The Directors submit their Strategic Report for AFH Independent Financial Services Limited for the year ended 31 October 2025.

The company’s principal activity is to provide financial planning led investment management services of the highest quality to clients who value a long-term relationship, based on mutual trust and respect.

The story for 2025 has been mixed. We have seen strong performance in equities, particularly in the US, where the S&P touched all-time highs in late October 2025 and performed well through the year. Much of this has been driven by strong performance in the tech sector, in AI focussed businesses in particular. There are fears of an AI Bubble, although much of the recent growth has been less by AI enthusiasm and more by expectations of resilient US economic growth and further Fed rate cuts.

However, the picture in the UK has been less positive, with sticky inflation, flatlining GDP growth and growing unemployment. These are underlined by taxation and regulatory policy from the UK government that is increasingly inimical to growth, the private sector and individual wealth. In the face of above target inflation, the Bank of England Monetary Policy Committee has been cautious in its rate setting policy, with rates dropping more slowly than anticipated, dropping to 4% from August 2025. (A further 0.25% cut in rates, taking the rate to 3.75%, came into effect mid-December 2025). While government taxation and regulatory policy are expected to be inflationary, driving up costs for business, flatlining GDP or even a recession may encourage faster rate cuts. We expect rates to drop to 3.50% or even 3.25% during 2026.

While economic headwinds may impact the amount of free capital available to our target clients, we believe that organic growth initiatives and the need for ethical tax planning will continue to drive new business. In a period of uncertainty and changing taxation rules, for example pensions, salary sacrifice and IHT, advice around ethical tax planning will be key to help clients manage and mitigate their tax burden exposure.

Future developments

The Cortina Bidco Group is looking to grow through acquisitions and continuing its growth organically though recruitment of strong advisers and improved lead generation processes.

Principal risks and uncertainties

Assessment of the principal risks and uncertainties and key performance indicators has been performed at Group level, which comprises Cortina Bidco Limited, AFH Financial Group Limited and its subsidiaries including the company. The following section summarises the principal risks and uncertainties that impact the Company and the market in which we operate. The Board is responsible for assessing the principal risks and these are monitored by the Risk Committee under the Chairmanship of the Chief Risk Officer.

Against each of the principal risks, consideration is given to the Group’s exposure and the extent to which the risk can be mitigated.

The Board considers other risks to the Company within four categories: - Conduct, Credit, Market and Operational. The Company’s overall risk management programme seeks to minimise potential adverse effects on the Company’s financial performance and its reputation arising from these risk areas.

The Key financial and non-financial risks identified by the Board and the measures taken to mitigate their impact are:

GDPR and cyber risk

The failure or compromise of an IT system, whether internal or outsourced, could lead to disruption of services to clients, reputational damage and a negative impact on profitability.

The Group seeks to minimise this risk through close working relationships with our outsourced suppliers supported by appropriate Service Level Agreements against which performance is monitored. The Company carries out ongoing diligence over key suppliers to allow early identification of risk. Business continuity/disaster recovery arrangements are in place with most key services now cloud based and all staff able to operate remotely.

We continue to monitor and enhance our existing cyber security capability in line with the increasing threat and work with third party partners, including outsourced Managed Detection and Response services to ensure continuity of coverage. We regularly test and implement security protocols in conjunction with our service providers and externally validated standards. The Group has strong technical mitigations in place alongside regular mandatory security training for all staff and advisers.

The Company’s IT team, in conjunction with our outsourced service partners continually monitor for any unauthorised usage and access of Company data. Access to Group systems is terminated immediately upon exit for all staff and advisers and return of all Company property is mandatory for leaving employees and advisers.

Reduced market yield risk

In an environment where market forecasters are projecting lower yields in the future the Company may fail to deliver past levels of return to our clients, especially in periods of high interest rates and / or inflation and market volatility.

