Final Results for the 12 months ended 31 Dec 2024

About this update from Trufin Plc

[{"type":"text","content":"\n \n 26 March 2025 \n TruFin plc   \n  \n (\"TruFin\" or the \"Company\" or together with its subsidiaries \"TruFin Group\" or the \"Group\") \n FINAL RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2024 \n \n TruFin is pleased to announce its audited results for the 12 months ended 31 December 2024. TruFin's complete annual report and accounts, which set out these results in full detail with accompanying commentary, are now available on TruFin's website:  www.Trufin.com/investors . \n Financial Highlights  \n ·    Gross revenue grew 203% to £55.0m (2023: £18.1m) \n ·    Gross profit margin reduced to 45% (2023: 72%) \n ·    Adjusted EBITDA increased £11.1m to £7.6m, versus a £3.5m loss in 2023 \n ·    Adjusted Profit Before Tax (\"PBT\") increased £7.5m to £0.9m, versus a £6.6m Loss Before Tax (\"LBT\") in 2023 \n ·    Cash and cash equivalents at year end totalled £14.9m (£13.6m unrestricted) \n \nCompany Highlights \n ·    Oxygen Finance Limited (\"Oxygen\") EBITDA increased 81% to £2.3m (2023: £1.3m) \n ·    Satago Financial Solutions Limited (\"Satago\") saw revenues decline by 35% to £2.5m (2023: £3.8m) after the loss of its contract with a Tier-1 Bank \n ·    Playstack Limited (\"Playstack\") grew revenue by more than 455% to £44.6m (2023: £8.0m) after releasing two hit games - Balatro and Abiotic Factor . EBITDA increased 2,146% to £11.3m (2023: £0.5m) \n \nCurrent Trading and Prospects \n ·    Group revenue for the two months ended 28 February 2025 was not less than £14.8m (unaudited), up over 145% on the same period in 2024. Although it is still early in the year, this is an excellent start to 2025 \n ·    Oxygen revenue for the two months ended 28 February 2025 was not less than £1.2m (unaudited), up over 21% on the same period in 2024 \n ·    Satago has gone live with a new embedded finance solution with a Tier-1 Portuguese Bank \n ·    Playstack, which won Ukie's \"Best UK Publisher\" award in March 2025, plans to release seven additional titles during 2025 \n   \n James van den Bergh , TruFin CEO, said: \n \"A year ago, we highlighted our expectation for a step change in growth and profitability. \n Having significantly outperformed market expectations in 2024, including several upgrades to our numbers throughout the year, it is with great pleasure that I can present these exceptional annual results in full. The headline figures speak for themselves. The Group is scaling profitably and will be highly cash generative in years to come due to the high return on invested capital inherent in the subsidiaries. \n With Vicki Sloane at the helm, it is very pleasing to be able to report that, yet again, Oxygen grew its client base, revenues and EBITDA during 2024. Oxygen's EBITDA increased 81% in 2024 as we began to feel the benefits from investments made in previous years. Vicki has a clear set of objectives and with more than 85% of the next four years' revenue already contracted, Oxygen's future remains exceptionally bright. The Board expects Oxygen to deliver for shareholders yet again in 2025, with exciting targets for the future. \n Despite an outstanding year for the Group as a whole, it was particularly disappointing to report in July that Lloyds Bank had given notice on its contract with Satago. Having signed the initial commercial agreement in 2022, the termination came out of the blue. However, this idiosyncratic issue has not impacted interest in Satago's platform; industry participants are well aware of shifting strategic interests within large organisations. Since the termination, Satago has won a contract with a specialist lender and signed a three-year distribution contract with its longest-standing partner. This contract sets out fees that Satago will receive, with minimum quantities agreed, for delivering software to SMEs in the UK. With a growing pipeline of contracts and a resized cost base, Satago is ready for the future. \n TruFin purchased Playstack in 2019, when annual revenues totalled £1.1m. The data on game releases was compelling. The potential to scale was obvious. But as with many investments, shareholder patience was required. That patience was rewarded in 2024. Revenue grew 455% to £44.6m and Playstack delivered its first year of profit (PBT £7.7m) with a growing cash balance. \n Having delivered in 2024 the obvious question is: where can Playstack go from here? Playstack is a diversified and profitable business, with a repeatable and scalable business model. Sourcing and publishing PC and console games is partly an art and partly a science. Playstack's artistry combined with the Board's laser-like focus on data and consistent discipline will ensure we build on its 2024 success. We have every reason to believe that the last five years are a signpost for the future.   \n Specifically, Playstack's games \"hit ratio\" (games resulting in a positive return on external development costs) remains above 90%, with initial pre-launch data for the next seven games due for release giving us confidence that we will maintain this ratio during 2025 and beyond. \n As our revenue and profitability continue to grow, there has been considerable board discussion regarding current and future excess capital. TruFin will continue to allocate capital in the best interests of our shareholders - investing in its subsidiaries, making targeted acquisitions, and exploring other ways to maximise shareholder returns as we work towards scaling our profits. I would like to thank our shareholders for their ongoing support and look forward to providing further updates during the year.\" \n   \n Enquiries: \n \n \n \n \n TruFin plc James van den Bergh, Chief Executive Officer \nKam Bansil, Investor Relations \n \n \n \n0203 743 1340 \n07779 229508 \n \n \n \n \n Panmure Liberum Limited (Nominated Adviser and Corporate broker) Chris Clarke \nEdward Thomas \n \n \n \n 0203 100 2000 \n \n \n \n \n \nAbout TruFin plc: \n TruFin plc is the holding company of an operating group comprising three growth-focused technology businesses operating in niche markets: early payment provision, invoice finance and games publishing. The Company was admitted to AIM in February 2018 and trades under the ticker symbol: TRU. More information is available on the Company website: www.TruFin.com . \n   \n Chair's Statement \n It was not an easy year in which to thrive. Following the change of UK government in July 2024, the modest GDP growth in the first half of the year proved short-lived, with the economy contracting for most of the second half. Other indicators also highlighted sluggish economic activity. Meanwhile, fears over the impact of an increased national living wage, greater taxation in the form of higher employers' National Insurance Contributions (NICs) and uncertainty over future tax rises stymied investment decisions across the UK. Despite initial US stock market euphoria, it was increasingly clear that President Trump's reign would increase uncertainty. \n Despite this difficult background, TruFin delivered a phenomenal financial performance during 2024 and is exceptionally well-positioned for the year ahead. \n Thanks to a banner year at Playstack, the Group grew revenues by 203%. Playstack itself increased revenues by 455% after a number of highly successful game launches. Meanwhile, Oxygen once again contributed to the top and bottom lines, highlighting the incredible visibility of the business. I was particularly pleased that the transition to new leadership for Oxygen was seamless, with Vicki Sloane taking over as CEO. Crucially, Satago took the difficult decision to significantly realign its cost base after losing its Tier-1 Bank contract, giving it a platform from which to rebuild during 2025. \n As a result of these great performances from our three subsidiaries, the Group significantly outperformed internal and market expectations (as set out at the start of 2024) which led to us recording our first full year of profit - a year earlier than anticipated. PBT and EBITDA also significantly exceeded expectations, and the cash balance at year end also beat predictions. These achievements are a testament to the skill and rapid decision- making of our people and their exceptional vision. \n Underpinning these superb results are the investments the Group has made over recent years. Playstack's standout game launches this year - Balatro and Abiotic Factor - were part of a pipeline developing over 24 months. The oversubscribed fundraise in June 2023 and subsequent investment by the Group were crucial to their development and success. It is particularly pleasing to reward shareholders' faith in the Group by showcasing the value that their investment has generated. \n Over the past three years, the Group has strategically focused on diversifying its revenue streams, shifting away from lending revenue towards recurring revenue and other licence-based income. This strategy has proven highly successful. As a result, more than 98% of the Group's revenue now comes from recurring revenue sources and game royalties - nearly double the proportion recorded three years ago. \n 2024 marked TruFin's maturation: moving from loss to profit and generating cash for the first time. We have therefore entered 2025 with great optimism and clear goals. While recent global events warrant some caution, our diversified revenue base - with over 80% of our income derived from international sources - has reduced our exposure to potential fiscal challenges in the UK. \n With Playstack firing on all cylinders, Oxygen delivering with metronomic consistency, and Satago reset for future growth, we have never been more confident in the Group's ability to deliver significant shareholder value. \n As always, I would like to thank all our staff for their commitment and hard work, and our shareholders for their faith in us and continued support. \n Steve Baldwin \n Chair \n   \n CEO's Review \n Pinpointing the precise moment when a business transitions from loss-making to profit-generating can be challenging, as numerous dynamic factors are at play. Navigating this shift requires careful consideration of working capital assumptions and investment decisions. Crucially, this must be approached with a balanced focus-not only on short-term optimisation but also on the strategic investments essential for securing long-term success. \n As such, I am delighted that in 2024 we achieved our first full year of profitability whilst investing significantly in the future. No compromises were made. This was made possible by the successful £7.6m fundraising in June 2023, which was strongly supported by our shareholders. The proceeds enabled us to invest in our three businesses, exceed expectations, and expand our pipeline of opportunities. \n I am delighted to have fulfilled our two core commitments: first, achieving full-year profitability, and second, reaching this milestone without requiring additional shareholder capital. With a £14.9m cash balance at year-end, we face the future on a very secure footing. \n 2024 Group performance \n Group revenue increased 203% year-on-year to £55.0m. Of this, 98% came from recurring software sales, game revenues and licensing fees, evidencing the continued success of TruFin's strategic pivot away from