Interim Results and Name Change to Molecule Group

29 September 2026

Vulcan Two Group plc

(the "Company", the “Group” or "Vulcan Two")

Interim Results and name change to Molecule Group plc

Significant progress towards building a scalable integrated UK ePharmacy platform

Vulcan Two Group plc, (AIM: VUL) the Company building a leading regulated UK ePharmacy through buy-and-build, is pleased to announce its half year results for the six months ended 30 June 2026 and its change of name to Molecule Group plc.

Molecule launch and Company name change. One Group, One Brand:

Financial update

Strategic and Operational highlights

Summary and Outlook

Michael Kraftman, Chief Executive Officer of Vulcan Two, commented: “The first half marked Vulcan Two’s transformation into an operating ePharmacy Group, bringing three founder-led businesses together onto a single platform. The actions we took, included transferring Webmed's fulfilment to CloudRx and stepping away from lower-margin, higher credit-risk customers. While some of these reduced revenue in the near term, it has left the Group with a higher-quality, more sustainable base. More than 85% of revenues now come from customers who pay at the point of order.

“Today marks the launch of Molecule, our new brand, and our imminent renaming as Molecule Group plc, trading under the ticker MOL. Molecule tested exceptionally well with both consumers and clinicians and gives us a single identity across our consumer, veterinary and professional channels. Our new consumer website, molecule.co.uk, brings together an enhanced over-the-counter range, a new Molecule clinic with a streamlined prescribing flow for patients, and the rebranded Hyperdrug veterinary offering. The remainder of Webmed's treatment range will follow by the year end.

"With our Leeds distribution centre and ERP system expected to go live in early December, we are building a group with one brand, one website, one distribution centre and one ERP: a strong platform from which to accelerate organic growth and integrate further acquisitions in 2027 and beyond."

The information contained within this Announcement is deemed by Vulcan Two Group plc to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

For further information please contact:

Notes to Editors

Vulcan Two Group plc (AIM:VUL) is creating the UK's leading regulated ePharmacy platform, through its disciplined buy-and-build strategy. Following the acquisitions of CloudRx, Webmed and Hyperdrug in March 2026, the Group has established a diversified platform spanning B2B prescription fulfilment and B2C digital pharmacy services, with a high proportion of recurring revenues and strong cash generation. Future growth is expected to be supported through the acquisition of complementary businesses, expansion into new sectors or markets, and investment in long-term assets.

The Group is led by an experienced management team with deep healthcare, eCommerce and buy-and-build expertise.

For more information, visit www.vulcantwo.com  

CEO Statement

These are the first interim results in which we report as an operating group. Since completing the acquisitions of CloudRx, Webmed and Hyperdrug on 19 March 2026, our focus has been on bringing three founder-led businesses together onto a single platform, and the first half was largely defined by that work. The financial results for the period reflect a business in transition and are covered in the Financial Review.

The UK ePharmacy market continues to benefit from supportive long-term structural drivers. Pressure on NHS capacity, increasing waiting times for diagnosis and treatment, and growing consumer demand for convenience and digital healthcare are continuing to support demand for regulated online pharmacy services. We believe these trends create a significant opportunity for a scaled, technology-enabled platform capable of serving both patients and healthcare professionals.

Our trading update in August set out the initial actions we have taken: transferring Webmed’s fulfilment to CloudRx, stepping away from a small number of lower-margin, higher credit-risk customers, strengthening the executive team and consolidating our workforce. More than 85% of revenues are now derived from customers who pay at the point of order, and we ended the period with approximately £5.7 million of cash. While some of those actions reduced revenue in the near term, they were the right decisions and have left the Group with a higher-quality, more sustainable base from which to grow.

While integration has been our principal focus during the period, we have also seen encouraging trading momentum in a number of areas, particularly within general healthcare where demand has been strong in categories such as women's health and ADHD treatments.

Molecule: a new name, brand and website

Today we launch our new brand, Molecule, and imminently the Company will be renamed Molecule Group plc, trading under the ticker MOL. The brand, which is protected by registered trademarks, tested exceptionally well in market research with both consumers and clinicians. Molecule gives us a single identity across our consumer, veterinary and professional channels in place of a collection of acquired names, and a common focus for our marketing investment.