Our business model is based on providing above average market returns whilst reducing the cost of investment for our clients thereby increasing the net yield from their portfolios. The Investment Committee includes external professionals who work with our research analysts to construct and manage diversified portfolios appropriate to the risk and financial planning needs of our clients. Our discretionary clients’ portfolios are managed on an ongoing basis to react to short term market fluctuations within the investment strategy set out by the Investment Committee. A dedicated Investment Research team constantly monitors market movements, with processes in place to alert the Investment Committee at certain thresholds. Strong governance and oversight ensure that the Company can affect contingencies as issues arise.

Client outcome risk

AFH is a client centric organisation, with this value embedded in our culture and values. Ensuring positive client outcomes is an area of ongoing focus for the Company.

We employ a team of specialist managers within our Adviser Management and Training & Compliance teams to recruit and manage high quality advisers who adhere to the Company’s client centric culture. Clients are matched to advisers based on relevant expertise and location to cement both clients and advisers within the Company community whilst our commercial structure encourages the retention of advisers. All advisers are subject to ongoing KPI monitoring and file and advice quality reviews, alongside annual competency and fitness and propriety assessments. Mission, vision and culture training is provided on induction to all staff and advisers by our dedicated training function, with regular refreshers to ensure our advisers live the AFH values and behaviours.

The Company prohibits advisers from charging over the published rates and conducts compliance checks on new business submissions to ensure the appropriate charge is levied. The CRO is involved in key commercial decision-making and there is a Risk team representative within all key projects to ensure alignment to good client outcomes.

The Company has dedicated resource assessing compliance to regulation, and controls in place monitoring the trends of breaches and complaints identified. We foster an open culture to recognise and report breaches, with a formal internal breach process to clearly identify and resolve issues swiftly. The Company is focussing on MI automation and the digitalisation of key client processes to streamline processes and reduce manual process errors.

Regulatory, legislative and tax risk

The company proactively seeks to understand future changes that will be arising from regulatory, legislative or tax changes. Impact assessments are carried out in advance of these changes to ensure the risk of non-compliance is minimised. Dedicated Change and Project Management teams focus on efficient implementation of changes to policies, processes and systems and provide regular updates to the board on implementation status.

The company engages with its regulators in an open and constructive manner. Appropriately experienced and skilled Risk and Technical teams focus on regulatory change and legislative compliance, and where appropriate, the Company engages with independent experts for advice and assurance. In 2025 the company participated in the FCA’s Ongoing Advice Review, evidencing delivery of historic contractual obligations to its clients to the timetable set.

Acquisitive risk

The acquisitive nature of our business risks importing advice liabilities and people into the Group who do not share our culture or standards.

The Group employs a full-time Acquisitions and Integration team who are responsible for the Due Diligence, contractual negotiations and integration of all acquisitions under the ultimate direction of the Chief Executive Officer. The Group adopts standard process questionnaires and contracts for acquisitions and always obtains full indemnities from each of the vendors in respect of any financial advice liability relating to the period before acquisition. A dedicated team monitors acquisition performance against diligenced projections.

The cultural fit of vendors and their client base is examined during due diligence and formal induction courses are mandatory for joining advisers prior to completion of the acquisition. Regular mission, vision and culture training is mandatory across entire workforce, with behaviour scaling forming a core part of our Performance Reviews further cementing the AFH culture. Client centricity forms a key part of the Company values. All advisers are subject to KPI monitoring to ensure compliance with AFH procedures and to ensure positive client outcomes.

Interest rate risk and cash flow risk

There is a risk of higher interest and / or delay in cash receipts.

The Group manages its treasury function on a centralised basis. The main sources of revenue and operating cash flows are substantially independent of changes in market interest rates, with further mitigation through holding diversified portfolios. The Group has access to interest-bearing facilities on which it seeks to obtain a commercial rate of return whilst not having a material adverse effect on cash flow. The Board monitors both its regulatory requirements and cash flow forecasts on a regular basis to ensure that appropriate funding is always in place.

The Group has access to a debt facility with a floating interest rate based on SONIA. The Group seeks to finance acquisition consideration through free cash flows wherever possible before drawing on this facility. It remains the Group strategy to ensure that sufficient financing is available to cover acquisition consideration outflows in advance of any acquisition being completed.

Credit risk

Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as commercial transactions.

