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REGISTERED NUMBER: SC223606 (Scotland)














STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 14


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Ms D T Nolan
J S Storrie
G Rankin





REGISTERED OFFICE: 24 George Square
Glasgow
G2 1EG





REGISTERED NUMBER: SC223606 (Scotland)





AUDITORS: Henry Brown & Co
Chartered Accountants & Registered Auditors
26 Portland Road
Kilmarnock
Ayrshire
KA1 2EB

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The directors are pleased with the performance of the company for the period ended 31 December 2023 following the acquisition of the company by BPO Collections Ltd. The company endured difficult trading conditions during the early part of 2023 resulting in the loss of a significant contract. Following the acquisition the company went through a period of consolidation and restructure and the directors' look forward to improved performance during the coming financial year.

The key financial figures for the period are:

2023 2022
Turnover £8,639,634 £24,743,752
Loss before tax (£10,214,166) (£2,448,643)

PRINCIPAL RISKS AND UNCERTAINTIES
Competitive Risks
The company is not reliant on any single customer but has a number of key contracts which have been won through a competitive tendering process. Maintenance of these contracts and the successful tendering for new contracts is key to the ongoing success of the company.

Data protection
The nature of the business, handling personal information for individuals, means that data security and compliance with GDPR is paramount to the success of the business. As such the director ensure that all reasonable steps are taken to ensure not only compliance with all applicable laws and regulations but that it is part of the underlying culture within the company.

ON BEHALF OF THE BOARD:





G Rankin - Director


27 September 2024

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Ms D T Nolan
J S Storrie

Other changes in directors holding office are as follows:

G Rankin - appointed 31 October 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Henry Brown & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





G Rankin - Director


27 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED

Opinion
We have audited the financial statements of Everyday People Financial Solutions Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect to irregularities, including fraud and non-compliance with laws & regulations, we considered the following:

-Enquiries of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations.
- whether they were aware of any instances of non-compliance.

As with all audits performed under ISAs (UK), performance of procedures to respond to the risk of the management override of controls We obtained an understanding of the legal and regulatory frameworks in which the Company operates, focussing on those laws which had a direct effect on the material balances and disclosures in the Company's financial statements. Key laws & regulations considered in this context are:

- Companies Act 2006
- International Financial Reporting Standards (IFRS) as issued by the International Financial Reporting Standards Board (IASB) and adopted by the European Union.

In addition, we considered other laws & regulations that do not have a direct effect on the financial statements, but compliance is necessary for the continued operations of the Company, or to avoid a material penalty.

Our procedures to respond to the risks identified included the following:

- Reviewing the financial statement disclosures, and testing to supporting documentation.
- Enquiring of management concerning any actual or potential litigation or claims.
- Reviewing minutes of meetings of those charged with governance, and correspondence with HMRC.

In the assessment of the risk of fraud through management override of controls, we have tested the appropriateness of journal entries, assessed whether the judgements made in the Company making accounting estimates are indicative of a potential management bias, and evaluated the business rationale of any significant transactions that are outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Gregor D.B. Orr B.Acc. C.A. (Senior Statutory Auditor)
for and on behalf of Henry Brown & Co
Chartered Accountants & Registered Auditors
26 Portland Road
Kilmarnock
Ayrshire
KA1 2EB

27 September 2024

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 5 8,639,634 24,743,752

Cost of sales 959,316 2,513,474
GROSS PROFIT 7,680,318 22,230,278

Administrative expenses 17,620,814 24,444,240
(9,940,496 ) (2,213,962 )

Other operating income 20,620 3,755
OPERATING LOSS 7 (9,919,876 ) (2,210,207 )


Interest payable and similar expenses 8 294,290 238,436
LOSS BEFORE TAXATION (10,214,166 ) (2,448,643 )

Tax on loss 9 (9,803 ) (449,013 )
LOSS FOR THE FINANCIAL YEAR (10,204,363 ) (1,999,630 )

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (10,204,363 ) (1,999,630 )


OTHER COMPREHENSIVE INCOME
Capital contribution reserve 5,500,000 1,000,000
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

5,500,000

1,000,000
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(4,704,363

)

(999,630

)