lending and also to more international revenue streams. \n Key growth drivers during the period included an impressive 455% revenue increase at Playstack. This incredible achievement was driven by two standout game launches: Balatro and Abiotic Factor. With seven games due out in 2025, Playstack is in a very enviable position. \n In March 2024, TruFin first announced that it was due to complete a sale of IP and assets relating to Playstack's augmented reality and gamification AdTech platform \"Interact\" to VCI Global Ltd (\"VCI\"). I am disappointed to say that despite numerous efforts to engage with VCI, there has been no response, such that we have terminated the transaction and retain our right to seek reimbursement for costs incurred. \n Meanwhile Oxygen's core Early Payment business grew by 28% year-on-year, generating 72% of the subsidiary's total revenue. It is a proud moment to see the team deliver yet again, despite a mid-year management change. It is years like this where the resilience of the business model shines through. \n It may be surprising to hear that I am also proud of Satago's performance. During 2024 the team faced the totally unexpected loss of their five-year contract with a Tier-1 Bank. Consequently, they had the very difficult task of realigning the cost base, more than halving the workforce. At the same time they kept the business running and the pipeline expanding. \n Anyone can look like a hero when a business is growing; however, it is the hard decisions taken and executed when a business faces difficulty that count. Having tackled adversity, Satago is now positioned to deliver on its potential over the coming years. \n At year-end the Group had a cash balance of £14.9m (including cash of £1.3m in Satago, which is not 100% owned). As such, unrestricted cash was £13.6m. \n Current trading and prospects \n TruFin has made an excellent start to 2025, with Group revenues for January and February expected to be not less than £14.8m - a 145% increase over the same period in 2024. It is important to note that Playstack's Balatro release contributed significantly to 2024 revenues, making this year's continued growth particularly gratifying. \n As we have repeatedly said, profitable growth and value crystallisation are integral to TruFin's purpose and vision. Following the outstanding 2024 and strong performance in early 2025, the Group's vision is becoming realised. \n Outlook \n With 2024 marking the first year of profitability, 2025 is set to be the year of improving profitability and ensuring our subsidiaries are match fit for the next period of value crystallisation. \n At Group level we are full of confidence. All our businesses are fully funded and we have a clear track record of assisting our subsidiaries move from loss to profit. \n Market-leader Oxygen is focused on continually delivering exceptional service to its large and growing customer base. It is particularly pleasing to see 2023's significant investments in technology and people bear fruit. Given the significant investment required to scale an Early Payment business, it is not surprising that Oxygen does not currently have any significant competitors. However, the team stands ready and, should another horse enter the race, we are confident that Oxygen will, yet again, outpace it. \n Satago is looking forward to working with more innovative and forward-thinking partners as it capitalises on platform upgrades made during the Tier-1 Bank's integration. Its Embedded Finance subscription services are proving popular, and we look forward to updating shareholders with news on new partners in the coming months. \n Finally, following Playstack's first full year of profitability in 2024, a second consecutive year of profitability in 2025 will prove that it was far from a one-off. Rather, it heralds a period of exceptional yet disciplined growth for Playstack. \n The key will be remaining focused on the data, hit ratios, returns on invested capital and internal rates of return. Unglamorous it may be, but it is data - alongside exceptional talent - that makes Playstack stand out from the pack. We are only just beginning to see where Playstack can go. \n TruFin has earned a reputation for doing what it says it will do, even when that is difficult. We have built lasting relationships with our customers and partners and deliver services tailored to their needs. If we continue to do so we will inevitably deliver further shareholder value - our ultimate goal. \n There has been much Board discussion about excess capital - a luxury not previously enjoyed. TruFin will continue to allocate capital efficiently and invest in its subsidiaries, including potentially making targeted acquisitions focused on meeting our core goals of scaling profitability and maximising long-term value for shareholders. \n Once again, on behalf of the Board, our staff, partners and stakeholders I would like to extend my thanks to our shareholders for their continued support. \n 2024 was the start of a new chapter of profitability for TruFin. I am looking forward to building on the strong foundations now in place. \n James van den Bergh \n Chief Executive Officer \n   \n OXYGEN REVIEW \n   \n 2024 performance \n Following a significant investment in talent and technology in 2023 to hasten acceleration, Oxygen delivered revenues of £7.7m in 2024, up 25% (2023: £6.2m). Driven by record growth in both Early Payment and SaaS divisions, this growth has allowed Oxygen to deliver our first-ever Profit Before Tax and more than double the dividend payment to the Group to £1.3m (2023: £0.5m). \n Oxygen has continued to strengthen its dominant position in the local government market, securing new clients and increasing revenue from its existing client base. The combined trade-spend of Oxygen's Early Payment Programme clients increased by £1.9bn, reaching a new high of £28.7bn. \n At the end of 2024, the average Early Payment Programme client tenure - a key indicator of customer loyalty and Oxygen's contract renewal success - had reached 7.6 years (2023: 7.1 years), further strengthening Oxygen's recurring revenue streams. \n In 2024, Early Payment Programme clients committed over £1.6bn in spending to more than 5,600 suppliers (2023: £1.3bn). New spend added during 2024 hit a high of £529m (2023: £385m), with the growth rate more than doubling to 37%. \n Oxygen's Insights business has also continued to thrive in a competitive market, with revenues up 27% in 2024. Nearly 1,000 organisations now subscribe to our SaaS products, spanning both the private and public sectors. \n The business continues to generate substantial social value through our FreePay programmes. In 2024, 19,000 small businesses within Oxygen clients' local communities received £750m in early payments (2023: £600m) - entirely free of charge to the supplier. Similarly, our Carbon Reporting tool continues to support local authorities in reducing supply chain emissions, helping them meet their Net Zero commitments. \n Current trading and prospects \n The strong fundamentals and operational gearing of our business give us confidence that double-digit growth in our recurring revenue streams and profit will continue. With more than 82% of the next five years' EP revenues already contracted, we are well placed to achieve this. \n Ongoing fiscal constraints make Oxygen's Early Payment programmes an appealing option for local authorities to make savings, and a popular alternative to traditional funding for suppliers. As a result, interest in our Early Payment programmes remains strong. \n The publication of 18-month procurement pipelines mandated by The Procurement Act 2023 is likely to increase competition for public contracts, making our SaaS Insights' Pre-Procurement intelligence product indispensable as traditional advantages from close procurement team relationships diminish. We have also started to realise synergies from our acquisition of BidStats in November 2023 and expect these cross-selling opportunities to continue in 2025. \n By focusing on our core business and leveraging strategic partnerships to unlock new revenue streams, we expect to continue to achieve excellent returns in 2025 and beyond. \n SATAGO REVIEW \n   \n 2024 performance \n   \n After a turbulent year, Satago has stabilised and is now focused on commercialising its award-winning platform. \n In the second half of 2024, the company underwent significant cost-cutting and rebalancing efforts following the unexpected termination of its primary contract for its scalable Lending as a Service (\"LaaS\") platform. \n As previously announced, revenue for 2024 decreased 35% to £2.5m (2023: £3.8m) due to the termination of its primary LaaS partner contract. \n With a renewed focus on its core proposition, Satago has already signed its first UK banking partner of 2025 and successfully launched its embedded invoice finance solution in Portugal with a Tier-1 Bank. With a highly focused cost base, 2025 is set to be a year of stability. \n A key strategic focus is to commercialise its existing award-winning platform through its two main solutions: cashflow management and core LaaS. The cashflow management proposition is distributed via strategic partners. Satago has recently agreed a new three-year agreement with their key distribution partner. This is a multi-million- pound agreement and reinforces the excellent relationship Satago has with its core partners. \n Additionally, SMEs in the UK can access the platform directly or through their accountants. Revenue from the subscription channel has grown 25% year-over-year, number of active users has also increased by 63% in the 12 months to the year ending 2024. SMEs continue to utilise the \n platform's core credit control tool, with over £1.5bn of invoices chased in 2024. Use of Satago's credit control tools typically results in invoices being paid up to 72% faster. \n Satago's streamlined strategy allows it to achieve break-even by June 2026. \n Current trading and prospects \n The LaaS model continues to gain traction. Following the successful launch of a partnership with Distribution Finance Capital plc (\"DF Capital\") earlier this year, Satago has launched its embedded invoice finance solution in Portugal with a leading Tier-1 Bank. \n Satago's platform allows banks and specialist lenders to offer their customers a fully digitised, cost-efficient working capital solution. Whilst also providing the lender with a unique distribution model to new customers, through Satago's embedded offering. Satago integrates directly with platforms that create or process invoices. This reduces barriers to entry for banks, specialist lenders, and credit funds historically deterred by significant operational costs. \n TruFin is fully supportive of Satago's refined strategy and is very pleased to welcome industry veteran John Wilde as a Board Adviser. \n   \n PLAYSTACK REVIEW \n   \n 2024 performance \n   \n 2024 was an outstanding year for Playstack, culminating in winning UK Publisher of the Year at the UKIE Awards following three critically and commercially successful releases that cement its industry-leading position. \n Having begun 2024 on a foundation of sustainable growth and execution, Playstack focused the year on implementing go-to-market strategies for each of its new titles, maximising the performance of