REG - Fiinu PLC - Final Results
23/05/2025 10:00
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RNS Number : 9724J Fiinu PLC 23 May 2025
Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of the Market Abuse
Regulation (EU) No 596/2014 ('MAR'), which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, until the release of this announcement
23 May 2025
Fiinu Plc
("Fiinu", the "Company" or the "Group")
Final Results
Fiinu, a fintech group, creator of the Plugin Overdraft®, announces its final
results for the year ended 31 December 2024.
The Annual Report and Accounts for the year ended 31 December 2024, together
with the Notice of Annual General Meeting, will be despatched to shareholders
shortly and is available to download from the Company's website at
www.fiinuplc.com.
Commenting, Dr. Marko Sjoblom, Chief Executive Officer said:
"2024 was a year of strategic transformation for Fiinu, defined by the return
of our UK banking licence in 2023 and a shift toward a leaner, tech-focused
business model. We reduced our monthly burn rate from £600,000 to £45,000,
safeguarded our core capabilities, and advanced our Plugin Overdraft®
technology licensing strategy. A key milestone was the signing of non-binding
Heads of Terms with an independent UK bank in January 2025 to white-label our
solution. Additional discussions are ongoing with other institutions exploring
our software for retail and SME segments. These moves affirm growing market
interest in our platform's commercial potential.
Our strategic lens has expanded to include digitally underserved SMEs and
financial institutions across Europe, where our technology can enhance
liquidity and customer engagement. Alongside this, we completed a £1.25m
equity raise in February and secured a £511k R&D tax credit in May 2025,
bolstering our financial runway to at least mid-2026. Strong governance
remains a cornerstone, underscored by a positive board effectiveness review
and key leadership appointments, including a new Executive Director and CFO in
March 2025.
With product readiness, licensing momentum, and funding in place, we are
well-positioned to pursue revenue generation in 2025. We remain committed to
building a resilient, innovation-led business that delivers long-term value."
Enquiries:
Fiinu Plc
Dr. Marko Sjoblom
Tel +44 (0) 1932 629 532
SPARK Advisory Partners Limited (Nomad)
Tel +44 (0) 203 368 3550
Mark Brady/Jade Bayat
SP Angel Corporate Finance LLP (Joint Broker)
Tel +44 (0) 207 470 0470
Bruce Fraser/Ezgi Senturk
Oberon Investment Limited (Joint Broker)
Tel +44 (0) 203 179 5300
Nick Lovering/ Adam Pollock/ Mike Seabrook
About Fiinu
Fiinu, founded in 2017, is a fintech group, that developed the Plugin
Overdraft® which is an unbundled overdraft solution that allows customers to
have an overdraft without changing their existing bank. The underlying Bank
Independent Overdraft® technology platform is bank agnostic, that therefore
enables it to serve all other banks' customers. Open Banking allows Fiinu's
Plugin Overdraft® to attach ("plugin") to the customer's existing bank
accounts, no matter which bank they may use. Fiinu's vision is built around
Open Banking, and it believes that it increases competition and innovation in
UK banking.
For more information, please visit www.fiinuplc.com
CHAIR'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
In my last report to Shareholders and other stakeholders, I noted that "we
remain steadfast in our commitment to playing our part in revolutionising
banking services by providing the underserved with our Plugin Overdraft®".
Despite the setback of returning our banking licence, having failed to raise
the required exit capital, and having to consequently scale back the business
including the staff and board headcount to preserve funds, we continued to
seek funding opportunities to re-apply for our own banking licence and to fund
updating and operationalising our AI-enabled software.
Resilience in Uncertainty: Strengthening Our Foundations Through Partnerships and Prudent Funding
This has met with some success and as, already announced, we are working with
an independent UK bank to launch the Plugin Overdraft® under its banking
licence. Given the current market uncertainty and its impact on the funding of
start-up businesses, the board took the view that licensing our product to
other banks would not only provide a revenue stream, but it would also raise
Fiinu's attractiveness to potential investors, and was always part of Fiinu's
stated strategy. This has been the case, and I am pleased to report that
initial, exploratory conversations are underway with other banks although
these are not yet contractual. The board has also had some success on
fundraising and Fiinu's board is able to confirm that the business remains
healthy as a going concern.
