Company registration number 07227141 (England and Wales)
STUBBEN EDGE GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
STUBBEN EDGE GROUP LIMITED
COMPANY INFORMATION
Directors
C Kenning
K Barretto
N Davenport
J Britton
(Appointed 14 May 2024)
Y Baber
(Appointed 20 August 2024)
Company number
07227141
Registered office
77 Cornhill
7th Floor
London
England
EC3V 3QQ
Auditor
KPMG Audit LLC
Heritage Court
41 Athol Street
Douglas
Isle of Man
IM1 1LA
Business address
77 Cornhill
7th Floor
London
England
EC3V 3QQ
STUBBEN EDGE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Consolidated profit and loss account
10
Consolidated statement of comprehensive income
11
Consolidated balance sheet
12 - 13
Company balance sheet
14
Consolidated statement of changes in equity
15
Company statement of changes in equity
16
Consolidated statement of cash flows
17
Company statement of cash flows
18
Notes to the financial statements
19 - 56
STUBBEN EDGE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 202 4 for Stubben Edge Group Limited (the "Company") and its subsidiaries (together, the "Group").

Principal activities

The Group’s core activity is the provision of technology, data, and financial infrastructure services across the insurance and wider financial services sector.

Our activities include:

- Technology and Platform Services through FlightDeck - a cloud-based software delivery platform that integrates onboarding, CRM (Customer Relationship Management), compliance, payments, analytics, and product distribution.

- Regulated Intermediary and Underwriting Operations - including Stubben Edge Markets Limited, Stubben Edge & Partners Limited, and 1Edge PCC Limited, our captive insurance vehicle licensed in Guernsey.

- Data Science, Marketing, and Risk Consulting through Jaywing UK, acquired in May 2025, providing advanced analytics, AI, and performance marketing to the Group’s clients.

- Media and Lead Generation via Stubben Edge Media, leveraging digital brands such as SaveMoreMoney and SmallBusiness.co.uk to generate embedded financial opportunities.

- Financial Services Enablement through Stubben Edge Money and Stubben Edge Labs, integrating payments, savings, and compliance solutions for distributors and institutions.

Collectively, these operations form a single, digital ecosystem that connects every stage of the financial services value chain - from marketing and lead generation to product creation, distribution, and underwriting.

Business review

2024 marked a pivotal year in Stubben Edge’s transformation journey. Building upon the foundation of prior acquisitions and technology investment, the Group entered 2025 as a significantly larger and more diversified organisation.

Key highlights include:

- Revenue Growth

Net revenues decreased to £4.3 million (2023: £5.5 million).

- Strategic Acquisition

In May 2025, the Group acquired Jaywing UK, a data science and AI consultancy with strong marketing and risk analytics capabilities. The acquisition has been transformational, adding scale, profitability, and a pipeline of synergistic revenues across data, technology, and financial distribution.

- Synergy Realisation

£1.4 million of synergies were realised within six months post-acquisition, with evidence of cross-sell success across the combined client base. Integration has strengthened our offering to major financial institutions while improving margin resilience.

- Client Base Evolution

The Group’s client portfolio has shifted from smaller independent brokers to major corporate and financial clients. This transition enhances revenue quality, predictability, and contract length.

- Technology Expansion

Our proprietary platform, FlightDeck, continues to evolve toward becoming the “Amazon of Financial Services”. The roadmap includes enhanced CRM, embedded financial product marketplaces, AI underwriting, and data integration capabilities, driving automation and scalability.

STUBBEN EDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The Group’s disciplined approach to cost management, operational streamlining, and integration has created strong operating leverage. With fixed costs largely embedded, incremental revenue now drives meaningful profitability growth.

During the year, the Group decided to discontinue four separate lines of business operated through its subsidiaries, including Stubben Edge Labs, Stubben Edge Markets, Finpoint and Insurercore. The decision formed part of a strategic review to focus on the Group’s core activities.

Principal risks and uncertainties

The Group operates in a dynamic and competitive environment, and as such, it faces a range of risks. However, we are confident in our ability to mitigate these risks through sound governance, strategic planning, and continuous improvement of our processes.

The primary risks identified include:

- Technology and System Risk s

System outages or downtime can disrupt service delivery, delay policy issuance, and damage customer trust. Integration challenges with insurers’ legacy systems may lead to inefficiencies, data mismatches, or transaction errors. Additionally, cybersecurity threats and limited scalability could impact operational continuity and data integrity.

- Regulatory and Compliance Risk s

The insurance industry is subject to evolving and often complex regulatory frameworks. For the 1Edge Insurance subsidiary, staying compliant with changing regulations such as capital adequacy requirements, consumer protection laws, and data privacy mandates is critical. Non-compliance could lead to fines, operational restrictions, or reputational damage.

Credit risk

The Group's principal financial assets are bank balances and cash, trade receivables and other receivables. The

amounts presented in the financial statements are net of allowance for doubtful receivables. An allowance for

impairment is made where there is an identified loss event which, based on our experience, is evidence of a

reduction in the recoverability of cash flows.

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by

international credit rating agencies. The Group has no significant concentration of credit risk with exposure spread

over a large number of counterparties and customers.

Liquidity risk

The Group uses a mixture of permanent share capital and shareholder funding to ensure that it has sufficient funds

available to finance operations, growth, and the long-term development of the business.

Engaging with stakeholders

Section 172 of the Companies Act 2006 requires that the B oard should understand the views of the company's key

stakeholders and take these into consideration in board discussions and decision-making. The directors regularly

and actively engage with the Group's employees, customers, suppliers, and other stakeholders to understand

relevant stakeholder views.

Employees

Employee engagement remains a priority. Regular briefings, newsletters, and company-wide updates support transparency, morale, and alignment with strategic goals.

Customers and suppliers

Ongoing engagement, both digitally and in person, ensures we maintain strong partnerships and deliver responsive solutions.

STUBBEN EDGE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Investors

The Group continues to communicate transparently with shareholders through regular updates, meetings, and financial reporting.

Future Outlook

The Group continues to make progress towards becoming the UK’s leading technology-enabled insurance and financial services platform for intermediaries. Our strategy is centred on delivering measurable growth while scaling the platform into a sustainable, profitable business.

Our priorities are:

- Completion of FlightDeck Development:

Launching the full commercial version of FlightDeck by 2025, reducing onboarding times from 12 weeks to under 10 minutes, and enabling SaaS-based recurring revenues.

- Integration and Restructing:

Completing integration of recent acquisitions and optimising processes to maximise efficiency and synergies.

- Distribution and Premium Growth:

Scaling distribution agreements, particularly in motor insurance, to access over £700 million in premium flows, expanding the intermediary network to 850+ by 2025, and increasing product availability from 127 to more than 200 offerings.

- Underwriting Expansion:

Scaling 1Edge to capture over 15% of premium margins, with continued reinsurance support from A-rated carriers, and broadening the footprint of our Managing General Agent.

- Strategic Growth and Acquisitions:

Targeting bolt-on acquisitions to enhance data capability, regulatory permissions, and distribution technology - accelerating our share of the £40bn UK intermediary market.

- Path to Profitability:

Achieving adjusted EBITDA break-even in 2025, targeting £10.9m EBITDA in 2026, and expanding to double-digit EBITDA margins by 2028.

With a clear strategy, strong leadership, and continued shareholder support, Stubben Edge is positioned to deliver on its ambition to become the leading digital platform for financial services distribution in the UK.

On behalf of the board

C Kenning
Director
20 February 2026
STUBBEN EDGE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Results and dividends

The results for the year are set out on page 10.

No dividends were declared or paid during the year ended 31 December 2024 (2023: £nil).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C Kenning
K Barretto
N Davenport
S Farrell, KC
(Resigned 1 January 2024)
J Britton
(Appointed 14 May 2024)
Y Baber
(Appointed 20 August 2024)
Post reporting date events

The following events and transactions occurred subsequent to 31 December 202 4:

Issue of Share Capital

The continued expansion of the Company resulted in a primary share issuance totalling £10.9m in 2025 at a £175m valuation (£6.41 per share) contributing to the Company’s growing capital base and strengthening the balance sheet for future growth.

Convertible Loan Notes

The £1.587m convertible loan notes issued in February and March 2024 converted to equity in February and March 2025 issuing 404,047 shares at a price of £4.40 per share. The balance of £60k convertible loan notes were repaid.

The £1m convertible loan notes issued in November 2023 converted to equity in March 2025 issuing 263,438 shares at a price of £4.40 per share.

