, scalability and usability of the platform. This will include continued development of the Group's AI agent architecture, enabling the platform to move from insight generation towards more proactive analysis, contextual recommendation and decision support. The objective is to increase the system's ability to interpret industrial data across assets, lines and sites; identify anomalous patterns and emerging risks; and support engineering and operational teams with more targeted, explainable and actionable outputs.

Customer-Centric Growth: The Group continues to pursue a "land and expand" approach, initially engaging customers through targeted asset monitoring, condition-based insight and automated data collection before expanding platform usage across additional assets, lines, sites and decision-making use cases. This approach remains well suited to manufacturing customers, where trust, reliability and demonstrated return on investment are essential before wider deployment.

Commercial Launch and Market Adoption: In FY27, the Group will move from product repositioning and market preparation into a more structured commercial launch programme for "IntelliAM 53" (predictive and reliability based led entry to the IntelliAM platform), "IntelliAM Decipher" (the operational data analytics platform) and "IntelliAM Enigma" (uses agentic AI to close the loop of prescribed action). All layers use contexual data with trusted pathways, and are linked to LLMs to put users in control of their assets. This will include targeted marketing, customer education, sector-specific messaging and focused commercial campaigns designed to convert platform capability into qualified pipeline and recurring revenue opportunities. Rather than adopting a broad, untargeted marketing approach, the Group will prioritise sectors where asset reliability, downtime avoidance, operational visibility and production efficiency are clear board-level issues, including FMCG, manufacturing, building materials and other asset-intensive industrial environments.

A particular focus for FY27 will be the development of a targeted go-to-market campaign in the US Midwest. The Group intends to use existing relationships with UK-based operations of US-owned customers, as well as UK customers with US sister sites, to create a more efficient route into North American industrial accounts. This approach will be supported by targeted digital marketing, sector-led case studies, customer reference material, executive outreach, regional events and partner engagement designed to build awareness of IntelliAM's capability among relevant manufacturing and industrial operators.

The Group will also continue to build on its partnership with SKF, following the FY26 industrial AI and manufacturing summit and subsequent co-development agreement. This partnership provides an important route to demonstrate how IntelliAM's AI capability can be embedded into industrial hardware applications, including the development of AI-driven automated lubrication systems, and supports the Group's broader strategy of using customer education, strategic partnerships and applied product innovation to accelerate market adoption.

The objective of the FY27 commercial launch activity is to position IntelliAM as a specialist AI-enabled industrial intelligence platform, with a clear product architecture and measurable customer value proposition. By aligning marketing, sales and customer success activity around the three product layers, the Group aims to improve lead quality, shorten sales cycles, increase customer conversion and create a stronger foundation for multi-site expansion and recurring revenue growth.

Operational Excellence: The Group continues to invest in systems, talent, delivery processes and commercial discipline to support scalable growth. This includes improving internal controls around commercial commitments, hardware purchasing, invoicing and customer delivery, so that growth in customer activity is translated into cash generation and recurring revenue quality.

Future Developments

The Group's expected future developments are set out in the Strategic Report above, including the Board's plans for market expansion, product innovation, customer-centric growth, commercial launch and operational excellence. In FY27, the Group's focus will be on scaling its presence in the UK and US markets, converting pipeline opportunities, deepening relationships with existing customers, progressing the commercial launch of IntelliAM 53, IntelliAM Decipher and IntelliAM Enigma, and continuing development activity with strategic partners including SKF.

The Board expects future growth to be supported by increasing recurring software revenues, broader platform adoption across customer sites, continued product development and disciplined investment in the Group's commercial and operational capabilities.

Business Performance and Key Performance Indicators (KPIs)

Financial Performance

The Group continued to build the foundations for scalable recurring revenue growth, with ARR remaining the primary measure of platform adoption and forward revenue visibility. Total revenue remains an important measure of overall Group activity, reflecting both software-related revenue and engineering, services and other related sales. Adjusted EBITDA remains the Group's core profitability measure, excluding exceptional items and share-based payments, while cash continues to be monitored closely to ensure sufficient runway to execute the Group's commercial and product-development plans.

In FY26, the Group reported total revenue of £5.26m, compared with £3.21m in FY25 (+64% YoY). Annual Recurring Revenue increased to £1.65m (+100% YoY), reflecting continued adoption of the IntelliAM platform and expansion across customer sites. Adjusted EBITDA loss was £906k, reflecting continued investment in platform development, commercial capability and operational infrastructure. The Group ended the year with a gross cash balance of £100k (with £1.4m in trade receivables) (vs. FY25: £1.97m). Cash in FY26 was impacted by the annualised cost impact of hires in FY25, as well as further investment in new hires. This coupled with the impact of deal sizes increasing which lengthened sales cycles and pushed revenue opportunities into FY27.

Key Performance Indicators:

The Board monitors a small number of financial and operational key performance indicators ("KPIs") that it considers most relevant to assessing progress against the Group's strategy. These KPIs provide measures of growth, profitability, liquidity and customer adoption and are reviewed regularly by the Board. The principal KPIs are summarised below.

KPI	What it measures	Why management monitors it	FY26	FY25
Annual Recurring Revenue (ARR)	Annualised value of recurring software subscription contracts in force at the reporting date. Calculated as monthly subscription revenue at 31 March multiplied by 12, together with contracted annual subscription revenue.	Primary indicator of platform adoption and future recurring revenue visibility.	£1.65m	£0.81m
Revenue	Total Group revenue recognised during the financial year in accordance with FRS 102.	Measures the overall scale of business activity across software subscriptions, engineering, implementation, hardware and related services.	£5.26m	£3.21m
Adjusted EBITDA	Earnings before interest, tax, depreciation and amortisation, adjusted to exclude share-based payments and exceptional items.	Measures the underlying operating performance of the business before non-cash and non-recurring items.	Loss of £906k	Loss £157k
Cash	Gross cash held at the reporting date.	Measures available liquidity and financial flexibility to fund operations and growth.	£100k	£1.97m

Customer Success and Value Delivered

During FY26, the Group documented a number of customer case studies demonstrating the measurable value delivered by the IntelliAM platform across high-volume, asset-intensive manufacturing environments. These case studies show the Group's technology being deployed across multiple customer sites, supporting improved productivity, stronger asset reliability, reduced downtime and more proactive maintenance strategies.