Alongside the brand we have launched our new B2C website at molecule.co.uk, which brings together:

•          A new Molecule clinic with a streamlined prescribing flow for patients, launched initially with weight loss and erectile dysfunction treatments which will ultimately incorporate the existing Webmed B2C business. We will add the remainder of Webmed’s treatment range by the end of the year, at which point the Webmed site will be integrated into molecule.co.uk.

•          An enhanced over-the-counter range, broadening what we can offer each customer. This will be continuously expanded, over the coming weeks and will also form the basis of the cross-sell offering we will introduce to our CloudRx B2B business, which has now become Molecule’s CloudRx service for prescribers.

•          Our veterinary business, rebranded from Hyperdrug and re-platformed, continuing to serve the veterinary market and forming the foundation of a B2B veterinary offering which we plan to launch early next year.

Together, this gives our direct-to-consumer business a single modern platform, a wider basket per customer and one place in which to invest in customer acquisition and retention.

Operational platform

A key objective since the acquisitions has been to build the infrastructure to support long term growth. Fit-out of our new 22,000 sq ft distribution centre in Leeds has progressed strongly, as has the implementation of our new ERP system. Both are planned to go live in early December.

Together these investments will consolidate fulfilment onto one site, provide a single view of stock and orders across the Group and support same-day or next-day despatch. Just as importantly, they will also provide the capacity and scalability required to support future acquisitions, enabling us to integrate additional businesses more efficiently and realise operational synergies more quickly.

Outlook

2026 remains a year of investment. As we said in August, operating costs are higher this year while legacy and new systems run in parallel, and those duplicated costs fall away in 2027. In return we are building a group with one brand, one website, one distribution centre and one ERP: a strong platform from which we can accelerate organic growth and absorb further acquisitions in 2027 and beyond.

The Board believes we are well positioned to benefit from the long-term growth of the UK ePharmacy market.  We have assembled a diversified platform, established the operational foundations to support future growth and continue to see a healthy pipeline of acquisition opportunities. We will continue to review those opportunities with discipline, remaining focussed on creating long-term value for shareholders.

I would like to thank our shareholders for their continued support, our clinician partners for their trust, and our colleagues across the Group, who have delivered an enormous amount of change in a short period while continuing to look after our customers and patients.

Michael Kraftman

Chief Executive Officer

28 September 2026

CFO Statement

Introduction

I am pleased to present my first interim report since joining the Group as CFO at the beginning of 2026.

These half year results cover a transformational period for Vulcan Two Group plc. Following its incorporation on 6 August 2025 and fundraise of £12.0 million in September 2025, the Company operated as a cash shell until 19 March 2026 when it raised a further £40.0 million and acquired three e-pharmaceutical businesses: CloudRx (B2B), Webmed (B2C) and Hyperdrug (Veterinary).

As a result, these are the first financial results presented for Vulcan Two as an operating group. The ‘reported’ Condensed Consolidated Statement of Comprehensive Income for the six month period to 30 June includes revenues from 19 March 2026, the date of acquisition. For ease of understanding we have also included ‘pro-forma’ results for the full six months to 30 June 2026 in the notes.

The Group's auditors, HaysMac LLP, have performed limited scope agreed-upon-procedures over the unaudited interim financial information and reported their findings to the Audit Committee.

Reporting Period ended 30 June 2026

For the Reporting Period to 30 June 2026 the key financial highlights were:

Fundraise and Transformational acquisitions

• Successful Placing for £40.0 million in March 2026 including support from multiple major UK institutional investors.

• Completed the transformational acquisition of three ePharmacy businesses: CloudRx, Webmed (digital pharmacies) and Hyperdrug (veterinary) on 19 March 2026, for a maximum consideration of £41.7 million.

• The Acquisitions created a diversified platform spanning B2B prescription fulfilment and B2C digital pharmacy services

Income statement analysis

Sales growth has been strong in the general healthcare sector, particularly in women’s health and ADHD medications. As part of the initial integration process, the Company rationalised a small number of lower-margin, higher credit-risk clinics in the period, primarily in the Weight Loss sector. 

