The Directors present their Strategic Report for Interpolitan Money PLC (the “Company”) for the year ended 31 December 2025.
The financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland" ("FRS 102") and comply with the requirements of the Companies Act 2006.
This Strategic Report provides a fair, balanced and comprehensive review of the Company’s operational performance, financial position, principal risks and uncertainties, and the Directors’ assessment of the Company’s future prospects. The commentary herein should be read in conjunction with the audited financial statements and accompanying notes, which provide detailed disclosures in accordance with FRS 102.
Chief Executive Review
The year ended 31 December 2025 represented a period of disciplined expansion and structural enhancement for the Company.
Revenue increased to £9.8 million (2024: £8.2 million), reflecting sustained growth in cross-border transactional activity, expansion of institutional mandates and continued geographic penetration. The Company maintained profitability during the year, generating profit before taxation of £1.1 million (2024: £1.9 million), while simultaneously deploying capital into regulatory infrastructure, technology development and jurisdictional diversification.
The Company operates within a specialised segment of the financial services market characterised by structurally constrained risk appetite among traditional banking institutions. As onboarding standards have tightened across incumbent banks, demand for compliant, institutionally governed cross-border infrastructure has continued to expand. This dynamic has particularly affected corporates, funds, family offices and private clients operating multi-jurisdiction structures.
During 2025, the Board deliberately prioritised platform durability and risk-adjusted scalability over short-term margin expansion. Investment was directed toward strengthening transaction monitoring frameworks, enhancing sanctions and Anti-Money Laundering ("AML") screening architecture, upgrading internal control environments and reinforcing governance oversight. These initiatives, while increasing the fixed cost base in the short term, materially enhance the Company’s operational resilience and support sustainable operating leverage.
Geographic diversification progressed through the Canadian platform following Financial Transactions and Reports Analysis Centre of Canada ("FINTRAC") approval and the continued development of Interpolitan Money (DIFC) Limited, the Dubai International Financial Centre ("DIFC") operation. The Company’s distributed booking centre model enhances capital efficiency, reduces jurisdictional concentration risk and provides structural flexibility for clients requiring multi-territory banking infrastructure.
The Directors consider the Company’s strategic positioning to be increasingly differentiated. Structural demand for specialist cross-border capital infrastructure persists and rising regulatory standards further reinforce the importance of compliance-led operators with robust governance frameworks.
The Company enters 2026 with a strengthened balance sheet, diversified geographic footprint and expanding institutional client base, providing a platform for disciplined long-term value creation.
Principal Activities
The Company is a regulated alternative banking provider delivering cross-border capital infrastructure, multi-currency account solutions and foreign exchange services to internationally active clients.
Core activities include the provision of named multi-currency "IBAN" (International Bank Account Number) accounts, cross-border payment execution, foreign exchange transactions, safeguarding and escrow arrangements, and institutional-grade onboarding and compliance services.
The Company operates across the United Kingdom, the United Arab Emirates (DIFC), Canada and India, with a strategic focus on building a distributed, multi-jurisdiction operating framework.
Revenue is primarily derived from foreign exchange margins, transactional service fees, account structuring charges and institutional service mandates. The business model is capital-light, transaction-driven and characterised by high client retention due to the embedded nature of its services.
Business Model and Revenue Recognition
The Company generates diversified revenue streams arising from the provision of cross-border financial services.
Foreign exchange revenue is recognised in accordance with FRS 102 Section 23 at the point in time when the underlying currency transaction is executed and the performance obligation is satisfied. Transaction fees are recognised when payment services are delivered and control transfers to the client.
Account maintenance and structuring fees are recognised over time, reflecting the continuous transfer of services to customers across the contractual period.
The Company does not recognise safeguarded client funds as assets of the business except where required under FRS 102. Client funds are segregated in accordance with regulatory requirements and held with tier-one banking institutions.
Revenue growth during the year reflects increased transactional throughput, improved revenue mix and institutional client expansion rather than any change in accounting policy or recognition methodology.
