REGISTERED NUMBER: 02789854 (England and Wales)

Strategic Report, Directors' Report and

Audited Financial Statements for the Year Ended 31st December 2025

for

Totemic Limited

Page

Company Information

1

Strategic Report

2

Directors' Report

8

Directors' Responsibilities Statement

10

Independent Auditors' Report

11

Statement of Comprehensive Income

14

Statement of Financial Position

15

Statement of Changes in Equity

16

Notes to the Financial Statements

17

DIRECTORS:

Mrs R E Duffey

Mr J Fairhurst

Mr D Jackman

Mr P Munro

Mr R G Skinner

Mr C J Thompson

SECRETARY:

Mrs H Briggs

REGISTERED OFFICE:

Kempton House

Kempton Way

Dysart Road

Grantham

NG31 7LE

REGISTERED NUMBER:

02789854 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited

Statutory Auditor

3 Castlegate

Grantham

Lincolnshire

NG31 6SF

The directors present their strategic report with the financial statements of the company for the year ended 31st December 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company during the year were:

- The provision of free advice to individuals with debt problems, including telephone and digital advice and support.

- Negotiations with creditors, the supervision of debt management plans and the distribution of client monies.

MISSION AND KEY OBJECTIVES OF THE BUSINESS

Our vision is for a holistic debt advice service that delivers excellent outcomes for all our customers. We want to expand access to free debt advice, promote earlier engagement and make every interaction count - to do this we must recognise the diverse and complex needs of our customers and build processes and technologies that allow equal access to a seamless and stress-free journey. To ensure better customer outcomes and build brighter futures we must understand the root causes of debt and the challenges of poverty premium and income deficits.

We are the largest commercial provider of free to consumer debt management plans, delivering regulated debt advice and a broad range of solutions to our clients.

REVIEW OF BUSINESS

In December 2025 Payplan Group Limited, and its subsidiaries including Totemic Limited, was acquired by Palladian Investment Partners LLP via Ravenco 4 Limited. The transaction will drive growth both in terms of volumes of new customers and debt management plans written through better journeys, and through a broadening of services offered.

Demand for debt advice was strong throughout 2025, with the company receiving its highest number of new customer contacts to date. Plans written were also significantly higher than prior years.

Despite the ongoing Cost of Living Crisis, payment levels within plan remain stable. The trend towards higher income households seeking help continued throughout the year driving an increase in the average payment into solution.

We are investing significantly in our Budget Smart offering to support customers with income maximisation and budgeting advice. Appetite for digital engagement continues and the further development of chat bot journeys has been positive.

Collaborative efforts to engage with customers earlier in the debt journey mean that we saw more in early or pre-arrears. This led to a lower average level of debt amongst new customers entering a debt management plan. Changes to voting criteria on IVA and a simplification of the way equity in a property is treated led to a higher number of cases being referred to our IVA companies.

In 2025 we benefited from support from a number of creditor partners to help offset the cost of delivering advice. We were pleased to work collaboratively with industry stakeholders to shape a new funding model. Although we are working proactively to reduce our advice costs through digitisation (where preferred by customers), we continue to invest heavily in personal advice provision. The long tail nature of solution income and the immediate costs of advice and plan set up, make increasing capacity a challenge. We are extremely grateful to our partners for their support. We are also working to ensure funding is equitable and are engaging with creditors who do not pay Fair Share.

KEY PERFORMANCE INDICATORS

At year end

2025

2024

Increase / (decrease)

Number of clients in debt management plans

69,024

67,875

1.7%

Debt under management

£1.21bn

£1.23bn

(1.6%)

Number of debt management plans written

12,351

12,943

(4.6%)

Number of referrals to our IVA companies

7,173

5,419

32.4%

FUTURE DEVELOPMENTS

New customer volumes are at a record high throughout Q1 2026. Economic tailwinds, heightened further by the Iran crisis mean we expect this trend to continue.

This year we will invest in direct-to-consumer channels through a combination of Pay Per Click, social media strategies and PR led thought leadership. These will be underpinned by a brand refresh and rebuild of our website, Payplan.com. We believe problem debt should be destigmatised, advice and solutions should be easy to access, and journeys should be designed to deliver choice and improve customer agency.

