The directors present the strategic report for the year ended 31 December 2024.

The principal activity of the Group headed by IXL International Limited ('PremFina) continues to be the provision of software and other services to the financial & insurance services sector. Its core business is to help make insurance more affordable, accessible, and flexible for customers and businesses by offering financing facilities that allow the policyholder to spread the cost of their insurance over a period, rather than paying the cost in one lump sum up-front payment. The funds are advanced to an insurance company via an insurance broker’s statutory trust account with the collateral for the loan being the insurance policy itself.

PremFina offers market-leading flexible solutions to its partners, offering both a funded service, where the premium is funded and all the administrative operations carried out; and providing the technology platform for use as a Software as a Service solution, enabling brokers the option to fund the premium themselves and administer the lending using their own platform.

PremFina has a fast-growing team of over 100 colleagues with a shared passion of helping customers and empowering partners to transform the insurance industry for the better. This year saw strong performance as PremFina continues to disrupt the UK Premium Finance market.

Economic outlook

The UK has experienced increased fiscal activity over the last 12 months, with rises in tax and employer national insurance contributions, a reduction in the level at which they are paid and increases to minimum wages. At the same time, inflation has fluctuated leading to the Bank of England adjusting interest rates in response to changing economic conditions. PremFina regularly monitors its exposures and the impact these risks pose to customers and broker partners, deploying both structured and ad-hoc practices to mitigate against the changing market conditions and ensure the best customer outcomes.

Regulatory environment

PremFina has maintained a constructive and open relationship with the regulator, positively engaging with the Financial Conduct Authority (FCA) to discuss regulatory matters in the market including the on-going market review on premium finance which was announced in October 2024. PremFina continues to focus on Consumer Duty to deliver fair value and the best outcomes for customers and embedding it at the heart of the business. In November 2024, the business also pro-actively made changes to commission disclosure in customer documentation following the Court of Appeals ruling in the Johnson v FirstRand Bank Ltd; Wrench v FirstRand Bank Ltd; Hopcraft v Close Brothers Ltd case.

Technology agenda

In 2024, PremFina continued to advance its technology agenda as a cornerstone of its strategic growth and operational resilience. The focus remained on delivering scalable, secure, and intelligent solutions to enhance customer experience, deliver broker value, enable enterprise agility and meet evolving regulatory expectations.

Significant enhancements were made to the architecture, with a cloud-based microservices platform delivered to improve reliability, user experience and support the business's rapid growth.

Investments have also been made to data and analytics to allow for more accurate credit risk assessments, proactive customer servicing, and performance insights. AI is increasingly being used across the business to provide better experience to customers, support scalability and pro-active monitoring of security vulnerabilities.

Cybersecurity was a core priority throughout the year. PremFina achieved certification for:

• Cyber Essentials

• Cyber Essentials Plus

• PCI-DSS v4 compliance

The business also completed its implementation of the ISO/IEC 27001 framework, achieving certification in H1 2025. In preparation, 2024 saw significant uplift across governance, vulnerability management, and data protection protocols. Independent penetration testing and risk-based controls were embedded as part of an enhanced information security management system (ISMS).

PremFina continued to operate using an Agile delivery model, fostering cross-functional collaboration, iterative value delivery, and continuous improvement across its product and technology functions

The adoption of an Agile operating model has promoted cross-functional teamwork, iterative delivery, and on-going enhancements.

PremFina’s progress in 2024 sets a strong foundation for continued innovation, operational excellence, and regulatory alignment in a rapidly evolving market.

Exponentially grow our business

PremFina firmly established its position as a top 3 player in the premium finance industry by onboarding two of the UK’s largest insurance intermediaries: Markerstudy Distribution and Everywhen (Ardonagh Advisory). Together with smaller new business wins, strong underlying book growth and broker retention: volumes grew by over 2.5x in 2024. The business has a clear revenue generation strategy and is well positioned to continue its sustainable growth trajectory.

Diverse, high-performing talent

At PremFina, people are the driving force behind its growth, innovation, and continued success. In 2024, the business remained committed to fostering a high-performance, inclusive, and values-led culture, aligned with its mission to transform the premium finance sector through trust, technology, and innovation. In 2024, PremFina prioritised colleague engagement and wellbeing, recognising the importance of a motivated and supported workforce. The engagement index in the annual survey was 80%, reflecting the investment in people with some of the highest scoring areas being colleagues understanding of PremFina’s strategy, commitment to brokers and customers and colleagues appreciating the flexible working approach taken by the business.

Customer and experience led

PremFina’s obsession with creating the best customer outcomes stems from innovative technology-enabled solutions keeping customers and brokers at the front of mind to enhance user experience. PremFina’s exceptional and market-leading Trustpilot score of 4.7 ‘Excellent’ from ~5k reviews is evidence of the value its solutions provide and continued investment in technology will ensure that these high standards are maintained.

Make data a powerful asset

PremFina recognises that data and analytics is incredibly powerful in enhancing user experience, be that underwriting, customer insights, or identifying growth and efficiency opportunities. PremFina has expanded its data architecture to provide value added insights both internally and externally on a foundation capable of scale. Investment will continue throughout 2025 to further enhance data capabilities and exploit cloud-based analytics and real-time decision-making tools.