Financial Performance
Revenue
Revenue increased to £9.8 million (2024: £8.2 million), driven by higher cross-border transaction volumes, improved institutional revenue contribution and geographic expansion. Revenue is disaggregated in the notes to the financial statements in accordance with FRS 102 Section 23 to provide transparency over revenue streams and timing of recognition.
Profitability
Profit before taxation was £1.1 million (2024: £1.9 million). While operating expenses increased in absolute terms due to compliance investment, technology development and leadership strengthening, operating margins remained resilient.
The Company continues to demonstrate operating discipline, balancing investment in infrastructure with sustainable earnings generation. Over time, the Directors expect incremental revenue growth to contribute to enhanced operating leverage as fixed infrastructure investment stabilises.
Financial Position
The Company maintains a conservatively structured balance sheet with no material leverage exposure.
Client funds are held in segregated safeguarding accounts in accordance with applicable regulatory requirements and are not commingled with Company capital.
Liquidity is actively managed through rolling cash flow forecasts, stress testing and conservative capital allocation. The Company maintains adequate working capital to support operational continuity and regulatory obligations.
Key Performance Indicators
The Board monitors a range of financial and operational key performance indicators ("KPIs") aligned with strategic objectives and capital discipline.
These include revenue growth, profit before taxation, revenue quality metrics (including institutional revenue mix), safeguarded balance levels, active client growth and client retention ratios.
KPIs are reviewed quarterly by the Board and are consistent with disclosures contained within the audited financial statements. The Directors consider these measures to be indicative of the Company’s scalability, capital efficiency and risk-adjusted growth profile.The Company operates within a regulated financial services framework and is subject to sector-specific risks.
Principal risks and uncertainties
Regulatory risk arises from potential changes to the Financial Conduct Authority ("FCA") , DIFC, FINTRAC or other applicable regulatory regimes. The Company mitigates this exposure through proactive engagement with regulators, continuous compliance investment and independent advisory support.
Financial crime risk, including exposure to money laundering, sanctions breaches and fraud, remains inherent in cross-border financial services. Enhanced transaction monitoring systems, multi-layer screening controls and governance oversight mitigate this risk.
Liquidity risk is managed through conservative treasury practices and stress-tested cash flow forecasting.
Counterparty risk is mitigated through diversification across established banking institutions with strong credit profiles.
Credit risk is limited primarily to trade receivables. Expected credit losses are assessed in accordance with FRS 102 using an incurred loss model.
Cybersecurity risk is addressed through layered security architecture, access controls and periodic independent penetration testing.
Geographic risk arises from operating across multiple jurisdictions. Diversification mitigates concentration risk while maintaining regulatory alignment.
The Board undertakes formal risk reviews on a quarterly basis.
Going Concern
The Directors have prepared detailed cash flow projections covering a period of not less than twelve months from the date of approval of the financial statements.
Forecasts incorporate downside stress scenarios, including reductions in transaction volumes, delayed revenue realisation and increased compliance expenditure.
After considering these scenarios and the Company’s available liquidity resources, the Directors have concluded that there are no material uncertainties that cast significant doubt on the Company’s ability to continue as a going concern. The financial statements have therefore been prepared on a going concern basis.
Outlook
Structural demand for compliant cross-border capital infrastructure remains robust. International corporates, funds and family offices continue to expand across jurisdictions, while traditional banking risk appetite remains selectively constrained.
The Company’s strategic focus for 2026 includes continued expansion of the distributed booking centre model, enhancement of institutional product capabilities, further investment in compliance and technology architecture and strengthening of regional commercial leadership.
Growth will continue to be pursued within a prudent capital allocation framework, with regulatory integrity and risk management remaining foundational.
The Directors believe the Company is positioned for sustained, disciplined expansion within a structurally attractive and increasingly differentiated segment of the financial services market.
Under Section 172 of the Companies Act 2006, a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard to:
(a) the likely consequences of any decision in the long term,
(b) the interests of the company’s employees,
(c) the need to foster the company’s business relationships with suppliers, customers and others,
(d) the impact of the company’s operations on the community and the environment,
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly as between members of the company.