Credit risk is managed on a Company basis. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board. The utilisation of credit limits is regularly monitored, and the credit worthiness and financial strength of our Providers is assessed by the centralised Research team as part of Defacto ratings. The Company receives most of its income directly from blue chip financial institutions in accordance with instructions placed by its clients thereby minimising the risk of incurring bad debts. The Company only uses Providers regulated with the FCA to PRA prudential requirements and the Company prohibits advice in unregulated investments.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding and the ability to close out market positions.

The Group maintains flexibility by maintaining headroom in its cash position. Management monitors forecasts of the Group’s liquidity based on expected cash flows. This is carried out in accordance with recommended accounting practice and limits set by the Group. The Board reviews the Group’s liquidity at its monthly meetings. The Risk Committee carry out quarterly assessments in line with CRR Regulation and quarterly liquidity assessments.

S172 Companies Act 2006

The Board should understand the views of the company’s key stakeholders and sets out below how their interests and the matters set out in section 172 of the Companies Act 2006 have been considered in board discussions and decision-making.

The directors consider the key financial performance indicators (“KPIs”) for the Company are as follows:

Business review

During the year the Company saw revenue growth of £8.3m despite economic and political uncertainty while maintaining our funds under management. Gross revenue per adviser was above £410,000 (2024: £380,000). Total revenue for the year increased by 11% to £81.9 million (2024: £74 million), gross margins increased to 73% (2024: 71%). The revenue growth has been predominantly from the consolidation of acquisitions the Company has made and growth in AFH’s own funds and models.

We have completed our Ongoing Service Review and have provided a £3.6m for potential client refunds and redress which will be returned to clients in 2026.

During the year, AFH Financial Group Limited novated the lease of its head office premises to AFH Independent Financial Services Limited as part of an ongoing review of the group structure. There have been no changes to the commercial terms of the lease.

A detailed review of the business has been performed at Group level and can be found within the consolidated accounts for AFH Financial Group Limited for the year ended October 2025.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 October 2025.

Information not presented in the Directors' Report is instead shown in the Strategic Report in accordance with S414C(11) of the Companies Act 2006, including principle activities, financial risk management objectives and future developments of the company.

The profit for the year, after taxation, amounted to £28,026,269 (2024: £25,582,519).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

The directors confirm that no qualifying third-party indemnity provision in favour of any of the Directors of the company, as defined by s236 of the Companies Act 2006, either by the company or by any other party, was in force at the time of signing of this report, and that no such provision had been in force at any time in the financial year.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

The Company gives full and fair consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the Company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

The Company involves employees in the running of the business through a strategic board and senior management team that works closely with management and staff members.

Employees are invited to engage in regular Pulse surveys where they can contribute ideas towards ways to improve the business, staff benefits and the working environment.

In line with government legislations the Company offers a company-wide pension scheme, where staff have the option to opt out if they wish.

A resolution proposing that Saffery LLP be reappointed as auditor of the Company will be put to the members at the Annual General Meeting.

Each of the persons who are directors at the time when this Directors’ report is approved had confirmed that:

• So far as that Director is aware, there is no relevant audit information of which the Company’s auditor is unaware, and

• That Director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company’s auditor is aware of that information.

Commitment to safety is the company’s first consideration. The number of accidents is a key performance indicator reported on to group every month. Any accidents at the workplace are recorded, fully investigated and corrective action instigated at the earliest opportunity. Active communication and training campaigns are implemented, and information is shared with the group. The company is fully involved in the group’s Industrial Management System which aims to reduce both the incidence and the impact of accidents. The company has taken the subsidiary exemption from producing the Streamlined Energy & Carbon Reporting (SECR) in this directors’ report. The full report can be found in AFH Financial Group Limited financial statements.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 AFH Independent Financial Services Limited (the 'company') for the year ended 31 October 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity 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 101 Reduced Disclosure Framework (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 31 October 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice including FRS 101; and

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 course of 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.

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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, 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.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006, UK Tax legislation and The Financial Services and Markets Act 2000, on which The Financial Conduct Authority (FCA) Handbook is based.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

The company is regulated by the FCA. We discussed the company's authorisation and permitted activities with the SMF16 and obtained evidence of this from the FCA register. We obtained additional evidence about compliance by discussing any breaches with the SMF16 and SMF17 and reviewing correspondence with the FCA.