At Baxters Food Group, IntelliAM supported the customer's transition towards a more data-driven operating model across both UK and US factories. The platform has been deployed across multiple Baxters facilities, including sterilisation, pouching and canning operations, helping the customer safeguard critical assets, optimise maintenance planning and improve resource allocation.

At Hovis, IntelliAM has helped address the challenge of ageing assets, limited real-time insight and reliance on intrusive calendar-based maintenance across the customer's UK baking sites. By applying AI-powered monitoring and machine learning to asset data in real time, IntelliAM has enabled Hovis to detect subtle changes in machine behaviour, forecast potential failures and act before intervention becomes urgent. The customer reported reduced reactive repairs, fewer unexpected failures, improved reliability, extended asset life and full return on investment in less than six months.

Together, these case studies provide strong validation of the Group's core value proposition. They demonstrate that IntelliAM's technology is not only capable of identifying early-stage asset deterioration, but also of helping customers change how maintenance is planned, how engineering teams prioritise interventions and how operational leaders protect production performance. Importantly, the examples also show that the platform is capable of scaling across multiple sites and different manufacturing subsectors, including food production, milling and bakery operations.

In FY27, the Group intends to build on this customer evidence by formalising case-study-led sales and marketing activity across its target sectors. The Board believes that quantifiable customer outcomes, including reduced unscheduled losses, improved machine availability, shorter payback periods and enhanced maintenance efficiency, will be central to supporting customer conversion, account expansion and the Group's broader commercial launch programme for IntelliAM 53, IntelliAM Decipher and IntelliAM Enigma.

FY26 Closing

FY26 was a year in which IntelliAM continued to develop from an AI-enabled predictive maintenance business into a broader industrial intelligence platform. The Group strengthened its operational foundations, continued to develop its customer base, advanced the IntelliAM platform and prepared for the commercial launch of its new product layers. While the Group remains at an early stage of its growth journey, the combination of proprietary AI capability, embedded engineering expertise and customer-led deployment provides a clear foundation for scalable recurring revenue growth in FY27 and beyond.

Principal Risks and Uncertainties

The Directors have assessed the principal risks and uncertainties facing the Group, including operational, financial, technological (including competitive), legal, regulatory and macroeconomic factors that could affect the delivery of the Group's strategy. The risks set out below are those which the Board considers could have the most significant impact on the Group's operations, financial position, reputation or ability to achieve its strategic objectives.

Information Security Risks

A range of cybersecurity risks, including malware, phishing, and password attacks, could lead to data breaches, reputational damage, or operational disruptions. Controls include antivirus software, employee training, and strong encryption protocols.

Principal Risks Identified:

·   Phishing Attacks: Phishing remains one of the top security threats, potentially leading to unauthorized access to sensitive customer data.

·       Malware : Malicious software could compromise data integrity, disrupt services, or cause financial losses.

·       Insider Threats : Employees or contractors could misuse access to company systems, leading to data loss or operational disruption.

Mitigation: The company has implemented comprehensive cybersecurity policies, regular employee training, and response plans to handle any breaches promptly.

Operational Risks

These risks stem from disruptions to service availability, such as Denial of Service attacks or hardware malfunctions in third-party devices.

Principal Risks Identified:

·    Hardware Malfunctions Failures in third-party hardware, such as edge gateways, can disrupt service availability and harm customer trust.

·    Natural Disasters Events that affect data centres could result in significant downtime and customer dissatisfaction.

Mitigation: The Company uses robust backup plans, reliable cloud providers like Microsoft Azure, and multi-tiered security protocols to ensure continuous operations.

Reputational Risks

Negative customer experiences or social media posts that do not align with the company's values could damage IntelliAM's reputation.

Principal Risks Identified:

·     Social Media Mismanagement : Inappropriate social media posts or negative perceptions could lead to brand damage and customer attrition.

·     Customer Service Failures : Poor service or product performance could result in increased churn and loss of market share.

Mitigation: Strong social media policies, customer support frameworks, and regular feedback collection ensure that customer relationships remain positive.

Financial Risks

The Group remains dependent on maintaining sufficient liquidity and access to funding while it invests in product development, commercial expansion and operational capacity. Delays in customer receipts, lower-than-expected revenue or difficulty securing additional funding could affect the Group's ability to execute its strategy.

Principal Risks Identified:

·  Revenue Fluctuations : Economic factors or customer demand shifts could lead to cash flow issues, affecting profitability and growth.

·  Funding Risks : Difficulty in raising sufficient capital could halt planned expansion efforts and product development.

Mitigation: The Board regularly reviews cash flow forecasts, working capital, customer receipts, revenue performance and key performance indicators. The Group raised capital during FY26 and after the reporting date and has also entered into a £1m non-binding invoice finance facility. Management continues to monitor liquidity closely and considers alternative funding options where appropriate. The Board recognise the criticality of the invoice finance facility. The fact that it is a non-binding offer in nature at this stage with financial covenants and other operational conditions attached to it  which the company fully expects to satisfy entirely based on formal assessments carried out, there are uncertainties present in this regard which indicate that a material uncertainty exists that may cast  doubt on the Group and Parent Company's ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.

LEGAL AND REGULATORY COMPLIANCE RISKS

The Group operates in a developing legal and regulatory environment, including requirements relating to data protection, information security, artificial intelligence, employment, health and safety, corporate governance and the operation of an AQSE-listed company. Changes in legislation, regulation or regulatory expectations, or a failure by the Group to comply with applicable requirements, could result in financial penalties, legal claims, reputational damage, increased compliance costs or restrictions on the Group's ability to operate or deploy its technology.

Principal risks identified:

·     Data protection and information security: Failure to comply with UK data protection legislation, including the UK GDPR and Data Protection Act 2018, could result in regulatory action, financial penalties and loss of customer confidence.

·     AI and technology regulation: The legal and regulatory framework governing artificial intelligence continues to evolve in the UK and internationally. New requirements may increase development, governance, documentation and compliance costs or require changes to the Group's products and operating processes.

·   Health and safety: The Group's engineers and operational employees may work at customer manufacturing sites. Failure to comply with applicable health and safety requirements could result in injury, prosecution, customer claims or loss of access to customer sites.

·    Listed company and corporate compliance: Failure to comply with the AQSE Growth Market rules, Companies Act requirements or other corporate governance obligations could lead to regulatory sanction and reputational damage.