Disrupt our chosen markets through investment in technology

PremFina’s powerful technology is built to dominate the premium finance market for years to come and enables the seamless integration of digital solutions and the ability to diversify into new products and markets should the business decide to. Investment in automation and AI-led solutions has created improved customer experience and efficiencies for PremFina’s people to focus on the more important and value-add processes. PremFina will continue to accelerate its AI and digital strategies to outpace the market and deliver value.

Regulatory landscape

Key regulatory developments include the FCA launching the study of the premium finance market to assess fair value, compliance and competition; the Court of Appeal ruling on motor finance commission implications; Consumer Duty implementation including Annual Consumer Duty Board reports; Product Sales Data Reporting (2025requirement); and a Consultation Paper on simplifying the insurance rules announced in May 2025. PremFina monitors changes through horizon scanning and keeps abreast of all matters that have an impact on the business, broker partners and customers, through its robust risk management framework to ensure compliance.

Technology landscape

Rapid technological change, including the emergence of AI, evolving consumer expectations, and increasingly sophisticated cyber threats present strategic and operational risks to PremFina. These risks could impact delivery of business objectives, customer outcomes, and brand reputation.

PremFina mitigates these risks through ongoing investment in IT infrastructure, regular testing of controls, mandatory cyber awareness training, and proactive monitoring and response to threats.

AI adoption in financial services presents both opportunities and risks. While innovation offers efficiency and personalisation benefits, slow adoption or overreliance may create competitive disadvantage. PremFina continues to assess and strengthen its AI risk controls while leveraging opportunities to enhance underwriting, operations, and customer experience.

Geopolitical landscape

Ongoing geopolitical tensions and global economic uncertainty present potential risks to market stability, consumer confidence, and broader economic conditions. These external factors may indirectly impact PremFina’s operations, customer behaviour, and growth outlook.

PremFina mitigates these risks through scenario analysis, monitoring of key indicators, and contingency planning, supported by a robust Operational Resilience Framework designed to minimise disruption to customers and broker partners.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the Group headed by IXL International Limited continues to be the provision of software and other services to the financial & insurance services sector. Its core business is to help make insurance more affordable, accessible, and flexible for customers and businesses by offering financing facilities that allow the policyholder to spread the cost of their insurance over a period, rather than paying the cost in one lump sum up-front payment. The funds are advanced to an insurance company via an insurance broker’s statutory trust account with the collateral for the loan being the insurance policy itself.

No significant change in the nature of these activities occurred during the year.

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do 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:

During the normal course of business, PremFina continues to develop and invest in new technology and systems to improve operating efficiency and strengthen its customer proposition.

There were no material post balance sheet events.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group 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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of IXL International 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 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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.

As explained more fully in the directors' responsibilities statement, 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 is 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 an auditor’s report 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:

Detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. As such, we have considered:

• the nature of the industry and sector, control environment and business performance including the company’s remuneration policy, bonus levels, and performance targets;

• the company’s own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;

• any matters we identified having reviewed the company’s policies and procedures relating to:

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

  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

  • the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• the matters discussed amongst the audit engagement team.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the disclosure of adjusting items. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, tax legislation and regulations concerning importing and exporting to and from the UK.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

IXL International Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Tintagel House, 92 Albert Embankment, Vauxhall, London, SE1 7TY.

The group consists of IXL International Limited and all of its subsidiaries.

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 company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company IXL International Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

During the year the group continued to generate revenues but was loss making as it invested in technology and incurred costs to fulfil its growth plans.

The group was acquired by new owners in July 2021, and funding has been provided by them to support investment and working capital as the business grows. In addition, a new private securitisation funding facility was secured in May 2025, supporting the funding of insurance premiums in line with PremFina's committed growth plans.

Given the new owners, funding facility and significant growth plans, the directors are confident that they can continue to pay their debts as they fall due and have prepared the accounts on the going concern basis.

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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years on a straight line basis.

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.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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, associates and jointly controlled entities 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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 company 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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

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 company 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.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the group’s accounting policies, the directors are 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.

Bad debt provision

The directors have determined an appropriate provision for bad debts based on a probability model that they formulate based on their experience in the industry. The carrying amount of trade debtors is £110.2m (2023: £88.7m).

Fair value of loans

The fair value of interest free loans from the parent undertaking has been calculated in the absence of information for directly comparable instruments as no active market exists for such items. Accordingly, the inputs to the valuation techniques and specifically the market-related rate of interest rely on other sources of data including the Directors’ knowledge of similar loans. The carrying value of other loans included in borrowings was £9.3m (2023: £9.3m). The subsequent measurement of loans is at amortised cost. The carrying value is also heavily dependent on the expected date of repayment, that date being dependent on plans to secure additional external funding.

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 credit 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:

Premfina Bond 1 Limited, Premfina Bond 2 Limited, Premfina Bond 3 Limited and Tactica Premium Finance Limited were dissolved on 20 May 2025.

Other borrowings includes £89,896,453 (2023 £78,432,254) due to PremFina Funding Limited, a special purpose vehicle (SPV), which provides certain funding to the Group by way of the sale of receivables. This credit is reduced as collections are made from customers and paid to the SPV.

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 non-cancellable operating leases, which fall due as follows:

Project Zulu Topco Limited is a company incorporated in Jersey and is the parent of the smallest group for which consolidated financial statements are drawn up. The registered office address of Project Zulu Topco Limited is 3rd Floor, 44 Esplanade, St Helier, Jersey, JE4 9WG.