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REGISTERED NUMBER: 11311307 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Period 1 August 2023 to 30 June 2024

for

Global Financial Innovations Ltd

Global Financial Innovations Ltd (Registered number: 11311307)






Contents of the Financial Statements
for the Period 1 August 2023 to 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Statement of Directors' Responsibilities 6

Report of the Independent Auditors 7

Statement of Comprehensive Income 11

Statement of Financial Position 12

Statement of Changes in Equity 13

Statement of Cash Flows 14

Notes to the Statement of Cash Flows 15

Notes to the Financial Statements 16


Global Financial Innovations Ltd

Company Information
for the Period 1 August 2023 to 30 June 2024







DIRECTORS: S Azizov
P Bondarenko
S Hauser
Ms L M Roberts





REGISTERED OFFICE: Office Ch414
Capital House
25 Chapel Street
England
NW1 5DH





REGISTERED NUMBER: 11311307 (England and Wales)





AUDITORS: Georgiou & Prasanna LLP (Statutory Auditors)
Block E, 2nd Floor
286a Chase Road
London
N14 6HF

Global Financial Innovations Ltd (Registered number: 11311307)

Strategic Report
for the Period 1 August 2023 to 30 June 2024

The directors present their strategic report for the period ended 30 June 2024.

Global Financial Innovations Limited (the 'company') was incorporated and launched its payment gateway services in 2018. The company provides payment processing services via a payment gateway to enable payment service providers (PSPs) to make and accept payments globally. The company is based in the UK.

The company is licensed as a Payment Services Institution by the Financial Conduct Authority (FCA).


Global Financial Innovations Ltd (Registered number: 11311307)

Strategic Report
for the Period 1 August 2023 to 30 June 2024

REVIEW OF BUSINESS
The results of the company for the 11 month period are set out on pages ten to nineteen and show a loss on ordinary activities after tax of €8,689 (2023: profit €3,255,271). The shareholders' funds of the company total €3,255,720 (2023: €3,264,409).

Revenue for the period decreased to €14,660,261 (2023: €16,792,593). The company reports a gross profit for the period of €721,250 4.9% (2023 €1,125,925 6.7%).

The merchant debtors balance of €7,605,268 represents client balances. Included in this balance, €367,016 is owed by an FCA authorised and regulated wholesale broker which is under special administration by the FCA. Since the year end the administrators have raised a payment £157,860 (€189,000) that was awaiting final approval before being released to the company.

A further 15% bad debt provision has been made based on the most recent report from the administrators for a proportion of the total amount not being recoverable (2023 bad debt provision 25%).

Business environment

The payments industry offers significant opportunities and challenges. There is strong global growth driven by rapidly increasing volumes of e-commerce transactions, which presents ever greater opportunities for payment service providers. This rapid onset of growth has resulted in a healthy, competitive market where innovation and new technologies are commonplace. The industry is, however, becoming increasingly competitive, with margin compression and high customer acquisition costs.

Additionally, regulators across jurisdictions are heightening their oversight of the industry, requiring firms to invest significantly in compliance infrastructure, particularly in areas such as AML/KYC, data protection, and safeguarding. The rising demand for embedded finance, real-time payments, and cross-border settlements is pushing firms to innovate or risk obsolescence.

Consumer expectations are also evolving. End-users now demand seamless, multi-currency, instant payment experiences with built-in fraud protection. This has led to convergence between traditional payment providers, fintechs, and digital banks, resulting in a more fragmented but interconnected ecosystem.

New entrants are often backed by venture capital and operate with aggressive pricing models, making it difficult for traditional players to compete solely on cost. At the same time, the shift towards open banking and API-driven infrastructure has created opportunities for niche service providers and platforms to differentiate through value-added services and strategic partnerships.

To succeed in this dynamic landscape, firms must balance innovation, compliance, and scalability while building trusted relationships with both customers and regulatory bodies.

Strategy

The company will aim to deliver profits to its shareholders in future by its payment gateway which offers a variety of acquiring networks, alternative payments solutions and access to local bank settlement networks.

The goal of the company is to become a well-known and recognisable provider in the UK and EU Markets in terms of accessibility and ease of financial services usage and allow customers to create their personal business environment to reach maximum profitability within the partnership.

In 2024, the company continued its geographic and currency expansion by enabling payment acceptance in several new regions. This included support for local currencies such as the Euro (EUR) and Turkish Lira (TRY). In 2025, the Company plans to further broaden its reach by enabling payment acceptance across key African markets and Southeast Asian countries, aligning with its global growth strategy.

The company provides fast service enrolment supported by competitive pricing and a wide range of services. The payment service is currently not provided by the company independently, but it is planned to gradually transfer this service to the company, then it will be possible to provide such service to customers, as well as to connect partner companies that will be able to provide such payment methods as SEPA, CHAPS, Faster Payments, etc.

Global Financial Innovations Ltd (Registered number: 11311307)

Strategic Report
for the Period 1 August 2023 to 30 June 2024


ON BEHALF OF THE BOARD:





S Hauser - Director


3 April 2025

Global Financial Innovations Ltd (Registered number: 11311307)

Report of the Directors
for the Period 1 August 2023 to 30 June 2024

The directors present their report with the financial statements of the company for the period 1 August 2023 to 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of financial intermediation.

DIVIDENDS
No dividends will be distributed for the period ended 30 June 2024.

DIRECTORS
The directors who have held office during the period from 1 August 2023 to the date of this report are as follows:

S Azizov - appointed 17 August 2023
K Gintauts - appointed 1 November 2023
P Bondarenko - appointed 14 June 2024

S Hauser and Ms L M Roberts were appointed as directors after 30 June 2024 but prior to the date of this report.

K Gintauts , P Kozyakov and Mrs E Stepanova ceased to be directors after 30 June 2024 but prior to the date of this report.

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, Georgiou & Prasanna LLP (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Hauser - Director


3 April 2025

Global Financial Innovations Ltd (Registered number: 11311307)

Statement of Directors' Responsibilities
for the Period 1 August 2023 to 30 June 2024

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.

Report of the Independent Auditors to the Members of
Global Financial Innovations Ltd

Opinion
We have audited the financial statements of Global Financial Innovations Ltd (the 'company') for the period ended 30 June 2024 which comprise the Statement of 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 30 June 2024 and of its loss for the period 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, the Report of the Directors and the Statement of Directors' Responsibilities, 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
Global Financial Innovations Ltd


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 six, 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
Global Financial Innovations Ltd


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:

Fraud risk assessment

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure by management to commit, or provide an opportunity to commit, fraud. Our risk assessment procedures included:
- Enquiries of management and internal accounting staff, concerning the company's policies and procedures relating to:
- detecting and responding to the risks of fraud; and
- internal controls established to mitigate risks related to fraud;
- Enquiries of management and internal accounting staff as to whether they had knowledge of any actual, suspected or alleged fraud;
- Discussions among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. The engagement team includes the audit partner, managers and staff who have extensive experience of working with companies in this sector, and this experience was relevant to the discussion about where fraud risks may arise.

Risk communications
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

Fraud risks
As required by auditing standards we addressed the risk of management override of controls and the risk of fraudulent revenue recognition. In particular we considered the risk that revenue is recorded in the wrong period and the risk that the company's management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgments.

Procedures to address fraud risks
Our audit procedures included evaluating the design and implementation, and operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures including:
- Review journal entries to supporting documentation and review for any unusual journal descriptions;
- Assessing significant accounting estimates for bias;
- Obtaining third party confirmations for all bank balances and material debtors and creditors balances; and
- Assessing when revenue was recognised, particularly focusing on revenue recognised in the days before and after the year end date, and whether it was recognised in the correct year.

Laws and regulations- Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

Risk assessment
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements. For this risk assessment, matters considered included the following:
- our general commercial and technology based payment processing sector experience;
- discussion with the management of the company (as required by auditing standards);
- inspection of the company's regulatory and legal correspondence; and- discussions with the directors and other management about the policies and procedures regarding compliance with laws and regulations.

Risk communications
Our communication of laws and regulations risks was made throughout our team and we remained alert to any indications of non-compliance throughout the audit.

Direct laws context and link to audit

Report of the Independent Auditors to the Members of
Global Financial Innovations Ltd

The potential effect of laws and regulations on the financial statements varies considerably. The company is subject to United Kingdom laws and regulations, such as the Companies Act 2006. Other relevant rules and regulations include the following:
- financial reporting legislation (including related UK companies' legislation)
- taxation legislation (direct and indirect) in the company's countries of operation.
- Financial Conduct Authority (FCA) and its Payment Services Regulations 2017.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Most significant indirect law/ regulation areas
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or harm to the company's ability to operate.
We identified the following area as those most likely to have such an effect:
- Health, safety, welfare and fire safety
- Anti-bribery fraud and corruption
- Anti-money laundering regulations
- Financial Services and Markets Act 2000
- The Payment Services and Electronic Money (amendment) Regulations 2020
- United Kingdom employment law

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of law or regulations is not disclosed to us or evident from relevant correspondence, our audit will not detect that breach.

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.

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.




Costas Morfakis (Senior Statutory Auditor)
for and on behalf of Georgiou & Prasanna LLP (Statutory Auditors)
Block E, 2nd Floor
286a Chase Road
London
N14 6HF

3 April 2025

Global Financial Innovations Ltd (Registered number: 11311307)

Statement of Comprehensive Income
for the Period 1 August 2023 to 30 June 2024

Period
1.8.23
to Year Ended
30.6.24 31.7.23
Notes €    €   

TURNOVER 3 14,660,261 16,792,593

Cost of sales (13,939,011 ) (15,666,668 )
GROSS PROFIT 721,250 1,125,925

Administrative expenses (2,457,222 ) (2,093,710 )
(1,735,972 ) (967,785 )

Other operating income 4 1,727,283 4,223,056
OPERATING (LOSS)/PROFIT and
(LOSS)/PROFIT BEFORE TAXATION (8,689 ) 3,255,271

Tax on (loss)/profit 7 - -
(LOSS)/PROFIT FOR THE FINANCIAL
PERIOD

(8,689

)

3,255,271

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

(8,689

)

3,255,271

Global Financial Innovations Ltd (Registered number: 11311307)

Statement of Financial Position
30 June 2024

30.6.24 31.7.23
Notes €    €   
CURRENT ASSETS
Debtors 8 7,733,048 10,632,886
Cash at bank 9 4,338,407 3,380,893
12,071,455 14,013,779
CREDITORS
Amounts falling due within one year 10 (8,815,735 ) (10,749,370 )
NET CURRENT ASSETS 3,255,720 3,264,409
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,255,720

3,264,409

CAPITAL AND RESERVES
Called up share capital 11 150,000 150,000
Retained earnings 12 3,105,720 3,114,409
SHAREHOLDERS' FUNDS 3,255,720 3,264,409

The financial statements were approved by the Board of Directors and authorised for issue on 3 April 2025 and were signed on its behalf by:





S Hauser - Director


Global Financial Innovations Ltd (Registered number: 11311307)

Statement of Changes in Equity
for the Period 1 August 2023 to 30 June 2024

Called up
share Retained Total
capital earnings equity
€    €    €   
Balance at 1 August 2022 150,000 (140,862 ) 9,138

Changes in equity
Total comprehensive income - 3,255,271 3,255,271
Balance at 31 July 2023 150,000 3,114,409 3,264,409

Changes in equity
Total comprehensive income - (8,689 ) (8,689 )
Balance at 30 June 2024 150,000 3,105,720 3,255,720

Global Financial Innovations Ltd (Registered number: 11311307)

Statement of Cash Flows
for the Period 1 August 2023 to 30 June 2024

Period
1.8.23
to Year Ended
30.6.24 31.7.23
Notes €    €   
Cash flows from operating activities
Cash generated from operations 1 957,514 (12,661,928 )
Net cash from operating activities 957,514 (12,661,928 )

Increase/(decrease) in cash and cash equivalents 957,514 (12,661,928 )
Cash and cash equivalents at beginning of
period

2

3,380,893

16,042,821

Cash and cash equivalents at end of
period

2

4,338,407

3,380,893

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Statement of Cash Flows
for the Period 1 August 2023 to 30 June 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

Period
1.8.23
to Year Ended
30.6.24 31.7.23
€    €   
(Loss)/profit before taxation (8,689 ) 3,255,271
Decrease in trade and other debtors 2,899,838 9,383,264
Decrease in trade and other creditors (1,933,635 ) (25,300,463 )
Cash generated from operations 957,514 (12,661,928 )

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:

Period ended 30 June 2024
30.6.24 1.8.23
€    €   
Cash and cash equivalents 4,338,407 3,380,893
Year ended 31 July 2023
31.7.23 1.8.22
€    €   
Cash and cash equivalents 3,380,893 16,042,821


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.23 Cash flow At 30.6.24
€    €    €   
Net cash
Cash at bank 3,380,893 957,514 4,338,407
3,380,893 957,514 4,338,407
Total 3,380,893 957,514 4,338,407

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Financial Statements
for the Period 1 August 2023 to 30 June 2024

1. STATUTORY INFORMATION

Global Financial Innovations Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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 have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into Euros at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into Euros at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern
The financial statements have been prepared using the going concern basis as the directors are satisfied that the company has the resources to continue in business for the foreseeable future, which has been taken as twelve months from the date of approval of these financial statements.

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Financial Statements - continued
for the Period 1 August 2023 to 30 June 2024

3. TURNOVER

Turnover is derived from payment processing services provided to clients. Income is recognised as the service is performed and represents the value of services provided under contracts to the extent there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

4. OTHER OPERATING INCOME
Period
1.8.23
to Year Ended
30.6.24 31.7.23
€    €   
Other income 58,423 1,239,789
Exchange gains 1,668,860 2,983,267
1,727,283 4,223,056

5. EMPLOYEES AND DIRECTORS
Period
1.8.23
to Year Ended
30.6.24 31.7.23
€    €   
Wages and salaries 436,010 290,248
Social security costs 45,302 25,905
Other pension costs 6,891 5,098
488,203 321,251

The average number of employees during the period was as follows:
Period
1.8.23
to Year Ended
30.6.24 31.7.23

Administration 3 3
Finance 1 1
IT 3 3
7 7

Period
1.8.23
to Year Ended
30.6.24 31.7.23
€    €   
Directors' remuneration 164,195 40,552

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Financial Statements - continued
for the Period 1 August 2023 to 30 June 2024

6. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

Period
1.8.23
to Year Ended
30.6.24 31.7.23
€    €   
Other operating leases 48,971 31,880
Auditors' remuneration 60,195 60,100
Foreign exchange differences (1,650,616 ) (2,937,856 )

7. TAXATION

No liability to UK corporation tax arose for the period ended 30 June 2024 nor for the year ended 31 July 2023.

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 31.7.23
€    €   
Merchant debtors 7,605,268 10,282,425
Other debtors 90,011 103,480
Prepayments and accrued income 37,769 246,981
7,733,048 10,632,886

The Merchant debtors balance of €7,605,268 represents client balances. Included in this balance, €367,016 is owed by an FCA authorised and regulated wholesale broker, currently under special administration by the FCA.

9. CASH AT BANK
30.6.24 31.7.23
€    €   
Bank - Office accounts 27,105 650,489
Bank - Cash in transit - 500,000
Bank - Client accounts 4,311,302 2,230,404
4,338,407 3,380,893

Included within the cash at bank balance of €4,338,407 are client funds held amounting to €4,311,302 as at the balance sheet date.

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.6.24 31.7.23
€    €   
Trade creditors 1,022,122 509,729
Merchants funds payable 7,520,291 9,666,446
Social security and other taxes 24,964 11,539
Other creditors 132,729 516,664
Accrued expenses 115,629 44,992
8,815,735 10,749,370

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Financial Statements - continued
for the Period 1 August 2023 to 30 June 2024

11. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.24 31.7.23
value: €    €   
150,000 Ordinary €1 150,000 150,000

12. RESERVES
Retained
earnings
€   

At 1 August 2023 3,114,409
Deficit for the period (8,689 )
At 30 June 2024 3,105,720

13. RELATED PARTY DISCLOSURES

The key management personnel during the period were the directors Petr Kozyakov, Elina Stepanova. Samir Azizov, Kristaps Gintauts and Paul Bondarenko. Two new directors were appointed after 30 June 2024: Sikander Hauser and Lisa Maria Roberts.

During the year the company earned €2,093,387 of revenue and incurred €1,713,470 of direct costs with MoneyTea Ltd a company registered in England with a director in common, Petr Kozyakov. As at the balance sheet date €348,112 was payable under trade creditors.

During the year the company earned €207,092 of revenue and incurred €1,140,892 of direct costs with MoneyMaple Tech Ltd, a company registered in Canada where Petr Kozyakov is a beneficial owner.

During the year there were transactions totalling €2,930,000 with a company in Latvia "SIA GatewellPayments" which is under common control by virtue of Savvas Pantazi being a beneficial owner of both companies. As at the balance sheet date €540,000 was payable under trade creditors.

During the year there were transactions totalling €4,039,647 with a company in Kazakhstan, Sredapay LLP, which is under common control by virtue of Savvas Pantazi being a beneficial owner of both companies. As at the balance sheet date €4,761,007 was receivable under trade debtors.

Global Financial Innovations Ltd (Registered number: 11311307)

Notes to the Financial Statements - continued
for the Period 1 August 2023 to 30 June 2024

14. FINANCIAL RISK MANAGEMENT

The company has exposures to three main areas of risk: foreign exchange currency exposure, liquidity risk and customer credit exposure.

Foreign exchange transactional currency exposure
The company's base currency is Euros. Assets and liabilities in foreign currencies are translated into Euro at the rates of exchange as at the balance sheet date. As the company deals with a basketful of currencies, currency exchange rate risk exist. This risk is minimised by having multiple accounts with different currencies and is monitored and managed on a daily basis.

Liquidity risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows.The company is required to report capital adequacy report to the FCA on a regular basis.

Customer credit exposure
The company may offer credit terms to its customers which allow payment of the debt after delivery of the services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going customer relationships.


FCA requirements
As per Financial Conduct Authority requirements for electronic money institutions in the payment processing industry, the company is required to submit additional reports to the FCA to remain compliant with client assets rules. Breaching any applicable FCA regulations will result in losing the FCA licence to operate their business.

15. POST BALANCE SHEET EVENTS

Following the balance sheet date, global markets have continued to experience macroeconomic fluctuations, driven in part by ongoing geopolitical developments such as the conflict in Israel-Gaza and the residual, albeit diminishing, impact of the COVID-19 pandemic. While these factors have introduced short-term volatility in certain markets and exchange rates, the company operates with a geographically diversified client base and a resilient financial model that helps to mitigate these external shocks. The directors have closely monitored developments and conducted a detailed review of potential impacts. Based on the current trajectory of the business, the directors are expecting improved profitability and strong capital position. This should have a positive effect on the company's liquidity and operational continuity in the year ahead. The directors intend to continue investment in compliance infrastructure, product innovation, and expansion into high-growth regions, this will position the company well to capitalise on emerging market opportunities, even in a shifting macroeconomic landscape.

16. ULTIMATE CONTROLLING PARTY

During the period under review the ultimate sole controlling party was S Pantazi.