its existing catalogue, establishing new commercial partnerships, and extending the pipeline for 2025 and beyond. \n Underpinned by three well-executed releases, Playstack grew its full-year Profit Before Tax to £7.7m with each new title achieving \"Very Positive\" or \"Overwhelmingly Positive\" ratings on the Steam storefront, whilst earning accolades and awards from across the industry. These included two significant wins for Balatro at the Golden Joystick Awards and three at The Game Awards. Balatro was also nominated in four categories at the BAFTA Games Awards, to be held in April 2025. \n Playstack's publishing team launched Balatro as a single-purchase game across PC, Xbox, PlayStation, Nintendo Switch, iPhone and Android platforms to incredible success - accumulating over five-million unit sales in the year. Additionally it introduced the game as part of the Apple Arcade subscription service. The game was awarded Best Game on Apple Arcade in 2024, and frequently features as the service's number one game in the UK, US and across the world. \n Playstack also launched The Rise of the Golden Idol on PC and console, and in partnership with Netflix for mobile platforms. \n Additionally Playstack released Abiotic Factor as part of Steam Early Access. Once launched the game was updated regularly to introduce new content and gameplay requested from the burgeoning player community. Abiotic Factor exceeded every one of its target performance metrics, achieving its full-year revenue forecast within two weeks of launch, and securing platform partnerships with Sony PlayStation Plus and Microsoft Game Pass to align with its console release later in 2025. \n Current trading and prospects \n Playstack's game acquisition strategy of selecting innovative games from inspired developers, building support around each project and studio, and delivering their games using comprehensive and engaging marketing campaigns that drive audience growth has continued to bear fruit. The full 2025 line-up and well over half the games set for release in 2026 are already fully contracted. \n Playstack's publishing portfolio remains central to its strategy. Regular planned updates to existing games include four downloadable content updates for The Rise of the Golden Idol, three content updates for Abiotic Factor, a major gameplay update for Balatro, and at least seven new games for release during the year. \n Back-book games remain a key component of future revenue modelling, with a minimum of 70% of 2025 revenues expected to be derived from games introduced to market in prior years. \n Playstack has established itself as a leader in the games industry, having successfully navigated well-publicised industry challenges. The company is positioned for stability and growth as the next generation of technology comes to the fore. \n CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME \n \n \n \n \n   \n   \n \n \n   \n   \n \n \n   \n   \n \n \n   \n   \n \n \n \n \n   \n   \n \n \n   \n Notes \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Interest income \n \n \n 3 \n \n \n 1,246 \n \n \n 1,470 \n \n \n \n \n Fee income \n \n \n 3 \n \n \n 9,163 \n \n \n 9,348 \n \n \n \n \n Publishing income \n \n \n 3 \n \n \n 44,544 \n \n \n 7,313 \n \n \n \n \n Gross revenue \n \n \n 3 \n \n \n 54,953 \n \n \n 18,131 \n \n \n \n \n Interest, fee and publishing expenses \n \n \n \n \n \n (30,320) \n \n \n (5,027) \n \n \n \n \n Net revenue \n \n \n   \n \n \n 24,633 \n \n \n 13,104 \n \n \n \n \n Staff costs \n \n \n 5 \n \n \n (12,898) \n \n \n (12,558) \n \n \n \n \n Other operating expenses \n \n \n   \n \n \n (5,723) \n \n \n (5,850) \n \n \n \n \n Depreciation & amortisation \n \n \n 7 \n \n \n (5,221) \n \n \n (1,922) \n \n \n \n \n Net impairment on financial assets \n \n \n   \n \n \n (776) \n \n \n (109) \n \n \n \n \n Share of loss from associates \n \n \n   \n \n \n - \n \n \n (4) \n \n \n \n \n Profit/(loss) before tax \n \n \n   \n \n \n 15 \n \n \n (7,339) \n \n \n \n \n Taxation \n \n \n 2, 9 \n \n \n 3,632 \n \n \n 962 \n \n \n \n \n Profit/(loss) from continuing operations \n \n \n   \n \n \n 3,647 \n \n \n (6,377) \n \n \n \n \n Loss from discontinued operations \n \n \n 10 \n \n \n - \n \n \n (963) \n \n \n \n \n Profit/(loss) for the year \n \n \n   \n \n \n 3,647 \n \n \n (7,340) \n \n \n \n \n Other comprehensive income \n \n \n \n \n \n \n \n \n \n \n \n \n \n Items that may be reclassified subsequently to profit and loss \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Exchange differences on translating foreign operations \n \n \n   \n \n \n (89) \n \n \n 126 \n \n \n \n \n Other comprehensive income for the year, net of tax \n \n \n   \n \n \n (89) \n \n \n 126 \n \n \n \n \n Total comprehensive profit/(loss) for the year \n \n \n   \n \n \n 3,558 \n \n \n (7,214) \n \n \n \n \n   \n Profit/(loss) for the year attributable to the owners of: \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n TruFin plc \n \n \n   \n \n \n 4,840 \n \n \n (6,472) \n \n \n \n \n Non-controlling interests \n \n \n   \n \n \n (1,193) \n \n \n (868) \n \n \n \n \n \n \n \n   \n \n \n 3,647 \n \n \n (7,340) \n \n \n \n \n Total comprehensive profit/(loss) for the year attributable to the owners of: \n \n \n \n \n \n \n \n \n \n \n \n \n \n TruFin plc \n \n \n   \n \n \n 4,767 \n \n \n (6,350) \n \n \n \n \n Non-controlling interests \n \n \n   \n \n \n (1,209) \n \n \n (864) \n \n \n \n \n \n \n \n   \n \n \n 3,558 \n \n \n (7,214) \n \n \n \n \n Total comprehensive profit/(loss) for the year attributable to Owners of TruFin plc from \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n 4,767 \n \n \n (5,190) \n \n \n \n \n Discontinued operations \n \n \n \n \n \n - \n \n \n (1,160) \n \n \n \n \n \n \n \n \n \n \n 4,767 \n \n \n (6,350) \n \n \n \n \n   \n \n \n \n \n Earnings per Share \n \n \n \n \n \n \n \n \n \n \n   \n Notes \n \n \n 2024 \n pence \n \n \n 2023 \n pence \n \n \n \n \n Basic EPS \n \n \n 22 \n \n \n 4.6 \n \n \n (6.5) \n \n \n \n \n Diluted EPS \n \n \n \n \n \n 4.2 \n \n \n (6.5) \n \n \n \n \n Basic EPS from continuing operations \n \n \n \n \n \n 4.6 \n \n \n (5.3) \n \n \n \n \n Diluted EPS from continuing operations \n \n \n \n \n \n 4.2 \n \n \n (5.3) \n \n \n \n \n   \n COMPANY STATEMENT OF COMPREHENSIVE INCOME \n \n \n \n \n \n \n \n   \n Notes \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Revenue \n \n \n 3 \n \n \n 270 \n \n \n 1,765 \n \n \n \n \n   \n Staff costs \n \n \n   \n 5 \n \n \n   \n (2,757) \n \n \n   \n (2,106) \n \n \n \n \n Other operating expenses \n \n \n \n \n \n (748) \n \n \n (633) \n \n \n \n \n Depreciation & amortisation \n \n \n \n \n \n (2) \n \n \n (2) \n \n \n \n \n Loss before tax \n \n \n \n \n \n (3,237) \n \n \n (976) \n \n \n \n \n   \n Taxation \n \n \n   \n 9 \n \n \n   \n - \n \n \n   \n - \n \n \n \n \n Loss and total comprehensive income for the year \n \n \n \n \n \n (3,237) \n \n \n (976) \n \n \n \n \n   \n CONSOLIDATED STATEMENT OF FINANCIAL POSITION \n   \n \n \n \n \n   \n Notes \n \n \n   \n Notes \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Intangible assets \n \n \n 11 \n \n \n 25,865 \n \n \n 25,417 \n \n \n \n \n Property, plant and equipment \n \n \n 12 \n \n \n 309 \n \n \n 275 \n \n \n \n \n Deferred tax asset \n \n \n 9 \n \n \n 3,175 \n \n \n 250 \n \n \n \n \n Total non-current assets \n \n \n   \n \n \n 29,349 \n \n \n 25,942 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n   \n \n \n 14,874 \n \n \n 10,140 \n \n \n \n \n Loans and advances \n \n \n 14 \n \n \n 4,857 \n \n \n 7,234 \n \n \n \n \n Trade receivables \n \n \n 15 \n \n \n 11,147 \n \n \n 2,385 \n \n \n \n \n Other receivables \n \n \n 15 \n \n \n 10,187 \n \n \n 4,975 \n \n \n \n \n Total current assets \n \n \n   \n \n \n 41,065 \n \n \n 24,734 \n \n \n \n \n Total assets \n \n \n   \n \n \n 70,414 \n \n \n 50,676 \n \n \n \n \n Equity and liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Issued share capital \n \n \n 16 \n \n \n 96,425 \n \n \n 96,311 \n \n \n \n \n Retained earnings \n \n \n   \n \n \n (24,447) \n \n \n (31,017) \n \n \n \n \n Foreign exchange reserve \n \n \n   \n \n \n (14) \n \n \n 59 \n \n \n \n \n Other reserves \n \n \n   \n \n \n (29,830) \n \n \n (29,798) \n \n \n \n \n Equity attributable to owners of the company \n \n \n   \n \n \n 42,134 \n \n \n 35,555 \n \n \n \n \n Non-controlling interest \n \n \n 20 \n \n \n 1,410 \n \n \n 2,385 \n \n \n \n \n Total equity \n \n \n   \n \n \n 43,544 \n \n \n 37,940 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings \n \n \n 17 \n \n \n 11 \n \n \n 1,047 \n \n \n \n \n Total non-current liabilities \n \n \n   \n \n \n 11 \n \n \n 1,047 \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Borrowings \n \n \n 17 \n \n \n 4,157 \n \n \n 6,157 \n \n \n \n \n Trade and other payables \n \n \n 18 \n \n \n 22,702 \n \n \n 5,532 \n \n \n \n \n Total current liabilities \n \n \n   \n \n \n 26,859 \n \n \n 11,689 \n \n \n \n \n Total liabilities \n \n \n   \n \n \n 26,870 \n \n \n 12,736 \n \n \n \n \n Total equity and liabilities \n \n \n   \n \n \n 70,414 \n \n \n 50,676 \n \n \n \n \n   \n COMPANY STATEMENT OF FINANCIAL POSITION \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n Notes \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Property, plant and equipment \n \n \n \n \n \n 2 \n \n \n 2 \n \n \n \n \n Investments in subsidiaries \n \n \n 13 \n \n \n 30,189 \n \n \n 30,189 \n \n \n \n \n Amounts owed by group undertakings \n \n \n \n \n \n 58,759 \n \n \n 59,089 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 88,950 \n \n \n 89,280 \n \n \n \n \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n \n \n \n 3,288 \n \n \n 4,723 \n \n \n \n \n Trade and other receivables \n \n \n 15 \n \n \n 65 \n \n \n 161 \n \n \n \n \n Total current assets \n \n \n \n \n \n 3,353 \n \n \n 4,884 \n \n \n \n \n Total assets \n \n \n \n \n \n 92,303 \n \n \n 94,164 \n \n \n \n \n Equity and liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Equity \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issued share capital \n \n \n 16 \n \n \n 96,425 \n \n \n 96,311 \n \n \n \n \n Retained earnings \n \n \n \n \n \n (9,127) \n \n \n (6,679) \n \n \n \n \n Other reserves \n \n \n \n \n \n 3,767 \n \n \n 3,798 \n \n \n \n \n Total equity \n \n \n \n \n \n 91,065 \n \n \n 93,430 \n \n \n \n \n Liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Trade and other payables \n \n \n 18 \n \n \n 1,238 \n \n \n 734 \n \n \n \n \n Total current liabilities \n \n \n \n \n \n 1,238 \n \n \n 734 \n \n \n \n \n Total liabilities \n \n \n \n \n \n 1,238 \n \n \n 734 \n \n \n \n \n Total equity and liabilities \n \n \n \n \n \n 92,303 \n \n \n 94,164 \n \n \n \n \n   \n CONSOLIDATED STATEMENT OF CHANGES IN EQUITY \n   \n   \n   \n \n \n \n \n   \n Share \n \n \n   \n Retained \n \n \n Foreign \n exchange \n \n \n   \n Other \n \n \n \n \n \n Non- \n controlling \n \n \n   \n Total \n \n \n \n \n capital \n \n \n earnings \n \n \n reserve \n \n \n reserves \n \n \n Total \n \n \n interest \n \n \n equity \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n   \n \n \n \n \n Balance at 1 January 2024 \n \n \n 96,311 \n \n \n (31,017) \n \n \n 59 \n \n \n (29,798) \n \n \n 35,555 \n \n \n 2,385 \n \n \n 37,940 \n \n \n \n \n Profit for the year \n \n \n - \n \n \n 4,840 \n \n \n - \n \n \n - \n \n \n 4,840 \n \n \n (1,193) \n \n \n 3,647 \n \n \n \n \n Other comprehensive income for the year \n \n \n - \n \n \n - \n \n \n (73) \n \n \n - \n \n \n (73) \n \n \n (16) \n \n \n (89) \n \n \n \n \n Total comprehensive income for the year \n \n \n - \n \n \n 4,840 \n \n \n (73) \n \n \n - \n \n \n 4,767 \n \n \n (1,209) \n \n \n 3,558 \n \n \n \n \n Issuance of shares \n \n \n 114 \n \n \n (83) \n \n \n - \n \n \n (31) \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Share-based payment \n \n \n - \n \n \n 872 \n \n \n - \n \n \n - \n \n \n 872 \n \n \n - \n \n \n 872 \n \n \n \n \n Subsidiary shares issued from debt to \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n equity conversion \n \n \n - \n \n \n 941 \n \n \n - \n \n \n (1) \n \n \n 940 \n \n \n 234 \n \n \n 1,174 \n \n \n \n \n Balance at 31 December 2024 \n \n \n 96,425 \n \n \n (24,447) \n \n \n (14) \n \n \n (29,830) \n \n \n 42,134 \n \n \n 1,410 \n \n \n 43,544 \n \n \n \n \n   \n \n \n \n \n Balance at 1 January 2023 \n \n \n 85,706 \n \n \n (24,884) \n \n \n (63) \n \n \n (26,531) \n \n \n 34,228 \n \n \n 5,876 \n \n \n 40,104 \n \n \n \n \n Loss for the year from continuing operations \n \n \n - \n \n \n (5,312) \n \n \n - \n \n \n - \n \n \n (5,312) \n \n \n (1,065) \n \n \n (6,377) \n \n \n \n \n Other comprehensive income for the year \n \n \n - \n \n \n - \n \n \n 122 \n \n \n - \n \n \n 122 \n \n \n 4 \n \n \n 126 \n \n \n \n \n Loss from discontinued operations \n \n \n \n \n \n (1,160) \n \n \n - \n \n \n - \n \n \n (1,160) \n \n \n 197 \n \n \n (963) \n \n \n \n \n Total comprehensive loss for the year \n \n \n - \n \n \n (6,472) \n \n \n 122 \n \n \n - \n \n \n (6,350) \n \n \n (864) \n \n \n (7,214) \n \n \n \n \n Issuance of shares \n \n \n 10,605 \n \n \n (427) \n \n \n - \n \n \n (3,030) \n \n \n 7,148 \n \n \n - \n \n \n 7,148 \n \n \n \n \n Share-based payment \n \n \n \n \n \n 766 \n \n \n - \n \n \n - \n \n \n 766 \n \n \n - \n \n \n 766 \n \n \n \n \n Disposal of subsidiary \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (2,620) \n \n \n (2,620) \n \n \n \n \n Purchase of subsidiary shares \n \n \n - \n \n \n - \n \n \n - \n \n \n (237) \n \n \n (237) \n \n \n (7) \n \n \n (244) \n \n \n \n \n Balance at 31 December 2023 \n \n \n 96,311 \n \n \n (31,017) \n \n \n 59 \n \n \n (29,798) \n \n \n 35,555 \n \n \n 2,385 \n \n \n 37,940 \n \n \n \n \n   \n Share capital \n Share capital represents the nominal value of equity share capital issued. \n Retained earnings \n The retained earnings reserve represents cumulative net gains and losses and transactions with owners not recognised elsewhere. \n Foreign exchange reserve \n The foreign exchange reserve represents exchange differences which arise on consolidation from the translation of the financial statements of foreign subsidiaries. \n Other reserves \n Other reserves consist of the merger reserve, the share revaluation reserve and shares issued at a discount. \n The merger reserve arose as a result of combining businesses that are under common control. As at 31 December 2024 it was a debit balance of £33,358,000 (2023: £33,358,000). \n The share revaluation reserve arose from the share cancellation that took place in February 2018. As at 31 December 2024 its balance was £8,966,000 (2023: £8,966,000). \n Shares issued at a discount arose from share issuances in 2022, 2023 and 2024. As at 31 December 2024 its balance was £5,199,000 (2023: £5,168,000). See Note 16 for further information. \n   \n Non-Contr olling Interest \n The non-controlling interest relates to the minority interest held in Bandana Media Limited, Playstack OY, Satago Financial Solutions Limited, Satago SPV1 Limited, Satago SPV2 Limited and Satago z.o.o. \n   \n COMPANY STATEMENT OF CHANGES IN EQUITY \n   \n   \n \n \n \n \n   \n Share capital \n \n \n Retained \n earnings   Other reserves \n \n \n   \n Total equity \n \n \n \n \n £'000 \n \n \n £'000                            £'000 \n \n \n £'000 \n \n \n \n \n   \n \n \n \n \n Balance at 1 January 2024 \n \n \n 96,311 \n \n \n (6,679) \n \n \n 3,798 \n \n \n 93,430 \n \n \n \n \n Total comprehensive loss for the year \n \n \n - \n \n \n (3,237) \n \n \n - \n \n \n (3,237) \n \n \n \n \n Issuance of shares \n \n \n 114 \n \n \n (83) \n \n \n (31) \n \n \n - \n \n \n \n \n Share-based payment \n \n \n - \n \n \n 872 \n \n \n - \n \n \n 872 \n \n \n \n \n Balance at 31 December 2024 \n \n \n 96,425 \n \n \n (9,127) \n \n \n 3,767 \n \n \n 91,065 \n \n \n \n \n   \n \n \n \n \n Balance at 1 January 2023 \n \n \n 85,706 \n \n \n (6,042) \n \n \n 6,828 \n \n \n 86,492 \n \n \n \n \n Total comprehensive loss for the year \n \n \n - \n \n \n (976) \n \n \n - \n \n \n (976) \n \n \n \n \n Issuance of shares \n \n \n 10,605 \n \n \n (427) \n \n \n (3,030) \n \n \n 7,148 \n \n \n \n \n Share-based payment \n \n \n \n \n \n 766 \n \n \n \n \n \n 766 \n \n \n \n \n Balance at 31 December 2023 \n \n \n 96,311 \n \n \n (6,679) \n \n \n 3,798 \n \n \n 93,430 \n \n \n \n \n   \n CONSOLIDATED STATEMENT OF CASH FLOWS \n \n \n \n \n \n \n \n   \n Notes \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Profit/(loss) before tax \n \n \n \n \n \n \n \n \n \n \n \n \n \n Continuing operations \n \n \n \n \n \n 15 \n \n \n (7,339) \n \n \n \n \n Discontinued operations \n \n \n \n \n \n - \n \n \n (963) \n \n \n \n \n Adjustments for \n \n \n \n \n \n \n \n \n \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n \n \n \n 212 \n \n \n 107 \n \n \n \n \n Amortisation of intangible assets \n \n \n \n \n \n 6,336 \n \n \n 2,893 \n \n \n \n \n Share-based payments \n \n \n \n \n \n 872 \n \n \n 766 \n \n \n \n \n Finance costs \n \n \n \n \n \n 595 \n \n \n 569 \n \n \n \n \n Share of loss from associate \n \n \n \n \n \n - \n \n \n 4 \n \n \n \n \n Loss on disposal of fixed assets \n \n \n \n \n \n 13 \n \n \n - \n \n \n \n \n Loss on disposal of subsidiary \n \n \n \n \n \n - \n \n \n 1,358 \n \n \n \n \n Underlying trading profit from discontinued operations \n \n \n \n \n \n - \n \n \n (396) \n \n \n \n \n \n \n \n \n \n \n 8,043 \n \n \n (3,001) \n \n \n \n \n Working capital adjustments \n \n \n \n \n \n \n \n \n \n \n \n \n \n Movement in loans and advances \n \n \n \n \n \n 2,377 \n \n \n (4,491) \n \n \n \n \n Increase in trade and other receivables \n \n \n \n \n \n (13,927) \n \n \n (1,398) \n \n \n \n \n Decrease in trade and other payables \n \n \n \n \n \n 17,085 \n \n \n 390 \n \n \n \n \n \n \n \n \n \n \n 5,535 \n \n \n (5,499) \n \n \n \n \n Tax credit received \n \n \n \n \n \n 690 \n \n \n 768 \n \n \n \n \n Interest and finance costs \n \n \n \n \n \n (423) \n \n \n (416) \n \n \n \n \n Net cash generated from/(used in) operating activities from continuing operations \n \n \n \n \n \n 13,845 \n \n \n (8,148) \n \n \n \n \n Cash flows from investing activities: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Additions to intangible assets \n \n \n \n \n \n (6,851) \n \n \n (5,452) \n \n \n \n \n Additions to property, plant and equipment \n \n \n \n \n \n (28) \n \n \n (42) \n \n \n \n \n Acquisition of subsidiaries \n \n \n \n \n \n (8) \n \n \n (1,421) \n \n \n \n \n Disposal of subsidiary \n \n \n \n \n \n - \n \n \n 3,147 \n \n \n \n \n Cash in subsidiary on disposal \n \n \n \n \n \n - \n \n \n (938) \n \n \n \n \n Net cash used in investing activities from continuing operations \n \n \n \n \n \n (6,887) \n \n \n (4,706) \n \n \n \n \n Cash flows from financing activities: \n \n \n \n \n \n \n \n \n \n \n \n \n \n Issue of ordinary share capital \n \n \n \n \n \n - \n \n \n 7,148 \n \n \n \n \n Net borrowings \n \n \n 17 \n \n \n (1,999) \n \n \n 5,393 \n \n \n \n \n Lease payments \n \n \n \n \n \n (197) \n \n \n (81) \n \n \n \n \n Net cash generated (used in)/from financing activities from continuing operations \n \n \n \n \n \n (2,196) \n \n \n 12,460 \n \n \n \n \n Net increase/(decrease) in cash and cash equivalents from continuing operations \n \n \n \n \n \n 4,762 \n \n \n (394) \n \n \n \n \n Net cash from discontinued operations \n \n \n \n \n \n - \n \n \n 199 \n \n \n \n \n Cash and cash equivalents at beginning of the year \n \n \n \n \n \n 10,140 \n \n \n 10,273 \n \n \n \n \n Effect of foreign exchange rate changes \n \n \n \n \n \n (28) \n \n \n 62 \n \n \n \n \n Cash and cash equivalents at end of the year \n \n \n \n \n \n 14,874 \n \n \n 10,140 \n \n \n \n \n   \n COMPANY STATEMENT OF CASH FLOWS \n \n \n \n \n \n \n \n 2024 \n £'000 \n \n \n 2023 \n £'000 \n \n \n \n \n Cash flows from operating activities \n \n \n \n \n \n \n \n \n \n \n Loss before income tax \n \n \n (3,237) \n \n \n (976) \n \n \n \n \n Adjustments for: \n \n \n \n \n \n \n \n \n \n \n Depreciation of property, plant and equipment \n \n \n 2 \n \n \n 2 \n \n \n \n \n Interest income \n \n \n (149) \n \n \n (1,657) \n \n \n \n \n Share-based payments \n \n \n 872 \n \n \n 766 \n \n \n \n \n Working capital adjustments \n \n \n (2,512) \n \n \n (1,865) \n \n \n \n \n Decrease/(increase) in trade and other receivables \n \n \n 146 \n \n \n (22) \n \n \n \n \n Increase/(decrease) in trade and other payables \n \n \n 448 \n \n \n (200) \n \n \n \n \n \n \n \n 594 \n \n \n (222) \n \n \n \n \n Interest received \n \n \n 155 \n \n \n 117 \n \n \n \n \n Net cash used in operating activities \n \n \n (1,763) \n \n \n (1,970) \n \n \n \n \n   \n Cash flows from investing activities \n \n \n \n \n \n \n \n \n \n \n Intragroup loans cash advanced \n \n \n (4,298) \n \n \n (6,156) \n \n \n \n \n Intragroup loans cash received \n \n \n 4,567 \n \n \n 3,442 \n \n \n \n \n Additions to property, plant and equipment \n \n \n (2) \n \n \n - \n \n \n \n \n Net cash generated from/(used in) investing activities \n \n \n 267 \n \n \n (2,714) \n \n \n \n \n   \n Cash flows from financing activities \n Issue of ordinary share capital \n \n \n   \n   \n - \n \n \n   \n   \n 7,147 \n \n \n \n \n Net cash generated from financing activities \n \n \n - \n \n \n 7,147 \n \n \n \n \n   \n Net (decrease)/increase in cash and cash equivalents \n \n \n   \n (1,496) \n \n \n   \n 2,463 \n \n \n \n \n Cash and cash equivalents at beginning of the year \n \n \n 4,723 \n \n \n 2,260 \n \n \n \n \n Effect of foreign exchange rate changes \n \n \n 61 \n \n \n - \n \n \n \n \n Cash and cash equivalents at end of the year \n \n \n 3,288 \n \n \n 4,723 \n \n \n \n \n   \n NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS \n Statutory information \n TruFin plc is a Company registered in Jersey and incorporated under Companies (Jersey) Law 1991. The Company's ordinary shares were listed on the Alternative Investment Market of the London Stock Exchange on 21 February 2018. The address of the registered office is 26 New Street, St Helier, Jersey, JE2 3RA. \n   \n 1.  