Acquisitions of subsidiary undertakings

The Company has concluded the acquisitions of Jaywing UK Limited and Jaywing Holdings Limited on 14 May 2025 to acquire 100% of the share for a final consideration of £10.75m (£0.75m cash and £10m of deeply discounted bonds accruing interest at 10%). If the Group had completed this acquisition on 1 January 2024, management estimates that the consolidated Revenue and loss for the year would have been £18m and £680k respectively.

As the initial accounting for the above business combinations is incomplete at the time these financial statements are authorised, the Group as not made any other disclosures in respect of these acquisitions.

Auditor

KPMG Audit LLC were the Company's auditor during the year and being eligible have expressed their willingness to continue in office as the Company's auditor in accordance with Section 487 of the Companies Act 2006.

Statement of disclosure to auditor

The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the Company's auditor is unaware; and each director has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Political and charitable donations

The Group did not make political contributions or charitable donations during the year (202 3: Nil).

STUBBEN EDGE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
On behalf of the board
C Kenning
Director
20 February 2026
STUBBEN EDGE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

The directors are responsible for preparing the Annual Report, the Directors' Report and the Group and parent Company 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), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 parent 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 parent C ompany will continue in business;

- assess the Group and parent Company's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern;

- use the going concern basis of accounting unless they either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

STUBBEN EDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STUBBEN EDGE GROUP LIMITED
- 7 -
Opinion

We have audited the consolidated financial statements and company financial statements of Stubben Edge Group Limited (the “Company”) and its subsidiaries (together, the "Group"), which comprise the consolidated and company balance sheet as at 31 December 202 4, the consolidated and company statements of profit and loss account, other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements and company financial statements:

- give a true and fair view of the state of the Group's and of the Company's affairs as at 31 December 2024 and and of the Group's loss for the year then ended;

- are properly prepared in accordance with United Kingdom accounting standards, including FRS 102 The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland; 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 are described below. We have fulfilled our ethical responsibilities under, and are independent of the Company and Group in accordance with, UK ethical requirements including FRC Ethical Standards. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 1.4 to the consolidated financial statements and company financial statements which indicates that the Group’s and Company’s ability to continue as a going concern is dependent on the successful completion of refinancing of its bank borrowings within twelve months from the date of approval of the financial statements. That note indicates that the refinancing has not yet been completed as of the date of approval of the financial statements. These events and conditions, along with the other matters explained in note 1.4, constitute a material uncertainty that may cast significant doubt on the Company's and Group's ability to continue as a going concern. Our opinion is not modified in this respect.

Going concern

The directors have prepared the consolidated financial statements and company financial statements on the going concern basis.They have concluded, as stated above, that a material uncertainty related to going concern exists.

Based on our consolidated financial statements and company financial statements audit work, we consider that the directors' use of the going concern basis of accounting in the preparation of the consolidated financial statements and company financial statements is appropriate.

Fraud and breaches of laws and regulations - ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

- enquiring of management as to the Group’s policies and procedures to prevent and detect fraud as well as enquiring whether management have knowledge of any actual, suspected or alleged fraud;

- reading minutes of meetings of those charged with governance; and

- using analytical procedures to identify any unusual or unexpected relationships.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because the Group’s revenue streams are simple in nature with respect to accounting policy choice, and are easily verifiable to external data sources or agreements with little or no requirement for estimation from management. We did not identify any additional fraud risks.

STUBBEN EDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STUBBEN EDGE GROUP LIMITED
- 8 -

We performed procedures including:

- identifying journal entries and other adjustments to test based on risk criteria and comparing any identified entries to supporting documentation; and

- incorporating an element of unpredictability in our audit procedures;

- evaluating the design and implementation of the relevant controls over revenue recognition; and

- for a statistical sample of revenue transactions, tracing the sampled revenue transactions to the underlying invoices issued, contracts, and to the cash receipts.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the consolidated financial statements and company financial statements from our general sector experience and through discussion with management (as required by auditing standards), and discussed with management the policies and procedures regarding compliance with laws and regulations.

The Group is subject to laws and regulations that directly affect the consolidated financial statements and company financial statements including financial reporting legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

The Group is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the consolidated financial statements and company financial statements, for instance through the imposition of litigation or impacts on the Group and the Company’s ability to operate. We identified company law as being the area most likely to have such an effect. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the consolidated financial statements and company financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the consolidated financial statements and company financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as this may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

The directors' report and strategic report

The directors are responsible for the strategic report and the directors' report. Our opinion on the consolidated financial statements and company financial statements does not cover those reports and we do not express an audit opinion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our consolidated financial statements and company financial statements audit work, the information therein is materially misstated or inconsistent with the consolidated financial statements and company financial statements or our audit knowledge. Based solely on that work:

- we have not identified material misstatements in the strategic report and the directors' report;

- in our opinion the information given in those reports for the financial year is consistent with the consolidated financial statements and company financial statements; and

- in our opinion those reports have been prepared in accordance with the Companies Act 2006.

STUBBEN EDGE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STUBBEN EDGE GROUP LIMITED
- 9 -
Matters on which we are required to report by exception

Under the Companies Act 2006, we are required to report to you if, in our opinion:

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

- t he 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.

We have nothing to report in these respects.

Respective responsibilities
Directors' responsibilities

As explained more fully in their statement set out on page 6, the directors are responsible for: the preparation of the consolidated financial statements and company financial statements including being satisfied that they give a true and fair view; such internal control as they determine is necessary to enable the preparation of consolidated financial statements and company financial statements that are free from material misstatement, whether due to fraud or error; assessing the Group and 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 they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and company financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements and company financial statements.

A fuller description of our responsibilities is provided on the FRC's website at

www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Desmond Yegon (Senior Statutory Auditor)
For and on behalf of KPMG Audit LLC, Statutory Auditor
Chartered Accountants
Isle of Man
20 February 2026
STUBBEN EDGE GROUP LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Continuing
Discontinued
31 December
Continuing
Discontinued
31 December
operations
operations *
2024
operations
operations
2023
(as restated*)
(as restated*)
Notes
£
£
£
£
£
£
Revenue
3
3,847,284
458,634
4,305,918
4,087,482
1,486,280
5,573,762
Cost of sales
(388,819)
(66,185)
(455,004)
(693,739)
(489,369)
(1,183,108)
Insurance premium revenue
29,500
-
29,500
16,155
-
16,155
Gross profit
3,487,965
392,449
3,880,414
3,409,898
996,911
4,406,809
Administrative expenses
(16,711,902)
(565,754)
(17,277,656)
(13,317,107)
(1,533,027)
(14,850,134)
Changes in insurance contract technical provisions
373,270
-
373,270
(793,757)
-
(793,757)
Loss on disposal of intangible assets
-
(135,284)
(135,284)
-
-
-
Operating loss
4
(12,850,667)
(308,589)
(13,159,256)
(10,700,966)
(536,116)
(11,237,082)
Share of results of associates
-
-
-
0
(25,000)
-
(25,000)
Interest receivable and similar income
8
255,936
-
255,936
172,720
-
172,720
Interest payable and similar expenses
9
(1,079,151)
-
(1,079,151)
(249,991)
-
(249,991)
Amounts written off investments
10
(1,166)
-
(1,166)
(10,511)
-
(10,511)
Loss before taxation
(13,675,048)
(308,589)
(13,983,637)
(10,813,748)
(536,116)
(11,349,864)
Tax on loss
11
1,080,829
-
1,080,829
434,924
-
434,924
Loss for the financial year
(12,594,219)
(308,589)
(12,902,808)
(10,378,824)
(536,116)
(10,914,940)
Loss for the financial year is all attributable to the owners of the parent company.

The notes on pages 19 to 56 form part of these financial statements.

* Please see note 12 for details on the discontinued operations.
STUBBEN EDGE GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
£
£
Loss for the year
(12,902,808)
(10,914,940)
Other comprehensive income
Foreign exchanges differences on translation of foreign operations
(20,631)
(128,928)
Total comprehensive loss for the year
(12,923,439)
(11,043,868)
Total comprehensive loss for the year is all attributable to the owners of the parent company.