Mitigation: The Group maintains policies, procedures and controls designed to support compliance with applicable legal and regulatory requirements. These include information security and data protection policies, employee training, access controls, health and safety procedures, risk assessments and method statements, and oversight from the Board and Audit and Risk Committee. The Group also obtains external legal, regulatory, employment and corporate advice where appropriate and monitors developments in AI, data protection and listed company regulation.

MACROECONOMIC AND GEOPOLITICAL RISKS

The Group may be affected by wider economic and geopolitical developments, including inflation, interest rate movements, foreign exchange volatility, tariffs, supply chain disruption, international conflict and changes in customer investment confidence. These factors could increase operating or hardware costs, delay customer purchasing decisions, disrupt the availability of sensors and other third-party equipment, or adversely affect the timing and profitability of customer projects.

The Group is increasing its commercial focus in the United States and remains exposed to certain costs denominated in US dollars. Wider geopolitical developments involving the United States or other international markets could therefore affect exchange rates, travel, customer decision-making or supply chains, although the Group does not currently consider any individual conflict to represent a separate principal risk.

Principal risks identified:

·    Customer investment delays: Economic uncertainty may cause customers to delay or reduce expenditure on technology, engineering and asset-management projects.

·   Supply chain disruption: International events, tariffs or shortages could delay the supply of sensors, gateways or other third-party hardware.

·      Inflation and cost pressures: Higher wage, travel, technology, cloud and hardware costs could adversely affect margins and cash flow.

·     Foreign exchange movements: Movements in sterling against the US dollar and other currencies could increase the cost of overseas suppliers, employees and business development activities.

Mitigation: The Group seeks to mitigate these risks through close monitoring of customer pipelines and cash flow forecasts, maintaining relationships with multiple suppliers, careful management of inventory and purchasing commitments, and increasing the proportion of recurring subscription revenue. The Group monitors foreign currency exposure and, where appropriate, uses forward foreign exchange contracts to provide greater certainty over future US dollar costs. The Board also reviews the impact of wider economic and geopolitical developments as part of its regular risk-management and forecasting processes.

Technology Risks

Rapid technological advancements or model drift in machine learning could affect the Company's ability to remain competitive.

Principal Risks Identified:

·     Model Drift : Over time, machine learning models may become less effective as data patterns change, leading to less accurate predictions.

·    Technology Obsolescence : If IntelliAM's technology fails to keep pace with advancements, market competitiveness could be impacted.

Mitigation: The Company continuously invests in R&D, model retraining, and partnerships with technology providers to stay ahead of market trends.

Environmental, Social, and Governance (ESG)

The Group recognises the importance of environmental, social and governance matters in creating long-term value for shareholders and stakeholders.

The Group is not required to make disclosures under the Streamlined Energy and Carbon Reporting (SECR) framework because it is neither a quoted company for the purposes of the Companies Act 2006 nor does it meet the size thresholds requiring SECR reporting. Accordingly, the following ESG disclosures are made on a voluntary basis.

Environmental Impact

IntelliAM is committed to sustainability and reducing environmental impact. Our platform's optimization capabilities help clients reduce energy usage and operational waste, contributing positively to their environmental goals.

Social Responsibility

We maintain a strong commitment to social responsibility by supporting employee development, diversity, and community initiatives. The Company also focuses on delivering AI solutions that help industries become more sustainable.

Governance

IntelliAM operates with robust governance policies, ensuring effective oversight and decision-making. This includes the implementation of rigorous risk management strategies and transparent reporting on all significant matters. 

Employee Engagement and Development

IntelliAM is dedicated to creating an inclusive and engaging workplace. Our focus on continuous learning, competitive compensation, and promoting employee wellness helps maintain a motivated and productive team.

Chief Financial Officer Report

Introduction

This report provides an overview of the financial performance of IntelliAM for the year ending 31 March 2026. It outlines the key financial highlights, performance against expectations, and the company's approach to managing financial risks and resources. The results reflect the successful execution of our business strategy, which has focused on scaling our operations, expanding the customer base, and investing in product development to drive future growth.

Financial Performance Overview

Revenue

Total revenue for the year was £5.26m (vs. £3.21m in FY25), representing 64% revenue growth or organic growth of 35% compared to the prior period pro-forma revenue of £3.92m. This growth was primarily driven by an increase in Annual Recurring Revenue (ARR), which saw an increase rise from £810k in FY25 to £1.65m in FY26, driven by the expansion of our customer base and the successful adoption of our platform by key industries.

	2026	2025
Turnover analysed by class of business	£	£
Platform deployment and Services revenue	4,259,785	2,737,960
Platform subscription revenue	980,820	185,815
Other Income	22,499	263,804
Royalty Revenue	-	26,187
	5,263,104	3,213,766

During the year, the Group reviewed the presentation of its revenue streams to better reflect the way in which the business is now managed and reported internally. Consulting revenue, implementation services, platform deployment services and hardware supplied as part of platform deployment have been presented together as "platform deployment and services revenue". Hardware supplied to customers is typically linked to the deployment and enablement of the IntelliAM platform and is not considered by the directors to represent a separate principal revenue stream of the Group.

As noted above ARR (defined as the annual subscription value of contracts in place at the year end plus any contractual subscription revenue linked to sales in the period) was £1.65m, doubling over the prior period. This increase was linked to the Group's continued strategy of land and expand which leveraged consulting contracts to onboard customers to IntelliAM platform and the sale of sensors that provided enhanced condition based data which was linked to monthly subscription contracts.

Royalty revenue was a mechanism for subscription revenue to pass to IntelliAM from 53 Degrees North, linked to IP owned by IntelliAM. After the acquisition, and from 1st October, the agreement moved to a royalty free relationship allowing 53 Degrees North to sell IntelliAM products.

Gross Profit

Gross profit for the year stood at £2.3m (vs. FY25: £1.5m), resulting in a gross margin of 44% (vs. FY25: 47%). Gross margin is dependent on business mix. The consulting division is mainly based on time and materials but also includes the provision of hardware at the request of customers. IntelliAM services are generally fixed priced projects and IntelliAM subscription products are generally higher margin with costs of sales linked to the provision of cloud infrastructure. In FY26 the increased number of sensor sales linked to subscription contracts diluted margins but is directly linked to the increase in ARR during the year.

