The directors present the strategic report for the year ended 31 December 2025.

The principal activity of the Group is providing short term loan financing to consumers through its subsidiary, Snap Finance Limited, which is a specialist consumer credit provider incorporated in England and Wales and authorised and regulated by the Financial Conduct Authority. The Group provides point-of-sale and direct-to-consumer finance, enabling customers to spread the cost of goods and services across a broad network of retail and service partners, with particular strength in the Home Furnishing, Flooring and Mobility sectors. Products are offered under the Snap Finance brand and through the Snap Card, which was launched during 2025 and provides customers with a flexible way to access credit across the Snap retail network.

The Group provides responsible access to finance for customers who may not be well served by mainstream lenders.

It creates value by connecting customers seeking finance with retail and service partners seeking to increase sales and improve customer choice. Income is generated principally through interest on credit agreements and income received from retail partners.

The business operates through two complementary channels. The point-of-sale channel enables customers to access finance through the Group’s partner network, while the direct-to-consumer channel supports longer-term customer relationships, increasingly through the Snap Card.

The Group’s technology, credit decisioning and affordability assessment capabilities are central to its business model, enabling it to assess customers using a broad range of information while maintaining appropriate controls over credit risk, affordability and customer outcomes.

During 2025, Snap helped almost 50,000 customers finance purchases, an increase of over 25% compared with 2024. The total number of customers served since we began lending has now exceeded 200,000.

Customers are increasingly turning to Snap Finance to support them to purchase household goods, and their satisfaction with using Snap is reflected in our excellent Trust Pilot and NPS scores.

Customer experience measures remained strong. Complaints represented less than 1% of live agreements and as at 31 December 2025, the Group had a Trustpilot rating of 4.5 out of 5 and a Net Promoter Score of +81.

Customers use Snap finance across a broad range of purchases. Home furnishings remain the largest sector, followed by mobility equipment and carpets and flooring. The range of purchases supported continued to broaden during the year and included vocational training and education courses, sports and leisure equipment, tyres, household appliances and technology.

Lending growth has been supported by the continued development of the Group’s enterprise relationships, increased activity across its core retail sectors and the expansion of its direct-to-consumer proposition. The resulting increase in the loan book supported strong revenue growth and strengthened the Group’s position entering 2026.

During the year, the Group completed a new committed external finance facility to provide additional funding capacity for future growth. The facility provides significant additional funding capacity and strengthens the Group’s liquidity position.

A significant development during the year was the launch and rollout of the Snap Card. The product broadened the Group’s proposition beyond traditional point-of-sale instalment lending and expanded the ways in which new and existing customers could access Snap finance.

As the business scales, the Group continues to strengthen its governance framework, including enhancements to risk management, compliance monitoring and Board oversight. The Group continued to monitor customer outcomes through its Consumer Duty framework, completing its fair value assessment during the year and taking action where areas for improvement were identified, including complaint resolution times.

In the year, Snap strengthened its fraud detection and prevention tools, across identity verification, fraud detection, and operational controls. These measures contributed to a material reduction in fraud and first-payment default levels during the latter part of the year and enhanced the Group’s ability to identify and manage risks associated with more dynamic products such as Snap Card.

Snap’s work was recognised across the industry during the year. The Group was named Alternative Lender of the Year at the 2025 Lending Awards, while the Group’s Credit Risk team was named Credit Risk Team of the Year at the Credit Strategy Awards.

The Group continued to invest in its people, technology, credit decisioning capabilities and operating infrastructure to support growth, the continued development of the Snap Card, and the increasing operational and regulatory requirements of the business. Average employee numbers increased to 100 during the year, compared with 89 in 2024.

The Group maintains a governance framework to identify, oversee and manage enterprise-wide risk. Board-level oversight is supported by a structure of committees, including the Risk Committee, Credit Committee, Change Committee and Product and Outcomes Committee. These committees provide oversight of the principal risks relevant to their areas of responsibility, including material product and service changes, regulatory compliance and customer outcomes. The principal risks and uncertainties facing the Group, and the actions taken to manage them, are set out below.

Credit and fraud risk

The risk that customers do not meet their contractual obligations, or that the Group suffers loss through fraud, is inherent in the Group’s business. This risk is overseen by the Credit Committee and managed through underwriting and affordability assessment, portfolio monitoring, fraud detection and regular review of credit policy.