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
CONSOLIDATED BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
14
1,261,431
3,634,803
Other intangible assets
14
7,587,367
8,707,037
Total intangible assets
8,848,798
12,341,840
Tangible assets
15
223,330
333,604
9,072,128
12,675,444
Current assets
Debtors
19
6,445,748
6,462,949
Fixed deposits
757,490
1,015,607
Cash at bank and in hand
20
10,737,225
11,433,293
17,940,463
18,911,849
Creditors: amounts falling due within one year
21
(24,943,651)
(24,080,989)
Net current liabilities
(7,003,188)
(5,169,140)
Total assets less current liabilities
2,068,940
7,506,304
Creditors: amounts falling due after more than one year
22
(3,014,673)
(1,065,834)
Provisions for liabilities
Insurance contracts technical provisions
24
420,487
793,757
Deferred tax liability
25
570,257
1,062,250
(990,744)
(1,856,007)
Net (liabilities)/assets
(1,936,477)
4,584,463
Capital and reserves
Called up share capital
28
3
3
Share premium account
29
39,670,439
33,267,940
Other reserves
(178,239)
(157,608)
Profit and loss reserves
(41,428,680)
(28,525,872)
Total equity
(1,936,477)
4,584,463

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
CONSOLIDATED BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 20 February 2026 and are signed on its behalf by:
20 February 2026
C Kenning
Director
Company registration number 07227141 (England and Wales)
STUBBEN EDGE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
14
5,315,504
4,405,652
Tangible assets
15
210,192
313,604
Investments
16
7,975,562
11,729,766
13,501,258
16,449,022
Current assets
Debtors
19
4,315,016
5,905,571
Cash at bank and in hand
143,612
71,350
4,458,628
5,976,921
Creditors: amounts falling due within one year
21
(12,157,542)
(11,065,038)
Net current liabilities
(7,698,914)
(5,088,117)
Total assets less current liabilities
5,802,344
11,360,905
Creditors: amounts falling due after more than one year
22
(2,994,673)
(1,035,834)
Net assets
2,807,671
10,325,071
Capital and reserves
Called up share capital
28
3
3
Share premium account
39,670,439
33,267,940
Profit and loss reserves
(36,862,771)
(22,942,872)
Total equity
2,807,671
10,325,071

The notes on pages 19 to 56 form part of these financial statements.

As permitted by s408 Companies Act 2006, the C ompany has not presented its own profit and loss account and related notes. The C ompany’s loss for the year was £13,919,899 (2023 - £8,235,694 loss).

The financial statements were approved by the board of directors and authorised for issue on 20 February 2026 and are signed on its behalf by:
20 February 2026
C Kenning
Director
Company registration number 07227141 (England and Wales)
STUBBEN EDGE GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
3
26,964,589
(28,680)
(17,610,932)
9,324,980
Year ended 31 December 2023:
Loss for the year
-
-
-
(10,914,940)
(10,914,940)
Other comprehensive income:
Foreign exchange differences on translation of foreign operations
-
-
(128,928)
-
0
(128,928)
Total comprehensive income
-
-
(128,928)
(10,914,940)
(11,043,868)
Issue of share capital
29
-
0
6,303,351
-
-
6,303,351
Balance at 31 December 2023
3
33,267,940
(157,608)
(28,525,872)
4,584,463
Year ended 31 December 2024:
Loss for the year
-
-
-
(12,902,808)
(12,902,808)
Other comprehensive income:
Foreign exchange differences on translation of foreign operations
-
-
(20,631)
-
0
(20,631)
Total comprehensive income
-
-
(20,631)
(12,902,808)
(12,923,439)
Issue of share capital
29
-
0
6,402,499
-
-
6,402,499
Balance at 31 December 2024
3
39,670,439
(178,239)
(41,428,680)
(1,936,477)

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
3
26,964,589
(14,707,178)
12,257,414
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(8,235,694)
(8,235,694)
Issue of share capital
29
-
0
6,303,351
-
6,303,351
Balance at 31 December 2023
3
33,267,940
(22,942,872)
10,325,071
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
(13,919,899)
(13,919,899)
Issue of share capital
29
-
0
6,402,499
-
6,402,499
Balance at 31 December 2024
3
39,670,439
(36,862,771)
2,807,671

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
36
(7,619,469)
(2,321,839)
Interest paid
(1,079,151)
(249,991)
Income taxes refunded
118,100
-
Net cash outflow from operating activities
(8,580,520)
(2,571,830)
Investing activities
Purchase of intangible assets
(1,926,337)
(2,934,487)
Proceeds from disposal of intangibles
833,119
-
Purchase of tangible fixed assets
(11,283)
(72,425)
Purchase of subsidiaries, net of cash acquired
-
(1,360,879)
Payment of deferred consideration
(337,500)
(300,000)
Proceeds on maturity of fixed deposit
1,015,607
250,000
Interest received
203,844
172,720
Investment in fixed deposit
(757,490)
(1,015,607)
Other income received from investments
52,092
-
Net cash used in investing activities
(927,948)
(5,260,678)
Financing activities
Proceeds from issue of shares
6,332,502
3,309,691
Share issue costs
(113,776)
(76,334)
Proceeds from other borrowings
1,958,839
1,000,000
Proceeds from new bank loans
635,000
5,650,000
Net cash generated from financing activities
8,812,565
9,883,357
Net (decrease)/increase in cash and cash equivalents
(695,903)
2,050,849
Cash and cash equivalents at beginning of year
11,432,616
9,381,767
Cash and cash equivalents at end of year
10,736,713
11,432,616
Relating to:
Own cash and cash equivalents
1,037,303
571,015
Cash held at banks in respect of customers
9,699,922
10,862,278
Bank overdrafts included in creditors payable within one year
(512)
(677)

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
37
(6,076,167)
(8,147,581)
Interest paid
(1,132,895)
(247,364)
Income taxes refunded
118,100
-
Net cash outflow from operating activities
(7,090,962)
(8,394,945)
Investing activities
Purchase of intangible assets
(1,922,937)
(2,870,074)
Purchase of tangible fixed assets
(11,228)
(63,344)
Acquisition of subsidiary undertakings
-
(1,430,000)
Payment of deferred consideration
(337,500)
(300,000)
Additional investment in subsidiaries
(210,795)
(824,511)
Proceeds from disposal of discontinued operations
833,119
-
0
Interest received
-
0
37,597
Proceeds on maturity of fixed deposit
-
0
250,000
Net cash used in investing activities
(1,649,341)
(5,200,332)
Financing activities
Proceeds from issue of shares
6,332,502
3,309,691
Share issue costs
(113,776)
(76,334)
Proceeds from other borrowings
-
0
1,000,000
Repayment of borrowings
1,958,839
-
Proceeds from new bank loans
635,000
5,650,000
Net cash generated from financing activities
8,812,565
9,883,357
Net increase/(decrease) in cash and cash equivalents
72,262
(3,711,920)
Cash and cash equivalents at beginning of year
71,350
3,783,270
Cash and cash equivalents at end of year
143,612
71,350

The notes on pages 19 to 56 form part of these financial statements.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
1
Accounting policies
Company information

Stubben Edge Group Limited (the "Company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 77 Cornhill, 7th Floor, London, England, EC3V 3QQ.

The group consists of Stubben Edge Group Limited (the "Company") and all of its subsidiaries (together, the "Group").

1.1
Accounting convention

These Group and parent Company financial statements have been prepared in accordance with Financial Reporting Standard 102 (“FRS 102”), the Financial Reporting Standard applicable in the UK and Republic of Ireland, and FRS 103: Insurance Contracts, as issued by the Financial Reporting Council, and in compliance with the UK Companies Act 2006.

The financial statements are prepared in sterling, which is the presentational and functional currency of the Group. Monetary a mounts in these financial statements are rounded to the nearest £ unless otherwise stated.

The financial statements have been prepared under the historical cost. The principal accounting policies adopted are set out below.

1.2
Business combinations

The Group accounts for business combinations using the acquisition method in accordance with FRS 102. The cost of a business combination is measured as the fair value of the consideration transferred, including any directly attributable transaction costs. The identifiable assets and liabilities acquired are recognised at their fair values at the acquisition date.

Goodwill arising on acquisition is recognised as the excess of the cost of the combination over the fair value of the identifiable net assets acquired. Goodwill is capitalised as an intangible asset and amortised on a straight-line basis over its estimated useful life. Where no reliable estimate of useful life can be made, goodwill is amortised over a period not exceeding ten years. Goodwill is reviewed for indicators of impairment at each reporting date and is written down if necessary.

Negative goodwill arising on a business combination is recognised immediately in profit or loss.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Stubben Edge Group 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 g roup.

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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -

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.

1.4
Going concern

The financial statements have been prepared on a going concern basis, which assumes that Stubben Edge Group Limited (“the Group”) will continue to operate for at least next 12 months from the date of approval of these financial statements.