Operating Expenses

Operating expenses totalled £4.3m, an increase of 73% vs FY25 and a 58% increase vs pro-forma costs in FY25. The main areas of expenditure being in payroll, as we continued to scale operations and invest in R&D and faced higher listed company expenses having been listed for the whole year in FY26 vs. FY25: 9 months. Adjusted operating expenses were £3.6m (vs. £1.7m in FY25), when excluding share based payments, IPO exceptional costs and amortisation of acquired intangibles and IP.

Adjusted EBITDA

The company recorded an adjusted EBITDA loss of £906k (vs. FY25: loss £157k and an unaudited pro-forma loss of £22k) for the period. The increased loss was directly linked to the planned increase in headcount and slower than expected growth in FY26 revenues. The Board expects headcount to increase in FY27 but at a slower pace than FY26.

Net Profit/Loss

The Group recorded a net loss of £1,607k (vs. FY25: loss £823k) for the year. This is reflective of the planned strategic investments that were necessary for the long-term growth of the business, including the investment in talent. The loss was higher than anticipated due to lower than expected revenue  despite strong organic growth of 35% in the period.

Excluding share based payments and amortisation of acquired intangibles, the adjusted net loss was £958k (vs. FY25: loss £165k and a loss of £73k on an unaudited pro-forma basis).

Adjusted Profit&Loss	Note	FY26	FY25	Unaudited Pro-forma FY 25
Revenue	5	5,263,104	3,213,766	3,920,506
Cost of Sales		(2,932,966)	(1,704,886)	(2,085,872)
Gross Profit		2,330,138	1,508,880	1,834,634
Operating Expenses		(4,256,855)	(2,436,755)	(2,666,654)
Share based payments		(149,084)	(39,005)	(39,005)
Amortisation of acquired intangibles and IP		(526,226)	(409,669)	(409,669)
Exceptional costs		-	(278,810)	(309,046)
Adjusted Operating Expenses		(3,581,545)	(1,709,271)	(1,908,934)
Adjusted Operating Loss		(1,251,407)	(200,391)	(74,300)
Amortisation from internally generated IP and other		322,607	28,253	28,253
Depreciation		22,798	14,967	21,069
Adjusted EBITDA	8	(906,002)	(157,171)	(24,978)
Net Interest		(25,767)	(22,829)	(26,323)
Adjusted Loss before tax	7	(1,277,174)	(200,391)	(100,623)
Tax on adjusted loss		319,294	58,493	27,844
Adjusted Net Loss	7	(957,881)	(164,727)	(72,779)
Adjusted Loss per share
Average Basic shares	7	19,291,413	17,638,992	17,638,992
Basic adjusted loss per share (p)	7	(4.97)	(0.93)	(0.41)

The Group reported a Loss per share of 8.33p and on an adjusted basis a loss of 4.97p.

Balance Sheet and Financial Position

Capitalisation of development costs

Investing in our Platform is critical to sustaining our competitive advantage and delivering against our product roadmap and customer needs. During the period we capitalised £944k (FY25:£549k) of development expenditure which will benefit the company in the years to come. These costs are amortised over 3 years.

Trade and other receivables

Trade debtors at the end of the period stood at £1.4m (FY25:£0.98m). Our customers generally pay on 60-90 day standard terms. Aged debt is carefully monitored and pursued. With the majority of customers being large national or international brands, we believe that collectability even on aged debt is high.

Borrowings and deferred payments

At the end of the period, loans outstanding stood at £277k (FY25: £260k) with £68k(FY25:£69k) due within one year.  Amounts owed for the purchase of 53 Degrees North Engineering stood at £1.3m (FY25:1.43m). 53 Degrees North was acquired for £5.19m, over which 50% was paid with shares in IntelliAM, and the balance was due to be paid in cash over an estimated 3 year period. The amounts owed become interest bearing if the company executes its option to extend payment. The Group believes it has sufficient financial flexibility to ensure the terms of the sale agreement are adhered to.

Cash Flow and Liquidity

Cash Flow Overview

The cash position at the end of the year was £100k (FY25:£1.97m). Post the balance sheet date, the company raised gross proceeds of £500k via a convertible loan note and equity issuance. Additionally the company entered into a £1m non-binding invoice finance facility. Based on the new access to capital, we have sufficient liquidity to support ongoing operations, including investments in product development and expansion.

Capital Raise

In December 2025, we successfully completed a small fund raise of £509k. These funds have been used to contribute towards a joint development project with SKF and to support general working capital.

Financial Risk Management

Overview of Financial Risks

As part of our risk management framework, IntelliAM continually monitors financial risks, including liquidity risk, currency risk, credit risk, and interest rate risk. We have in place processes to mitigate these risks through.

·       Liquidity Risk: The Group has continued to manage liquidity carefully, ensuring that available cash resources are aligned with operational requirements, planned investment and growth opportunities.

·       Credit Risk: We manage credit risk by maintaining strong relationships with customers, and continually monitoring aged debt and reviewing customer payment performance on an ongoing basis.

·       Foreign Exchange Risk: As the Group expands its international activities and incurs certain costs in foreign currencies, particularly USD, it is exposed to movements in exchange rates. During the year, the Group used forward foreign exchange contracts to secure exchange rates for certain expected future USD payments. This provides greater certainty over the sterling cost of those commitments and reduces the impact of short-term exchange rate volatility. The Board continues to monitor foreign currency exposure and will consider the use of forward contracts where appropriate. The Group does not enter into foreign exchange contracts for speculative purposes.

·       Interest Rate Risk: The Group monitors its exposure to interest rate movements, particularly in relation to cash balances and any financing arrangements, and considers this risk as part of its wider treasury and cash management activities.

Capital Allocation and Investment Strategy

We have made substantial investments in product development, R&D, talent acquisition during the year, which we believe are essential for the long-term success of the business. Moving forward, the company will continue to focus on high-return investments in technology and customer acquisition, while maintaining a balanced approach to capital management.

Going Concern

The Directors have assessed the Group's and Company's ability to continue as a going concern for a period of at least twelve months from the date on which these financial statements are approved.