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

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

AFH Independent Financial Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is AFH House, Buntsford Drive, Stoke Heath, Bromsgrove, Worcestershire, B60 4JE. The principal activities of the company are included in the directors report on page 9.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

• The requirements of IFRS 15 'Revenue from Contracts with Customers' relating to the disclosure of significant judgements made in application of the standard, revenue recognised from contracts with customers, disaggregation of revenue categories, significant changes to contract balances and information about performance obligations and transaction prices;

• The requirement of IFRS 7 'Financial Instruments Disclosures' relating to the disclosure of financial instruments and the nature and extent of risks arising from such instruments;

• The requirement of IFRS 13 'Fair Value Measurement' paragraph 91 to 99 relating to the fair value measurement disclosure of financial assets and financial liabilities that are measured at fair value;

• The requirements of IAS 8 'Accounting Policies, Changes in Accounting Estimates and Errors' paragraph 30 and 31 relating to the disclosure of standards, amendments and interpretations in issue but not yet effective;

• The requirement of IAS 1 'Presentation of Financial Statements' paragraphs 134 to 136 relating to the disclosure of capital management policies and objectives;

• The requirements of IAS 7 'Statement of Cash Flows' and IAS 1 'Presentation of Financial Statements' paragraph 10(d); 111 relating to the presentation of a Cash Flow Statement; and

• The requirements of IAS 24 'Related Party Disclosures' relating to the disclosure of key management personnel compensation and relating to the disclosure of related party transactions entered into between the company and other wholly-owned subsidiaries of the group.

Where required, equivalent disclosures are given in the group accounts of AFH Financial Group Limited. The group accounts of AFH Financial Group Limited are available to the public and can be obtained as set out in note 18.

The directors have considered the anticipated business activities of the Company, its cash flows and capital position for a period of 12 months from the date of these accounts. They believe that even in the event of falling markets and without further growth the company can continue to trade profitably from an EBITDA perspective and will continue to generate cash surpluses after interest payments. The Company maintains sufficient facilities to cover its short and long-term liabilities. This assessment has been stress tested for lower than anticipated revenues. Therefore, the directors are satisfied that the Company has adequate resources for the near future and for this reason continue to adopt the Going Concern basis in preparing the financial information. The Company may receive financial support from its ultimate owners if required.true

Revenue is recognised in line with the requirements of IFRS 15 as contractual performance obligations are satisfied, as noted below by revenue stream. Revenue is measured at the fair value of the consideration received adjusted for clawbacks, allowance for impairment, discounts, rebates, and other sales taxes or duty.

Initial Fees

Initial fee income is recognised as it is earned at the point when financial advice is provided.

Ongoing fee and investment management income

Fees are recognised as gross, as and when fees from management of investments are earned.

Protection income (indemnity)

Revenue is recognised as earned as the policy goes live and the fees from the policy are due.

Interest income

Revenue is recognised as interest accrues (using the effective interest method that is the rate that exactly discounts estimated future cash receipts through the expected life of the finance instrument to the net carrying amount of the financial asset).

Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment in value.

Depreciation is provided on all property, plant and equipment at rates calculated to write each asset down to its estimated residual value over its expected useful life as follows:

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short term, highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets are recognised on the statement of financial position when, and only when, the Company becomes a party to the contractual provisions of the instrument.

Financial assets are initially recognised at fair value plus directly attributable transaction costs. Financial assets carried at amortised cost are classified as loans and receivables and comprise trade and other receivables and cash and cash equivalents. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

After initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

If there is objective evidence that there is an impairment loss on loans and receivables, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financial asset's original effective interest rate (i.e. the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced either directly or through use of an allowance account.

A financial asset is derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and reward are transferred.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

These financial liabilities include trade and other payables and interest-bearing loans and borrowings.

Financial liabilities are initially recognised at fair value adjusted for any directly attributable transaction costs.