Investments in our technology platforms will lead to enable self-serve journeys. We will slowly introduce AI capabilities but in a way that balances regulatory risk. We will rebuild our CRM system, a multi-year project, and our target operating model will be aligned to a journey that makes sense to our customers rather than traditional debt advice processes. Automation of administrative tasks will enable our experienced advisers to focus on value-adding interactions and increase capacity to help more customers. Telephone and other human led journeys will be reworked to match demand with capacity and extended hours will be offered to our customers

We will build our proposition to include financial inclusion and resilience rather than simply focussing on debt advice and solutions. As part of this strategy, we will look for new ways to support customers in plan experiencing the cost-of-living crisis and work toward helping them becoming debt free.

We will work hard to deliver value to our partners who support us through advice funding. We will challenge those who do not pay Fair Share and work collaboratively with the sector.

PRINCIPAL RISKS AND UNCERTAINTIES

Totemic Limited reviews, assesses and records both strategic and operational risk on a monthly basis. The key risks in the business are:

ECONOMIC RISK

Definition: Economic risk is defined as the risk posed by possible variations in earnings, prices, sales and rates of interest and other financial variables.

The primary source of income received by the company is that provided by our client's creditors under the fair-share scheme. Under this scheme supportive creditors agree to pay funding as a proportion of the debt repayments we pass onto them on behalf of their customers. In return for this we provide a range of free-to-consumer debt advice and management services.

Historically, the sustainability of our Debt Management Plans has been consistently high and so the fair-share income received in respect of these cases has been stable and predictable.

Principal Risks: That the funding appetite of creditors or behaviour of our clients changes in such a way that fair-share income is adversely affected. Whilst the funding appetite of creditors remains strong, the ability of our clients to maintain their repayment plans has been less certain.

PRINCIPAL RISKS AND UNCERTAINTIES (continued)

ECONOMIC RISK (continued)

Mitigation Activities: We continue to maintain positive relationships with our funders and evidence the value of our service to them and their customers. Ensuring robust processes and control aimed at ensuring our clients receive sufficient support to maintain their repayment arrangements until successful completion of their plan.

In addition to DMP income we have also received support from creditors to provide advice.

Principal Risks: That creditors no longer want to provide this support and instead rely on the Money and Pensions Service (MaPS) funding levy to cover advice requirements across the sector.

Mitigating Activities: To work with industry bodies and other providers to illustrate that MaPS funding is insufficient to meet demand. Also, to highlight the improved service, flexibility and provision of solutions in conjunction with advice to a much higher degree than the services offered by MaPS commissioned services. To continuously evolve the service to improve outcomes for customers and value for creditors.

CONDUCT RISK

Definition: The risk of customer detriment or company censure and/or a reduction in earnings value through financial or reputational loss, resulting from inappropriate customer treatment or business conduct.

A high proportion of our new business is generated because third parties see the company as a trusted partner, to whom they can safely refer consumers for high quality debt advice services. We are authorised by the Financial Conduct Authority (FCA) in relation to the activities we undertake.

Principal Risks: That the company suffers regulatory censure or reputational harm.

Mitigation Activities: The company gives the highest priority to compliance with FCA operational rules and principles. Additionally, we have dedicated relationship managers to ensure that the company continues to meet and exceed the expectations of third-party stakeholders, both in terms of regulatory compliance and in the range and depth of our advice services.

Robust controls and processes in the handling and management of client money, including periodic commissioning of CASS 11 and CASS 8 independent reviews, have been in place for a number of years. Monthly calculation and review of regulatory capital requirements ensures that the company meets regulatory prudential resource requirements.

The company undertakes root cause analysis of complaints and monitors its performance closely. All processes, controls and operations of the business are subject to rigorous assessment and regular review in order to ensure they meet FCA regulatory compliance standards.

We have a specialised vulnerability team to which those clients who are considered vulnerable are referred to ensure they receive the best possible support.

MARKET RISK

Definition: Market risk is defined as the risk posed by movements in market criteria.

Principal Risks: There is a risk that the proportion of our clients suitable for a repayment solution will decline or that the income generated from repayment solutions will reduce to a material extent.

Mitigation Activities: Ensuring that our operating model is as efficient as possible. Engaging with funders and other stakeholders to review funding models and ensure the future sustainability of our service. Adoption of a flexible and adaptable business culture that supports an ability to change in line with market conditions.

OPERATIONAL RISK

Definition: Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.

Principal Risks: The Company recognises that operational risk, including breaches of data protection regulations, is inherent in all its products, activities, processes and systems.

Mitigation Activities: The Board has approved an Operational Risk Policy to ensure the risks are adequately identified and monitored. Within the Risk Board key operational risks are reviewed and any new concerns are considered. Formal business continuity plans are in place and updated on a regular basis.