 In performing this assessment, the Directors reviewed detailed cash flow forecasts, forecast trading performance and working capital requirements, together with sensitivity analyses reflecting a range of reasonably possible downside scenarios. The assessment also considered the Group's available cash resources, the £0.5m equity raise completed during the financial year, the additional £0.5m of funding secured after the reporting date through a combination of convertible loan note and equity financing, together with the availability of a £1m non-binding invoice finance facility. 

Having considered these factors, together with the Group's recurring revenue base, sales pipeline and expected future trading performance, the Directors have concluded that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. Whilst the Directors are confident with regards to the appropriateness of the going concern assessment and conclusion, the Directors also recognise the criticality of the invoice finance facility. The fact that it is a non-binding offer in nature at this stage with financial covenants and other operational conditions attached to it which although the company fully expects to satisfy entirely based on formal assessments carried out,  there are uncertainties present in this regard which indicates that a material uncertainty exists that may cast significant doubt on the Group and Parent Company's ability to continue as a going concern and therefore realise its assets and discharge its liabilities in the normal course of business.

Conclusion

The financial year ending 31 March 2026 has been one of strong revenue growth and strategic investment for IntelliAM. Following a raise of capital post the balance sheet date and access to a £1m non-binding invoice finance facility, the Company is in a solid financial position to support its growth trajectory, backed by a strong customer base, and a growing pipeline of recurring revenue. As we move into FY27, we are well-positioned to continue delivering strong growth and value for our shareholders.

The ongoing focus will be on scaling our platform, increasing customer adoption, and ensuring financial discipline as we continue to invest in the business.

Consolidated Statement of Comprehensive Income

		2026			2025
Note		£			£
Turnover	5	5,263,104			3,213,766
Cost of sales		(2,932,966)			(1,704,886)
Gross profit		2,330,138			1,508,880
Distribution costs		(126,957)			(49,969)
Administrative expenses		(4,129,898)			(2,107,976)
Exceptional costs		-			(278,810)
Operating loss	6	(1,926,717)			(927,875)
Share based payments		149,084			39,005
Amortisation of acquired intangibles and IP		526,226			409,669
Exceptional costs		-			278,810
Operating loss pre share based compensation, amortisation of acquired intangibles, IP and exceptional costs		(1,251,407)			(200,391)
Other interest receivable and similar income		30,143			721
Interest payable and similar expenses		(55,910)			(23,550)
Loss before taxation		(1,952,484)			(950,704)
Tax on loss		345,164			127,600
Loss for the financial year and total comprehensive income		(1,607,320)			(823,104)

Consolidated Statement of Financial Position

		2026		2025
	Note	£		£
Fixed assets
Intangible assets	9	5,142,920		5,098,890
Tangible assets		510,037		489,367
		5,652,957		5,588,257
Current assets
Stocks		279,425		113,018
Debtors		1,766,107		1,061,070
Deferred tax asset		541,999		184,945
Cash and cash equivalents		100,734		1,967,233
		2,668,265		3,326,266
Creditors: amounts falling due within one year		1,328,575		1,528,384
Net current assets		1,359,690		1,797,882
Total assets less current liabilities		7,012,647		7,386,139
Creditors: amounts falling due after more than one year		1,505,964		907,885
Net assets		5,506,683		6,478,254
Capital and reserves
Share capital		98,026		95,708
Share premium		4,937,197		4,452,850
Merger reserve		2,579,704		2,579,704
Other reserves		258,831		258,831
Share based payment reserve		188,089		39,005
Profit and loss account		(2,555,164)		(947,844)
Shareholder's funds		5,506,683		6,478,254

Consolidated Statement of Changes in Equity

	Share Capital		Share premium		Other reserves		Merger Reserve		Share based payment reserve		Profit and loss account		Total
	£		£		£		£		£		£		£
At 1 April 2024	313,723		181,266		-		-		-		(198,462)		296,527
Restatement	-		-		-		-		-		73,722		73,722
At 1 April 2024 (restated)	313,723		181,266		-		-		-		(124,740)		370,249
Loss for the year	-		-		-		-		-		(823,104)		(823,104)
Total comprehensive loss for the year	-		-		-		-		-		(823,104)		(823,104)
Issue of shares	40,817		5,052,968				2,579,704		-		-		7,673,489
Issue of bonus shares	(41,169)		-		-		-		-		-		(41,169)
Other movements	(217,663)		-		258,831		-		-		-		41,168
IPO costs charged to share premium	-		(781,384)		-		-		-		-		(781,384)
Equity-settled share-based payments	-		-		-		-		39,005		-		39,005
Total investments by and distributions to owners	(218,015)		4,271,584		258,831		2,579,704		39,005		-		6,931,109
At 31 March 2025	95,708		4,452,850		258,831		2,579,704		39,005		(947,844)		6,478,254
Loss for the year	-		-		-		-		-		(1,607,320)		(1,607,320)
Total comprehensive loss for the year	-		-		-		-		-		(1,607,320)		(1,607,320)
Issue of shares	2,318		507,680		-		-		-		-		509,998
Transaction costs charged to share premium	-		(23,333)		-		-		-		-		(23,333)
Equity-settled share-based payments	-		-		-		-		149,084		-		149,084
At 31 March 2026	98,026		4,937,197		258,831		2,579,704		188,089		(2,555,164)		5,506,683

Consolidated Statement of Cashflows

	2026		2025
	£		£
Cash flows from operating activities
Loss for the financial year	(1,607,320)		(823,104)
Adjustments for:
Depreciation of tangible assets	22,908		14,976
Amortisation of intangible assets	848,833		437,923
Other interest receivable and similar income	(30,143)		(721)
Interest payable and similar expenses	55,910		23,550
Provision for doubtful debts	(1,305)		1,305
Equity-settled share-based payments	149,084		39,005
Income Tax	(357,054)		(127,600)
Operating cashflow before movements in working capital	(919,087)		(434,666)
Changes in:
Increase in Stocks	(166,407)		(106,919)
Increase in trade and other receivables	(652,880)		(326,996)
Decrease in trade and other creditors	620,658		295,266
Cash absorbed from operations	(1,117,716)		(573,315)
Interest paid	(55,910)		(23,550)
Interest received	30,143		282
Tax paid	(39,007)		(105,710)
Net cash used in operating activities	(1,182,490)		(702,293)
Cash flows from investing activities
Additions to intangible assets	(943,715)		(553,706)
Purchase of tangible assets	(45,138)		(49,526)
Disposal of tangible assets	1,560		-
Transaction costs related to acquisition	-		(60,524)
Acquisition of subsidiaries	(165,000)		(1,164,873)
Interest on acquisition of subsidiaries	33,331		-
Acquired cash	-		177,566
Net cash used in investing activities	(1,118,962)		(1,651,063)
Cash flows from financing activities
Proceeds from issue of ordinary shares	509,998		5,044,989
Share issue costs paid	(23,333)		(781,384)
Repayment of borrowings	(51,712)		(33,693)
Net cash from financing activities	434,953		4,229,912
Net increase/(decrease) in cash and cash equivalents	(1,866,499)		1,876,556
Cash and cash equivalents at beginning of year	1,967,233		90,677
Cash and cash equivalents at end of year	100,734		1,967,233