85% of the Company’s revenues are now derived from customers who pay at the point of order, providing strong cash conversion and minimal exposure to bad debts.

Revenues and gross margin (reported and pro-forma)

Revenues of £10.0 million are for the three month 13 day period from the acquisitions on 19 March 2026 to 30 June 2026

• Revenues by Product were Weight Loss 29%, General Healthcare 49% and Veterinary 22%.

• Gross profit across the blended businesses of £2.2 million (22% gross margin).

Pro-forma revenues of £19.9 million for the six months from 1 January 2026 as if the acquired companies had been owned since that date.

• Revenues by Product were Weight Loss 33%, General Healthcare 44% and Veterinary 23%.

• Gross profit across the blended businesses of £4.1 million (21% gross margin).

Administrative expenses (excluding exceptional costs)

Opex (excluding exceptional costs) of £3.5 million in the six month period is primarily salaries, legal and professional fees, advertising, insurance and depreciation/amortisation. Legal and professional fees including accounting fees have been largely outsourced due to the early stage of the business. However, in house teams are being built and we expect legal and professional fees to reduce significantly in 2027.  Opex includes some double running costs in the period.

Exceptional non-recurring costs of £2.8 million - largely legal and accounting costs

£2.8 million of non-recurring exceptional costs which relate to the acquisitions of CloudRx, Hyperdrug and Webmed in March 2026. Major costs included legal and accounting DD fees, advisory fees and stamp duty.

Adjusted EBITDA and profit/loss before tax (reported and pro-forma)

Reported adjusted EBITDA loss of £0.6 million reflecting six months of central costs and 3.3 months of revenues and acquired company costs (company was a cash shell until 19 March acquisitions). Reported loss before tax of £4.1 million primarily due to pre-acquisition costs and non-recurring acquisition costs

Pro-forma adjusted EBITDA of £0.5 million for the six month period. Pro-forma loss before tax of £1.9 million primarily due to non-recurring acquisition costs.

Financial Position – key items

Cash balances of £5.7 million

The Company had a strong balance sheet at period end, with cash balances of approximately £5.7 million as at 30 June 2026.

Intangible assets £44.2 million (see note 6)

Intangible assets arose on the acquisition of CloudRx, Webmed and Hyperdrug in March 2026

• The acquired intangibles include Customer relationships, Trademarks, Proprietary software and Non Compete agreements

• Intangibles at period end made up of Goodwill (£27.2 million) Customer relationships (£12.9 million) and other intangibles (£4.2 million)

• Amortisation of acquired intangibles in the period was £0.6 million.

Cash flows

Cash balances at 30 June 2026 were £5.7 million. Major cash movements in the period included a £40.0 million fundraise in March 2026 followed immediately by the acquisitions of CloudRx, Webmed and Hyperdrug for £36.4 million cash. Other major outflows include approximately £5.0 million in acquisition related costs - including fundraise fees which were capitalised and other costs classed as exceptional in the income statement. Also cash costs relating to the fit out of the new warehouse facility and payments on account for the ERP system implementation.

The accounts for the Reporting Period are set out below in full in the Financial Statements.

Keith Butcher

Chief Financial Officer

28 September 2026

Condensed Consolidated Statement of Comprehensive Income

The results for the periods presented are derived from continuing operations.

There are no further items of comprehensive income other than those shown above.

The notes are an integral part of these Interim Financial Statements.

Condensed Consolidated Statement of Financial Position

The notes are an integral part of these Interim Financial Statements.

The Interim Financial Statements were approved and authorised by the Board of Directors on 28 September 2026 and signed on its behalf by:

Michael Kraftman    

Director 

Company registered number: 16632702

Condensed Consolidated Statement of Changes in Equity

The notes are an integral part of these Interim Financial Statements.

Condensed Consolidated Statement of Changes in Cash Flows

The notes are an integral part of these Interim Financial Statements.