Clearly the past financial year has not been an easy one for Fiinu but, with
the recent fundraise and the plan to launch a white-labelled version of the
Plugin Overdraft® before the end of 2025, together with several initial and
ongoing meetings with potential investors and with banks interested in
licensing our product, the outlook has improved considerably since my last
report.
Expanding Our Strategic Horizon: Broadening Market Focus and Reinforcing Governance
The board has also been reviewing our strategy given that it will likely take
time, and a large fundraise to re-acquire a UK banking licence. Based on
conversations with financial institutions and potential investors in Europe,
the board is considering adapting its technology to service SMEs as well as
retail customers and potentially to offer other financial services to this
sector. We believe Fiinu has the technology and expertise which can be used by
some financial institutions in Europe that have customers but lack the
nimbleness and expertise to speedily adapt their legacy systems to retain
their customer base and compete effectively in the markets in which they
operate. For Fiinu this presents us with opportunities in the form of
licensing our intellectual property, co-operation and perhaps even
opportunities for some form of M&A. Consequently, the board will continue
to seek opportunities to work with revenue generating businesses which will
help us shift our evolution from a pre-revenue start up to a revenue generator
pursuing rapid and profitable expansion both within the UK and elsewhere in
Europe.
During the past year the board has sought to comply with the UK Corporate
Governance Code and, in compliance with good governance, the board
commissioned an external board effectiveness review. The review recognised
that Fiinu had undergone a serious scale back at board, management and staff
levels but concluded that it retained the skills to broadly and
proportionately comply with the Code. In this context, I was pleased to
welcome Dr Feyzullah Egriboyun to the board as an Executive Director and Chief
Financial Officer in March 2025. I am also pleased to say that we have begun a
process to appoint another Independent Non-Executive Director to the Board.
The board effectiveness review made a number of recommendations which,
together with the Company Secretary, I will be working with board members to
address.
Looking Ahead
As we enter 2025, Fiinu stands at the threshold of a new phase, leaner, more
focused, and strategically aligned to capitalise on emerging opportunities.
With the groundwork laid through product partnerships, renewed investor
engagement, and a broader commercial vision, we are cautiously optimistic
about what lies ahead. Our efforts in licensing, governance, and strategic
exploration have positioned us to shift from survival mode to sustainable
growth. Finally, I would like to take the opportunity to thank all our
shareholders for their patience and support and to reassure them that the
Board will be working hard to make Fiinu a successful and profitable business
whose performance will be reflected in its share price.
David Hopton
Chairman of the Board, Fiinu Plc
CHIEF EXECUTIVE'S STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
As we look back on 2024, it has been a year marked by transformation and
cautious optimism for Fiinu. While the decision to return our UK banking
licence in 2023 was a significant inflection point, it also served as a
catalyst for redefining our operational focus, financial resilience, and
long-term ambitions.
Strategic Reset, Renewed Focus, Licensing Momentum and Investor Engagement
The past year demanded difficult decisions, scaling back Fiinu's operations
from 2023, with an average monthly burn rate of approximately £600,000, to
restructuring the team and cost-cutting to an average monthly burn rate of
approximately £45,000 in 2024, as part of re-prioritising our capital
deployment. These actions, though challenging, were essential in preserving
our core capabilities and reaffirming our belief in the transformative
potential of our proprietary Plugin Overdraft® technology. Despite broader
macroeconomic headwinds and ongoing pressures in the funding landscape, our
team has remained focused on unlocking value through partnership. We were in
active talks with different banks in 2024 to white-label our technology and
were pleased to announce the signing of non-binding Heads of Terms with an
independent UK bank in January 2025, to launch the Plugin Overdraft® using
their banking licence. This partnership, subject to final contract and any
necessary regulatory approvals, not only would bring our solution to market,
but would also serve as a critical proof point of the commercial and
regulatory viability of our platform. Since then, we have intensified efforts
to license our AI-enabled software to other financial institutions. While
these talks are still exploratory, they signal growing interest in our
proprietary offering, particularly from institutions looking to unbundle and
modernise their retail and SME customer experience without overhauling legacy
systems. Our white-label licensing approach, combined with prudent financial
management and a successful £1.25m equity funding round, announced on 14
February 2025, has demonstrated management's ability to develop the product
and work towards generating revenue from it in the current financial year to
31 December 2025. At the date of signing, the Company's unaudited cash
resources were in excess of £1m which, with anticipated current burn rates,
including increased spending on white-label deliverables, should last for at
least 12 months from now.