The Group reported a loss before tax of £14m for the year ended 31 December 2024 (2023: loss of £11.3m). The Board notes that these results are consistent with the Group’s growth strategy, which prioritises investment and long-term value creation over short-term profitability.

In the year ended 31 December 2024, the Group has raised £6.3m in cash inflow from issue of shares. The Group has continued to attract new investment from new and existing shareholders with £10.9m having been received in the period since the balance sheet date. A further £1m is committed but unpaid at the date of signing of these financial statements. In addition, as disclosed in the prior year’s financial statements, £1.6m of convertible loan notes issued in 2024 were converted to equity in 2025. In management's view, this shows continued support for, and validation of, the Group’s strategic direction, with the Group forecast to become profitable and cash generative in 2026.

The Group has bank borrowing of £6.3m. Those borrowings were recently extended for a period of 13 months and is scheduled to mature on 31st January 2027, pending a longer-term refinancing agreement. The bank has expressed in writing their interest to enter into this refinancing agreement in the near future, subject to the successful completion of credit approval procedures by the bank.

Whilst the Board believes it is highly probable that the facility will be successfully refinanced, there remains a possibility that the renewal will not be successful.

Management has reviewed the Group’s cash flow forecasts and performed stress testing under various scenarios, including both base and stretch cases, to assess the Group’s (including also the Company’s) ability to continue operating as a going concern and the Board is confident that the Group is able to meet these financial projections should the bank borrowings’ maturity date be extended. Nonetheless, consistent with similar early-stage, tech-driven businesses, there remains a risk that the Group may not meet its financial projections.

While the refinancing has been extended in the short-term for a further 13 months, the longer-term refinancing will not take place until 2026 and hence is not formally concluded at the date of approval of these financial statements. As a result, accounting standards require disclosure of events or conditions that may cast significant doubt on its ability to continue as a going concern.

The Board notes that, should refinancing not be completed on the expected terms, the Group has a range of viable alternatives available, including engaging new lenders, raising additional equity, or selectively disposing of non-core assets. None of these plans have yet been formalised, although the Board remains reasonably confident that the Group will manage to obtain adequate resources to continue as a going concern.

Notwithstanding the Board’s assumptions, the renewal of the borrowing is beyond the control of the Directors and so, in the event that the loan is not renewed and alternative funding is not secured, the Group may not be able to meet its obligations as and when these fall due. As a result, these events or conditions indicate that a material uncertainty exists that may cast doubt on the Group’s (and the Company’s) ability to continue as a going concern and, therefore, the Group (and the Company) may be unable to realise its assets and discharge its liabilities in the normal course of business.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -

These financial statements have been prepared on a going concern basis and do not contain any adjustments that may otherwise be required if the going concern basis was not appropriate.

1.5
Turnover

In accordance with FRS 103, the Group has assessed and determined that its existing accounting policies for revenue arising from insurance contracts remain appropriate and have been retained. Revenue from other sources is recognised in accordance with FRS 102, Section 23 (Revenue).

Revenue is measured at the fair value of the consideration receivable, excluding value added tax and other sales-related taxes. Revenue is recognised to the extent that it is probable that economic benefits will flow to the Company and the amount can be measured reliably.

T he principal sources of revenue are as follows:

- Commission income from insurance broking is recognised when the service has been provided and the amount is measurable with reasonable certainty. This is typically upon the later of the policy inception date or the date of invoice.

- Advertising income is recognised over the period during which the advertisement is published or displayed, on a straight-line basis.

- Event income is recognised over the duration of the event, as the related services are delivered.

- Platform fees, charged for the provision of custody and administrative services, are recognised on an accruals basis in the period to which they relate. Fees are typically based on the value of assets under administration.

Where income is invoiced in advance of service delivery, it is deferred and recognised over the relevant period.

1.6
Research and development expenditure

Expenditure on research activities is recognised in the profit and loss account as an expense as incurred. Expenditure on development activities is capitalised if the product or process is technically and commercially feasible and the Company intends and has the technical ability and sufficient resources to complete development, future economic benefits are probable and if the Company can measure reliably the expenditure attributable to the intangible asset during its development.

1.7
Intangible fixed assets - goodwill

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 5 years.

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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.8
Intangible fixed assets other than goodwill

Development expenditure is capitalised only when the cost can be measured reliably, the product or process

is technically and commercially feasible, future economic benefits are probable, and the Group has the

intention and resources to complete development and use or sell the resulting asset. Capitalised development

costs include direct staff costs and other directly attributable expenditure necessary to prepare the asset for its

intended use.

If these criteria are not met, development costs are recognised in profit or loss as incurred.

Capitalised development expenditure is measured at cost less accumulated amortisation and any

accumulated impairment losses. Amortisation is charged on a straight-line basis over the estimated useful life

of the asset, which is typically between 3 and 5 years. The assets are reviewed for indicators of impairment at

each reporting date.

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 charged on a straight-line basis over the estimated useful life of the asset, which is typically between 3 and 5 years.

1.9
Tangible fixed assets

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:

Leasehold land and buildings
Straight line over 5 years
Fixtures and fittings
Straight line over 3 years
Computers
Straight line over 3 years

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.

1.10
Fixed asset investments

Equity in vest ments 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.

I n 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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -

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 g roup’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 c ompany 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.

1.11
Impairment of fixed assets

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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.12
Cash and cash equivalents

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. Bank overdrafts are shown within borrowings in current liabilities.

Cash is also inclusive of cash equivalents held by the company on behalf of other parties, inclusive of client money accounts, whereby cash is held but does not belong to the company or any member of the same group.

1.13
Financial instruments

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

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 m ethod 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

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.

Impairment of financial assets

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.

Derecognition of financial assets

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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 25 -
Classification of financial liabilities

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

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 paymen ts 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.

Other financial liabilities

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 th r ough 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

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.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current 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.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
Deferred tax

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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
Employee benefits

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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

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 lease d asset are consumed.

1.20

lnsurance contracts

The Group's insurance subsidiary, 1Edge Insurance PCC Limited ( “1Edge”) issues contracts that transfer insurance risk. lnsurance contracts are those contracts that transfer significant insurance risk. Such contracts also transfer financial risk. A contract classified as an insurance contract continues to be treated as such until all rights and obligations under the contract expire.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 27 -
1.21

Long-term business technical provision s

The long-t erm business technical provisions on life insurance contracts comprise policy reserves and other technical provisions which comprise overhead expense reserves relating to policies existing as at the reporting date.

The policy reserves have been determined on a policy by policy basis by projecting the expected future cash flows over the remaining duration of the policies from the reporting date, and discounting at risk free rates. The future cash flows comprise of premiums less the future cash outflows relating to claims and maintenance expenses.

The other technical provisions have been determined by projecting the expected future fixed overhea d expenses in excess of the maintenance expenses included within the policy reserves, and discounting a t risk free rates.

2
Judgements and key sources of estimation uncertainty

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 determination of the liabilities under long-term insurance contracts for the Group’s insurance subsidiary, 1Edge Insurance PCC Limited ( “1Edge”), is dependent on estimates made. Estimates are made as to the expected number of deaths for each of the years in which 1Edge is exposed to risk and the value of expenses for each of the years in which 1Edge is exposed to risk. For the expected number of deaths, 1Edge bases these estimates on mortality tables produced by the Royal Dutch Actuarial Association that is populated by data from a series of European countries with an above average Gross Domestic Product of which the UK is included. For the value of expenses, 1Edge takes the current level of recurring expense as an appropriate expense base and increases it each year in line with UK inflation, derived from the implied inflation spot curve as at 31 December 2024 published by the Bank of England, projected on a present value basis using an appropriate discount rate over the weighted average duration/term of in force policies.

Information about assumptions and estimation uncertainties at the reporting date that have a significant risk of resulting in material adjustment to the carrying amounts of assets and liabilities within the next financial year is included in the following notes:

- Note 15: intangible assets: amortisation reflects write-down of goodwill over its useful life.

- Note 26: recognition of deferred tax assets: availability of future taxable profits against which deductible temporary differences and tax losses carried forward can be utilised.