Notes to the Condensed Consolidated Financial Statements

1. General information

Vulcan Two Group Plc (the “Company”) is a public company limited by shares listed on the AIM market of the London Stock Exchange, incorporated and domiciled in England and Wales. The Company’s registered office is 201 Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT.

In the reporting period, the principal activity of the Company and its subsidiaries (together referred to as the “Group”) was the acquisition and subsequent development of assets within a target sector or industry.

2. Material accounting policies

The principal accounting policies adopted in the preparation of the interim financial statements are set out below. The policies have been consistently applied to the periods presented. Amounts are presented in Great British Pounds (“£”) to the nearest whole number.

The Company is newly incorporated and the consolidated interim financial statements (“Interim Financial Statements”) for the six months ended 30 June 2026 are the first set of Interim Financial Statements for the newly formed Group. The comparatives for the financial period ended 30 June 2025 are those of Vulcan Two Ltd and the comparatives for the financial period ended 31 December 2025 are those of Vulcan Two Group plc. Further details can be found in the group reorganisation accounting policies.

1. Basis of preparation

The Interim Financial Statements for the six months ended 30 June 2026 have been prepared in accordance with IAS 34 Interim Financial Reporting and are presented on a condensed basis.

The Interim Financial Statements do not include all the notes of the type normally included in an annual financial report. The Interim Financial Statements should be read in conjunction with the annual consolidated financial statements for the year-ended 31 December 2025, which were prepared in accordance with International Financial Reporting Standards (“IFRS”), and the public announcements made by the Company during the interim period.

The preparation of the Interim Financial Statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Interim Financial Statements, are disclosed in note 3.

The material accounting policies adopted in the preparation of the Interim Financial Statements are set out below. The policies have been consistently applied throughout the current and prior period presented.

2. Going concern

The financial statements have been prepared on a going concern basis, which assumes that the Group will continue to be able to meet its liabilities as they fall due for the foreseeable future. The directors have considered the financial position of the Group and have reviewed forecasts and budgets for a period of at least 12 months following the approval of the financial statements.

As at 30 June 2026, the Group has net assets of £44,252,868, and a cash balance of £5,693,545. In March 2026, the Company successfully completed a £40 million equity placing and the acquisitions of CloudRx, Webmed, and Hyperdrug. As a result, the Group has transitioned from an investing entity to an operating Group with three established, complementary businesses operating across both professional (“B2B”) and consumer (“B2C”) channels. On a combined basis, these businesses generated £10.03 million of post-acquisition revenue from 19 March 2026 to 30 June 2026, with a significant proportion of recurring income. The acquired businesses are profitable, operate within regulated environments, and provide the Group with an established platform for future growth.

Following completion of the placing and acquisitions, the Group has significantly strengthened its liquidity position and capital base.

The directors have prepared updated forecasts for the enlarged group, incorporating the results of the acquired businesses, expected synergies, and ongoing operating costs. These forecasts demonstrate that the Group is expected to have sufficient financial resources to meet its obligations as they fall due for at least 12 months from the date of approval of the financial statements. While the Group may pursue further acquisitions as part of its growth strategy, any such transactions would be subject to securing appropriate funding. The directors note that the successful March 2026 placing demonstrates access to capital markets; however, future funding availability cannot be guaranteed and remains outside the direct control of the Group.

3. New and amended standards and interpretations

Standards, amendments and interpretations effective and adopted by the Group:

IFRSs applicable to the Interim Financial Statements of the Group have been applied for the six months ended 30 June 2026 as well as for the comparative period.

In the period, the Group has applied the following amendment to IFRS Accounting Standards issued by the IASB which is mandatorily effective for the current accounting period. Its adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements:

•          Lack of Exchangeability – Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates

Standards, amendments and interpretations issued but not yet effective and have not been early adopted by the Company:

IFRS 18 Presentation and Disclosures in Financial Statements

IFRS 18 Presentation and Disclosure in Financial Statements (“IFRS 18”) was issued by the International Accounting Standards Board in April 2024. IFRS 18 is effective on 1 January 2027 and is required to be applied retrospectively to comparative periods presented, with early adoption permitted. IFRS 18, upon adoption replaces IAS 1 Presentation of Financial Statements (“IAS 1”). IFRS 18 sets out new requirements focused on improving financial reporting by:

•          requiring additional defined structure to the statement of profit and loss (i.e. consolidated statement of income), to reduce diversity in the reporting, by requiring five categories (operating, investing, financing, income taxes and discontinued operations) and defined subtotals and totals (operating income, income before financing, income taxes and net income);

•          requiring disclosures in the Notes to the Condensed Consolidated Financial Statements about management-defined performance measures (i.e. non-IFRS measures); and

•          adding new principles for aggregation and disaggregation of information in the primary financial statements and notes.

IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its ‘operating profit and loss’, due to the classification of certain income and expense items between the five categories of the consolidated statement of profit and loss. It might also change what an entity reports as operating activities, investing activities and financing activities within the statement of cash flows, due to the change in classification of certain cash flow items between these three categories of the cash flows statement. The Company is currently assessing the impact of adopting IFRS 18.

Other standards and amendments:

•          Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures

•          Introduction of Subsidiaries without public accountability - IFRS 19: Subsidiaries without Public Accountability: Disclosures

4. Basis of consolidation

The consolidated interim financial statements comprise the Interim Financial Statements of the Company and its subsidiaries as at 30 June 2026 and each relevant period end date.

Control is achieved when the Group has rights to variable returns from its involvement with the investee and the ability to use its power over the investee to affect the amount of the investor’s returns. Specifically, the Group controls an investee if, and only if, the Group has:

-           Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)

-           Exposure, or rights to variable returns from its involvement with the investee; and

-           The ability to use its power over the investee to affect its returns

Profit or loss and each component of other comprehensive income are attributed to the equity holders of the parent of the Group. When necessary, adjustments are made to the financial statements of the subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets and liabilities, equity income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in ownership interest of a subsidiary, without a change in control, is accounted for as an equity transaction.

5. Group reorganisation

On 21 August 2025, the Company acquired the entire shareholding of Vulcan Two Ltd by way of a share for share exchange. The insertion of the Company on top of the existing subsidiary does not constitute a business combination under IFRS 3 “Business Combinations” and instead has been accounted for as a common control transaction. Merger accounting has been used to account for this transaction.

Under merger accounting principles, the assets and liabilities of the subsidiary are consolidated at book value in the Group Interim Financial Statements and the consolidated reserves of the Group have been adjusted to reflect the statutory share capital of the Company with the difference presented as the merger reserve.

On 19 March 2026, Vulcan Two Ltd completed the acquisition of 100% of the issued share capital of CloudRx Holdings Limited (and its subsidiary CloudRx Ltd), Webmed Pharmacy Limited, and Hyperdrug Pharmaceutical Limited, forming a complementary ePharmacy platform operating across both B2B and B2C channels.

The acquisitions are accounted for as business combinations under IFRS 3 in the Interim Financial Statements for the six months ended 30 June 2026. Further details can be found in note 13.

6. Revenue recognition

The Group consists of the Company, Vulcan Two Ltd and Vulcan Two’s three wholly owned subsidiaries: CloudRx, Hyperdrug and Webmed.

The Group generates revenue from the activities of its subsidiaries.

To determine whether to recognise revenue, the Group follows the 5-step process as set out within IFRS 15:

1. Identifying the contract with a customer

2. Identifying the performance obligations

3. Determining the transaction price

4. Allocating the transaction price to the performance obligations

5. Recognising revenue when/as performance obligation(s) are satisfied.

The revenue and profits recognised in any period are based upon the delivery of performance obligations and an assessment of when services are delivered to the customer.

CloudRx

The Company’s revenue arises from the supply and delivery of prescription medications. Revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods provided in the normal course of business. Revenue is recognised on sales in the period in which the corresponding order is placed, at which point products purchased are allocated to that customer. There is typically no more than one day between the point when an order is placed and when the goods are received by the customer and the difference between the two in financial terms is not material. Revenue that relates to commissions paid to prescribers is recognised gross in the statement of comprehensive income where the Company is primarily responsible for delivery of the prescription medication and is considered the principal in the transaction. Revenue from prescriber fees charged on behalf of the prescribers is recognised net of the related expense.