The Company’s stakeholders include, but are not limited to, its employees; suppliers; customers; regulators; and investors.
The Board endeavours to achieve and maintain a reputation for high standards of conduct amongst its stakeholders which it regards as crucial in its ability to successfully achieve its corporate objectives. During the development of the Company’s strategies and decision-making processes, the Board will consider its stakeholders and their interests. The differing interests of stakeholders require the Board to assess and manage the impact of its policies in a fair and balanced manner to the benefit of its stakeholders as a whole.
The Board considers below these different stakeholder groups, their material issues and how the Group engages with them. Relevant board engagement with key stakeholders is detailed in the corporate governance report.
EMPLOYEES
The employees are one of the greatest assets to the Company. Their interests, which include training and development; a safe environment to work; diversity and inclusion; fair pay and benefits; reward and recognition are a high priority. On a day to day basis Directors engage directly with employees promoting an open, non-hierarchical culture, in which employees have an active contribution to the Company’s success. Weekly meetings are conducted and periodic company updates are provided. Feedback is always encouraged. The Board will actively reflect on this when making decisions. Regular management training, personal development and performance reviews all contribute to the development of staff.
SUPPLIERS
Supplier interests include fair trading, payment terms and working towards building a successful relationship. The Company will regularly review its supplier payments and performance alongside its monitoring of its performance. The Company’s Modern Slavery Statement sets out the processes put in place in order to combat modern slavery in the business and its supply chains.
CUSTOMERS
Customers are interested in successful product availability and usage; fair pricing and adherence to regulations. The Company wants to achieve the highest level of customer service and will regularly review feedback and reviews it receives from its customers. The Company operates under an open and transparent pricing model with its customers.
REGULATORS AND COMPLIANCE
The Company holds licenses with the Financial Conduct Authority and must adhere to the regulatory requirements of these licenses. The Company ensures that staff have sufficient knowledge and regular training if necessary, to ensure that these regulations are met.
The nature of the business undoubtedly results in a higher risk of money laundering. All staff receive the relevant Anti-Bribery and Anti-Money Laundering training. Procedures and communications are in place to ensure that staff are able to comply with Anti-Money Laundering should there ever be a case.
INVESTORS
Investors expect to be informed of the financial performance and developments of the Company. This is done by providing trading updated, publication of the annual reports and press releases.
On behalf of the board
The Directors present their Annual Report and the audited financial statements for the year ended 31 December 2025.
Business review
An analysis of the Company’s development (including likely future developments) and performance is contained in the strategic report. Information on the financial risk management strategy of the Company and its exposure to its principal risks is on page 2-5.
The results for the year are set out on page 13.
The Directors do not recommend the payment of a dividend for the year ended 31 December 2025 (2024: Nil).
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the company will be put at a General Meeting.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
We have audited the financial statements of Interpolitan Money PLC (the 'company') for the year ended 31 December 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of the multi-currency e-banking and payments service industry. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including the Electronic Money Regulations 2011 as amended by the Payment Service Regulations 2017, the Money Laundering and Terrorist Financing Regulations 2019, European Market Infrastructure Regulations, the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the FCA and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Interpolitan Money PLC is a private company limited by shares incorporated in England and Wales. The registered office is 2 Leman Street, London, United Kingdom, E1W 9US. The business address is 33 Cavendish Square, London, W1G 0PW.
The Company’s principal activity is the development of alternative banking solutions including: current accounts, FX, interest income generated from client cash balances and mass payments for international businesses from start-ups to publicly-listed global brands.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company has early adopted the Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs Periodic Review 2024 (FRS 102 periodic review amendments 2024) contained within FRS 102 (2024) which, if not early adopted, are applicable for periods beginning on or after 1 January 2026.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Turnover represents the value of work carried out in respect of services provided and translation of foreign currency fees to customers and interest generated on customer cash balances.