CYBER SECURITY RISK

Definition: Cyber security risk is the risk of loss resulting from an attack on core operational IT systems by hostile 3rd parties.

Principal Risks: The Company recognises a high degree of dependence upon various IT systems which are potentially at risk from cyber-attack.

Mitigation Activities: The Board has approved a comprehensive cyber security policy in which cyber risks are adequately identified, monitored and mitigated. The approach to cyber security is periodically audited by third party experts. Formal business continuity plans are in place and updated on a regular basis. Appropriate cyber insurance is in place.

LIQUIDITY RISK

Definition: Liquidity risk is defined as the risk of not being able to meet short term financial obligations.

Principle Risks: The risk that sufficient funds are not available for ongoing operations and future developments.

Mitigation Activities: The company has access to debt facilities (used only where it is operationally beneficial, for example credit terms on large assets, repayable over 12, 24 or 36 months). The board monitors liquidity regularly with the aim of ensuring that the business has the sufficient committed funds to fulfil the business plan for at least the next 12 months. Any covenants on external debt-like agreements are regularly monitored and forecast covenant compliance is monitored by management and reported to the Board with appropriate action to taken where the projected headroom is outside of the Board's risk appetite. Additionally, the company ensures at all times that a sufficient amount of cash is readily available to enable and enact the orderly wind down plan if required.

SECTION 172(1) STATEMENT

In accordance with s.172 of the Companies Act 2006, the Directors have a duty to promote the success of the company and, in particular, must act in the way they considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

(a) the likely consequences of any decision in the long term;

(b) the interests of the company's employees;

(c) the need to foster the company's business relationships with suppliers, customers and others;

(d) the impact of the company's operations on the community and the environment;

(e) the desirability of the company maintaining a reputation for high standards of business conduct; and

(f) the need to act fairly as between members of the company.

Employees

Why we focus on them and the impact of engagement

The Board recognises the importance of the contribution made by our employees, who deliver the highest levels of service for our customers and clients.

Engagement with employees helps to build a deep and diverse talent pool, attract and retain talent and ensure that employees remain enthusiastic about their work and their organisation.

Regularly listening to employees' feedback ensures they feel valued with their views recognised and acted upon.

Stakeholders' key priorities and areas of focus

Participation by directors and management in regular employee engagement activities.

Regular communications to employees on the performance and operation of the business.

Regular updates and engagement on matters relating to exceptional situations.

Oversight of and participation in training, development and mentoring programmes for employees.

Suppliers

Why we focus on them and the impact of engagement

Our business is supported by a large number of suppliers who enable us to provide a high standard of service to our customers, clients and partners.

Engagement with suppliers enables the company to develop and maintain long-term and sustainable relationships and helps ensure that the company purchases products and services from suppliers who operate responsibly and in line with our policies and standards.

Stakeholders' key priorities and areas of focus

Appropriate and clear payment procedures.

Engage with local suppliers where appropriate and be available to support the local economy.

Regulators

Why we focus on them and the impact of engagement

Engagement with regulators and applicable regulatory requirements helps the company maintain a reputation for high standards of business conduct and also helps the Board ensure that the business is aligned to the evolving regulatory framework.

Stakeholders' key priorities and areas of focus

Good customer outcomes.

Awareness of evolving regulatory landscape.

Recognition of the importance of resilience and risk management.

Customers

Why we focus on them and the impact of engagement

Engagement with customers on an open, clear and inclusive manner helps the company develop and maintain open and transparent relationships, which maintains a reputation for high standards of business conduct

Stakeholders' key priorities and areas of focus

Strong focus on Consumer Duty (Good outcomes, high levels of understanding and services which deliver value)

A customer-led proposition.

Strong personal relationships and specialist expert knowledge.

Consistent customer service in all market conditions.

High service levels and flexible solutions.

Environment

Why we focus on it and the impact of engagement

The Board recognises the growing importance of sustainability. As we importance of every businesses impact on the environment and its responsibility to ensure sustainable practices are in place.

Stakeholders' key priorities and areas of focus

Conducting a baseline environmental audit and developing a carbon reduction plan

Regular communications to employees on the procedures the Board wishes to follow and updates on local community activities.

Engagement with our supply chain to better understand the impacts of our activities and wider opportunities to improve our sustainability.

Members of the Company

Why we focus on them and the impact of engagement

Engagement with members of the company, defined as the shareholders, helps the company develop and maintain open and transparent strategic goals, objectives, whilst maintaining a reputation for high standards of business conduct by putting the customer and the company's staff at the forefront of decision making.