Impairment provisions are reviewed regularly having regard to observed portfolio performance and the assumptions applied in determining impairment. Underwriting criteria were tightened in selected channels during the year as product mix and credit performance evolved. The Group also strengthened its fraud prevention capability.

Regulatory, compliance and conduct risk

The Group operates in a regulated consumer credit market under the oversight of the Financial Conduct Authority and is subject to requirements relating to areas including Consumer Duty, affordability and creditworthiness, financial promotions and complaints handling. This risk is overseen through the Risk Committee and Product and Outcomes Committee.

The Group maintains policies and procedures, mandatory training, compliance monitoring and assurance, and oversight of its retail and service partners. During the year, it continued to strengthen its compliance framework and governance arrangements to support adherence to regulatory requirements and good customer outcomes.

Liquidity and funding risk

The Group requires sufficient and reliable funding to originate new lending and meet its obligations as they fall due. During 2025, the Group completed a new committed external finance facility and made an initial drawdown shortly before the year end, alongside the continued support of its shareholder group.

The facility is subject to financial covenants, receivables eligibility requirements and portfolio performance triggers, and operates with disciplined collections and cash management processes. The directors monitor funding headroom, covenant compliance and portfolio performance closely and are satisfied that adequate funding is available to meet the Company's obligations and support its growth plans. Further detail on going concern is set out in note 1.3 of the financial statements.

Operational and technology risk

The Group is dependent on its technology platform, third-party service providers and operational processes. Associated risks include cyber security, data protection, system availability, operational resilience and third-party performance. These risks are managed through internal controls, security and monitoring processes, change governance, third-party oversight, and business continuity and disaster recovery arrangements, with regular reporting to senior management and the Risk Committee.

Macroeconomic risk

The Group’s performance is sensitive to changes in the wider economic environment, including consumer incomes, employment, inflation and interest rates. The directors monitor economic conditions and reflect these, where relevant, in credit policy, affordability assessment, impairment assumptions and financial planning. The Group also considers the impact of adverse economic scenarios as part of its forecasting and risk management processes.

Foreign currency risk

The Group has a significant loan with its US parent entity, Snap US Holdings LLC. Consequently, the Group is exposed to foreign currency risk arising from movements in the GBP/USD exchange rate. Favourable exchange rate movements during the year resulted in a significant foreign exchange gain.

The directors monitor a focused range of customer, operational and financial measures that reflect the scale, performance and development of the group's business. Given the Group’s focus on providing access to finance to customers who may not be well served by mainstream lenders, the number of customers supported during the year is considered an important measure of the Group’s growth and reach. Customer indicators are therefore presented first.

Customer Indicators

The number of new customers increased by 26% during the year.

Financial Indicators

Revenue increased by approximately 52% during 2025, reflecting higher levels of funding advanced and the resulting growth in the loan book.

Gross profit margin has increased from the prior year from 33% to 39%. The benefit of higher revenue was offset by increased impairment charges associated with new lending originated during the year. Under the Company’s accounting policy, impairment is recognised when lending is originated, while the associated interest income is earned over the contractual life of the agreements. The effect was particularly pronounced during 2025 given the approximately 40% increase in funding advanced. Gross profit was also affected by the mix of new lending and increased funding costs.

The Group recorded a loss before tax of £5.7 million, compared with £8.4 million in 2024. In addition to the impairment recognised on the growing portfolio, the result reflected continued investment in technology, people, fraud prevention and operating infrastructure to support the increased scale of the business.

Funding and liquidity

Funding advanced to customers increased by approximately 40% during the year. The new committed external finance facility completed during 2025 provides additional funding capacity for future originations and complements the continued support of the Group’s shareholder group. An initial amount was drawn under the facility shortly before the year end.

The facility is subject to financial covenants, receivables eligibility requirements and portfolio performance triggers. Compliance with these requirements, together with available funding capacity, is monitored regularly by the directors and senior management.

Loan book and credit quality

The loan book grew significantly during 2025 as origination volumes increased across both the instalment lending and Snap Card products. Credit quality is actively monitored and managed, with credit policies and underwriting criteria kept under regular review. During the year, the Group tightened underwriting criteria in selected channels in response to changes in product mix and observed credit performance, helping to maintain the portfolio within the Group’s risk appetite.

The directors consider the impairment provision held at the year end, including provisions against Snap Card balances, to be appropriate having regard to observed credit performance and the assumptions applied in determining impairment.