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - 43,829
Tangible assets 11 446,878 513,105
446,878 556,934

CURRENT ASSETS
Debtors 12 2,721,546 7,499,586
Cash at bank 2,039,290 1,863,934
4,760,836 9,363,520
CREDITORS
Amounts falling due within one year 13 2,610,734 9,990,963
NET CURRENT ASSETS/(LIABILITIES) 2,150,102 (627,443 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,596,980

(70,509

)

PROVISIONS FOR LIABILITIES 14 - 100,000
NET ASSETS/(LIABILITIES) 2,596,980 (170,509 )

CAPITAL AND RESERVES
Called up share capital 15 17,053,879 17,053,878
Share premium 16 7,473,790 1,939
Capital contribution reserve 16 6,500,000 1,000,000
Retained earnings 16 (28,430,689 ) (18,226,326 )
SHAREHOLDERS' FUNDS 2,596,980 (170,509 )

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by:





G Rankin - Director


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained Share contribution Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2022 17,053,878 (16,226,696 ) 1,939 - 829,121

Changes in equity
Total comprehensive income - (1,999,630 ) - 1,000,000 (999,630 )
Balance at 31 December 2022 17,053,878 (18,226,326 ) 1,939 1,000,000 (170,509 )

Changes in equity
Total comprehensive income - (10,204,363 ) - 5,500,000 (4,704,363 )
Issue of share capital 1 - 7,471,851 - 7,471,852
Balance at 31 December 2023 17,053,879 (28,430,689 ) 7,473,790 6,500,000 2,596,980

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (5,862,556 ) (2,866,201 )
Interest paid (294,290 ) (238,436 )
Taxation refund 9,803 449,013
Net cash from operating activities (6,147,043 ) (2,655,624 )

Cash flows from investing activities
Purchase of tangible fixed assets (135,906 ) (202,349 )
Net cash from investing activities (135,906 ) (202,349 )

Cash flows from financing activities
New loans in year - 1,759,851
Loan repayments in year (6,513,547 ) -
Share issue 1 -
Share premium 7,471,851 -
Capital contribution 5,500,000 1,000,000
Net cash from financing activities 6,458,305 2,759,851

Increase/(decrease) in cash and cash equivalents 175,356 (98,122 )
Cash and cash equivalents at beginning of
year

2

1,863,934

1,962,056

Cash and cash equivalents at end of year 2 2,039,290 1,863,934

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (10,214,166 ) (2,448,643 )
Depreciation charges 195,787 188,835
Loss on disposal of fixed assets 50,175 -
Release of provision (100,000 ) 31,500
Finance costs 294,290 238,436
(9,773,914 ) (1,989,872 )
Decrease in trade and other debtors 4,778,040 1,542,010
Decrease in trade and other creditors (866,682 ) (2,418,339 )
Cash generated from operations (5,862,556 ) (2,866,201 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 2,039,290 1,863,934
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 1,863,934 1,962,056


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 1,863,934 175,356 2,039,290
1,863,934 175,356 2,039,290
Total 1,863,934 175,356 2,039,290

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Everyday People Financial Solutions Limited ("EPFS" and the "Company"), formally known as Arvato Financial Solutions Limited is a private company, limited by shares, registered in Scotland. The company's registered number SC223606 and registered office 24 George Square, Glasgow, G2 1EG.

During the year the Company was engaged in the collection of consumer and commercial debt for third party clients together with specialist long term business process outsourcing undertakings in support of a number of of our clients and their service execution.

The presentation currency of the financial statements is the Pound Sterling (£). These financial statements relate to a single company.

On October 31 2023, the Company was acquired by BPO Collections Limited ("BPO"), a wholly owned subsidiary of Everyday People Financial Corp. ("EP Financial"), a company registered in Canada.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements of EPFS have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standards 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2003, under the provision of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (SI 2008/410).

3. ACCOUNTING POLICIES

Summary of significant accounting policies
The financial statements have been prepared under the historical cost convention.

The principle accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented unless otherwise stated.

(A) Basis of preparation

These financial statements are prepared on a going concern basis and under the historical cost convention.

The preparation of financial statements in conformity with FRS 102 requires the use if certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.