Evolution Beyond Retail: New Markets, New Horizons and Governance and Leadership
In parallel, we have spent considerable time this year exploring how our
technology can serve not just retail consumers, but also SMEs, especially
those operating across borders. Increasingly, we are recognising the potential
for our platform to be leveraged within other financial services and liquidity
support solutions, particularly for underserved businesses in European
markets. This broader commercial lens is shaping how we evaluate future
strategic moves, including deeper collaborations with institutions that are
profitable but digitally underserved. We see value not only in licensing
arrangements, but also in more integrated opportunities where our technology,
product expertise, and strategic agility can complement the strengths of
established players.
While we have streamlined the organisation, we have also strengthened its
foundation. The external board effectiveness review conducted in March 2025,
affirmed that Fiinu continues to meet the UK Corporate Governance Code
proportionately and with integrity. We welcomed Dr Feyzullah Egriboyun as
Executive Director and CFO in March 2025 and are in the process of looking to
appoint a new Independent Non-Executive Director. These additions to our
leadership will ensure we remain accountable and well-governed as we embark on
the next stage of growth.
Looking Ahead
As we progress through 2025, we do so with a renewed sense of purpose. The
foundations laid this past year, product licensing, strategic focus,
fundraising, and new partnerships position us to pursue generating revenue
with greater confidence. On behalf of the entire executive team, I want to
thank our shareholders for their continued belief in Fiinu's vision. The road
has not been without its challenges, but we remain committed to delivering
meaningful, long-term value by building a business that is both innovative and
resilient.
Marko Sjoblom
Chief Executive Officer, Fiinu Plc
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£ £
Administrative expenses (700,645) (7,223,494)
Operating loss (700,645)
(7,223,494)
Finance income 2,216 46,176
Finance costs (1,639) (74,840)
Other gains and losses - (1,081,530)
Loss before taxation (700,068)
(8,333,688)
Income tax income - 16,157
Loss and total comprehensive income for the year (700,068)
(8,317,531)
Profit for the financial year is all attributable to the owners of the parent
company.
Total comprehensive income for the year is all attributable to the owners of
the parent company.
Earnings per share
Basic (0.26) (3.06)
Diluted (0.26) (3.06)
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
2024 2023
£ £
ASSETS
Non-current assets
Intangible assets - -
Property, plant and equipment - -
- -
Current assets
Trade and other receivables 48,811 236,720
Cash and cash equivalents 355,932 1,310,757
404,743 1,547,477
Total assets
404,743 1,547,477
EQUITY
Called up share capital 27,474,724 27,474,724
Share premium account 9,475,486 9,475,486
Own shares (5,100) (5,100)
Merger reserve (21,120,782) (21,120,782)
Shares to be issued 50,000 50,000
Retained earnings (15,748,635) (15,048,567)
Total equity
125,693 825,761
Non-controlling interests - -
Total equity 125,693 825,761
LIABILITIES
Current liabilities
Trade and other payables 279,050 663,940
Lease liabilities - 57,776
279,050 721,716
Total liabilities
279,050 721,716
Total equity and liabilities
404,743 1,547,477
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
2024 2023
£ £
ASSETS
Non-current assets
Property, plant and equipment - -
Investments 1,373,736 1,785,857
1,373,736 1,785,857
Current assets
Trade and other receivables 76,522 1,262,144
Cash and cash equivalents 208,072 5,246
284,594 1,267,390
Total assets
1,658,330 3,053,247
EQUITY
Called up share capital 27,474,724 27,474,724
Share premium account 28,225,487 28,225,487
Own shares (5,100) (5,100)
Shares to be issued 50,000 50,000
Share based payment reserve 40,218 40,218
Retained earnings (54,311,897) (53,141,837)
Total equity
1,473,432 2,643,492
LIABILITIES
Current liabilities
Trade and other payables 184,898 351,979
Lease liabilities - 57,776
184,898 409,755
Total liabilities
184,898 409,755
Total equity and liabilities
1,658,330 3,053,247
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital Share premium account Own shares Merger reserve Shares to be issued Retained earnings Total
£ £ £ £ £ £ £