Notes to the Financial Statements

1     General information

Intelliam AI PLC ("the company") is a public limited company domiciled and incorporated in England and Wales. The registered office is 53 North House, 8 Caxton Way, Dinnington, Sheffield, South Yorkshire, S25 3QE.

The group consists of Intelliam AI PLC and all of its subsidiaries.

2        Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the requirements of the Companies Act 2006.

3          Accounting policies

Basis of preparation

The financial information set out above does not constitute statutory accounts within the meaning of section 435(1) and (2) of the Companies Act 2006 nor contain sufficient information to comply with the disclosure requirements of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) but are derived from those statements.

The consolidated financial statements comprise the financial statements of the Group as at 31 March 2026 and are presented in UK Sterling.

The auditors have reported on the underlying accounts from which this financial information has been drawn and their report is unqualified and did not contain any statements under section 498 (2) or (3) of the Companies Act 2006 but did include a section highlighting a material uncertainty that may cast doubt on the Group and Company's ability to continue as a going concern. Further detail is provided within the Going Concern section of this announcement.

The financial statements of Intelliam AI PLC for the year ended 31 March 2026 were authorised for issue by the Board of Directors on 21 July 2026 and the balance sheet was signed on behalf of the Board by Daud Khan, Chief Financial Officer.

Consolidation

The financial statements consolidate the financial statements of IntelliAM AI PLC and all of its subsidiary undertakings.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

The parent company meets the definition of a qualifying entity under FRS 102 paragraph 1.12(b) and has therefore taken advantage of the disclosure exemption in relation to the parent cash flow statement.

Going Concern

The Directors have assessed the Group's and Company's ability to continue as a going concern for a period of at least twelve months from the date on which these financial statements are approved.

 In performing this assessment, the Directors reviewed detailed cash flow forecasts, forecast trading performance and working capital requirements, together with sensitivity analyses reflecting a range of reasonably possible downside scenarios. The assessment also considered the Group's available cash resources, the £0.5m equity raise completed during the financial year, the additional £0.5m of funding secured after the reporting date through a combination of convertible loan note and equity financing, together with the availability of a £1m non-binding invoice finance facility. 

 Having considered these factors, together with the Group's recurring revenue base, sales pipeline and expected future trading performance, the Directors have concluded that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. Whilst the Directors are confident with regards to the appropriateness of the going concern assessment and conclusion, the Directors also recognise the criticality of the invoice finance facility. The fact that it is a non-binding offer in nature at this stage with financial covenants and other operational conditions attached to it which the company expects to satisfy entirely based on formal assessments carried out,  there are uncertainties present in this regard which indicates that a material uncertainty exists that may cast significant doubt on the Group and Parent Company's ability to continue as a going concern and therefore to realise its assets and discharge its liabilities in the normal course of business.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

The Company's revenue streams for the current period include the following:

Platform and subscription revenue

The Group provides machine learning and asset management platform services to customers, including platform access, implementation, associated hardware and sensor integration, and support services.

Revenue relating to implementation, hardware supply, sensor deployment and associated services is recognised at the point in time the relevant performance obligations are satisfied.

Subscription revenue is recognised over the contractual subscription period on a straight-line basis, reflecting the continuous provision of access to the platform and related services.

Other revenue

Other revenue represents income not generated from the Group's principal trading activities. In the prior year this primarily related to grant income and royalty income.

Professional Services Revenue

The Group provides engineering consulting, training and related professional services on either a contracted or project basis.

Revenue from professional services contracts is recognised by reference to the stage of completion of the contract activity at the reporting date, where the outcome can be estimated reliably. The stage of completion is assessed primarily by reference to costs incurred as a proportion of total expected contract costs.

Where the outcome of a contract cannot be estimated reliably, revenue is recognised only to the extent that recoverable costs have been incurred.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.

Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date.  Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Intangible assets other than goodwill

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.  Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10 years straight line
	Development costs	-	3 years straight line
	Intellectual Property (IP)	-	5 years straight line
	Arrangement & security fees	-	1 year straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Research and development

Research expenditure is written off in the period in which it is incurred.

Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met:

·     It is technically feasible to complete the intangible asset so that it will be available for use or sale;

·     There is the intention to complete the intangible asset and use or sell it;

·     There is the ability to use or sell the intangible asset;

·     The use or sale of the intangible asset will generate probable future economic benefits;

·     There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and

·   The expenditure attributable to the intangible asset during its development can be measured reliably.

·    Expenditure that does not meet the above criteria is expensed as incurred.

Following initial recognition, product developments are carried at cost less any accumulated amortisation and any accumulated impairment losses. The useful lives of these intangible assets are assessed to have a finite life of five years. Amortisation is charged on assets with finite lives, and until economic benefit can be received and recognised, this expense is taken to the income statement and useful lives are reviewed on an annual basis. Amortisation is charged from the point when the asset is available for use.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Capitalised development costs are recorded as intangible assets and amortised from the point at which they are ready for use on a straight-line basis over their useful life.

The following key judgements and estimates have been applied in determining the treatment of internally generated intangible assets:

·     Capitalisation: Management exercises judgement in determining the point at which development costs meet the criteria for capitalisation under FRS 102 Section 18.

·      Amortisation: The useful life of the intangible asset is based on management's best estimate of the period over which future economic benefits will be derived.