Stakeholders' key priorities and areas of focus

Regular communication with all stakeholders.

Fair treatment of customers and clients.

Awareness of evolving regulatory landscape.

Recognition of the importance of resilience and risk management.

REGULATORS

The company is regulated by the FCA.

There are regulatory capital requirements for the company which were met during the year and to the date of signing.

APPROVED AND SIGNED ON BEHALF OF THE BOARD:

Mrs R E Duffey - Director

2nd June 2026

The directors present their annual report with the audited financial statements of the company for the year ended 31st December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2025 to the date of this report.

Mrs R E Duffey

Mr J Fairhurst

Mr D Jackman

Mr P Munro

Mr R G Skinner

Mr C J Thompson

Other changes in directors holding office are as follows:

Mrs D Ware - resigned 5th November 2025

Mr D Jackman and Mr R G Skinner are non-executive directors.

DIRECTORS' INDEMNITIES

Totemic (2014) Holdings Limited provided qualifying third-party indemnity provisions on behalf of all directors and officers for all members of the Totemic (2014) Holdings group of companies including this company during the year. From 12 December 2025, Ravenco 1 Limited provides qualifying third-party indemnity provisions on behalf of all directors and officers for all members of the Ravenco group of companies including this company and this remains in force at the date of this report.

BRANCHES

The company operates an overseas branch in Portugal which provides support services to the company's UK customers.

POLITICAL DONATIONS AND EXPENDITURE

The company made no political donations in the current year nor in the previous year.

DISABLED EMPLOYEES

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group and the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees

ENGAGEMENT WITH EMPLOYEES

During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.

INFORMATION PRESENTED IN OTHER SECTIONS

The company's principal risks and uncertainties and future developments, which are required to be included within the Directors' Report, can be found within the Strategic Report. The information presented in these sections of the Strategic Report are deemed to form part of this report.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Duncan & Toplis Audit Limited have indicated their willingness to be re-appointed and appropriate arrangements have been put in place for them to be deemed re-appointed as auditor in the absence of an AGM.

APPROVED AND SIGNED ON BEHALF OF THE BOARD:

Mrs R E Duffey - Director

2nd June 2026

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of Totemic Limited (the 'company') for the year ended 31st December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Directors' Report and the Directors' Responsibilities Statement, but does not include the financial statements and our Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

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

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit; or

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from preparing the Director's Report or in preparing the Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page ten, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, re-performing the calculation and reviewing the outcome of current year estimates since the financial reporting date.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect are the Financial Conduct Authority regulations, Anti Money Laundering legislation and Employment laws.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the external audits conducted within the year for any evidence of non-compliance, reading minutes of meetings of those charged with governance and correspondence held with regulators, in addition to an assessment of the company's legal expenses and possible contingencies. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Rachel Rudkin FCCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited

Statutory Auditor

3 Castlegate

Grantham

Lincolnshire

NG31 6SF

5th June 2026

TURNOVER

3

26,348,917

24,119,362

Cost of sales

(803,728

)

(576,046

)

GROSS PROFIT

25,545,189

23,543,316

Administrative expenses

(20,764,138

)

(19,937,330

)

OPERATING PROFIT

4,781,051

3,605,986

Interest receivable and similar income

6

4,577

5,923

Interest payable and similar expenses

7

(22,789

)

(29,987

)

PROFIT BEFORE TAXATION

8

4,762,839

3,581,922

Tax on profit

9

(303,545

)

(86,677

)

PROFIT FOR THE FINANCIAL YEAR

4,459,294

3,495,245

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,459,294

3,495,245

FIXED ASSETS

Intangible assets

10

1,801,964

1,871,637

Tangible assets

11

75,049

64,977

1,877,013

1,936,614

CURRENT ASSETS

Debtors: amounts falling due within one year

12

10,846,335

6,209,588

Debtors: amounts falling due after more than one year

12

148,890

208,609

Cash at bank and in hand

1,126,929

519,178

12,122,154

6,937,375

CREDITORS

Amounts falling due within one year

13

(2,125,583

)

(1,431,834

)

NET CURRENT ASSETS

9,996,571

5,505,541

TOTAL ASSETS LESS CURRENT LIABILITIES

11,873,584

7,442,155

CREDITORS

Amounts falling due after more than one year

14

-

(27,865

)

