Notes to the Consolidated Financial Statements

continued

For the year ended 31 March 2023

3. Significant accounting policies continued

• capital reserve represents fair value gains and losses on investments that are initially recorded through the statement of comprehensive income but are transferred to the capital reserve to track the cumulative gains and losses; and retained earnings represents retained profits less accumulated losses.

4. Critical accounting estimates and judgements

In determining and applying accounting policies, judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or the net asset position of the Group. Management considers that certain accounting estimates and assumptions relating to the valuation of investments are critical accounting estimates. The treatment of investments has been detailed in Note 3.

5. Operating (loss)/profit

6. Employees and Directors

The average monthly number of persons (including Executive Directors, but excluding Non-executive Directors) employed by the Group during the year was:

6. Employees and Directors

During the year, one (2022: one) Director exercised options.

At 31 March 2023, there were two (2022: two) Directors who were members of a defined contribution pension scheme to which the Company contributed.

7. Share based payments Options over shares held by the Employee Benefit Trust

Certain employees have been granted call options over ordinary shares of the Company held by the Cambridge Innovation Capital Limited Employee Benefit Trust. The terms provide that shares may be acquired at a fixed price in tranches commencing one year from the date of employment and expiring on the earlier of six months after an Initial Public Offering and ten years from the date of the award. If an employee leaves, there is no impact on vested tranches but unvested tranches expire on the leaving date.

Movements in the number of options outstanding and their related weighted average exercise prices are as follows: