It is my privilege to present the strategic report for Interpolitan Money Holdings Limited and its subsidiaries (“the Group”) for the financial year ending 31 December 2024. This report is presented with a Group-wide perspective and focuses on matters material to the Group’s long-term performance and strategic direction.
Company Overview
Interpolitan Money is a leading provider of alternative banking and cross-border financial solutions, serving corporate entities, private clients, family offices, and institutional investors globally. Recognised for our high-tech, high-touch model, we are redefining how complex international banking needs are met – combining advanced technology with specialist service to deliver efficiency, certainty, and long-term value.
Our global footprint continues to grow, powered by a team of over 50 professionals across three international offices. This year has been one of meaningful transformation, where a high-performance culture has fuelled both innovation and sustainable expansion.
2024: A Year of Acceleration and Strategic Growth
Following a record-breaking 2023, 2024 has delivered another exceptional performance. We have advanced on multiple fronts – strategically, operationally, and commercially – solidifying our position as a trusted partner for clients navigating the evolving international financial landscape.
Over the course of the year, we relocated our headquarters to a new London office, deepened our presence in existing markets, secured critical international regulatory approvals, and further scaled our team to support future growth. These milestones are a testament to the Group’s strategic discipline, entrepreneurial mindset, and unwavering commitment to our clients.
We were proud to be recognised again by the FEBE Growth 100 and the London Fast Growth 50, marking the second consecutive year Interpolitan has featured on both rankings – an external validation of our sustained performance and upward trajectory.
Financially, the Group reported 80% year-on-year revenue growth, with FY2024 income increasing from £4.56 million to £8.22 million. Operating expenses rose as expected in line with our growth strategy, increasing to £4.39 million, driven by international expansion and key hires. However, robust margin discipline and a diversification of revenue streams led to a record profit before tax of £2.5 million, up from £600k in the prior year – a near fourfold increase.
We enter 2025 from a position of strength, with strong pipeline visibility, a clear growth strategy, and real momentum.
Scaling Through Innovation
Our continued investment in technology culminated in the launch of our proprietary alternative banking platform in 2024 – a transformative development for both the business and our clients. This new infrastructure allows for seamless integration with external platforms, improved scalability, and enhanced compliance processing across jurisdictions.
The platform has already improved onboarding times, increased client engagement, and opened up new product innovation opportunities. Looking ahead, we will be expanding our technology and product teams further to drive the evolution of our offering and ensure we remain at the forefront of digital financial services.
As global commerce continues to digitalise, the demand for cross-border financial infrastructure is rising – particularly for underserved clients with complex structures who are often overlooked by traditional banks. This presents a compelling growth opportunity for Interpolitan Money.
Our differentiated approach – underpinned by strong compliance capabilities and tailored client service – uniquely positions us to serve this expanding market. In 2024, we made significant strides in our global strategy:
• Regulatory approvals were secured in Canada (FINTRAC), and we formally incorporated Interpolitan Money (Mauritius) Ltd to support regional growth.
• Licence applications were submitted in new markets, including Mauritius and India’s GIFT City, with further locations under review for 2025.
• Market research indicates our total addressable market now exceeds £1.3 billion, rising to £2.2 billion by 2029 – offering significant headroom for sustained expansion.
Our international expansion strategy is firmly underway and we are confident in our ability to serve clients across geographies with speed, integrity and local expertise.
Our People and Culture: The Foundation of Growth
Our people are the driving force behind everything we do. 2024 saw further investment in leadership, learning and culture. With a global leadership team bringing more than 125 years of collective experience, we continue to nurture the next generation of leaders through deliberate talent development and succession planning.
We are proud to have been named one of The Sunday Times Best Places to Work 2024 – recognition of our culture of excellence, inclusion and high performance. In response to employee feedback, we launched new global benefits, including enhanced health and family coverage, and introduced Interpolitan Unplugged, our global wellness initiative to support holistic well-being.
With high retention and strong engagement scores, we are confident in our ability to grow while maintaining the values and cultural DNA that make Interpolitan Money distinctive.
Looking Ahead: Vision, Velocity and Value
As we move into 2025, we are focused on deepening client relationships, accelerating platform innovation, and extending our international reach. The macro environment continues to favour agile, tech-enabled financial firms capable of servicing complex, cross-border needs – and Interpolitan Money is positioned to lead.
The convergence of rising global mobility, growing demand for banking alternatives, and digital innovation continues to play to our strengths. We see particular opportunity in serving mid-sized corporates and family offices with international operations – a segment where bespoke, high-touch service matters most.
Our strategic priorities for 2025 include:
• Expanding into new jurisdictions, with a particular focus on high-growth markets.
• Enhancing our platform capabilities, including automation, data analytics and client-facing tools.
• Strengthening governance and scalability, with a view to long-term sustainability and optionality in capital markets.
Data integrity and security
Description of Risk:
Losses from a cyber attack or other associated malicious events
Loss of revenue
Reputational risk
Control / Mitigation:
Dedicated resources with responsibility for data security and data governance
Penetration testing, training and awareness, system access controls and encryption, physical security
Introduced new comprehensive training modules through 'Cyber Security Awareness' covering Cyber/ Security Risk and Data Protection.
Business Continuity / Disaster Recovery
Description of Risk:
Business disruption and potential business failure
Control / Mitigation:
Detailed Business Continuity Plan and Disaster Recovery Plan
Periodic testing of the above plan
Increased adoption of cloud-based services
Fraud
Description of Risk:
Financial loss, reputational risk, potential to lose customers and reduce growth, supplier chain risk
Control / Mitigation:
Senior management awareness
Staff training
Fraud reporting to Risk Committee
Automated transaction monitoring
Appropriate people in fraud roles to oversee and manage risk
Liquidity
Description of Risk:
Unable to meet liabilities as they fall due
Control / Mitigation:
Regular reporting of cash movements
Regular cashflow forecasts run with sensitivities
Longer term budgets and forecasts
Governance
Description of Risk:
Lack of Board oversight leading to failure to fulfil legal and regulatory responsibilities
Control / Mitigation:
Regular Board and Committee meetings
The Group faces market competition
Description of Risk:
A reduction to competitive advantage resulting in slower business growth and ultimately financial loss
Control / Mitigation:
Engineering development to maintain research & development and innovation
New products
Improved CX to enhance usability of products - IT development to maintain research & development and innovation+
Quality of people in business
Maintain the Group’s reputation
Investment in marketing and product development
Increased investment in IT development
Increased sales development
Review of costs to ensure cost efficiency
Key person absence
Description of Risk:
The CEO or other key persons become ill, or incapacitated
Control / Mitigation:
The Group does not have silo management, and there are overlaps in skills between Executives.
Failure of key suppliers impacts performance
Description of Risk:
Loss of productivity, potential to lose customers and reduce growth.
Control / Mitigation:
Carry out regular review of supplier performance and seek alternatives where necessary
Macro environment
Description of Risk:
Loss of revenue, operational resilience
Control / Mitigation:
Monitor key performance indicators, increased controls on expenditure and large single expenditure commitments
Regulatory compliance
Description of Risk:
Emerging regulations and adherence to existing regulations
Non-compliance: fines; sanctions; prison and reputational risk
Control / Mitigation:
Review and update Group policies and procedures.
Review of new statutes and financial regulation.
Annual regulatory audits by expert third parties.
Periodic staff training
Final Reflections
2024 has been a defining chapter in Interpolitan Money’s journey. None of this success would have been possible without the continued dedication of our talented team, the trust of our clients, and the support of our partners.
As we look to the future, we do so with clarity of purpose and confidence in our trajectory. Interpolitan Money is more than a financial services firm – we are a catalyst for global opportunity. And in 2025, we will continue to build, scale and lead with ambition.
Rishi Patel
Chief Executive Officer
Interpolitan Money Holdings Limited
Under Section 172 of the Companies Act 2006, a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company* for the benefit of its members as a whole, and in doing so have regard
(amongst other matters) to:
(a) the likely consequences of any decision in the long term,
(b) the interests of the company’s employees,
(c) the need to foster the company’s business relationships with suppliers, customers and others,
(d) the impact of the company’s operations on the community and the environment,
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly as between members of the company.
*The directors consider that references to company extend to both the Company and the Group
The Group’s stakeholders include, but are not limited to, its employees; suppliers; customers; regulators; and investors.
The Board endeavours to achieve and maintain a reputation for high standards of conduct amongst its stakeholders which it regards as crucial in its ability to successfully achieve its corporate objectives. During the development of the Group’s strategies and decision-making processes, the Board will consider its stakeholders and their interests. The differing interests of stakeholders require the Board to assess and manage the impact of its policies in a fair and balanced manner to the benefit of its stakeholders as a whole.
The Board considers below these different stakeholder groups, their material issues and how the Group engages with them. Relevant board engagement with key stakeholders is detailed in the corporate governance report.
EMPLOYEES
The employees are one of the greatest assets to the Group. Their interests, which include training and development; a safe environment to work; diversity and inclusion; fair pay and benefits; reward and recognition are a high priority. On a day to day basis Directors engage directly with employees promoting an open, non-hierarchical culture, in which employees have an active contribution to the Group’s success. Weekly meetings are conducted and periodic company updates are provided. Feedback is always encouraged. The Board will actively reflect on this when making decisions. Regular management training, personal development and performance reviews all contribute to the development of staff.
SUPPLIERS
Supplier interests include fair trading, payment terms and working towards building a successful relationship. The Group will regularly review its supplier payments and performance alongside its monitoring of its performance. The Group’s Modern Slavery Statement sets out the processes put in place in order to combat modern slavery in the business and its supply chains.
CUSTOMERS
Customers are interested in successful product availability and usage; fair pricing and adherence to regulations. The Group wants to achieve the highest level of customer service and will regularly review feedback and reviews it receives from its customers. The Group operates under an open and transparent pricing model with its customers.
REGULATORS AND COMPLIANCE
The Group holds licenses with the Financial Conduct Authority and must adhere to the regulatory requirements of these licenses. The Group ensures that staff have sufficient knowledge and regular training if necessary, to ensure that these regulations are met.
The nature of the business undoubtedly results in a higher risk of money laundering. All staff receive the relevant Anti-Bribery and Anti-Money Laundering training. Procedures and communications are in place to ensure that staff are able to comply with Anti-Money Laundering should there ever be a case.
INVESTORS
Investors expect to be informed of the financial performance and developments of the Group. This is done by providing trading updated, publication of the annual reports and press releases.
On behalf of the board
Interpolitan Money Holdings Limited is a company limited by shares. The Director presents their Annual Report and the audited financial statements for the year ended 31 December 2024.
Business review
An analysis of the Group’s development (including likely future developments) and performance is contained in the strategic report. Information on the financial risk management strategy of the Group and its exposure to its principal risks is on pages 2-5.
The results for the year are set out on pages 16-17.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations, Sch.7 to be contained in the directors' report.
We have audited the financial statements of Interpolitan Money Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of the multi-currency e-banking and payments service industry. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the Electronic Money Regulations 2011 as amended by the Payment Service Regulations 2017, the Money Laundering and Terrorist Financing Regulations 2019, European Market Infrastructure Regulations, the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the FCA and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 an auditor's report 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).
Interpolitan Money Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Leman Street, London, United Kingdom, E1W 9US.
The group consists of Interpolitan Money Holdings Limited and all of its subsidiaries.
The Group’s principal activity is the development of alternative banking solutions including: current accounts, FX, interest income generated from client cash balances and mass payments for international businesses from start-ups to publicly-listed global brands.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Interpolitan Money Holdings Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Interest generated from client cash balances is due as a result of the increased interest rates. The recognition of interest income on client balances is recognised as revenue on the face of the Consolidated Statement of Comprehensive Income.
Turnover represents the value of work carried out in respect of services provided and translation of foreign currency fees to customers and interest generated on customer cash balances.
Spot and forward revenue is recognised when a binding contract is entered into by a client and the rate is fixed and determined. Revenue represents the difference between the rate offered to clients and the rate the Group receives from its banking counterparties.
Interest generated from group and client cash balances is recognised using the effective interest rate method on corporate ‘cash and cash equivalents’. The recognition of interest income on client balances is recognised as turnover on the face of the Group Profit and Loss Account.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
In this instance, the directors have not considered it necessary to fair value the shares issued as consideration for the acquisition of the group. They also do not feel it is cost effective to fair value the assets of the group acquired. Hence, negative goodwill has been created. The negative goodwill has been amortised in its entirety in the first year.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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 the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in or immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in or depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, 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 and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Intangible fixed assets, are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values
The most critical estimates and assumptions for investments relate to the determination of cost of unlisted investments at cost less any accumulated impairment losses through profit and loss. In determining this amount, the investments are assessed for impairment at each reporting date. The nature, facts and circumstance of the investment drives the valuation methodology.
A deferred tax liability is provided on accelerated capital allowances and and deferred tax asset on carried forward tax losses. It is expected that the tax losses will be relieved against future profits, therefore the decision has been made to recognise this asset in the current period.
The Group recognises financial assets and corresponding liabilities for the funds customers hold on their Interpolitan accounts and the funds the Group receives as part of the money transfer settlement process. At the point that the cash is received from the customer, the Group becomes party to a contract and has a right and an ability to control the economic benefit from the cash flows associated with this balance. Additionally, pursuant to IAS 32, the Group considers it does not have a legally enforceable right to set off these financial assets and liabilities, or an intention to settle them on a net basis or settle them simultaneously. Therefore, Management has concluded that the recognition of the financial assets and their respective liabilities on the balance sheet is appropriate.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax asset set out above is expected to reverse in over 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse in over 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the reporting end date the group had outstanding commitments for future minimum lease payments under two operating leases, for which one has a 6 month notice period, which fall due as follows:
There are no events post period end date to report.
The remuneration of key management personnel is as follows.
Remuneration of £34,185 (2023: £nil) was paid to close family members of key management
During the year, the group incurred consultancy fee expenses on an arms length basis of £6,000 (2023: £6,000) to a director of Interpolitan Money PLC, a wholly owned subsidiary. At the year ended 31 December 2024, £500 (2023: £500) was owed to this group.
Disclosure of entities that are part of the group is not required as 100% of the voting rights of the company are controlled within the group.