The notes on pages 2 to 7 form part of these financial statements.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

BCB Payments Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bloomsbury House, 74-77 Great Russell Street, London, WC1B 3DA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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, modified to include the revaluation of certain financial instruments at fair value. The material accounting policies adopted are set out below.

The financial statements are prepared on a going concern basis as the directors are satisfiedtrue that the company has the resources to continue in business for the foreseeable future (which has been taken as 12 months from the date of approval of these financial statements).

In making this assessment the directors have considered a wide range of information relating to present and future market conditions, revenue and profitability forecasts and cash flow projections. These projections reflect the current balance sheet, the group's funding plans, regulatory capital requirements and capital commitments.

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business. The fair value of consideration considers trade discounts, settlement discounts and volume rebates, and is net of any VAT or other sales related taxes. It is recognised when the specific criteria have been met for each of the following as described below:

Set-up fees

Revenue is recognised upon provisioning client accounts in line with signed contract agreements.

Subscription and minimum fees

Revenue is recognised on a monthly basis from customers with active accounts in line with signed contract agreements.

Transaction and related fees

Revenue is earned on transactions undertaken for clients and related services and recognised on a monthly basis in arrears.

Balance fees

Revenue is earned on certain client balances; this is recognised on a monthly basis in arrears.

Credit interest

Interest earned on BCB's own funds is recognised as interest receivable in profit or loss, using the effective interest rate method.

Cash and cash equivalents are basic financial assets and include on-demand deposits at banks, money market funds (MMFs), other short-term liquid investments with original maturities of three months or less and e-money held with payment service providers. Due to the short duration of the cash and cash equivalents (less than 3 months), the fair value approximates the carrying value at each reporting period.

The company recognises financial assets and liabilities for funds clients hold in BCB payments accounts that are safeguarded at banking partners with whom we have a contractual right to earn credit interest. The liability is recognised upon receipt of cash and is derecognised when cash is paid to a beneficiary.

Interest income on client funds is earned from holding these funds as cash and cash equivalents or investing them into liquid permitted financial assets. These amounts are recognised in the income statement using the effective interest rate method.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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. 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 company after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

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 company’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 when the company has 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.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions that affect the amounts reported in the balance sheet and income statement. However, the nature of estimation means that actual outcomes could differ from these estimates. The critical accounting judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The following critical judgements and estimates had a significant effect on the amounts recognised in the financial statements:

As stated in note 1.2, the financial statements are prepared on a going concern basis. In making this assessment the directors have considered a wide range of information relating to the future. The group operates in fast moving digital assets markets and as a series A business, the group’s success is dependent on revenue growth that is difficult to forecast with certainty, particularly in turbulent market conditions. In addition, the group and the digital assets markets have a limited track record on which to base such forecasts. Accordingly, while the decision to adopt the going concern basis is founded on realistic forecasts, these forecasts are subject to significant uncertainty and actual performance is likely to be different.

During the financial year, the company agreed with its banking partners for certain cash balances to accrue credit interest. As a result, these assets meet the recognition criteria under FRS 102, namely that of future economic benefits flowing to the entity and reliable measurement. However, these assets are solely held on clients’ behalf and are segregated in compliance with the FCA safeguarding regulations; they are not beneficially owned by the company.

Nonetheless, the directors concluded that since holding safeguarded client funds is core to the company’s business model and that interest income was earned on these assets and reporting in the profit and loss account during the financial year, their omission would not accurately reflect the company’s operations.

Accordingly, for the financial year, safeguarded client funds with the contractual right to credit interest, are included in cash and cash equivalents (note 5) with a corresponding liability shown in creditors falling due within one year (note 6). Credit interest earned is included in revenue as it is a primary source of income directly related to the company’s business model.

In the view of the directors, there are no key sources of estimation uncertainty which affect the company's financial statements.

The average monthly number of persons (including directors) employed by the company during the year was:

Included in prepayments and accrued income is accrued income of £622,879 (2023: £163,621).

Cash at bank and in hand was of £346,154,099 (2023: £177,826,686) at the year end, of which £345,286,607 (2023: £176,120,488) related to safeguarded client funds. These funds are fully segregated from BCB ’s own funds in safeguarding bank accounts and term deposits at high quality banking institutions and approved money market funds (MMFs) in compliance with the FCA safeguarding regulations.

Safeguarded clients funds are included in cash on the balance sheet in accordance with the accounting policy and key judgements note.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.

As at the Reporting Date, the Company has not recognised a provision for losses related to Authorised Push Payments (APP) fraud. This is based on the assessment that, while the Company may from time to time bear some customer losses as a gesture of goodwill or in specific circumstances, there is not currently a present obligation that meets the criteria for recognition as a provision under FRS 102. Specifically, the Company does not currently have a constructive obligation to reimburse all APP fraud victims, nor is there a consistent legal obligation that would necessitate a blanket provision for all such losses. It is not practicable to provide a reliable estimate of the financial effect of these potential future outflows at the current time, as the nature and extent of any potential future obligations are not yet sufficiently clear or reliably measurable. Any future costs related to APP fraud that the Company determines it is obligated to bear would be recognised in the period in which the obligation arises and can be reliably measured. Disclosure of this contingent liability is required as the possibility of an outflow of resources is not considered remote.

No remuneration was paid to the directors during the year or prior year.

The company has taken advantage of the exemptions available in Section 33 Related Party Transactions of FRS 102 to not disclose transactions between wholly owned entities in the group.

The immediate and ultimate parent company BCB Group Holdings Limited, incorporated in England and Wales (Company number 11312470). Its registered office address is Bloomsbury House, 74-77 Great Russell Street, London, England, WC1B 3DA. The smallest and largest group in which the results of the company are consolidated is that headed by BCB Group Holdings Limited, its registered office address is Bloomsbury House, 74-77 Great Russell Street, London, England, WC1B 3DA.