NET ASSETS

11,873,584

7,414,290

CAPITAL AND RESERVES

Called up share capital

18

39,000

39,000

Capital redemption reserve

257,412

257,412

Profit and loss account

11,577,172

7,117,878

SHAREHOLDERS' FUNDS

11,873,584

7,414,290

The financial statements were approved by the Board of Directors and authorised for issue on 2nd June 2026 and were signed on its behalf by:

Mrs R E Duffey - Director

Called up

Profit

Capital

share

and loss

redemption

Total

capital

account

reserve

equity

£

£

£

£

Balance at 1st January 2024

39,000

3,622,633

257,412

3,919,045

Changes in equity

Total comprehensive income

-

3,495,245

-

3,495,245

Balance at 31st December 2024

39,000

7,117,878

257,412

7,414,290

Changes in equity

Total comprehensive income

-

4,459,294

-

4,459,294

Balance at 31st December 2025

39,000

11,577,172

257,412

11,873,584

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

The nature of the company's operations and its principal activities are set out in the Strategic Report on pages 2 to 5.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c).

Critical accounting judgements and key sources of estimation uncertainty

The directors consider there to be no critical judgements and no key sources of estimation uncertainty in applying the company's accounting policies.

Turnover

Debt management income comprises commission-based income (fair-share) from debt management plans and debt advice service income from the referring partners, principally banks and financial institutions.

Commission based income is recognised at the point at which the distribution activity takes place.

Advice service income is recognised over the period of the advice service agreement.

Management services income is recognised in the period the services are provided.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less amortisation and any impairment losses.

Amortisation is calculated to write off the cost of the assets over their useful economic lives on a straight-line basis from commissioning date and charged to administrative expenses in the income statement.

The estimated useful economic life of software is between three and five years.

Intangible assets are reviewed for impairment as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

Tangible fixed assets

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets

Financial assets including trade debtors, are initially recognised at transaction cost which is considered to be fair value and subsequently held at amortised cost. At each statement of financial position date, the company assesses whether there is objective evidence that a financial asset has become impaired. Impairment losses are recorded as charges in the income statement and the carrying amount of the financial asset is reduced by establishing an impairment loss provision. Impairment loss provisions are maintained at the level that management deems sufficient to absorb incurred losses. Financial assets are subsequently carried at transaction cost less provision for impairment.

Financial liabilities

Financial liabilities are presented as such in the statement of financial position. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities and held at amortised cost. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Dividends and distributions relating to equity instruments are debited directly to equity.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which future reversal of the underlying timing differences can be deducted.

Deferred tax is measured on an un-discounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the statement of financial position date.

Foreign currencies

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

Leasing commitments

Pension costs and other post-retirement benefits

The company makes contributions to employees' personal pension schemes which are defined contribution schemes. The annual contributions payable are charged to the income statement.

Interest payable and receivable

Interest payable and similar expenses are recognised in the Income Statement in the period in which they are incurred on a time proportion basis. Interest receivable and similar income is recognised in the Income Statement in the period in which it is earned on an accrual basis.

Client bank accounts

The company holds money in trust on behalf of clients in client bank accounts, which along with the related liability are not included in these financial statements.

At 31st December 2025 the company held £4,653,820 (2024: £4,461,148) in client bank accounts.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Debt management income

19,704,026

18,494,991

Management services

6,368,961

5,305,690

Commissions received

231,170

277,624

Other income

44,760

41,057

26,348,917

24,119,362

Turnover in both the current and previous year arose wholly within the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

12,340,992

10,884,422

Social security costs

1,744,275

1,363,101

Other pension costs

268,345

241,999

14,353,612

12,489,522

The average number of employees during the year was as follows:

2025

2024

Number of administrative staff

418

396

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

688,107

615,666

Directors' pension contributions to money purchase schemes

27,096

24,900

Compensation to director for loss of office

37,828

-

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

5

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

159,700

157,200

Pension contributions to money purchase schemes

10,061

10,061

6.

INTEREST RECEIVABLE AND SIMILAR INCOME

2025

2024

£

£

Deposit account interest

4,577

5,923

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Loan interest

22,646

27,777

Group interest payable

-

1,555

Other interest payable

143

655

22,789

29,987

8.	PROFIT BEFORE TAXATION

The profit is stated after charging:

2025

2024

£

£

Operating leases - equipment

248,462

234,727

Operating leases - property

87,851

57,092

Depreciation - owned assets

32,206

9,296

Computer software amortisation

432,857

143,602

Auditors' remuneration

17,000

-

Foreign exchange differences

44,928

22,418

The audit fee for auditing of the financial statements attributable to the company of £14,750 for 2024 was paid by the ultimate parent company.