-Note 36: financial risk management: the assumptions applied in measuring the Group's long-term insurance contract liabilities.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Commissions income from insurance broking
3,301,937
4,266,840
Event income
20,530
671,157
Income from subscriptions
983,451
635,765
Insurance premium revenue
29,500
16,155
4,335,418
5,589,917
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,305,918
5,573,762
Guernsey
29,500
16,155
4,335,418
5,589,917
2024
2023
Note
£
£
Other revenue
Interest income
8
203,844
153,527
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
5,481
3,075
Depreciation of owned tangible fixed assets
121,558
119,355
Profit on disposal of tangible fixed assets
-
(26)
Amortisation of intangible assets
2,917,416
1,476,447
Impairment of intangible assets
1,533,560
-
Reversal of past impairment loss recognised on intangible assets
-
0
(1,565,155)
Loss on disposal of intangible assets
135,284
-
Share-based payments
-
469,994
Operating lease charges
569,531
584,882
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Fees payable to Company's auditor for the audit of the Group financial statements
150,000
150,000
Other fees for the audit of the Company's subsidiary undertakings
36,000
36,000
186,000
186,000
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
110
127
96
89

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,147,543
7,978,868
3,265,930
4,574,637
Social security costs
781,102
913,855
765,107
886,229
Pension costs
378,486
318,520
374,736
312,409
7,307,131
9,211,243
4,405,773
5,773,275
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
7
Directors' remuneration - Group
2024
2023
£
£
Wages and salaries
508,826
547,356
Social security costs
58,503
63,642
Company pension contributions to defined contribution schemes
20,500
17,250
587,829
628,248
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Wages and salaries
250,000
283,856
Company pension contributions to defined contribution schemes
7,500
7,500
7
Directors' remuneration - Company
2024
2023
£
£
Wages and salaries
460,333
497,606
Social security costs
58,503
63,642
Company pension contributions to defined contribution schemes
20,500
17,250
539,336
578,498
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Wages and salaries
250,000
283,856
Company pension contributions to defined contribution schemes
7,500
7,500
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
203,844
153,521
Other interest income
-
6
Total interest revenue
203,844
153,527
Income from fixed asset investments
Income from other fixed asset investments
52,092
19,193
Total income
255,936
172,720
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
203,844
153,521
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
762,819
211,287
Other interest on financial liabilities
-
35,486
762,819
246,773
Other finance costs:
Other interest costs
316,332
3,218
Total finance costs
1,079,151
249,991
10
Amounts written off investments
2024
2023
£
£
(Loss)/gain on disposal of investments held at fair value
(1,166)
823
Amounts written back to/(written off) current loans
-
(11,334)
(1,166)
(10,511)
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
447
Adjustments in respect of prior periods
(614,148)
(159,126)
Total current tax
(614,148)
(158,679)
Deferred tax
Origination and reversal of timing differences
(466,681)
(276,245)
Total tax credit
(1,080,829)
(434,924)

The actual credit 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:

2024
2023
£
£
Loss before taxation
(13,983,637)
(11,349,864)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
(3,495,909)
(2,667,218)
Tax effect of expenses that are not deductible in determining taxable profit
1,006,708
453,786
Tax effect of income not taxable in determining taxable profit
-
0
(367,811)
Current year losses for which no deferred tax asset is recognised
2,022,520
2,305,445
Changes in estimates related to prior years
(614,148)
(159,126)
Taxation credit
(1,080,829)
(434,924)
12
Discontinued operations

During the year, the Group resolved to discontinue four distinct lines of business conducted through its subsidiaries, namely Stubben Edge Labs (formerly Blackmore Borley Limited), Stubben Edge Markets, Finpoint and Insurercore.The decision formed part of a strategic review to focus on the Group’s core activities. The results of these businesses have been presented separately as discontinued operations. Comparative figures have been restated accordingly to reflect this presentation.

On 31 October 2024, the Group completed the disposal of the Blackmore Borley Limited subsidiary’s book of business. The transaction resulted in a loss on disposal of £135,284, being the difference between the carrying value of the assets associated with the book and the consideration received.

The loss on sale has been recognised as part of the profit and loss account as noted below:

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
12
Discontinued operations
(Continued)
- 33 -
Sales proceeds
833,119
Less:
Assets de-recognised
(968,403)
Loss on sale
(135,284)
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Goodwill
14
1,506,366
-
Intangible assets
14
27,194
29,577
Associated company intercompany loans
12
255,952
-
Recognised in:
Administrative expenses
1,789,512
29,577

Reversals of previous impairment losses have been recognised in profit or loss as follows:

2024
2023
Notes
£
£
In respect of:
Intangible assets
14
-
1,565,155
Recognised in:
Administrative expenses
-
1,565,155
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
14
Intangible fixed assets
Group
Goodwill
Software
Contractual relationships
Brands
Licence
Total
£
£
£
£
£
£
Cost
At 1 January 2024
7,723,537
5,089,504
3,850,893
796,711
433,068
17,893,713
Additions
-
0
1,926,337
-
0
-
0
-
1,926,337
Disposals
-
0
-
0
(1,027,022)
(222,326)
(39,111)
(1,288,459)
At 31 December 2024
7,723,537
7,015,841
2,823,871
574,385
393,957
18,531,591
Amortisation and impairment
At 1 January 2024
4,088,734
542,813
671,112
154,241
94,973
5,551,873
Amortisation charged for the year
867,006
1,077,224
735,945
151,931
85,310
2,917,416
Impairment losses
1,506,366
27,194
-
0
-
0
-
1,533,560
Disposals
-
0
-
0
(254,709)
(55,571)
(9,776)
(320,056)
At 31 December 2024
6,462,106
1,647,231
1,152,348
250,601
170,507
9,682,793
Carrying amount
At 31 December 2024
1,261,431
5,368,610
1,671,523
323,784
223,450
8,848,798
At 31 December 2023
3,634,803
4,546,691
3,179,781
642,470
338,095
12,341,840
14
Intangible fixed assets
Company
Software
£
Cost
At 1 January 2024
4,741,086
Additions
1,922,937
Transfers
67,813
At 31 December 2024
6,731,836
Amortisation and impairment
At 1 January 2024
335,434
Amortisation charged for the year
1,053,704
Impairment losses
27,194
At 31 December 2024
1,416,332
Carrying amount
At 31 December 2024
5,315,504
At 31 December 2023
4,405,652
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Intangible fixed assets
(Continued)
- 35 -

More information on impairment movements in the year is given in note 13.

15
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
285,511
239,307
33,680
558,498
Additions
-
0
11,228
55
11,283
At 31 December 2024
285,511
250,535
33,735
569,781
Depreciation and impairment
At 1 January 2024
89,529
112,313
23,052
224,894
Depreciation charged in the year
53,310
61,576
6,671
121,557
At 31 December 2024
142,839
173,889
29,723
346,451
Carrying amount
At 31 December 2024
142,672
76,646
4,012
223,330
At 31 December 2023
195,982
126,994
10,628
333,604
Company
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
285,512
228,041
513,553
Additions
-
0
11,228
11,228
At 31 December 2024
285,512
239,269
524,781
Depreciation and impairment
At 1 January 2024
89,529
110,419
199,948
Depreciation charged in the year
53,311
61,330
114,641
At 31 December 2024
142,840
171,749
314,589
Carrying amount
At 31 December 2024
142,672
67,520
210,192
At 31 December 2023
195,982
117,622
313,604
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
7,950,562
11,704,766
Investments in associates
-
0
-
0
25,000
25,000
-
0
-
0
7,975,562
11,729,766

The Group owns a 37.5% interest in Duffy Boxing Limited through the acquisition of shareholdings interest in t he entity.

The Group determined that they hold significant influence over Duffy Boxing Limited based on that fact that the Company has the right to appoint a Director to the board. Considering this in conjunction with percentage holding of the overall issued share capital at the year end, the Group consider that they have the power to exercise significant influence. As a result, Duffy Boxing Limited has been included in the financial statements using the equity method.