·    Impairment: The carrying amount of the intangible asset is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Freehold property	-	No depreciation on land. Building depreciated at 1% reducing balance
	Fixtures and fittings	-	20% reducing balance
	Equipment	-	20% reducing balance

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Alternative Performance Measures ("APMs")

The Group presents certain alternative performance measures ("APMs"), including Adjusted EBITDA, Adjusted Operating Profit, Adjusted Earnings per Share and ARR (Annual Recurring Revenue), which are not defined under UK-adopted accounting standards. The Directors believe these measures provide useful additional information to shareholders by excluding items which, in their judgement, do not reflect the underlying trading performance of the Group.

Adjusted items comprise material items which are non-recurring in nature or which arise from acquisition-related activities, including amortisation of acquired intangible assets, share-based payment charges, exceptional costs and other items considered by the Directors to distort comparability between reporting periods.

Alternative performance measures should not be considered as a substitute for measures prepared in accordance with FRS 102.

Financial instruments

The Group recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument.

Basic financial instruments, including trade and other receivables, cash and cash equivalents, trade and other payables and borrowings, are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Such instruments are subsequently measured at amortised cost using the effective interest method.

Other financial instruments, including derivative financial instruments such as forward foreign exchange contracts, are initially recognised at fair value and subsequently remeasured at fair value at each reporting date. Changes in fair value are recognised in profit or loss.

Financial assets measured at amortised cost are assessed at each reporting date for objective evidence of impairment. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be objectively related to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset does not exceed what the amortised cost would have been had the impairment not been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Share-based payments

Equity-settled share-based payment transactions are measured at fair value at the date of grant. The fair value is expensed on a straight-line basis over the vesting period, with a corresponding increase in equity. This is based upon the company's estimate of the shares or share options that will eventually vest which takes into account all vesting conditions and non-market performance conditions, with adjustments being made where new information indicates the number of shares or share options expected to vest differs from previous estimates.

Fair value is determined using an appropriate pricing model. The fair value of options granted was determined using the Black-Scholes option pricing model. The Black-Scholes model has been adopted as it is a widely recognised and accepted valuation technique for share options that do not contain complex market-based vesting conditions and provides a reasonable estimate of the fair value of the awards at the grant date. All market conditions and non-vesting conditions are taken into account when estimating the fair value of the shares or share options. As long as all other vesting conditions are satisfied, no adjustment is made irrespective of whether market or non-vesting conditions are met.

Where the terms of an equity-settled transaction are modified, an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the fair value of the transaction, as measured at the date of modification.

Where an equity-settled transaction is cancelled or settled, it is treated as if it had vested on the date of cancellation or settlement, and any expense not yet recognised in profit or loss is expensed immediately.

Business combinations

Business combinations are accounted for using the purchase method.

The cost of a business combination is measured as the fair value of the consideration transferred, including assets transferred, liabilities incurred or assumed, and equity instruments issued at the acquisition date.

Identifiable assets and liabilities acquired are measured at their fair values at the acquisition date. Any excess of the cost of acquisition over the fair value of the identifiable net assets acquired is recognised as goodwill.

Deferred consideration is recognised at the acquisition date at the fair value of the amount payable.

4.       Critical accounting judgements and key sources of estimation and uncertainty

The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions that affect the application of the Group's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Critical accounting judgements are those judgements, apart from those involving estimations, that the Directors have made in applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty are assumptions concerning the future and other sources of estimation uncertainty at the reporting date that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

The Directors believe that the following represent the critical accounting judgements and key sources of estimation uncertainty in preparing these financial statements.

Critical accounting judgements

Capitalisation of development expenditure

The Group capitalises development expenditure only when the recognition criteria of FRS 102 are met. This requires judgement in assessing whether projects are technically feasible, whether they are expected to generate probable future economic benefits, and whether sufficient technical and financial resources exist to complete the projects. Costs that do not meet these criteria are recognised as an expense when incurred.

Key sources of estimation uncertainty

Impairment of capitalised development costs

Capitalised development costs are reviewed for indicators of impairment at each reporting date. Where impairment indicators exist, the recoverable amount is assessed using forecasts of future cash flows generated by the related products and technologies. These forecasts require estimates of future revenue growth, customer adoption and profitability. Although the Directors believe these assumptions are appropriate, changes in market conditions or commercial performance could result in a material adjustment to the carrying amount within the next financial year.

Useful economic lives of acquired intangible assets and capitalised development costs

Intangible assets recognised on the acquisition of 53 Degrees North Engineering in the prior financial year, together with capitalised development costs, are amortised over their estimated useful economic lives. The determination of those lives requires management judgement and is reviewed annually in light of technological developments, expected product life cycles and commercial experience. Changes in these estimates could result in a material change to amortisation expense and the carrying value of the assets within the next financial year.

Directors' have made estimates and judgments with regards to above listed areas which are based on their best estimations made under FRS 102.

5        Turnover

The majority of the turnover is derived from the United Kingdom.  An analysis of turnover by business operation is given below:

	2026	2025
Turnover analysed by class of business	£	£
Platform deployment and Services revenue	4,259,785	2,737,960
Platform subscription revenue	980,820	185,815
Other Income	22,499	263,804
Royalty Revenue	-	26,187
	5,263,104	3,213,766

The majority of sales is derived from the UK. In the period £413,300 (2025: £125,944) were non-UK sales for the Group. (Company 2026: £190,330, 2025: Nil).

6        Operating loss

Operating profit or loss is stated after charging/crediting:

	2026	2025
	£	£
Amortisation of intangible assets	848,833	437,922
Depreciation of tangible assets	22,908	14,967
Loss/(gains) on disposal of tangible assets	1,560	-
Cost of stock recognised as an expense	1,267,091	634,722
Impairment of trade debtors	-	1,305
Equity-settled share-based payments expense	149,084	39,005
Operating lease rentals	140,085	63,818
Foreign exchange differences	(470)	-

7.       Earnings per share

Earnings per share data is based on the consolidated profit using and the weighted average number of shares in issue of the Company. Basic earnings per share are calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

A number of non-FRS102 adjusted profit measures are used in these financial statements. Adjusting items are excluded from our headline performance measures by virtue of their size and nature, in order to reflect management's view of the performance of the Group. Summarised below is a reconciliation between statutory results to adjusted results. The Group believes that alternative performance measures such as adjusted EBITDA are commonly reported by companies in the markets in which it competes and are widely used by investors in comparing performance on a consistent basis without regard to factors such as depreciation and amortisation, which can vary significantly depending upon accounting methods (particularly when acquisitions have occurred), or based on factors which do not reflect the underlying performance of the business. The adjusted profit after tax earnings measure is also used for the purpose of calculating adjusted earnings per share.