Balance at 1 January 2023 26,513,186 9,194,313 - (21,120,782) - (7,293,795) 7,292,922
Year ended 31 December 2023:
Loss and total comprehensive loss (8,317,531) (8,317,531)
Transactions with owners:
Issue of share capital 961,538 288,462 - - - - 1,250,000
Shares to be issued - - - - 50,000 - 50,000
Shares held by employment benefit trust - - (72,209) - - - (72,209)
Share based payments - (7,289) - - - 562,759 555,470
Fair value movement - - 67,109 - - - 67,109
Balance at 31 December 2023 27,474,724 9,475,486 (5,100) (21,120,782) 50,000 (15,048,567) 825,761
Year ended 31 December 2024:
Loss and total comprehensive loss - - - - - (700,068) (700,068)
Balance at 31 December 2024 27,474,724 9,475,486 (5,100) (21,120,782) 50,000 (15,748,635) 125,693
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
Share capital Share premium account Share based payment reserve Own shares Shares to be issued Retained earnings Total
£ £ £ £ £ £ £
Balance at 1 January 2023 26,513,186 27,944,314 40,218 - - (7,093,177) 47,404,541
Year ended 31 December 2023:
Loss and total comprehensive loss (46,611,419) (46,611,419)
Transactions with owners:
Issue of share capital 961,538 288,462 - - - - 1,250,000
Shares to be issued - - - - 50,000 - 50,000
Own shares transferred to reserves - - - (72,209) - - (72,209)
Share based payments - (7,289) - - - 562,759 555,470
Fair value movement - - - 67,109 - - 67,109
Balance at 31 December 2023 27,474,724 28,225,487 40,218 (5,100) 50,000 (53,141,837) 2,643,492
Year ended 31 December 2024:
Loss and total comprehensive loss - - - - - (1,170,060) (700,068)
Balance at 31 December 2024 27,474,724 28,225,487 40,218 (5,100) 50,000 (54,311,897) 1,943,424
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£ £ £ £
Cash flows from operating activities
Cash absorbed by operations (897,627) (6,647,178)
Income taxes refunded - 369,036
Net cash outflow from operating activities
(897,627) (6,278,142)
Investing activities
Purchase of property, plant and equipment - (8,618)
Interest received 2,216 46,176
Net cash generated from investing activities 2,216 37,558
Financing activities
Proceeds from issue of shares - 500,000
Proceeds from borrowings - 1,000,000
Repayment of borrowings - (750,000)
Payment of lease liabilities (57,775) (167,929)
Interest paid (1,639) (75,891)
Net cash (used in)/generated from financing activities
(59,414) 506,180
Net decrease in cash and cash equivalents
(954,825) (5,734,404)
Cash and cash equivalents at beginning of year 1,310,757 7,045,161
Cash and cash equivalents at end of year
355,932 1,310,757
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
£ £ £ £
Cash flows from operating activities
Cash generated from operations 262,240 649,729
Net cash inflow from operating activities
262,240 649,729
Investing activities
Purchase of additional capital in subsidiaries - (1,250,000)
Interest received 9
Net cash generated from investing activities (1,249,991)
Financing activities
Proceeds from issue of shares - 500,000
Proceeds from borrowings - 1,000,000
Repayment of borrowings - (750,000)
Payment of lease liabilities (57,775) (167,929)
Interest paid (1,639) (75,641)
Net cash (used in)/generated from financing activities (59,414) 506,430
Net decrease in cash and cash equivalents
202,826 (93,832)
Cash and cash equivalents at beginning of year 5,246 99,078
Cash and cash equivalents at end of year 5,246
208,072
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1 Material accounting policy information Company information
Fiinu Plc is a public company limited by shares incorporated in England and
Wales. The registered office is Ibex House, Baker Street, Weybridge, Surrey,
KT13 8AH. The group's principal activity is a fintech group, including Fiinu 2
Limited and is the developer of the Plugin Overdraft® which is an unbundled
overdraft solution that will allow customers to have an overdraft with Fiinu 2
without changing their existing bank. The underlying Bank Independent
Overdraft ® technology platform is bank agnostic, allowing Fiinu 2 to serve
all other banks' customers, subject to raising the required investment and
being successful in the re-application for a UK banking licence. Open Banking
allows Fiinu's Plugin Overdraft® to attach ("plugin") to the customer's
primary bank account, no matter which bank they may use. Fiinu's vision is
built around Open Banking, and it believes that it increases competition and
innovation in UK banking.