Strategic priorities

The Group’s strategy is to grow responsibly and profitably by serving consumers who may not be well served by mainstream lenders. Its key priorities are:

• Enterprise and point-of-sale growth: deepening existing partnerships and increasing penetration across the Group’s core Home Furnishing, Flooring and Mobility sectors.

• Snap Card and direct-to-consumer growth: continuing to develop the Snap Card and wider direct-to-consumer proposition to increase customer engagement and build longer-term customer relationships.

• Technology and decisioning: continued investment in underwriting, affordability assessment, data and automation to support responsible growth and improve customer access to credit.

• Operational scalability and resilience: strengthening technology, operational processes, controls and governance to support higher volumes efficiently and sustainably.

• Customer outcomes: continuing to monitor customer outcomes and taking action where areas for improvement are identified.

In performing their duties under section 172 of the Companies Act 2006, the directors had regard to the likely long-term consequences of their decisions, the interests of employees, the need to foster relationships with customers, retail and service partners, suppliers and other stakeholders, the impact of the Group’s activities on the community and environment, the importance of maintaining high standards of business conduct and the need to act fairly between members. The relative importance of these factors varied according to the matter under consideration.

Principal decisions during 2025 included:

• Establishing the external finance facility. In approving the new committed external finance facility and the initial drawdown shortly before the year end, the Board considered the Group’s long-term funding requirements, the obligations and covenants attached to the facility and the additional capacity it would provide to support future growth.

• Tightening credit in selected channels. In adjusting underwriting criteria during the year, the directors balanced near-term growth against credit performance, responsible lending, customer outcomes and the long-term sustainability of the loan book.

• Launching and developing the Snap Card. In supporting the launch and continued development of the Snap Card, the Board considered the customer proposition, the investment required, operational and fraud risks and the potential contribution of the product to the Group’s long-term development. Controls were strengthened as experience of the product developed during the year.

The Board also receives regular reporting on employees, customer outcomes, key business relationships, complaints and community activity. Given the nature of the Group’s operations, environmental matters are considered where relevant. Further information on how the directors engage with employees and with suppliers, customers and others is provided in the Directors’ Report.

Community

The Group participates in Snap Cares, the group-wide community programme through which colleagues volunteer, fundraise and support charitable initiatives. In the United Kingdom, the Group supports SOFEA, an education and training charity that redistributes surplus food through its FareShare regional centres and helps disadvantaged young people develop skills, qualifications and work experience. The partnership reflects the Group’s focus on supporting communities facing financial and social disadvantage. The Board receives regular reporting on the Group’s community activity.

Outlook

The directors expect the Group to support more customers in 2026, with growth expected from deeper enterprise partnerships across the core Home Furnishing, Flooring and Mobility sectors, increased activity through the direct-to-consumer channel and the continued development of the Snap Card. The Group will continue to balance growth with credit performance, customer outcomes and operational resilience.

The funding capacity established through the new external finance facility, together with the continued backing of the shareholder group, provides a strong financial foundation for the Group’s growth plans. Cost growth is expected to remain modest relative to volume growth as the Group realises operating leverage.

On behalf of the board

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

The results for the year are set out on page 11.

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

No preference 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 Group’s approach to the financial risks arising from its activities, including credit, liquidity, funding and market risk, is described in the principal risks and uncertainties section of the Strategic Report and, where relevant, in the financial instruments disclosures in the notes to the financial statements.

Snap’s colleagues are central to its success. During the year, the Group continued to foster a culture of transparency, development and inclusion, supported by regular colleague communications, performance feedback and engagement surveys. The Board receives updates on colleague engagement and culture as part of its decision making.

The Group’s success also depends on strong relationships with its retail and service partners and its customers. During the year, the Group continued to improve partner integration and the customer journey, while strengthening affordability assessment and customer experience. Feedback from partners and customers continues to inform the development of products and services.

Further information on how the directors had regard to the interests of employees, customers, partners and other stakeholders in their decision making is set out in the Section 172(1) statement in the Strategic Report.

Details of the future developments and expected performance are set out in the Strategic Report.

In accordance with the company's articles, a resolution proposing that BKL Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

The directors confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the Group's auditors are unaware. They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the Group's auditors are aware of that information.

The directors have assessed the ability of the Group and the Company to continue as a going concern for a period of at least 12 months from the date of approval of these financial statements, having regard to the financial support confirmed by the Group's parent undertakings. Based on this assessment, the directors consider it appropriate to prepare the financial statements on a going concern basis. Further details of the directors' assessment are set out in note 1.3 to the financial statements.