	Year Ended	Year Ended
	31/03/2026	31/03/2025
	Group	Group
Adjusted profit/(loss) before tax for the period	£	£
Loss before tax for the period attributable to ordinary shareholders	(1,952,484)	(950,704)
Adjusted for:
Equity settled share based payments	149,084	39,005
Exceptional costs	-	278,810
Acquired intangible and IP amortisation	526,226	409,669
Adjusted profit/(loss) before tax for the period	(1,277,174)	(223,220)
Adjusted Tax for period	319,294	58,493
Adjusted profit/(Loss) for the period	(957,881)	(164,727)
Reported Loss for the period	(1,607,320)	(823,104)
Weighted average number of shares	No. of shares	No. of shares
Issued shares at start of period	19,141,575	13,722,864
Effect of shares issued in period	149,838	3,916,128
Weighted average number of ordinary shares in period	19,291,413	17,638,992
Basic EPS(p)	(8.33)	(4.67)
Adjusted basic EPS(p)	(4.97)	(0.93)

Diluted earnings per share is the basic earnings per share adjusted for the effect of the conversion into fully paid shares of the weighted average number of share options outstanding during the year. The Group was loss making for the years ended 31 March 2025 and 31 March 2026. Therefore, the dilutive effect of share options has not been disclosed since this would decrease the loss per share for the year reported.

8.         Alternative performance measures

Adjusted EBITDA				FY26	FY25
Revenue				5,263,104	3,213,766
Cost of Sales				(2,932,966)	(1,704,886)
Gross Profit				2,330,138	1,508,880
Operating Expenses				(4,256,855)	(2,436,755)
Amortisation of acquired intangibles and IP				526,226	409,669
Exceptional costs				-	278,810
Operating Expenses (Excluding Amortisation of acquired intangibles and IP)				(3,730,629)	(1,748,276)
Adjusted Operating Loss (inc. stock based payment)				(1,400,491)	(239,396)
Amortisation of internally generated IP and Other				322,607	28,253
Depreciation				22,798	14,967
EBITDA				(1,055,086)	(196,176)
Share based payments				149,084	39,005
Adjusted EBITDA				(906,002)	(157,171)
Adjusted Net loss			FY26		FY25
Loss before taxation			(1,952,484)		(950,704)
Share based payments			149,084		39,005
Amortisation of acquired intangibles and IP			526,226		409,669
Exceptional costs			-		278,810
Adjusted Loss before taxation			(1,277,174)		(223,220)
Tax on adjusted loss (@25%)			319,294		58,493
Adjusted Net Loss			(957,881)		(164,727)

Amortisation of acquired intangible assets: Represents the amortisation of customer relationships and intellectual property recognised on the acquisition of 53 Degrees North Engineering. The Directors consider this acquisition-related charge separately when assessing underlying trading performance.

Share-based payments: Represents the non-cash charge arising from equity-settled share-based payment arrangements.

Exceptional items: Relates to IPO costs incurred during FY25 which are not expected to recur.

9        Intangible Assets

Group	Goodwill		Development costs		Intellectual Property (IP)		Other Intangibles		Total
	£		£		£		£		£
Cost
At 1 Apr 2025	4,713,107		548,930		300,000		4,775		5,566,812
Disposal during the year	(50,852)		-		-		-		(50,852)
Additions from internal developments	-		943,715		-		-		943,715
At 31 Mar 2026	4,662,255		1,492,645		300,000		4,775		6,459,675
Amortisation
At 1 Apr 2025	349,669		25,070		90,000		3,183		467,922
Charge for the year	466,226		321,015		60,000		1,592		848,833
At 31 Mar 2026	815,895		346,085		150,000		4,775		1,316,755
Carrying amount
At 31 Mar 2026	3,846,360		1,146,560		150,000		-		5,142,920
At 31 Mar 2025	4,363,438		523,860		210,000		1,592		5,098,890

10      Related party transactions

The company has taken advantage of exemption, under the terms of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Key management personnel are considered to be the directors of the company. The total remuneration paid to key management personnel during the year was as follows:

	2026	2025
	£	£
Short-term employee benefits	600,884	650,359
Post-employment benefits	16,238	8,100
Share-based payments	69,176	29,250
Total	686,298	687,709

As part of the acquisition of 53 Degrees North Engineering Ltd, payments were contractually due to directors Tom Clayton and Keith Smith and to Simon Palmer and Chris Wragg. Tom Clayton and Keith Smith were directors of the Company during the reporting period. Simon Palmer and Chris Wragg were directors and shareholders of 53 Degrees North Engineering Ltd prior to its acquisition by the Company and were sellers under the acquisition agreement.

During the year, deferred consideration payments of £55,000 were made to each of Simon Palmer, Chris Wragg and Keith Smith. At 31 March 2026, amounts of £1,024,494 and £90,821 were outstanding to Tom Clayton and Keith Smith respectively and included within creditors. These balances are unsecured and interest bearing and are expected to be settled over the next two financial years.

These amounts are disclosed as related party balances and transactions due to the individuals' roles as sellers of 53 Degrees North Engineering Ltd and, where applicable, their directorships within the Group during the reporting period.

During the year, the Group occupied office space under a sublease arrangement with Yorkshire AI Labs LLP ("YAIL"), an entity connected to certain directors of the Company. Costs incurred during the year amounted to £2,816 (2025: £2,816). The arrangement terminated on 1 July 2025.

11      Subsequent Events

On 1st April 2026, IntelliAM acquired the business and assets of RBM Lubrications & Monitoring Solutions Ltd.

The acquisition included the transfer of seven employees together with certain engineering assets and vehicles. Consideration is payable on a deferred basis, with approximately £25,000 payable in cash on 31 December 2029.

The acquisition is considered a non-adjusting post balance sheet event and therefore no amounts have been recognised in the financial statements for the year ended 31 March 2026.

The company raised gross proceeds of £500k via convertible loan note and equity raise in June 2026. This provided additional capital for marketing and working capital purposes. The Group has also secured a £1m non-binding invoice finance facility to ensure the Group remains well capitalised in the coming year.

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