This Group consists of Fiinu Plc and all of its subsidiaries.
1.1 Accounting convention
The Group's consolidated and the Company's financial statements are prepared
in accordance with UK- adopted international accounting standards and the
Companies Act 2006 requirements, except as otherwise stated. Under the
Companies Act 2006, s454, on a voluntary basis, the directors can amend these
financial statements if they subsequently prove to defective. On publishing
the parent company financial statements here together with the consolidated
financial statements, the company is taking advantage of the exemption in s408
of the Companies Act 2006 not to present its individual statement of profit
and loss. Profit and loss and other comprehensive income and related notes
form a part of these approved financial statements.
The financial statements are prepared in sterling, which is the functional
currency of the group. Monetary amounts in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost
convention. The principal accounting policies adopted are set out below.
Reverse takeover transactions
Where there has been a reverse takeover, the coming together of the entities
does not constitute a business combination and as such the transaction is
accounted for as, in substance, a capital reorganisation. The accounting
acquirer is different from the legal acquirer. As such, from an accounting
perspective, the previous comparatives and any results prior to the reverse
takeover have not been presented and the assets and liabilities of the
accounting acquirer are recorded in the consolidated financial statements at
their pre- combination amounts. The share capital in the consolidated
financial statements however, reflects that of the legal acquirer.
1.2 Basis of consolidation
All financial statements are made up to 31 December 2024. Where necessary,
adjustments are made to the financial statements of subsidiaries to bring the
accounting policies used into line with those used by other members of the
group.
All intra-group transactions, balances and unrealised gains on transactions
between group companies are eliminated on consolidation. Unrealised losses are
also eliminated unless the transaction provides evidence of an impairment of
the asset transferred.
Subsidiaries are consolidated in the group's financial statements from the
date that control commences until the date that control ceases.
Acquisitions are accounted for using the acquisition method. The cost of an
acquisition is measured at fair value at the date of exchange of the
consideration. Identifiable assets and liabilities of the acquired business
are recognised at their fair value at the date of acquisition. To the extent
that the cost of an acquisition exceeds the fair value of the net assets
acquired the difference is recorded as goodwill. Where the fair value of the
net assets acquired exceeds the cost of an acquisition the difference is
recorded in profit and loss.
1.3 Going concern
The financial statements have been prepared on a going concern basis. In
assessing going concern, the Directors have considered the current statement
of financial position, the financial projections, longer-term strategy of the
business and the capital and liquidity plans, including stress tests and plans
for future capital injections.
As at 31 December 2024 the group had available cash resources of £356k (2023:
£1.311m). After a successful £1.25m gross equity funding round in February
2025, at the date of signing of these financial statements the Company's cash
resources were over £1m which, with current burn rate including increased
spending on white-label deliverables will last for more than 12-months. The
Directors have prepared forecasts for a period of at least 12 months from the
date of signing of these financial statements. Based on the current
projection, the Directors believe that there are sufficient funds for the
forecast expenditure for at least the next 12 months. However, it is
anticipated that the group will need to raise capital beyond this period in
order to proceed with its operational strategy. This represents a material
uncertainty that may cast significant doubt on the group's and company's
ability to continue as a going concern. However, the Directors have a
reasonable expectation that this uncertainty can be managed to a successful
outcome, and based on that assessment, the group and company will have
adequate resources to continue in operational existence for the foreseeable
future.
The financial statements do not reflect any adjustments that would be required
to be made if they were to be prepared on a basis other than the going concern
basis.
1.4 Intangible assets other than goodwill
Expenditure on research is recognised as an expense in the period in which it
is incurred.
Cost that are directly attributable to the development phase of new customised
technologies are recognised as intangible assets provided they meet the
following recognition criteria:
· completion of the intangible asset is technically feasible so
that it will be available for use or sale;
· the group intends to complete the intangible asset and use or sell
it;
· the group has the ability to use or sell the tangible asset;
· the intangible asset will generate probable future economic benefits.