The strategic report contains details of the principal activities of the group and includes a business review which

provides information of the development of the group's business during the year, together with details of the risks

and uncertainties that affect the group's business.

We have audited the financial statements of Snap Finance UK (Group) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2025 and of the group's loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 Group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 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.

In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company financial statements are not in agreement with the accounting records and returns; or

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

• we have not received all the information and explanations we require for our audit.

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 group's and the parent 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 group or parent 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.

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

Capability of the audit in detecting irregularities, including fraud:

Based on our understanding of the group and the parent company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the failure to comply with tax regulations, FCA compliance, health and safety regulations and anti-bribery and anti-corruption laws, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the auditors included:

• Discussions with the directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

• Identifying and testing manual journal entries, in particular any journal entries posted with unclear rationale.

• Assessing management's significant judgements and estimates in particular to those relating to the recoverability of loans and impairment of the investment in subsidiary.

• Discussions with legal professionals and review of FCA correspondence.

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

Administrative expenses for 2024 have been restated to reclassify foreign exchange gain/(loss) to finance costs.

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £14,336,294 (2024 - £10,497,280 loss).

Snap Finance UK (Group) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Vincent Avenue, Crownhill, Milton Keynes, England, MK8 0AB.

The group consists of Snap Finance UK (Group) Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the group. 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The consolidated group financial statements consist of the financial statements of the parent company Snap Finance UK (Group) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until

the date that control ceases.

Snap Finance UK (Group) Limited has net liabilities of £11,845,844 at 31 December 2025 (2024: net liabilities of £6,075,393). The main cause of this net liability position is due to the loan payable to its immediate parent, Snap US Holdings LLC of £67,773,426 (2024: £42,471,341), Excluding loans payable to parent, Snap Finance UK (Group) Limited are in a net asset position of £55,927,581 (2024: £36,395,947). Snap US Holdings LLC have confirmed that they will not seek repayment of the amounts due if it will prevent the company from meeting liabilities as they fall due for a period of more than 12 months from approval of the financial statements.

The directors have considered the Group's and the Company's ability to continue as a going concern in light of ongoing macroeconomic challenges. The impact of inflationary pressures, elevated interest rates, and global economic uncertainty – including the continuing effects of the war in Ukraine and the implications of shifting global trade policies and tariffs – have contributed to a volatile trading environment and increased cost pressures.

In assessing going concern, the directors prepared forecasts and projections covering a period of at least 12 months from the date of approval of the financial statements. The base case reflects the Group's growth plans, funding arrangements and expected trading performance. The directors also considered a downside scenario incorporating deterioration in economic conditions and portfolio performance, and assessed the resulting impact on profitability, cash flow, available funding capacity and compliance with the financial covenants and portfolio performance triggers associated with the external finance facility.

The directors considered the mitigating actions available in such circumstances, including adjustments to origination volumes and credit policy, cost management and cash management measures.

The Group and the Company are funded through a combination of shareholder support and funding provided through the committed external finance facility completed during 2025. An initial amount was drawn under the facility shortly before the year end. In addition, the Group has received a letter of support from its immediate parent, Snap US Holdings LLC, confirming that it will provide the financial support necessary to enable the Group and the Company to meet their obligations as they fall due for a period of at least 12 months from the date of approval of these financial statements.

Based on these assessments and after making appropriate enquiries, the directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for at least 12 months from the date of approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Interest and fee income on loans are calculated using the effective interest method which allocates interest and loan origination fees over the expected lives of the assets.

Merchant discount income is recognised over the life of the underlying loan.

Third party debt factoring income is recognised when loans are sold to the third party.

Interchange income is recognised when the related card transactions occur and the entity becomes entitled to the associated fees from Visa.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Intangible assets internally generated are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Included within cash at bank and in hand is £18.5m held by Snap Line Limited within collection accounts that form part of the group's funding arrangements. These balances are subject to the terms of the facility agreement and are therefore not freely available for general use by the group until released in accordance with those arrangements.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables 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, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

For loans receivable (included within other receivables), the impairment loss is calculated by applying percentage rates to outstanding loan principal balances at the reporting date, with financial assets grouped according to similar risk characteristics, including vintage, loan term and APR rate. The percentage rates applied are based on historical loan performance, including repayments received and historical write-offs. The impairment loss is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Loan receivables

Loan receivables represent amounts due from customers under loan agreements entered into in the ordinary course of business. Loan receivables are initially recognised at the transaction value and are subsequently measured at amortised cost, less any bad debt provision.