Hyperdrug

Hyperdrug is a Direct to Consumer (“D2C”) digital pharmacy and online pet store, dispensing and distributing veterinary and human medications, as well as a wide range of animal products and accessories. The Company’s revenue arises from the sale of medications direct to consumers. Revenue is recognised on sales in the period in which the corresponding order is placed, at which point products purchased are allocated to that customer. There is typically no more than one day between the point when an order is placed and when the goods are received by the customer and the difference between the two in financial terms is not material.

Webmed

Revenue comprises sale of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction of actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Revenue is recognised on sales in the period in which the corresponding order is placed, at which point products purchased are allocated to that customer. There is typically no more than one day between the point when an order is placed and when the goods are received by the customer and the difference between the two in financial terms is not material.

7. Finance income

Finance income comprises interest received on bank balances and is recognised in the statement of comprehensive income when it is earned.

8. Taxation

Corporation tax for the year presented comprises current and deferred tax.

Current tax

Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated by using tax rates that are enacted or substantively enacted by the end of each reporting period.

Deferred tax

Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases and is accounted for using the balance sheet liability method.

Deferred tax is calculated at the tax rates that have been enacted or substantively enacted and are expected to apply in the period when the liability is settled, or the asset realised. Deferred tax is charged or credited to the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Judgement is applied in making assumptions about future taxable income, recognition of deferred tax assets, as well as the anticipated timing of the utilisation of the losses of the Company.

9. Property, plant and equipment

Property, plant and equipment is carried at cost less accumulated depreciation and provision for impairment. Depreciation is calculated to write down the cost of the assets less estimated residual value over its expected useful life on a straight-line basis as follows:

-          Computer equipment – 4-6 years

-          Fixtures and fittings – 5-50 years

-          Manufacturing equipment – 6-50 years

-          Office equipment – 4-6 years

10. Intangible assets

Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their useful economic lives. Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other contractual/legal rights. The acquired intangibles are as follows:

1.        Customer relationships

Customer relationships intangible is the allocated fair value of the customer relationships of the acquired companies.

2.        Trademarks

The tradenames of each Company acquired are considered value drivers and as such have been recognised as intangible assets.

3.        Proprietary software (RxCore)

RxCore is CloudRx’s pharmacy administration system and is considered a technology based intangible asset.

4.        Non-Compete Agreement

For CloudRx, Clause 12 of the share purchase agreement establishes a restrictive covenant prohibiting the Seller from competing with the Company for a period of three years following the acquisition (the “Non-Compete Agreement”).

The useful economic lives and valuation methods used for valuing each intangible asset are as follows:

Below is an explanation of each valuation method used:

The Excess Earnings Method

The Excess Earnings Method is a derivation of the discounted cash flow method that is an income-based valuation approach which estimates the value of an asset based on the present value of its expected future cashflows.

Royalty Savings (Relief from Royalty) Method

Under the relief from royalty method, it is assumed that a company, without similar assets, would license the right to use specific assets, such as a brand name, production method, or a technology, from a third party. This method involves analysing royalties paid as a percentage of annual revenue by companies in similar industries to license similar assets. The methodology calculates the present value of benefits the company receives from not having to pay a license to a third party as a result of being the owner of the relevant intangible asset.

With and Without Method

The With and Without Method is a specific application of the Income Approach used to value intangible assets when the cash flows of a business can be estimated with and without the asset being in place. The premise associated with this technique is that the fair value of an asset is represented by the difference in present value of the after-tax cash flows of the business assuming the intangible asset is in place, and the present value of the after-tax cash flows of the business assuming the absence of the intangible asset.

Replacement Cost Method

The Replacement Cost Method attempts to capture the effort required to develop a similar technology-based asset as at the Valuation Date.

11. Goodwill

Goodwill represents the amount by which the fair value of the cost of a business combination exceeds the fair value of the net assets acquired. Goodwill is not amortised and is stated as cost less any accumulated impairment losses.