Company No: 14088894 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	30.06.2025		31.12.2023
		£		£
Current assets
Debtors
- due within one year	6	9,113		3,945,966
- due after more than one year	6	0		15,071,649
Cash at bank and in hand	7	31,676		23,823
		40,789		19,041,438
Creditors: amounts falling due within one year	8	( 805,482)		( 19,734,515)
Net current liabilities		(764,693)		(693,077)
Total assets less current liabilities		(764,693)		(693,077)
Net liabilities		(764,693)		(693,077)
Capital and reserves	10
Called-up share capital		1		1
Profit and loss account		( 764,694)		( 693,078)
Total shareholder's deficit		(764,693)		(693,077)

The notes on pages 15 to 23 form part of these financial statements.

The financial statements of Kvika Credit Ltd (registered number: 14088894) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

Iris Arna Johannsdottir Director

Andri Orn Gunnarsson Director

28 July 2026

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial period and to the preceding financial period, unless otherwise stated.

General information and basis of accounting

Kvika Credit Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is 103 Nations House, Wigmore Street, London, W1U 1QS, United Kingdom.

The principal activities are set out in the Directors’ Report.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.

The Company was entitled to exemption from including a Cash Flow statement under FRS 1.12.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The financial statements have not been prepared on a going concern basis. The directors are discontinuing the activities of the Company as part of changes to the way the UK business of Kvika Banki is funded. Accordingly, the financial statements have been prepared on a basis other than going concern, under which assets and liabilities are stated at par. The Company did not experience any solvency or liquidity issues during this process and none are foreseen in the future, as the Company continues to benefit from the financial support of regulated bank within the Kvika Group.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover comprises interest and fee income arising from the provision of secured bridging finance. Such income is derived from loan receivables assigned to the Company from other entities within the ultimate group.

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

i. Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the period or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

ii. Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements.

These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.

Non-derivative financial assets

Basic financial assets, including trade receivables and other receivables, cash and cash equivalents, are initially recognised at transaction price. Such assets are subsequently measured at amortised cost using the effective interest method. At the end of each reporting period financial assets at amortised cost are assessed for objective evidence of impairment and are adjusted for any expected credit loss allowance.

Given the nature of the trade and other receivables, and the short-term of time between origination and settlement, their amortised cost is the same at the transaction price. Financial assets are derecognised when:
(a) the contractual rights to the cash flows from the asset expire or are settled, or
(b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or
(c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Non-derivative financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at fair value. Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Given the nature of trade and other payables, and the short-term of time between origination and settlement, their amortised cost is the same as the transaction price. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired.

Administrative expenses

All items of administrative expenses are recognised on an accrual basis.

Cost of sales

Cost of funds are charged to the Statement of Comprehensive Income over the term of the related financial liability using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Trade and other debtors

Trade and other debtors are initially recognised at transaction price and are subsequently measured at amortised cost using the effective interest method, less impairment losses, except where discounting would be immaterial, in which case they are stated at cost less impairment.

At each reporting date, the Company assesses whether there is objective evidence of impairment. Provisions are recognised based on an assessment of recoverability, taking into account the ageing of balances, historical collection experience and any specific knowledge of individual debtors. Impairment losses are recognised in profit or loss and reviewed at each reporting date.

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, which are described in note 1, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 financial period in which the estimate is revised if the revision affects only that period, or in the financial period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the company’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Critical judgement - Impairment of debtors

At each reporting date, the Company assesses whether there is objective evidence that a financial asset measured at amortised cost is impaired. If such evidence exists, an impairment loss is recognised in profit or loss.

For trade receivables, impairment provisions are recognised based on an assessment of recoverability. This includes consideration of the ageing of balances, historical credit loss experience and factors specific to individual debtors, as well as current economic conditions at the reporting date. Where appropriate, a provision matrix may be used to estimate losses on outstanding balances.

For loans and advances to customers and other financial assets, impairment is assessed individually for significant balances and collectively for groups of assets with similar risk characteristics. The assessment considers factors such as payment default, breaches of contractual terms and adverse changes in the financial position of the borrower.

Any impairment loss represents the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Impairment losses are reviewed at each reporting date and adjusted to reflect changes in estimates.

3. Loss before taxation

Loss before taxation is stated after charging/(crediting):

	18 month period to 30.06.2025		Year ended 31.12.2023
	£		£
Foreign exchange gains	( 127)		0

4. Auditor's remuneration

An analysis of the auditor's remuneration is as follows:

	18 month period to 30.06.2025		Year ended 31.12.2023
	£		£
Fees payable to the company’s auditor and its associates for the audit of the company's annual financial statements:	25,000		0
Total audit fees	25,000		0

5. Staff number and costs

	30.06.2025		31.12.2023
	Number		Number
The average monthly number of employees (including directors) was:	0		0

Both directors were compensated by the wider group.

6. Debtors

	30.06.2025		31.12.2023
	£		£
Debtors: amounts falling due within one year
Trade debtors	0		2,442,670
Amounts owed by group undertakings (note 11)	0		1,503,296
Prepayments and accrued income	9,113		0
	9,113		3,945,966
Debtors: amounts falling due after more than one year
Trade debtors	0		15,071,649

Amounts receivable from group undertakings are repayable on demand.

7. Cash and cash equivalents

	30.06.2025		31.12.2023
	£		£
Cash at bank and in hand	31,676		23,823

8. Creditors: amounts falling due within one year

	30.06.2025		31.12.2023
	£		£
Amounts owed to group undertakings (note 11)	194		0
Amounts owed to parent undertakings (note 11)	780,288		19,731,815
Accruals	25,000		2,700
	805,482		19,734,515

Amounts payable to group undertakings are repayable on demand.

9. Financial instruments

The carrying values of the company’s financial assets and liabilities are summarised by category below:

	30.06.2025		31.12.2023
	£		£
Financial assets
Measured at undiscounted amount receivable
Trade debtors (note 6)	0		17,514,319
Amounts owed by Group undertakings (note 6)	0		1,503,296
	0		19,017,615
Financial liabilities
Measured at undiscounted amount payable
Amounts owed to Group undertakings (note 8)	( 194)		0
Amounts owed to Parent undertakings (note 8)	( 780,288)		( 19,731,815)
	(780,482)		(19,731,815)

10. Called-up share capital and reserves

	30.06.2025		31.12.2023
	£		£
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00	1		1
Presented as follows:
Called-up share capital presented as equity	1		1

The company's other reserves are as follows:

The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.

11. Related party transactions

The company has availed of the exemption provided in FRS 102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the company is a wholly owned member.

Transactions with group companies

Amounts owed to Parent undertakings

	30.06.2025		31.12.2023
	£		£
Kvika Banki	780,288		19,731,815

12. Audit Opinion

The auditor's report on the accounts for the financial period ended 30 June 2025 was unqualified.

The audit report was signed by Michael Wedge FCA on behalf of BKL Audit LLP, Chartered Accountants &.

13. Controlling party

The Company’s ultimate parent undertaking is Kvika Banki hf., whose registered office is at Katrinartun 2, 105 Reykjavik, Iceland.
A copy of the Kvika Banki hf. consolidated financial statements are available at www.kvika.is.