Loan receivables are classified within other receivables and represent the principal trading receivable balance of the Group.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The bad debt allowance on customer loans is based on a percentage rate of total loan principal values outstanding at the year end date. Snap Finance Limited use varying percentage rates to assess the bad debt allowance, by applying a percentage allowance to loans grouped by vintage, loan term, and APR rate, thereby grouping loans by their risk characteristics. The percentage allowance applied to each group of transactions was assessed using historical data of all loans written from inception to the year end date, amounts repaid on these loans, and the historical value of all loans written off prior to the beginning of the financial year. The directors consider this method of calculation to be the most appropriate to Snap Finance Limited's circumstances.

The carrying amount of the bad debt allowance at the reporting date was £11,771,904 (2024: £10,067,358).

During the year, bad debt of £12,628,103 (2024: £9,064,334) was recognised in the profit and loss.

The impairment of the investment in subsidiary (comprising shares and intercompany loans) has been assessed based on the expected recovery of cash flows receivable in the event that the company were to cease issuing new loans. The directors have prepared a cash flow forecast and assessed whether an impairment provision is required. The cash flow forecast takes into consideration the expected recovery of cash flows from the existing loan portfolio, net of the bad debt provision and the costs of collection. The directors consider the methods and assumptions to be reasonable.

The carrying amount of the impairment provision at the reporting date was £32,616,052 (2024: £15,082,000).

All turnover arose within the United Kingdom.

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

The comparative number has been adjusted to exclude those directors who are not employed under contracts of service.

Their aggregate remuneration comprised:

Key management personnel are considered to be the Board of Directors.

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024: 2).

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

At the reporting end date, the group has unused tax losses of approximately £34,000,000 (2024: £28,000,000) available for carry forward against future profits.

Capitalised development expenditure represents the cost of modifying and enhancing the software currently being used to assess customer eligibility for finance.

The development costs include the modification and enhancement of SnapApp, the main app used by Snap Finance Limited to assess customer eligibility for finance, which is updated internally on an ongoing basis. The SnapApp asset is carried at £727,279 (2024: £548,656) and has a remaining amortisation period of 4 years (2024: 4 years) on a straight line basis from the initial capitalisation date for additions capitalised during the year. There are no other individually material intangible assets.

Intangible assets amortisation is recorded in administrative expenses in the income statement.

Details of the company's subsidiaries at 31 December 2025 are as follows:

All subsidiaries have been included in the consolidated financial statements.

Amounts due to group undertakings are unsecured and bear interest at an average of 8.5% (2024: 9.5%).

The bank loan is secured by a fixed and floating charge over the assets of the group.

Included within bank loans are a Class A loan bearing interest at 2.85% above the SOFR reference rate and a Class B loan bearing interest at 7.5% above the SOFR reference rate. Both loans mature in December 2029 and are repayable in full on that date.

The loan received from a group undertaking is non-interest bearing and has no fixed repayment terms.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Ordinary A shares have attached to them full voting rights, dividend and capital distribution (including on winding up) rights.

Ordinary B shares have same rights as Ordinary A Shares except for voting rights.

Preferred ordinary shares have the same rights as Ordinary A Shares, except for limited voting rights for specific matters.

The 2024 comparative disclosure for B Ordinary Shares of 1p each has been restated from 1,200 shares to 1,300 shares to reflect the position reported in the confirmation statement.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The Group has taken advantage of the exemption available not to disclose related party transactions with companies that are wholly owned within the Group.

At the balance sheet date, the company owed £67,773,426 (2024: £42,471,341 corrected from £42,369,118 due to a presentational error) to Snap US Holdings LLC in respect of a loan. Interest charged in the year was £3,858,388 (2024: £2,004,608).

During the financial year, invoices totaling £598,591 (2024: £359,572) were recognised by Snap Finance Limited as revenue from an entity for which one of the Company's directors was a member of key management.

During the year, the entity received and capitalised intangible assets in relation to app development used by the wider group, arising from services provided by Snap Technology LLC, an entity under common control, amounting to £330,093 (2024: £496,607).

The directors, A A Smith and M L Hawkins, have given a limited guarantee on behalf of Snap Finance UK (Group) Limited.

The comparative cashflow note above and the primary cashflow statement have been restated to correctly reflect intercompany financing as financing rather than operating cash flows. This removes the movement from trade and other payables and includes it in financing cashflows. This is a reclassification only and does not impact the overall cashflow statement.