The company recognises revenue from the following major sources:
FX
Account charges
Interest income
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Spot and forward revenue is recognised when a binding contract is entered into by a client and the rate is fixed and determined. Revenue represents the difference between the rate offered to clients and the rate the Company receives from its banking counterparties.
Account fee income represents consideration received for the issuance of electronic money and the provision of payment services to customers in the ordinary course of business. Account fee income is recognised in accordance with Section 23 Revenue from Contracts with Customers of FRS 102.
Revenue is recognised when (or as) the Company satisfies a performance obligation by transferring a promised service to a customer, in an amount that reflects the consideration to which the Company expects to be entitled.
Contracts with customers may include one or more performance obligations, which typically comprise:
The provision and ongoing operation of an electronic money wallet
Payment services including deposits, payments, transfers and withdrawals
Associated administrative and customer support services
Fee income is recognised as follows:
Monthly service charges are recognised over time, as the wallet and related services are made available to the customer, generally on a straight-line basis over the relevant period.
Transaction-based fees (including landing fees and payment fees) are recognised at a point in time, when the relevant payment service is executed.
Exception and penalty fees are recognised when the event giving rise to the fee occurs and the fee becomes enforceable in accordance with the customer terms and conditions.
The transaction price is determined based on the consideration specified in the contract with the customer.
Interest generated from company and client cash balances is recognised using the effective interest rate method on corporate ‘cash and cash equivalents’. The recognition of interest income on client balances is recognised as turnover on the face of the Profit and Loss Account.
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 credited or charged to profit or loss.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the company 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 company.
At inception, the company assesses whether a contract is, or contains, a lease. A lease arises where the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control of the use of an asset occurs where the company has both the right to direct the use of the asset, and the right to obtain substantially all the economic benefits from that use.
Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are shown on the Balance sheet separately from other tangible assets.
The right-of-use asset is initially measured at cost, which comprises the initial measurement of the lease liability adjusted for lease payments made at or before the commencement date less any lease incentives or grants received, plus initial direct costs and an estimate of the cost of obligations to dismantle, remove or restore the underlying asset and the site on which it is located.
The right-of-use asset is subsequently adjusted for remeasurements of the lease liability and applies the relevant cost model, fair value model or revaluation model as set out within the accounting policies for the applicable asset class. Where the cost model is applied, the asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term, and is periodically reduced by impairment losses, if any.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate or the company’s obtainable borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be payable under residual value guarantees, the exercise price of any purchase options that the company is reasonably certain to exercise, and any penalties for early termination of a lease.
At each financial period end, the lease liability is adjusted to reflect payments made and interest accrued. Also, the lease liability is remeasured to reflect lease modifications and any changes to the factors considered at initial measurement, as set out above. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or recognised in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
In the comparative period, the company classified leases as finance leases whenever the terms of the lease transferred substantially all the risks and rewards of ownership to the lessees. All other leases were classified as operating leases. Assets held under finance leases were recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability was included in the balance sheet as a finance lease obligation. Lease payments were treated as consisting of capital and interest elements and the interest was charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals payable under operating leases, less any lease incentives received, were charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis was more representative of the time pattern in which economic benefits from the leased asset were consumed.
In the current year, the FRS 102 Periodic Review 2024 was applied by the company for the first time and affects the financial statements as follows.
During the year, the company early adopted the amendments to FRS 102 Section 20. As a result of applying the amended lease accounting requirements, leases previously classified as operating leases are recognised on the balance sheet through the recognition of a right-of-use asset and corresponding lease liability at the commencement date of the lease or as of the transition date for applying the amendments, whichever is later.
The adoption of the amendments has resulted in an increase in both fixed assets and liabilities recognised in the statement of financial position. Depreciation of right-of-use assets and interest on lease liabilities are recognised within the statement of profit or loss over the lease term, replacing any expenditure recognition for the lease repayments, which are now offset against the lease liability.
Comparative information has not been restated in accordance with the transitional provisions of the amendments. The company has applied the modified retrospective approach.