(B) Going Concern

The financial statements have been prepared on a going concern basis which the Directors believe to be appropriate for the following reasons:

The Directors have performed a going concern assessment which indicated that the Company will have sufficient funds to meet its liabilities as they fall due for a period of 12 months from the date of approval of these financial statements ("the going concern assessment period"). The current projection contains the Revenue primarily based on the run rate of existing customers, including key assumptions for sales growth, margin, cost of living inflation (including National Living Wage) and labour availability. The ability of the Company to continue as a going concern is based on the ability of the management team to deliver the required levels of costs savings from a restructure, along with sufficient Revenue growth from new and existing clients.


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023
Everyday People Financial Corp., the Company's ultimate parent undertaking, entered into a Sale and Purchase agreement with Bertelsmann Group for BPO Collections Ltd to purchase the entire Share Capital of the Company. This transaction completed on 31st October 2023. The Directors are uncertain as to the intention of BPO Collections Ltd with regards to any future transfer of the trade and assets or liquidation of the company subsequent to the transfer of Share Capital and also the ability of BPO Collections Ltd to continue to support the funding needs of Everyday People Financial Solutions Limited. The Company, subsequent to the sale of the Company to BPO Collections Ltd has continued and is expecting to continue to service its existing customers.

Based on the above indications the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, the existence of these circumstances represent a material uncertainty related to events of conditions that may cast significant doubt on the Company's ability to continue as a going concern, and therefore, that the Company may be unable to realise its assets and its discharge its liabilities in the normal course of business. The financial statements do not include any adjustment that would result from the basis of preparation being inappropriate.

(C) Exemption for qualifying entities under FRS 102

i) The Company has taken the exemption under the terms of FRS 102 33.1A from disclosing
related-party transactions with wholly owned entities that are part of the BPO group.

ii) The Company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from
preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent
company, EP Financial , includes the Company's cash flows in its own consolidated financial
statements, which are prepared in accordance with FRS 102 and are available to the public and may be
obtained from Everyday People Financial Solutions Limited (formerly known as Arvato Financial
Solutions Limited), 24 George Square, Glasgow, G2 1EG.

iii) The company has taken advantage of the reduced disclosures available in Sections 11 and 12 of FRS
102 in relation to financial instruments.

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

(D) foreign currency

i)Functional and presentation currency

The Company's functional and presentation currency is pounds sterling.

ii)Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the change rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the at translation period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss reporting in the Statement of comprehensive income.

(E) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for services rendered, net of discounts and rebates allowed by the Company and value added taxes.

The Company recognises revenue when (a) the significant risks and rewards of the transaction have been transferred to the client; (b) the Company retains no continuing involvement or control over the services; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) the specific criteria relating to each of the Company's sales channels have been met, as described below.

(i)Provision of debt recovery services

Income from provision of debt recovery services is recognised on receipt of collections or when a specific client-determined outcome is achieved, being the points at which fees are payable to the Company. Income from the provision of debt recovery services in included in 'turnover' in the Statement of comprehensive income.

(ii)Income from bought debt books

Income from bought debt books is recognised on receipt. Income from bought debt books is included in 'turnover' in the Statement of comprehensive income and further details.

(iii)Provision of business process outsourcing services

Revenue is recognised on completion of services and is invoiced to the client based on a pre-determined billing profile. The nature of how a client is billed for services will depend on the nature of work undertaken. The TUPE Premium revenue resulting from the implementation of a new contract, as described in the Strategic Report, is recognised over the length of the contract.

(iv)Interest income

Interest income is recognised using the effective interest rate method. Interest income is included in 'interest receivable and similar income' in the Statement of comprehensive income.

(F) Exceptional items

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued

The Company classifies non-recurring charges or credits that have a material impact on the Company's financial results as 'exceptional items'. These are disclosed separately to provide further understanding of the underlying financial performance of the Company.

(G) Employee Benefits

The Company provides a range of benefits to employees, including monthly and annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

(i)Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

(ii)Defined contribution pension plans

The Company operates several defined contribution pension schemes for its employees. The annual contributions made by the Company to these schemes on behalf of its employees are charged to Statement of comprehensive income in the period they fall due. Any differences between contributions payable in the year end contributions actually paid are shown as either accruals or prepayments in the Company's Statement of financial position.

(iii)Annual bonus plan

The Company has both monthly and annual bonus plans for certain employees. An expense is recognised in the Statement of comprehensive income when the Company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

(H) Taxation

Tax on profit or loss for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable or receivable on the taxable income/loss for the year, using tax rates enacted or substantively enacted at the Statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner or realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted at the Statement of financial position date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be utilised.

(I) Intangible assets

Computer software and related licences are stated at cost less accumulated amortisation and accumulated impairment losses. Software and licences are amortised over their estimated useful life of 5 years on a straight line basis. The assets' fair value less costs to sell and useful lives are reviewed, and adjusted if appropriate, when impairment indicators are identified. The effect of any change is accounted for prospectively.

(J) Tangible assets


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working conditions for its intended use, dismantling and restoration costs and borrowing costs capitalised where applicable.

(i)Depreciation and residual values

Depreciation is calculated to allocate the cost to their fair value less costs to sell over their estimated useful lives, as follows:

- Fixtures and fittings: 5 to 7 years on a straight line basis
-Equipment: 5 years on a straight line basis

The assets' fair value less costs to sell and useful lives are reviewed, and adjusted if appropriate, when impairment indicators are identified. The effect of any change is accounted for prospectively.

(ii)Subsequent additions and major components

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Company and the cost can be measured reliably. Repairs, maintenance and minor inspection costs are expensed as incurred.

(iii)Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of comprehensive income and included in 'Other operating income/ (losses)'.

(K) Leased assets

(i)Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the Statement of comprehensive income on a straight-line basis over the period of the lease.
(ii)Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the Statement of comprehensive income, to reduce the lease expense, on a straight-line basis over the period of the lease.

The Company has taken advantage of the exemption in respect of lease incentives on leases in existence on the date of transition to FRS 102 and continues to credit such lease incentives to the Statement of comprehensive income over the period to the first review date on which the rent is adjusted to market rates.

(L) Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication that the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued
The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future pre-tax and interest cash flows obtainable as a result of the asset's (or asset's cash generating unit) continued use. The pre-tax and interest cash flows are discounted using a pre-tax discount rate that represents the current market risk free rate and the risks inherent in the asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the Statement of comprehensive income.

If an impairment loss is subsequently reversed, the carrying amount of the asset ( or the asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the Statement of comprehensive income.

(M) Cash and cash equivalents

Cash and cash equivalents include cash in hand and other short-term highly liquid investments with original maturities of three months or less. The Company holds cash on behalf of customers with an associated liability recognised under other creditors.

(N) Provisions and contingencies

(i)Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

In particular:

(i) Restructuring provisions are recognised when the Company has a detailed, formal plan for the restructuring and has raised a valid expectation in those affected by either starting to implement the plan or announcing its main features to those affected and therefore has a legal or constructive obligation to carry out the restructuring; and

(ii) Provision is not made for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

(ii)Contingencies

Contingent liabilities, arising as a result of past events, are not recognised when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. The Company had no contingent liabilities at the current or prior balance sheet date.

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued


Contingent assets are not recognised. Contingent assets are disclosed in the financial statements
when an inflow of economic benefits is probable.

(O) Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments

(i)Brought debt portfolios

Bought debt portfolios acquired are initially recognised within 'prepayments and accrued income' at the transaction price.

The bought debt portfolio asset is subsequently amortised based on a model built to forecast collections and remaining value on a month-by-month basis, in order to amortise the purchase price of the investment and match it against the cash generated. The amortisation charge is recognised in 'turnover' in the Statement of comprehensive income and is presented net of collections received which are recognised as income.

(ii) Other financial assets

Other financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for, objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed.The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(iii)Financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee s deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of th facility to which it relates.


EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ACCOUNTING POLICIES - continued
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharge, cancelled or expires.

(iv)Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle to liability simultaneously.

(P) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

When preparing the financial statements the Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the relating actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. The Directors have reviewed the current balance from the Bought Debt portfolio, which has been carried at £nil, along with expected liquidation rates in the future, and the management have determined that there is not a material value attributable to future cashflows,

(i)Impairment of assets

At each reporting date management assess whether there is any indication that each asset might be impaired. If any indication exists, an estimate of the asset's recoverable amount is made. Estimation of the recoverable amount requires a number of assumptions. For trade and other debtors, when assessing the recoverable value, management considers factors including the current credit rating of the debtor and historical experience.

(ii)Provisions

At the balance sheet date the Company has a provision in place for dilapidations on a leasehold property held by the Company. The estimation of this provision requires a number of assumptions principally in relation to the time/cost associated with exiting a vacated facility. These assumptions are made using past experience and advice received from external parties.

5. TURNOVER

Turnover is attributable to the one principle activity of the Company being the collection of consumer and commercial debt for third party clients together with specialist long term business process outsourcing. All revenue arises from the rendering of services and there are no goods sold.

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

6. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 9,518,104 13,086,367
Social security costs 901,345 1,339,263
Other pension costs 333,023 552,444
10,752,472 14,978,074

The average number of employees during the year was as follows:
2023 2022

Directors 5 5
Administration - 86
Collections 286 364
291 455

2023 2022
£    £   
Directors' remuneration - -

7. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Other operating leases 331,936 2,772
Depreciation - owned assets 185,145 163,683
Computer software amortisation 10,642 25,152
Auditors' remuneration 41,500 36,855
Foreign exchange differences 18,524 4,125

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 294,290 238,436

9. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax (12,547 ) 18,797

Deferred tax 2,744 (467,810 )
Tax on loss (9,803 ) (449,013 )

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

9. TAXATION - continued

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Capital contribution reserve 5,500,000 - 5,500,000

2022
Gross Tax Net
£    £    £   
Capital contribution reserve 1,000,000 - 1,000,000

10. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2023 351,213
Disposals (118,018 )
At 31 December 2023 233,195
AMORTISATION
At 1 January 2023 307,384
Amortisation for year 10,642
Eliminated on disposal (84,831 )
At 31 December 2023 233,195
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 43,829

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. TANGIBLE FIXED ASSETS
Fixtures
and Computer
fittings equipment Totals
£    £    £   
COST
At 1 January 2023 146,481 1,114,067 1,260,548
Additions - 135,906 135,906
Disposals - (34,644 ) (34,644 )
At 31 December 2023 146,481 1,215,329 1,361,810
DEPRECIATION
At 1 January 2023 81,828 665,615 747,443
Charge for year 17,812 167,333 185,145
Eliminated on disposal - (17,656 ) (17,656 )
At 31 December 2023 99,640 815,292 914,932
NET BOOK VALUE
At 31 December 2023 46,841 400,037 446,878
At 31 December 2022 64,653 448,452 513,105

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,223,214 4,872,044
Amounts owed by group undertakings 654,216 29,975
Other debtors - 211,444
No description - 467,810
Deferred tax asset 182,540 149,676
Prepayments and accrued income 661,576 1,768,637
2,721,546 7,499,586

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 226,902 717,411
Client Funds 1,184,322 -
Amounts owed to group undertakings - 6,513,547
Social security and other taxes 544,570 997,405
Other creditors 313,273 819,963
Accrued expenses 341,667 942,637
2,610,734 9,990,963

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions - 100,000

EVERYDAY PEOPLE FINANCIAL SOLUTIONS
LIMITED (REGISTERED NUMBER: SC223606)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. PROVISIONS FOR LIABILITIES - continued

Dilapation
£   
Balance at 1 January 2023 100,000
Credit to Income Statement during year (100,000 )
Balance at 31 December 2023 -

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
17,053,879 Ordinary £1 17,053,879 17,053,878

1 Ordinary share of £1 was issued during the year for cash of £ 7,471,852 .

16. RESERVES
Capital
Retained Share contribution
earnings premium reserve Totals
£    £    £    £   

At 1 January 2023 (18,226,326 ) 1,939 1,000,000 (17,224,387 )
Deficit for the year (10,204,363 ) (10,204,363 )
Bonus share issue - 7,471,851 - 7,471,851
Purchase of own shares - - 5,500,000 5,500,000
At 31 December 2023 (28,430,689 ) 7,473,790 6,500,000 (14,456,899 )