Accounting policies \n General information \n The TruFin Group (the \"Group\") is the consolidation of TruFin plc and the companies set out in the \"Basis of consolidation\" on pages 51-52. The principal activities of the Group are the provision of niche lending, early payment services and game publishing. \n The financial statements are presented in Pounds Sterling, which is the currency of the primary economic environment in which the Group operates. Amounts are rounded to the nearest thousand. \n   \n Basis of accounting \n The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (\"IFRS\"). \n Prior to 29 November 2017 and before the incorporation of TruFin plc and TruFin Holdings, the entities named above were under common control and therefore, have been accounted for as a common control transaction -that is a business combination in which all the combining entities or businesses are ultimately controlled by the same company both before and after the combination. IFRS 3 provides no specific guidance on accounting for entities under common control and therefore other relevant standards have been considered. These standards refer to pooling of assets and merger accounting and this is the methodology that has been used to consolidate the Group. \n After 29 December 2017, post the reorganisation, the entities constitute a legal group and accordingly the consolidated financial statements have been prepared by applying relevant principles underlying the consolidation procedures of IFRS. \n   \n Basis of preparation \n The results of the Group companies have been included in the consolidated statement of comprehensive income. Where necessary, adjustments have been made to the underlying financial information of the companies to bring the accounting policies used into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. \n The consolidated financial statements contained in this document consolidates the statements of total comprehensive income, statements of financial position, cash flow statements, statements of changes in equity and related notes for each of the companies listed in the \"Basis of consolidation\" on pages 51-52, which have been prepared in accordance with IFRS. \n Non-controlling interests, presented as part of equity, represent the portion of a subsidiary's profit or loss and net assets that is not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent and the non-controlling interests based on their respective ownership interests. \n Basis of consolidation \n The consolidated financial statements include all of the companies controlled by the Group, which are as follows: \n   \n \n \n \n \n   \n Entities \n \n \n Country of incorporation \n \n \n   \n Registered address \n \n \n   \n Nature of the business \n \n \n % voting rights and shares held \n \n \n \n \n \n \n \n \n \n \n 26 New Street, St Helier, \n \n \n \n \n \n \n \n \n \n \n TruFin Holdings Limited (\"THL\") \n \n \n Jersey \n \n \n Jersey JE2 3RA \n \n \n Holding Company \n \n \n 100% of ordinary shares \n \n \n \n \n Satago Financial Solutions Limited \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n (\"Satago\") (together with Satago \n \n \n \n \n \n 120 Regent Street, \n \n \n \n \n \n \n \n \n \n \n SPV 1, Satago SPV 2 and Satago \n \n \n \n \n \n London, United Kingdom, \n \n \n Provision of short term \n \n \n \n \n \n \n \n Poland) (\"Satago Group\") \n \n \n UK \n \n \n W1B 5FE \n \n \n finance \n \n \n 75% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 120 Regent Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Provision of short term \n \n \n \n \n \n \n \n Satago SPV 1 Limited (\"Satago SPV 1\") \n \n \n UK \n \n \n W1B 5FE \n \n \n finance \n \n \n 75% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 120 Regent Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Provision of short term \n \n \n \n \n \n \n \n Satago SPV 2 Limited (\"Satago SPV 2\") \n \n \n UK \n \n \n W1B 5FE \n \n \n finance \n \n \n 75% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 32-023 Krakow ul. Sw. \n \n \n Provision of short term \n \n \n \n \n \n \n \n Satago z.o.o (Satago Poland) \n \n \n Poland \n \n \n Krzyza 19/6 Poland \n \n \n finance \n \n \n 75% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 1st Floor Enterprise House, \n \n \n \n \n \n \n \n \n \n \n Oxygen Finance Group Limited (\"OFGL\") \n \n \n \n \n \n 115 Edmund Street, \n \n \n \n \n \n \n \n \n \n \n (together with OFL, BPL and OFAI) \n \n \n \n \n \n Birmingham, United \n \n \n \n \n \n \n \n \n \n \n (\"Oxygen\") \n \n \n UK \n \n \n Kingdom, B3 2HJ \n \n \n Holding Company \n \n \n 90% of ordinary shares* \n \n \n \n \n \n \n \n \n \n \n 1st Floor Enterprise House, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 115 Edmund Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Birmingham, United \n \n \n Provision of early \n \n \n \n \n \n \n \n Oxygen Finance Limited (\"OFL\") \n \n \n UK \n \n \n Kingdom, B3 2HJ \n \n \n payment services \n \n \n 90% of ordinary shares* \n \n \n \n \n \n \n \n \n \n \n 1st Floor Enterprise House, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 115 Edmund Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Birmingham, United \n \n \n \n \n \n \n \n \n \n \n Birmingham Procurement Limited (\"BPL\") \n \n \n UK \n \n \n Kingdom, B3 2HJ \n \n \n Not trading \n \n \n 90% of ordinary shares* \n \n \n \n \n \n \n \n \n \n \n Corporation Trust Center, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 1209 Orange Street, City \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n of Wilmington, County \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n of New Castle, Delaware \n \n \n Provision of early \n \n \n \n \n \n \n \n Oxygen Finance Americas, Inc (\"OFAI\") \n \n \n USA \n \n \n 19801, USA \n \n \n payment services \n \n \n 90% of ordinary shares* \n \n \n \n \n \n \n \n \n \n \n 120 Regent Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Provision of technology \n \n \n \n \n \n \n \n TruFin Software Limited (\"TSL\") \n \n \n UK \n \n \n W1B 5FE \n \n \n services \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 56a Poland Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Publishing of computer \n \n \n \n \n \n \n \n Playstack Limited (\"Playstack\")** \n \n \n UK \n \n \n W1F 7NN \n \n \n games \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 56a Poland Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Publishing of computer \n \n \n \n \n \n \n \n Bandana Media Limited (\"Bandana\")** \n \n \n UK \n \n \n W1F 7NN \n \n \n games \n \n \n 72% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 56a Poland Street, \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n London, United Kingdom, \n \n \n Business and domestic \n \n \n \n \n \n \n \n PlayIgnite Ltd (\"PlayIgnite\")** \n \n \n UK \n \n \n W1F 7NN \n \n \n software developer \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n \n \n \n Publishing activities in \n \n \n \n \n \n \n \n \n \n \n \n \n \n Kamienna 21, 31- 403 \n \n \n the field of computer \n \n \n \n \n \n \n \n Playstack z.o.o (\"PS Poland\")** \n \n \n Poland \n \n \n Krakow, Poland \n \n \n games \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n \n \n \n Publishing activities in \n \n \n \n \n \n \n \n \n \n \n \n \n \n Mikonkatu 17 B, 00100 \n \n \n the field of computer \n \n \n \n \n \n \n \n Playstack OY (\"PS Finland\")** \n \n \n Finland \n \n \n Helsinki, Finland \n \n \n games \n \n \n 75% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n \n \n \n Developing, publishing \n \n \n \n \n \n \n \n \n \n \n \n \n \n Solbergavägen 17, 17998 \n \n \n and selling electronic \n \n \n \n \n \n \n \n Playstack AB (\"PS Sweden\")** \n \n \n Sweden \n \n \n Färentuna, Sweden \n \n \n games \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n Gust Delaware, 16192 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Coastal Hwy, Lewes, \n \n \n Publishing of computer \n \n \n \n \n \n \n \n Playstack Inc (\"Playstack USA\")** \n \n \n USA \n \n \n DE 19958 \n \n \n games \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n Cogency Global Inc, 850 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n New Burton Road, Suite \n \n \n Business and domestic \n \n \n \n \n \n \n \n PlayIgnite Inc (\"PlayIgnite USA\")** \n \n \n USA \n \n \n 201, Dover DE 19904 \n \n \n software developer \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n 5424 Sunol Blvd Ste 10 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n PMB 1021, Pleasanton, CA \n \n \n \n \n \n \n \n \n \n \n Magic Fuel Inc (\"Magic Fuel\") \n \n \n USA \n \n \n 94566- 7705 \n \n \n Game developer \n \n \n 100% of ordinary shares \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n *      Nominal ownership of these companies is 90% due to the Oxygen Management Incentive Plan (\"Oxygen MIP\"). Effective economic ownership is 100% based on their Statements of Financial Position at the Reporting Date. \n ** The Playstack Group includes one associate company incorporated in the UK which has been accounted for using the equity method. This is: \n •      A 27% interest in Storm Chaser Games Limited (\"Storm Chaser Games\") \n The Playstack Group included one associate company incorporated in the UK which was dissolved in the year. \n •      A 49% interest in Snackbox Games Ltd \n On 9 July 2024, Altlending UK Limited ( a UK incorporated entity 100% owned by THL) was dissolved. \n Principal accounting policies \n The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been applied consistently to all the financial periods presented. \n The consolidated financial statements have been prepared in accordance with European Union Endorsed International Financial Reporting Standards (IFRSs) and the IFRS Interpretations Committee (formerly the International Financial Reporting Interpretations Committee (IFRIC)) interpretations. These statements have been prepared on a going concern basis and under the historical cost convention except for the treatment of certain financial instruments. \n Going concern \n As at 31 December 2024, the Group had a cash balance of £14.9m and net current assets of £14.2m, which includes a external borrowing balance of £4.2m. The directors have prepared and reviewed detailed financial forecasts of the Group and, in particular, considered the cash flow requirements for the period from the date of approval of these financial statements to the end of March 2026. \n These forecasts sit within the Group's latest estimate and within the longer-term financial plan, both of which have been updated on a regular basis. The Group has not identified any material uncertainties in the going concern model and remains confident that the forecasts are appropriate. Key assumptions include continued positive performance in Oxygen and Playstack, and Satago performance improving to break even in June 2026. The forecast is not sensitive to reasonable possible changes in the key assumptions both individually or in aggregate. \n Accordingly, the Directors have adopted the going concern basis in preparing these financial statements. \n Revenue recognition \n Net revenue \n Interest income and expense \n Interest income and expense for all financial instruments except for those classified as held for trading or measured or designated as at Fair Value Through Profit and Loss (\"FVTPL\") are recognised in \"Net revenue\" as \"Interest income\" and \"Interest, fee and publishing expenses\" in the profit or loss account using the effective interest method. \n The Effective Interest Rate (\"EIR\") is the rate that exactly discounts estimated future cash flows of the financial instrument through the expected life of the financial instrument or, where appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability. The future cash flows are estimated taking into account all the contractual terms of the instrument. \n The calculation of the EIR includes all fees and points