After initial recognition, financial liabilities are measured at amortised cost using the effective interest method, with interest-related charges recognised as an expense in finance costs. Discounting is omitted where the effect of discounting is immaterial.

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

Share capital represents the nominal value of shares that have been issued.

Retained earnings include all current and prior period retained profits.

Dividend distributions to the Company's shareholders are recognised in the accounting period in which the dividends are declared and paid, or if earlier, in the accounting period when the dividend is approved by the Company's shareholders at the Annual General Meeting.

Current income tax assets and/or liabilities comprise obligations to, or claims from, fiscal authorities relating to the current or prior reporting periods, that are unpaid/due at the reporting date. Current tax is payable on taxable profits, which may differ from profit or loss in the financial statements. Calculation of current tax is based on the tax rates and tax laws that have been enacted or substantively enacted at the reporting period.

Deferred taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases.

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised, unless the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit (tax loss). However, for deductible temporary differences associated with investments in subsidiaries a deferred tax asset is recognised when the temporary difference will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilised.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company 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 a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

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 inventories or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

A termination benefit liability is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.

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

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. 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 included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method 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. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

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 group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. 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 is recorded 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.

During the financial year, the Company has adopted the following new IFRSs (including amendments thereto) and IFRIC interpretations, that became effective for the first time.

Their adoption has not had any material impact on the disclosures or amounts reported in the financial statements.

At the date of authorisation of these financial statements, the following standards and interpretations relevant to the Company and which have not been applied in these financial statements, were in issue but were not yet effective.

The directors are evaluating the impact that these standards will have on the financial statements of the Company.

At the date of authorisation of these financial statements, the following standards and interpretations relevant to the Company and which have not been applied in these financial statements, have not been endorsed for use in the UK and will not be adopted until such time as endorsement is confirmed.

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty:

Recognition of accrued fee income

Management estimation is required to determine the amount of accrued revenue that can be recognised, fees are recognised as earned at the point when financial advice is provided and when fees from the management of investments are earned. Management updated its estimate of revenue during the year, as a result of improved methodology being available. The effect of the change was immaterial and has been recognised prospectively.

Impairment of intercompany receivables and non-financial assets

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units based on expected future cash flows and where applicable, using an interest rate to discount them. Estimation uncertainty relates to the assumptions about future operating results and the determination of a suitable discount rate.

The revenue and profit before tax are attributable to the principal activity of the company.

The remuneration of the auditor has been borne by AFH Financial Group Limited for the current and prior year.

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

Their aggregate remuneration comprised:

During the year ended 31 October 2025 and 31 October 2024, Directors' costs were borne by AFH Financial Group Limited.

During the year ended 31 October 2025: 2 (2024: 2) directors were accruing retirement benefits under company pension schemes.

The charge for the year can be reconciled to the profit per the income statement as follows:

During the year, no dividends were paid to the company's immediate parent (2024: nil).

The disclosed fixed assets are right of use assets

Trade receivables include a £nil provision for bad debts (2024: £nil).

Payments in the year in respect of right of use asset leases amounted to £99,019.

Clawback provision

A provision is held for cancelled protection policies ahead of the agreed terms. The provision is calculated on the actual run-rate of lost clients with 90% of clawbacks occurring in the first 12 months.

Consumer duty redress requirements

The Group has established a provision in respect of potential refunds and redress obligations arising under the Financial Conduct Authority’s (FCA) Ongoing Service review.

The Company's immediate parent undertaking is AFH Group Limited, which is incorporated in England and Wales.

The Company's ultimate parent undertaking is Cortina Topco Limited, which is incorporated in the Cayman Islands, indirectly controlled by funds managed by Flexpoint Ford, LLC, a private equity investment firm incorporated in the United States of America.

Copies of the consolidated financial statements of AFH Financial Group Limited, the smallest group of undertakings that consolidates the Company as at 31 October 2025 are filed with Companies House.

The largest group of undertakings that consolidates the company is Cortina Bidco Limited, which is incorporated and registered in the Cayman Islands. Copies of their financial statements can be obtained from AFH House, Buntsford Drive, Stoke Heath, Bromsgrove, Worcestershire, B60 4JE.