In the comparative period, the company classified leases as finance leases whenever the terms of the lease transferred substantially all the risks and rewards of ownership to the lessees. All other leases were classified as operating leases. Assets held under finance leases were recognised as assets at the lower of the assets' fair value at the date of inception and the present value of the minimum lease payments. The related liability was included in the balance sheet as a finance lease obligation. Lease payments were treated as consisting of capital and interest elements and the interest was charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. Rentals payable under operating leases, less any lease incentives received, were charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis was more representative of the time pattern in which economic benefits from the leased asset were consumed.
The company’s revised accounting policies for leases are set out in note 1 and the adjustment for each financial statement line item affected by the application of the Periodic Review 2024 in the current period is set out below.
There have been no changes to the company's accounting policies for revenue as a result of the early adoption of Periodic Review 2024 and the revised FRS102 Section 23.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values
Intangible fixed assets, are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values
The most critical estimates and assumptions for investments relate to the determination of cost of unlisted investments at cost less any accumulated impairment losses through profit and loss. In determining this amount, the investments are assessed for impairment at each reporting date. The nature, facts and circumstance of the investment drives the valuation methodology.
A deferred tax liability is provided on accelerated capital allowances and and deferred tax asset on carried forward tax losses. It is expected that the tax losses will be relieved against future profits, therefore the decision has been made to recognise this asset in the current period.
The company recognises financial assets and corresponding liabilities for the funds customers hold on their Interpolitan accounts and the funds the company receives as part of the money transfer settlement process. At the point that the cash is received from the customer, the company becomes party to a contract and has a right and an ability to control the economic benefit from the cash flows associated with this balance. Additionally, pursuant to IAS 32, the company considers it does not have a legally enforceable right to set off these financial assets and liabilities, or an intention to settle them on a net basis or settle them simultaneously. Therefore, Management has concluded that the recognition of the financial assets and their respective liabilities on the balance sheet is appropriate.
The determination of the discount rate applied to lease assets involves significant estimation uncertainty. Under FRS 102 Section 20, where the interest rate implicit in the lease cannot be readily determined, the company uses its incremental borrowing rate.
The incremental borrowing rate requires judgement in assessing the company’s credit risk, the expected lease term, the nature of any security, and prevailing market interest rates at the commencement of the lease. These assumptions are subject to change and may materially affect the measurement of the right‑of‑use asset and corresponding lease liability.
An analysis of the company's turnover is as follows:
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).
The directors' remuneration disclosed relates to the total amounts paid to the three directors.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Included within tangible fixed assets are right-of-use assets, as follows:
During the year, the company early adopted the FRS102 Periodic Review 2024 amendments for leases, recognising a right of use asset as of 1 January 2025 in respect of an ongoing operating lease for a rental property.
Lease payments represent rentals payable by the company for leasehold land and buildings. The company is party to rental leases ranging between 2 to 5 years. All leases are on a fixed repayment basis and no arrangments have been entered into for contingent rental payments.
The provision relates to the estimated costs of restoring leased properties to their original condition at the end of the lease terms, as required under the Company’s lease agreements. The provision represents management’s best estimate of the expected outflows required to settle the obligation, based on the current condition of the properties, anticipated repair costs, and expected timing of the works. The provision is reviewed at each reporting date and adjusted to reflect changes in estimates or assumptions.
The following are the major deferred tax liabilities and assets recognised by the company:
The deferred tax liability set out above is expected to reverse in over 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
There are no events post period end date to report.
The remuneration of key management personnel is as follows.
During the year the company was recharged £1,193,421 (2024: £828,961) by a company under common control, under a cost-plus expenses agreement. At the year ended 31 December 2025, outstanding invoices of £241,649 (2024: £nil) were owed to this company.
The company also incurred consultancy fee expenses on an arms length basis of £6,000 (2024: £6,000) to a company which is owned by a director of Interpolitan Money PLC. At the year ended 31 December 2025, £1,000 (2024: £500) was owed to this company.
Disclosure of entities that are part of the group is not required as 100% of the voting rights of the company are controlled within the group.