Movements in fixed asset investments
Company
Shares in subsidiaries
Investment in associates
Total
£
£
£
Cost or valuation
At 1 January 2024
11,704,766
25,000
11,729,766
Additions
210,795
-
210,795
Impairments
(633,000)
-
(633,000)
Disposals
(3,331,999)
-
(3,331,999)
At 31 December 2024
7,950,562
25,000
7,975,562
Carrying amount
At 31 December 2024
7,950,562
25,000
7,975,562
At 31 December 2023
11,704,766
25,000
11,729,766
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
17
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Stubben Edge (Risk) Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Group Operations Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Labs (SE Labs) Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Lucid UX Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Operations Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Claims Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Payments Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge SA (Pty) Ltd
18 Lavin Road, Bedfordview, Johannesburg 2008
Ordinary
100.00
-
Stubben Edge Products Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Genesis Special Risks Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Finpoint Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Akoni Innovations Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
0
100.00
Akoni Hub Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
0
100.00
Insurercore Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Media Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Events Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Capital Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Distribution Ltd
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge & Partners Limited
(formerly Helodrium Limited)
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Stubben Edge Markets (formerly
Blackmore Borley Limited)
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
Randell Dorling Limited
77 Cornhill, 7th Floor, London, England, EC3V 3QQ
Ordinary
100.00
-
1Edge Insurance PCC Limited
1st Floor, Albert House, South Esplanade, St Peter Port, Guernsey, GY1 1AJ
Ordinary
100.00
-

With the exception of 1Edge Insurance PCC Limited, the subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A. The Company has provided the guarantees required under section 479C of the Companies Act 2006 in respect of those subsidiaries claiming exemption from audit.

18
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
-
-
25,000
25,000
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,309,206
4,615,009
166,185
139,241
Corporation tax recoverable
650,865
155,488
634,274
138,226
Amounts owed by group undertakings
-
-
3,148,350
4,948,114
Other debtors
1,163,098
1,083,437
173,574
356,366
Prepayments and accrued income
302,337
563,461
192,633
323,624
6,425,506
6,417,395
4,315,016
5,905,571
Amounts falling due after more than one year:
Deferred tax asset (note 26)
20,242
45,554
-
0
-
0
Total debtors
6,445,748
6,462,949
4,315,016
5,905,571

Amounts owed by group undertakings are unsecured, interest free and repayable on demand. These receivable amounts are considered current and are not credit impaired. No impairment allowance has been recognised in respect of these amounts as these are deemed to be fully recoverable.

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value. No significant receivable balances are impaired at the reporting end date.

Included within other debtors is a balance of £614,648 (202 3: £650,605) which relates to premiums and commission due from insurers to the Group.

Included within other debtors is a balance of £nil (202 3: £175,866) which relates to amounts owed from Duffy Boxing Limited, an associated company. During the year, an amount owed from Duffy Boxing Limited of £255,952 was impaired.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
20
Cash and cash equivalents
Group
2024
2023
£
£
Bank balances
10,737,225
11,433,293
Cash and cash equivalents in the statement of financial position
10,737,225
11,433,293
Cash and cash equivalents in the statement of cash flows
10,737,225
11,433,293
Counterparties holding Group cash balances are subject to pre-approval and are limited to institutions with credit ratings of BB- or higher.
Included in the balances above are fiduciary cash balances of £9,699,922 (2023: £10,862,278) which comprise client and insurer monies and fees and commissions earned but undrawn as at the balance sheet date. These funds are held in separate bank accounts for the benefit of clients and insurers.
The Group has cash balances of £1,136,394 (2023: £1,194,674) which are held in Guernsey. These amounts include fixed deposits of £757,490 (2023: £1,015,607) which have a maturity of between 3 months and 1 year.
Company
2024
2023
£
£
Bank balances
143,612
71,350
Cash and cash equivalents in the statement of financial position
143,612
71,350
Cash and cash equivalents in the statement of cash flows
143,612
71,350
Counterparties holding Group cash balances are subject to pre-approval and are limited to institutions with credit ratings of BB- or higher.
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 40 -
21
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank overdrafts
23
-
677
-
-
Bank loans
23
6,339,101
5,694,259
6,338,589
5,694,259
Trade creditors
5,578,795
6,355,713
1,105,996
873,380
Amounts owed to group undertakings
-
0
-
0
1,971,104
2,479,767
Corporation tax payable
179
37,374
-
0
-
0
Other taxation and social security
1,447,535
903,553
1,376,900
883,711
Deferred income
26
53,623
22,838
48,384
18,309
Other creditors
10,839,110
10,562,435
775,605
770,867
Accruals
685,308
504,140
540,964
344,745
24,943,651
24,080,989
12,157,542
11,065,038

Included in other creditors is a balance of £667,299 (2023: £943,439) owing to third-party underwriters and brokers. These amounts are unsecured, interest fee and repayable on demand.

Included in other creditors is a balance of £7,213,630 (2023: £8,778,884) which relates to client deposits held within the Akoni hub account, pending a placement instruction to be deposited on a panel bank.

Included in other creditors are directors' loan balances of £224,083 (2023: £20,867) which are unsecured, interest free and repayable on demand.

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

22
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
23
20,000
30,000
-
0
-
0
Other borrowings
23
2,994,673
1,035,834
2,994,673
1,035,834
3,014,673
1,065,834
2,994,673
1,035,834

Included in other borrowings is a loan note of £1,000,000 which carried interest at 12% per annum and was secured by a floating charge. The loan included an option to convert to equity, which was exercised in March 2025.

Included within other borrowings are amounts advanced to the Company by unrelated third parties. These loans are unsecured, bear interest at 10% per annum and have subsequently been repaid in 2025.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 41 -
23
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,358,589
5,724,259
6,338,589
5,694,259
Bank overdrafts
512
677
-
0
-
0
Other loans
2,994,673
1,035,834
2,994,673
1,035,834
9,353,774
6,760,770
9,333,262
6,730,093
Payable within one year
6,339,101
5,694,936
6,338,589
5,694,259
Payable after one year
3,014,673
1,065,834
2,994,673
1,035,834

The Company entered into a new loan agreement on 1 July 2023 comprising a term loan

facility of £2.5 million and a revolving credit facility of £5.0 million, of which £3.15 million had been drawn

down as at the year end. The loan carries interest at a rate of 6.50% per annum above the Bank of England

Base Rate. The facility is secured by a debenture executed by each of the subsidiaries of the Group. The loan

has a term of 2 years and 6 months from the date of the agreement.

The Company issued £1,000,000 of 12% fixed-rate secured convertible loan notes on 21 November 2023.

The notes are repayable in 2.5 years with interest payable at maturity. Although the notes include a

conversion feature, the number of shares to be issued is based on a discount to a future unknown share price.

As such, the instrument does not meet the fixed-for-fixed criterion under FRS 102 and is classified as a

financial liability.

Included within other loans are amounts advanced to the Company by unrelated third parties. These loans are

unsecured, bear interest at 10% per annum, and were repaid on 29 September 2025.

The Company's bank loans contained covenants that required that the Group main minimum revenue performance and liquidity thresholds in line with the underlying loan agreements. As at 31 December 202 3, the Group was in breach of its revenue performance covenant with its lending bank, having not met its minimum revenue performance threshold as at the reporting date. The Group was further in breach of its liquidity thresholds subsequent to the year-end.

In March 2024, the Company obtained a waiver from the lending bank of its revenue performance and liquidity covenants and further formally agreed a reset and amendment to the covenant thresholds with the lending bank in November 2024.

Subsequent to the year-end, the Company has obtained a further waiver of its amended covenant thresholds from the lending bank in May 2025 and the identified breaches have since been remedied. The Group is in compliance with all such amended covenants up to the date of signing these financial statements.

24
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Insurance contracts technical provisions
420,487
793,757
-
-
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Provisions for liabilities
(Continued)
- 42 -
Movements on provisions:
Insurance contracts technical provisions
Group
£
At 1 January 2024
793,757
Change in long term and other technical provisions
(373,270)
At 31 December 2024
420,487

Details of the key judgements and assumptions applied in the determination of the insurance contract technical provisions are detailed in note 35.

25
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
-
2,021
-
-
Tax losses
-
-
20,242
45,554
Intangible assets acquired
570,257
1,060,229
-
-
570,257
1,062,250
20,242
45,554
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
1,016,696
-
Credit to profit or loss
(466,681)
-
Liability at 31 December 2024
550,015
-
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 43 -
26
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
53,623
22,838
48,384
18,309
27
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,750
6,111

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.

28
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 0.00001p each
30,702,294
29,424,975
3
3
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
28
Share capital
(Continued)
- 44 -

Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company.

In January 202 4, following the exercise of share options, the shareholders approved the issue of 74,850 ordinary shares of 0.00001p at a price of £2.62.

In March 202 4, the shareholders approved the issue of 156,006 ordinary shares of 0.00001p at a price of £6.41.

In May 2024, the shareholders approved the issue of 444,614 ordinary shares of 0.00001p at a price of £6.41.

In May 2024, following the exercise of share options, the shareholders approved the issue of 111,182 ordinary shares of 0.00001p for nil cash consideration.

In July 2024, the shareholders approved the issue of 215,301 ordinary shares of 0.00001p at a price of £6.41.

In July 2024, following the exercise of share options, the shareholders approved the issue of 13,898 ordinary shares of 0.00001p for nil cash consideration.

In September 202 4, the shareholders approved the issue of 42,190 ordinary shares of 0.00001p at a price of £6.41.

In October 202 4, the shareholders approved the issue of 39,001 ordinary shares of 0.00001p at a price of £6.41.

In October 2024, following the exercise of share options, the shareholders approved the issue of 29,221 ordinary shares of 0.00001p for nil cash consideration.

In November 202 4, the shareholders approved the issue of 78,002 ordinary shares of 0.00001p at a price of £6.41.

In November 2024, following the exercise of share options, the shareholders approved the issue of 73,054 ordinary shares of 0.00001p for nil cash consideration.

29
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
33,267,940
26,964,589
33,267,940
26,964,589
Issue of new shares
6,516,275
6,379,685
6,516,275
6,379,685
Share issue expenses
(113,776)
(76,334)
(113,776)
(76,334)
At the end of the year
39,670,439
33,267,940
39,670,439
33,267,940
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 45 -
30
Acquisition of a business

On 23 February 2023 the group acquired 100% of the issued capital and voting rights of Cedar Underwriting Limited. The acquisition had the following effect on the Group's assets and liabilities:

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
80,603
80,603
Property, plant and equipment
4,213
-
4,213
Trade and other receivables
881,088
-
881,088
Cash and cash equivalents
(598)
-
(598)
Trade and other payables
(900,604)
-
(900,604)
Deferred tax
-
(20,151)
(20,151)
Total identifiable net assets
(15,901)
60,452
44,551
Goodwill
70,449
Total consideration
115,000
The consideration was satisfied by:
£
Cash
115,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
258,797
Profit after tax
91,608
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 46 -
30
Acquisition of a business (Continued)

On 31 March 2023 the group acquired 100% of the issued capital and voting rights of Helodrium Limited. The acquisition had the following effect on the Group's assets and liabilities:

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
1,740,820
1,740,820
Property, plant and equipment
4,873
-
4,873
Trade and other receivables
249,352
-
249,352
Cash and cash equivalents
78,730
-
78,730
Trade and other payables
(138,570)
-
(138,570)
Deferred tax
-
(435,205)
(435,205)
Total identifiable net assets
194,385
1,305,615
1,500,000
Goodwill
-
Total consideration
1,500,000
The consideration was satisfied by:
£
Cash
600,000
Issue of shares
600,000
Deferred consideration
300,000
1,500,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
751,259
Loss after tax
(154,141)
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 47 -
30
Acquisition of a business (Continued)
On 28 July 2023 the group acquired 100% of the issued capital and voting interests of Blackmore Borley Limited. The acquisition had the following effect on the Group's assets and liabilities:
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
1,288,458
1,288,458
Property, plant and equipment
15,699
-
15,699
Trade and other receivables
857,203
-
857,203
Cash and cash equivalents
(31,997)
-
(31,997)
Trade and other payables
(925,030)
-
(925,030)
Deferred tax
(1,109)
(322,115)
(323,224)
Total identifiable net assets
(85,234)
966,343
881,109
Goodwill
1,650,889
Total consideration
2,531,998
The consideration was satisfied by:
£
Cash
482,000
Issue of shares
1,599,998
Deferred consideration
450,000
2,531,998
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
520,527
Profit after tax
61,333
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 48 -
30
Acquisition of a business (Continued)
On 28 July 2023 the Group acquired 100% of the issued share capital and voting interests of Randell Dorling Limited. The acquisition had the following effect on the Group's assets and liabilities:
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
-
322,115
322,115
Trade and other receivables
48,278
-
48,278
Cash and cash equivalents
22,986
-
22,986
Trade and other payables
(54,462)
-
(54,462)
Deferred tax
380
(80,529)
(80,149)
Total identifiable net assets
17,182
241,586
258,768
Goodwill
374,231
Total consideration
632,999
The consideration was satisfied by:
£
Cash
233,000
Issue of shares
399,999
632,999
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
39,527
Loss after tax
(5,650)
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 49 -
31
Operating lease commitments
Lessee

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:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
264,100
264,100
264,100
264,100
Between two and five years
462,176
726,276
462,176
726,276
726,276
990,376
726,276
990,376
32
Events after the reporting date

The following events and transactions occurred subsequent to 31 December 202 4:

Issue of Share Capital

The continued expansion of the Company resulted in a primary share issuance totalling £10.9m in 2025 at a £175m valuation (£6.41 per share) contributing to the Company’s growing capital base and strengthening the balance sheet for future growth.

Convertible Loan Notes

The £1.587m convertible loan notes issued in February and March 2024 converted to equity in February and March 2025 issuing 404,047 shares at a price of £4.40 per share. The balance of £60k convertible loan notes were repaid.

The £1m convertible loan notes issued in November 2023 converted to equity in March 2025 issuing 263,438 shares at a price of £4.40 per share.

Acquisitions of subsidiary undertakings

The Company has concluded the acquisitions of Jaywing UK Limited and Jaywing Holdings Limited on 14 May 2025 to acquire 100% of the share for a final consideration of £10.75m (£0.75m cash and £10m of deeply discounted bonds accruing interest at 10%). If the Group had completed this acquisition on 1 January 2024, management estimates that the consolidated revenue and loss for the year would have been £18m and £680k respectively.

As the initial accounting for the above business combinations is incomplete at the time these financial statements are authorised, the Group as not made any other disclosures in respect of these acquisitions.

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 50 -
33
Related party transactions
Remuneration of key management personnel (including the directors) - Group

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
587,829
628,248

Under FRS102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.

Key management totalled 5 (2023: 7).

Remuneration of key management personnel (including the directors) - Company

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
539,336
578,498
Under FRS102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.
Key management totalled 4 (2023: 5).
Transactions with related parties

During the year the Company entered into transactions with entities in which a director of the Company is a shareholder.

1) The Company engaged Marechale Capital Limited to provide introducer services totalling £74,500 (2023: £nil).

2) The Company engaged Fildes Investments Limited to provide consulting services totalling £153,325 (2023: £nil).

STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
33
Related party transactions
(Continued)
- 51 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Wholly owned subsidiaries
Stubben Edge (Risk) Limited
67,093
73,837
Genesis Special Risks Limited
1,670,410
1,372,329
1Edge Insurance PCC Limited
233,601
1,033,601
1,971,104
2,479,767
Key management personnel
224,083
20,867
2,195,187
2,500,634

The above balances are unsecured, interest free and repayable on demand.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
£
£
Wholly owned subsidiaries
Lucid UX Limited
1,214,293
1,526,872
Stubben Edge South Africa
719,715
812,744
Stubben Edge Labs (SE Labs) Limited
736
54,475
Stubben Edge Group Operations Limited
150
150
Akoni Hub Limited
874,853
831,589
Finpoint Limited
-
362,964
Insurercore Limited
-
814,548
Stubben Edge Risk Limited
564
564
Stubben Edge Markets Limited
-
243,090
Randell Dorling Limited
41,855
28,424
Cedar Underwriting Limited
122,423
96,591
Stubben Edge and Partners Limited
173,761
176,103
3,148,350
4,948,114

The above balances are unsecured, interest free and repayable on demand.

34
Controlling party

The company was controlled throughout the period by the directors acting in concert.