paid or received between parties to the contract that are incremental and directly attributable to the specific lending arrangement, transaction costs and all other premiums or discounts. \n The interest income/expense is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (that is, to the amortised cost of the financial asset before adjusting for any expected credit loss allowance), or to the amortised cost of financial liabilities. \n For credit-impaired financial assets, as defined in the financial instruments accounting policy, the interest income is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets, that is, to the gross carrying amount less the allowance for Expected Credit Losses (\"ECLs\"). \n Fee income \n Fee income for the Group is earned from payments services fees, implementation fees, consultancy fees and subscription fees. Payment services provided by Oxygen comprises the following elements: \n Early Payment Programme Services (\"EPPS\") contracts \n Oxygen's EPPS generate rebates (ie discounts on invoice value) for its clients by facilitating the early payment of supplier invoices. Oxygen's single performance obligation is to make its intellectual property and software platform available to its clients for the duration of their contracts. \n Oxygen bills its clients monthly for a contractually agreed share of supplier rebates generated by their respective Early Payment Programmes during the previous month. This revenue is recognised in the month the rebates are generated. \n Implementation fees \n Oxygen Implementation fees \n Implementation fees are charged to some clients in establishing a client's technological access to the EPPS and in otherwise readying a client to benefit from the Services. Establishing access to the company's intellectual property and software platform does not amount to a distinct service as the client cannot benefit from the initial access except by the company continuing to provide access for the contract period. Where an implementation fee is charged, it is therefore a component of the aggregate transaction price of the EPPS. Accordingly, such revenue is initially deferred and then recognised in the statement of comprehensive income over the life of the related EPPS. \n Satago Implementation fees \n Implementation fees are in line with contractual agreements and relate to Lending as a Service projects. \n Consultancy fees \n Oxygen provides stand-alone advisory services to clients. Revenue is accrued as the underlying services are provided to the client. Playstack earns revenue where one or more people are billed directly to a client for the provision of services. \n Subscription fees \n Insight services subscription fees \n The Insight Services offered by OFL provide focussed public sector procurement data and analytics on a subscription basis. Clients cover both the private sector, enabling them to improve and develop their engagement with the public sector, and public sector organisations, enabling them to make more informed procurement decisions. Subscriptions are typically received in advance and recognised over the length of the contract as access to the database is provided. \n Satago subscription fees \n These are monthly fees for access to Satago's platform. Subscriptions are received in advance and recognised during the month the subscription relates to. \n Fee expenses \n Fee expenses are directly attributable costs, associated with the Oxygen's EPPS. The expenses include amortisation arising from capitalised contract costs incurred directly through activities which generate fee income. Amortisation arising from other intangible assets is recognised in depreciation and amortisation. \n Publishing income \n Publishing income for the Group is earned by companies in the Playstack Group and comprises the following elements. Publishing income is recognised at the fair value of consideration received or receivable for goods and services provided and is shown net of VAT and any other sales taxes. The fair value takes into account any trade or volume discounts and commission retained. \n In App Purchases (IAP) revenue \n IAP revenue is earned on the sale of mobile games and features within those games. It is recognised when the game or feature is sold. \n Advertising revenue \n Advertising revenue is earnings from featuring third party advertising within mobile games. It is recognised when these advertisements are featured within the games. \n Console and Platform revenue \n Console revenue is earned on the sale of video games for consoles. It is recognised when the game is sold. Platform revenue is earned through partnership directly with hardware platform holders in return for exclusive access to one or more games on their service. \n Revenue is recognised either on the completion of agreed milestones, across the term of the agreement for live-managed games, or a combination of the two. \n Brand revenue \n Brand revenue is when a mobile game player signs up to an advertised brand in a mobile game. Revenue is recognised when the brand has confirmed acquisition of the customer. \n Publishing expenses \n Publishing expenses are directly attributable costs, associated with the Playstack Group's publishing income. These costs are included at their invoiced value and are net of VAT and any other sales tax. \n Foreign currencies \n The results and financial position of each Group company are expressed in Pounds Sterling, which is the functional currency of the UK based members of the Group and the presentation currency for the consolidated financial statements. \n Transactions in foreign currencies are translated to the Group companies' functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Foreign exchange differences arising on translation are recognised in the consolidated statement of comprehensive income. \n In preparing the consolidated financial statements, the assets and liabilities of the Group's foreign operations are translated at the exchange rate at the reporting date. Income and expense items are translated at the average exchange rates for the year. Exchange differences arising, are recognised in other comprehensive income and are accumulated in the Foreign exchange reserve equity section. \n Property, plant and equipment \n All property, plant and equipment is stated at historical cost (or deemed historical cost) less accumulated depreciation and less any identified impairment. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. \n Depreciation is provided on all property, plant and equipment at rates calculated to write each asset down to its estimated residual value on a straight line basis at the following annual rates: \n   \n \n \n \n \n Leasehold improvements \n \n \n - \n \n \n 5 years \n \n \n \n \n Fixtures and fittings \n \n \n - \n \n \n 3 years \n \n \n \n \n Computer equipment \n \n \n - \n \n \n 3 -5 years \n \n \n \n \n Useful economic lives and estimated residual values are reviewed annually and adjusted as appropriate. \n Intangible assets \n Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be reliably measured. \n Intangible assets with finite lives are stated at acquisition or development cost less accumulated amortisation and less any identified impairment. The amortisation period and method is reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate and are treated as changes in accounting estimates. \n Computer software \n Computer software which has been purchased by the Group from third party vendors is measured at initial cost less accumulated amortisation and less accumulated impairments. \n Computer software also comprises internally developed platforms and the costs directly associated with the production of these identifiable and unique software products controlled by the Group. They are probable of producing future economic benefits. They primarily include employee costs and directly attributable overheads. \n Internally generated intangible assets are only recognised by the Group when the recognition criteria have been met in accordance with IAS 38: Intangible Assets as follows: \n •      expenditure can be reliably measured \n •      the product or process is technically and commercially feasible \n •      future economic benefits are likely to be received \n •      intention and ability to complete the development, and \n •      view to either use or sell the asset in the future. \n The Group will only recognise an internally-generated asset should it meet all the above criteria. In the event of a development not meeting the criteria it will be recognised within the statement of profit or loss in the period incurred. \n Capitalised costs include all directly attributable costs to the development of the asset. Internally generated assets are measured at capitalised cost less accumulated amortisation less accumulated impairment losses. The internally generated asset is amortised at the point the asset is available for use or sale. The asset is amortised on a straight-line basis over the useful economic life with the remaining useful economic life and residual value being assessed annually. \n Any subsequent expenditure on the internally generated asset is only capitalised if the cost increases the future economic benefits of the related asset. Otherwise all additional expenditure should be recognised through the statement of profit or loss in the period it occurs. \n Contract assets \n Contract assets comprise the directly attributable costs incurred at the beginning of an Early Payment Scheme Service contract to revise a client's existing payment systems and provide access to the Group's software and other intellectual property. These implementation (or \"set up\") costs are comprised primarily of employee costs. \n Amortisation is charged to the statement of comprehensive income over the estimated useful lives of intangible assets from the date they are available for use, on a straight-line basis. The amortisation basis adopted for each class of intangible asset reflects the Group's consumption of the economic benefit from that asset. \n Estimated useful lives \n The estimated useful lives of finite intangible assets are as follows: \n   \n \n \n \n \n Computer software \n \n \n - \n \n \n 3 -5 years \n \n \n \n \n Contract assets \n \n \n - \n \n \n Life of underlying contract (typically 5 years) \n \n \n \n \n   \n Goodwill \n Goodwill arising on acquisition represents the excess cost of a business combination over the fair values of the Group's share of the identifiable assets and liabilities at the date of the acquisition. When part of the consideration transferred by the Group is deferred or contingent, this is valued at its acquisition date fair value, and is included in the consideration transferred in a business combination. Changes in the deferred or contingent consideration, which occur in the measurement period, are adjusted retrospectively, with corresponding adjustments to goodwill. \n Goodwill is not amortised but is reviewed at least annually for impairment. For the purpose of impairment testing, goodwill is allocated to each Cash Generating Unit (\"CGU\"). Each CGU is consistent with the Group's primary reporting segment. Any impairment is recognised immediately through the income statement and is not subsequently reversed. \n On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of