35
Financial risk management
Group
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
35
Financial risk management
(Continued)
- 52 -
The Group's principal financial instruments are cash and cash equivalenets. The main purpose of these instruments is to provide finance for the UK operations. In addition, the Group has various other financial assets and liablities such as trade receivables and trade payables arising directly from its operations.
Credit risk
Credit risk represents the financial loss to the Company if a counterparty, or issue of security, fails to meet its contractual obligations.
The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. Concentration of credit risk with respect to trade receivables are limited due to the Group's customer base being well diversified. The risk is mitigated by the Group by ensuring that all customers who wish to trade on credit terms are subject to credit verification procedures. Outstanding receivables balances are monitored on an ongoing basis. It is the Group policy to recognise impairment losses on financial assets measured at amortised cost when there is objective evidence of impairment, applying the incurred-loss model in accordance with FRS 102.
The carrying amount of trade and other receivables and cash and cash equivalents represents the Group's maximum exposure to credit risk. The Group manages its credit risk by ensuring that sufficient resources are allocated to credit management to reduce the impact of the risk and using reputable finance institutions to hold its cash balance.
The Group does not have any significant credit risk exposure to any single counterparty.
Liquidity risk
Liquidity risk is the risk that any company within the Group will have difficulties in paying its financial liabilities.
The value and term of short terms assets are carefully monitored against those of the Group's liabilities. The Group maintains sufficient liquid assets to meet liabilities as they fall due.
Cash balances are managed to meet short-term operational commitments. Any surplus cash balances are invested in compliance with defined investment parameters approved by the investment committee, in accordance with the risk appetite set by management.
The Group's objective is to maintain a balance between continuity of funding and flexibility through the use of shareholder funding.
Market risk
Market risk is the risk that fair value or cash flows of a financial instrument will fluctuate due to changes in market place. Market risk for the Group reflects interest rate risk, foreign exchange risk and market price risk.
Foreign exchange risk
Foreign currency risk represents the risk that movements in foreign exchange will affect the transactions and financial position of the Group.
Foreign currency expsoures arising from overseas transactions are monitored, with no material foreign exchange transactions occuring. The Group continues to closely monitor exposure to foreign currency transactions.
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
35
Financial risk management
(Continued)
- 53 -
Interest rate risk
Interest rate risk represents the risk that movements in the interest rate will affect fair values and interest-bearing liabilities.
The Group has both interest-bearing assets and liabilities.
Cash and cash equivalents earn interest primarily at the rates available in the short-term deposit markets. The Group's borrowings are charged interest exclusively at fixed rates. The Group is therefore exposed to interest rate movements on the assets held in short term deposits.
Sensitivity to a 10% negative variance on the external weighted average interest rate for the Group for the financial year is negligible impact on Group profit and equity (2023: negligble)
Market price risk
Market price risk represents the risk that changes in market parameters will affect fair values of equity investments.
The Group is not exposed or invested in any equity securities.
The Group's insurance subsidiary, 1Edge Insurance PCC Limited ( “1Edge”) through Cell 1 and Cell 2 issues contracts that transfer insurance and/or financial risks. This section summarises these risks and the way that 1Edge will manage them.
i) Frequency and severity of claims
Cell 2 - long term insurance business - impaired life insurance
Policies are issued for periods of up to 10 years for individuals domiciled, resident or with tax links to the UK. The most significant factor that could increase the overall frequency of claims are epidemics or widespread changes in lifestyle, such as eating, smoking and exercise habits, resulting in earlier or more claims than expected. Continued improvement in medical science and social conditions will help increase longevity. The risks do not vary significantly in relation to location of the risk insured by 1Edge.
1Edge charges for mortality risk on a monthly basis and the Company manages the risk through its underwriting strategy and reinsurance arrangements.
The underwriting strategy is intended to ensure that the risks underwritten are well diversified in terms of type of risk and the level of insured benefits. Medical selection is included in 1Edge's underwriting procedures, with premiums varied to reflect the health condition of the applicants. 1Edge has a retention limit of £850k on any single life insured. The Company reinsures on a 100% quota share basis to an unrated Reinsurer. The Reinsurer has provided collateral in the form of a letter of credit in the value of £1m through an A rated bank that guarantees payment of any reinsurance benefits in the event of default. ln addition, there is a Security Agreement in place between 1Edge and the Reinsurer that commits the Reinsurer to have a letter of credit in place while there are potential amounts due to 1Edge from the Reinsurer.
ii) Process used to decide on assumptions
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
35
Financial risk management
(Continued)
- 54 -
The determination of the liabilities under long-term insurance contracts for the Group's insurance
subsidiary, 1Edge Insurance PCC Limited ( “1Edge”), is dependent on estimates made. Estimates are made as to the expected number of deaths for each of the years in which 1Edge is exposed to risk and the value of expenses for each of the years in which 1Edge is exposed to risk. For the expected number of deaths, 1Edge bases these estimates on mortality tables produced by the Royal Dutch Actuarial Association that is populated by data from a series of European countries with an above average Gross Domestic Product of which the UK is included. For the value of expenses, 1Edge takes the current level of recurring expense as an appropriate expense base and increases it each year in line with UK inflation, derived from the implied inflation spot curve as at 31 December 2024 published by the Bank of England, projected on a present value basis using an appropriate discount rate over the weighted average duration/term of in force policies
The process for determining the discount rates used to calculate the long-term liabilities comprise of
determining the determining the type of assets held and the current yield after allowing for risk.
A majority of the assets are repayable on demand and the investments held are in short term certificates of deposit that can be considered risk free. Expected future cash flows have therefore been discounted at risk free rates.
The assumptions used for the insurance contracts disclosed in this note are as follows:
Economic: Projected future cash flows have been discounted using the Solvency ll spot curve of GBP risk free rates as at 31 December 2025, as published by the European lnsurance and Occupational Pensions Authority ('EIOPA').
Mortality: An appropriate base table of standard mortality is chosen; the Company bases its estimates on mortality tables produced by the Royal Dutch Actuarial Association that is populated by data from a series of European countries with an above average Gross Domestic Product of which the UK is included.
Lapse: An investigation into the lapse risk of an impaired life product over the recent years is conducted. The lapse rate on impaired life business has been determined as 10% per annum on average.
Renewal expense level and inflation: The current level of expenses is taken as an appropriate expense base and increased each year in line with UK inflation, derived from the implied inflation spot curve as at 31 December 2024 published by the Bank of England.
iii) Sensitivity analysis
The following tables present the sensitivity of the value of insurance liabilities to movements in the assumptions used in the estimation of insurance liabilities. The movement in the value of the liability would result in a corresponding change to profit or loss and equity.
Increase in liability/reduction in asset
2024 2023
Variable
Change in variable
£ £
Reduction in discount rate
50bps down stress
14,556
20,926
Worsening of mortality
15%
682
181
Increase in lapse rate
50% p.a.
21,288
5,282
Worsening of renewal expense inflation rate
1% p.a.
24,499
35,065
An increase in lapses on term assurance business increases the long-term business provision, as the increase in assumed future premium income exceeds the decrease in assumed future claims.
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
35
Financial risk management
(Continued)
- 55 -
The above analyses are based on a change in an assumption while holding all other assumptions constant.
Within the range of reasonably possible changes in variables, an assumed improvement in an assumption would give rise to a decrease in liabilities approximately equivalent the increase in liabilities that would result from the equivalent deterioration of the assumption.
36
Cash absorbed by group operations
2024
2023
£
£
Loss after taxation
(12,902,808)
(10,914,940)
Adjustments for:
Share of results of associates
-
25,000
Taxation credited
(1,080,829)
(434,924)
Interest payable and similar expenses
1,079,151
249,991
Interest income
(255,936)
(172,720)
Gain on disposal of tangible fixed assets
-
(26)
Loss on disposal of intangible assets
135,284
-
Amortisation and impairment of intangible assets
4,450,976
1,476,447
Depreciation and impairment of tangible fixed assets
121,558
119,355
Reversal of prior year impairment of intangible assets
-
(1,565,155)
Bad and doubful debts expense
209,830
-
Adjustment for other debtors written off
-
29,334
Adjustment for other creditors written off
-
(18,000)
Equity settled share based payment expense
-
469,994
(Decrease)/increase in insurance contract technical provisions
(373,270)
793,757
Movements in working capital:
Decrease/(increase) in debtors
482,266
(3,930,051)
Increase in creditors
483,524
11,633,811
Increase/(decrease) in deferred income
30,785
(83,712)
Cash absorbed by operations
(7,619,469)
(2,321,839)
STUBBEN EDGE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 56 -
37
Cash absorbed by operations - Company
2024
2023
£
£
Loss after taxation
(13,919,899)
(8,235,694)
Adjustments for:
Taxation credited
(614,148)
(46,079)
Interest payable and similar expenses
1,132,895
247,364
Interest income
-
0
(37,597)
Loss on disposal of discontinued operations
1,698,881
-
Amortisation and impairment of intangible assets
1,080,898
29,577
Depreciation and impairment of tangible fixed assets
114,641
106,388
Bad and doubful debts expense
209,830
-
Impairment of investments in group undertakings
633,000
-
Reversal of prior year impairment of intangible assets
-
(1,565,155)
Equity settled share based payment expense
-
469,994
Adjustment for other debtor written off
-
29,334
Movements in working capital:
Decrease/(increase) in debtors
2,018,790
(1,394,056)
Increase in creditors
1,538,870
2,336,584
Increase/(decrease) in deferred income
30,075
(88,241)
Cash absorbed by operations
(6,076,167)
(8,147,581)
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