profit or loss on disposal. \n Financial instruments \n Initial recognition \n Financial assets and financial liabilities are recognised in the Group's statement of financial position when the Group becomes a party to the contractual provisions of the instrument. \n Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of the financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are respectively added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs that are directly attributable to the acquisition of financial assets and financial liabilities at FVTPL are recognised immediately in profit or loss. \n Financial assets \n Classification and reclassification of financial assets \n Recognised financial assets within the scope of IFRS 9 are required to be classified as subsequently measured at amortised cost, FVTOCI or FVTPL on the basis of both the Group's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. \n Financial assets are reclassified if and only if, the business model under which they are held is changed. There has been no such change in the allocation of assets to business models in the periods under review. \n Loans and advances \n Loans and advances are held within a business model whose objective is to hold those financial assets in order to collect contractual cash flows. The contractual terms of the loan agreements give rise on specified dates to cash flows that are solely payments of principal and interest or fees on the principal amount outstanding. \n After initial measurement, loans and advances to customers are subsequently measured at amortised cost using the Effective Interest Rate method (EIR) less impairment. Amortised cost is calculated by taking into account any fees or costs that are an integral part of the EIR. The EIR amortisation is included in interest and similar income in the statement of comprehensive income. The losses arising from impairment are recognised in the statement of comprehensive income and disclosed with any other similar losses within the line item \"Net impairment losses on financial assets\". \n Where cash flows are significantly different from the original expectations used to determine EIR, but where this difference does not arise from a modification of the terms of the financial instrument, the Group revises its estimates of receipts and adjusts the gross carrying amount of the financial asset to reflect actual and revised estimated contractual cash flows. The Group recalculates the gross carrying amount of the financial asset as the present value of the estimated future contractual cash flows discounted at the financial instrument's original EIR. The adjustment is recognised in statement of comprehensive income as income or expense. \n Trade and other receivables \n Trade receivables do not contain any significant financing component and accordingly are recognised initially at transaction price, and subsequently measured at cost less expected credit losses. \n Investments in subsidiaries \n Investments in subsidiaries are accounted for at cost less impairment in the Company's financial statements. \n Cash and cash equivalents \n Cash and cash equivalents comprise cash balances and demand deposits and short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. \n Impairment \n The Group (and Company) recognises loss allowances for Expected Credit Losses (\"ECLs\") on the following financial instruments that are not measured at FVTPL: \n •      Loans and advances; \n •      Other receivables; \n •      Trade receivables; and \n •      Intercompany receivables \n ECLs are measured through loss allowances calculated on the following bases: \n ECLs are a probability-weighted estimate of the present value of credit losses. These are measured as the present value of the difference between the cash flows due to the Group under the contract and the cash flows that the Group expects to receive arising from the weighting of future economic scenarios, discounted at the asset's EIR within the current performing book. \n The Group measures ECL on an individual basis, or on a collective basis for portfolios of loans that share similar credit risk characteristics. The loss allowance is measured as the present value of the difference between the contractual cash flows and cash flows that the Group expects to receive using the asset's original EIR, regardless of whether it is measured on an individual basis or a collective basis. \n A financial asset that gives rise to credit risk, is referred to (and analysed in the notes to this financial information) as being in \"Stage 1\" provided that since initial recognition (or since the previous reporting date) there has not been a significant increase in credit risk, nor has it has become credit impaired. \n For a Stage 1 asset, the loss allowance is the \"12-month ECL\", that is, the ECL that results from those default events on the financial instrument that are possible within 12 months from the reporting date. \n A financial asset that gives rise to credit risk is referred to (and analysed in the notes to this financial information) as being in \"Stage 2\" if since initial recognition there has been a significant increase in credit risk but it is not credit impaired. \n For a Stage 2 asset, the loss allowance is the \"lifetime ECL\", that is, the ECL that results from all possible default events over the life of the financial instrument. \n A financial asset that gives rise to credit risk is referred to (and analysed in the notes to this financial information) as being in \"Stage 3\" if since initial recognition it has become credit impaired. \n For a Stage 3 asset, the loss allowance is the difference between the asset's gross carrying amount and the present value of estimated future cash flows discounted at the financial asset's original EIR. Further, the recognition of interest income is calculated on the carrying amount net of impairment rather than the gross carrying amount as for stage 1 and stage 2 assets. \n If circumstances change sufficiently at subsequent reporting dates, an asset is referred to by its newly appropriate Stage and is re-analysed in the notes to the financial information. \n Where an asset is expected to mature in 12 months or less, the \"12 month ECL\" and the \"lifetime ECL\" have the same effective meaning and accordingly for such assets the calculated loss allowance will be the same whether such an asset is at Stage 1 or Stage 2. However, the Group monitors significant increase in credit risk for all assets so that it can accurately disclose Stage 1 and Stage 2 assets at each reporting date. \n Lifetime ECLs are recognised for all trade receivables using the simplified approach. \n Significant increase in credit risk -policies and procedures for identifying Stage 2 assets \n The Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition in order to determine whether credit risk has increased significantly. \n See Note 19 for further details about how the Group assesses increases in significant credit risk. \n Definition of a default \n Critical to the determination of significant increases in credit risk (and to the determination of ECLs) is the definition of default. Default is a component of the Probability of Default (\"PD\"), changes in which lead to the identification of a significant increase in credit risk and PD is then a factor in the measurement of ECLs. \n The Group's definition of default for this purpose is: \n •      a counterparty defaults on a payment due under a loan agreement and that payment is more than 90 days overdue, or \n •      within the core invoice finance proposition, where one or more individual finance repayments are beyond 90 days overdue, management judgement is applied in considering default status of the client. \n •      the collateral that secures, all or in part, the loan agreement has been sold or is otherwise not available for sale and the proceeds have not been paid to the lending company; or \n •      a counterparty commits an event of default under the terms and conditions of the loan agreement which leads the lending company to believe that the borrower's ability to meet its credit obligations to the lending company is in doubt. \n The definition of default is similarly critical in the determination of whether an asset is credit-impaired (as explained below). \n Credit-impaired financial assets -policies and procedures for identifying Stage 3 assets \n A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. IFRS 9 states that evidence of credit-impairment includes observable data about the following events: \n •      Significant financial difficulty of the borrower; \n •      A breach of contract such as a default (as defined above) or past due event, or \n •      The Group, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the Group would not otherwise consider. \n The Group assesses whether debt instruments that are financial assets measured at amortised cost or at FVTOCI are credit-impaired at each reporting date. When assessing whether there is evidence of credit-impairment, the Group takes into account both qualitative and quantitative indicators relating to both the borrower and to the asset. The information assessed depends on the borrower and the type of the asset. It may not be possible to identify a single discrete event -instead, the combined effect of several events may have caused financial assets to become credit-impaired. \n See Note 19 for further details about how the Group identifies credit-impaired assets. \n Presentation of allowance for ECL in the statement of financial position \n Loss allowances for ECL are presented in the statement of financial position as follows: \n •      For financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets; \n •      For loan commitments: as a provision; and \n Modification of financial assets \n A modification of a financial asset occurs when the contractual terms governing a financial asset are renegotiated without the original contract being replaced and derecognised and: \n •      The gross carrying amount of the asset is recalculated and a modification gain or loss is recognised in profit or loss; \n •      Any fees charged are added to the asset and amortised over the new expected life of the asset; and \n •      The asset is individually assessed to determine whether there has been a significant increase in credit risk. \n Derecognition of financial assets \n A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the rights to receive cash flows from the asset have expired. The Group also derecognises the assets if it has both transferred the asset and the transfer qualifies for derecognition. \n A transfer only qualifies for derecognition if either \n •      The Group has transferred substantially all the risks and rewards of the asset; or \n •      The Group has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset. \n Write offs \n Loans and advances are written off when the Group has no reasonable expectation of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Group determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a derecognition event. The Group may apply enforcement activities to financial assets written off. Recoveries resulting from the Group's enforcement activities will result in impairment gains. \n Financial liabilities \n Financial liabilities and equity \n Debt and equity instruments that are issued are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement. \n A financial liability is a contractual obligation to deliver cash or another financial asset or to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Group or a non-derivative contract that will or may be settled in a variable number of the Group's own equity instruments, or a derivative contract over own equity that will or may be settled other than by the exchange of a fixed amount of cash (or another financial asset) for a fixed number of the Group's own equity instruments. \n Equity instruments \n An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognised as at the proceeds received, net of direct issue costs. Distributions on equity instruments are recognised directly in equity. \n Financial liabilities \n Interest bearing borrowings are measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the effective interest rate method (EIR). Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in \"Interest and fee expenses\" in the profit and loss account. \n Derecognition of financial liabilities \n The Group derecognises financial liabilities when and only when, the Group's obligations are discharged, cancelled or they expire. \n Impairment of non-financial assets \n The carrying amounts of the entity's non-financial assets, other than goodwill and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. 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. \n For the purposes of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the CGU). \n Contract assets are reviewed for impairment based on the performance of the underlying contract. \n Goodwill is tested annually for impairment in accordance with IFRS. The goodwill acquired in a business combination, for the purpose of impairment testing is allocated to CGU that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGUs or groups of CGUs on a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount of the acquired entity in its entirety, or if the acquired entity has been integrated then the entire group of entities into which it has been integrated. \n An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of comprehensive income. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of other assets in the unit (or group of units) on a pro rata basis. \n An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply. An impairment loss recognised for goodwill is not reversed. \n Impairment losses recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. \n Current and deferred income tax \n Income tax on the result for the period comprises current and deferred income tax. Income tax is recognised in the consolidated statement of comprehensive income except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity. Where there are uncertain tax positions, the Group assesses whether it is probable that the position adopted in tax filings will be accepted by the relevant tax authority, with the results of this assessment determining the accounting that follows. \n Current tax is the expected tax payable or receivable on the taxable income for the period, using tax rates enacted or substantively enacted at the reporting date and any adjustment to tax payable in respect of previous periods. \n Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the reporting date. \n The carrying amount of deferred tax assets is reviewed at each reporting 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 assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. \n Employee benefits - pension costs \n A defined contribution plan is a post-employment benefit plan under which the Group pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Contributions to defined contribution schemes are charged to the statement of comprehensive income as they become payable in accordance with the rules of the scheme. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the statement of financial position. \n Merger reserve \n Prior to 29 December 2017, the entities within the Group were held by Arrowgrass Master Fund Limited. On 29 December 2017, these entities were acquired by TruFin plc via TruFin Holdings Limited. The consideration provided to Arrowgrass for the companies acquired was in exchange for shares of TruFin plc based on the fair value of the underlying companies. Upon consolidation of the Group, the difference between the book value of the entities and the amount of the consideration paid was accounted through a merger reserve, in accordance with relevant accounting standards relating to businesses under common control. \n Investments in associates \n Associates are entities in which the Group has between 20% and 50% of the voting rights, or is otherwise able to exercise significant influence, but which it does not control or jointly control. Investments in associates are accounted for under the equity method and are initially recognised at costs, including goodwill. Subsequent changes in the carrying value reflect the post-acquisition changes in the Group's share of net assets of the associate. The Group's share of its associates profits or losses is recognised in the consolidated income statement. However, when the Group's share of losses in an associate equals or exceeds its interest in the associate, the Group does not recognise further losses, unless the Group is obliged to make further payments to, or on behalf of the associate. \n Segmental reporting \n An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity) and whose operating results are regularly reviewed by the Board of Directors in order to make decisions about resources to be allocated to that component and assess its performance and for which discrete financial information is available. \n For the purposes of the financial statements, the Directors consider the Group's operations to be made up of four operating segments: the provision of short term finance, payment services, publishing and other operations. \n The accounting policies of the reportable segments are consistent with the accounting policies of the Group as a whole. Further details are provided in Note 4. \n Share-based payments \n Where the Group engages in share-based payment transactions in respect of services received from certain of its employees, these are accounted for as equity-settled share-based payments in accordance with IFRS 2 'Share-based payments'. The equity is in the form of ordinary shares. \n The grant date fair value of a share-based payment transaction is recognised as an employee expense, with a corresponding increase in equity over the period that the employees become unconditionally entitled to the awards. In the absence of market prices, the fair value of the equity at the date of the grant is estimated using an appropriate valuation technique. \n The amount recognised as an expense is adjusted to reflect the actual number of awards for which the related services and non-market vesting conditions are expected to be met such that the amount ultimately recognised as an expense is based on the number of awards that do meet the related service and non-market performance conditions at the vesting date. \n For share-based payment awards with market performance conditions the grant date fair value of the award is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes. \n Refer to Note 6 for the amounts disclosed. \n Leases \n At the inception of a contract, the Group assesses if the contract contains a lease. A contract 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. Reassessment is only required when the terms and conditions of the contract are changed. \n Right-of-use assets \n The Group recognises a right-of-use asset and lease liability at the date which the underlying asset is available for use. Right-of-use assets are measured at cost which comprises the initial measurement of lease liabilities adjusted for any lease payments made at or before the commencement date and lease incentives received. Any initial direct costs that would not have been incurred if the lease had not been obtained are added to the carrying amount of the right-of-use assets. \n These right-of-use assets are 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. \n Right-of-use assets (except for those which meet the definition of an investment property) are presented within \"Property, plant and equipment\". \n Right of use assets which meet the definition of property, plant and equipment are presented and accounted for in accordance with this policy. \n Lease liabilities \n The initial measurement of a lease liability is measured at the present value of the lease payments discounted using the interest rate implicit in the lease, if the rate can be readily determined. If that rate cannot be readily determined, the borrower shall use its incremental borrowing rate. \n Lease liabilities are measured at amortised cost using the effective interest method. \n Lease liabilities are remeasured with a corresponding adjustment to 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. \n Short term and low value leases \n The Group has elected to not recognise right-of-use assets and lease liabilities for short-term leases that have lease terms of 12 months or less and leases of low value leases. Lease payments relating to these leases are expensed to profit or loss on a straight-line basis over the lease term. \n   \n 2.  Critical accounting judgements and key sources of estimation uncertainty \n The preparation of financial information in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. \n The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apart from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Actual results may differ from these estimates. \n 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 Group's accounting policies and that have the most significant effect on the amounts recognised in financial statements. \n Critical accounting judgements \n •      Early Payment Programme Services set up costs: the Group capitalises the direct costs of implementing Early Payment Programme Services contracts for clients. These costs are essential to the satisfaction of the Group's performance obligation under that contract and accordingly the Group considers that these costs meet the applicable criteria for recognition as contract assets. \n The amount capitalised is disclosed in Note 11. \n •      Deferred tax asset: There is inherent uncertainty in forecasting beyond the immediate future and significant judgement is required to estimate whether future taxable profits are probable in order to utilise the carried forward tax losses. Companies in the Group have carried forward losses which will be utilised against future taxable profits. However, a deferred tax asset has not been recognised for these companies, except for Oxygen Finance Limited as there is uncertainty surrounding the timing of when these losses will be used. \n Refer to Note 9 for more information on the deferred tax asset. \n •      The accounts of the trustee (the \"EBT Trustee\") of the Company's Employee Benefit Trust (\"EBT\") have not been consolidated as it is the Directors' opinion that the Company does not have control over the EBT. The EBT is a discretionary trust, which means that ...

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