Among other things, this requires that there is a market for the output from
the intangible asset or the intangible asset itself, or, if it is to be used
internally, the asset will be used in generating such benefits;
· there are adequate technical, financial and other resources to
complete the development and to use or sell the intangible asset; and
· the expenditure attributable to the intangible asset during its
development can be measured reliably.
Development costs not meeting the criteria for capitalisation are recognised
as expenses as incurred.
Amortisation is recognised as an administrative expense in profit or loss on a
straight line basis over the estimated useful lives of intangible assets,
other than goodwill, from the date that they are available for use. The
estimated useful lives for intangible assets are as follows:
Research and development
not yet in use
1.5 Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are
initially measured at cost and subsequently measured at cost less any
accumulated impairment losses. The investments are assessed for impairment at
each reporting date and any impairment losses or reversals of impairment
losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the
power to govern the financial and operating policies of the entity so as to
obtain benefits from its activities.
1.6 Borrowing costs
Finance costs comprise interest expense on borrowings including leases which
are recognised in profit or loss in the period in which they are incurred.
1.7 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
banks, other short-term liquid investments with original maturities of three
months or less, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities.
1.8 Financial assets
Financial assets are recognised in the group's statement of financial position
when the group becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories, depending on the
nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through
profit and loss are measured at fair value and any transaction costs are
recognised in profit or loss. Financial assets not classified as fair value
through profit and loss are initially measured at fair value plus transaction
costs.
Financial assets held at amortised cost
Financial assets are classified as at amortised cost only if the asset is held
within a business model whose objective is to collect the contractual cash
flows, and the contractual terms give rise to cash flows that are solely
payments of principal and interest.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial
assets are not met, a financial asset is classified as measured at fair value
through profit or loss. Financial assets measured at fair value through profit
or loss are recognised initially at fair value and any transaction costs are
recognised in profit or loss when incurred. A gain or loss on a financial
asset measured at fair value through profit or loss is recognised in profit or
loss, and is included within finance income or finance costs in the statement
of income for the reporting period in which it arises.
Impairment of financial assets
Financial assets carried at amortised cost are assessed for indicators of
impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a
forward-looking basis. A broad range of information is considered when
assessing credit risk and measuring expected credit losses, including past
events, current conditions, and reasonable and supportable forecasts that
affect the expected collectability of the future cash flows of the instrument.
For trade receivables, the simplified approach permitted by IFRS 9 is applied,
which requires expected lifetime losses to be recognised from initial
recognition of the receivables.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and
substantially all the risks and rewards of ownership to another entity.
1.9 Financial liabilities
The group recognises financial debt when the group becomes a party to the
contractual provisions of the instruments. Financial liabilities are
classified as either 'financial liabilities at fair value through profit or
loss' or 'other financial liabilities'
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other
short-term monetary liabilities, are initially measured at fair value net of
transaction costs directly attributable to the issuance of the financial
liability. They are subsequently measured at amortised cost using the
effective interest method. For the purposes of each financial liability,
interest expense includes initial transaction costs and any premium payable on
redemption, as well as any interest or coupon payable while the liability is
outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the group's
obligations are discharged, cancelled, or they expire.
1.10 Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds
received, net of direct issue costs. Dividends payable on equity instruments
are recognised as liabilities once they are no longer payable at the
discretion of the company.
Share capital represents the nominal value of shares that have been issued.
Share premium includes any premium received on issue of share capital.
Retained losses include retained profits and losses relating to current and
prior years and purchases and sales of own shares by the Employee Benefit
Trust.
All transactions with owners of the parent are recorded separately within
equity.
1.11 Taxation
The tax expense represents the sum of the current tax and deferred tax.
Current tax
The current tax is based on taxable profit for the year. Taxable profit
differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years and it further excludes items that are never taxable or deductible. The
group's liability for current tax is calculated using tax rates that have been
enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences
between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable
profit, and is accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable temporary
differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible
temporary differences can be utilised. Such assets and liabilities are not
recognised if the temporary difference arises from goodwill or from the
initial recognition of other assets and liabilities in a transaction that
affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end
date and reduced to the extent that it is no longer probable that sufficient
taxable profits will be available to allow all or part of the asset to be
recovered. Deferred tax is calculated at the tax rates that are expected to
apply in the period when the liability is settled or the asset is realised.
Deferred tax is charged or credited in the income statement, except when it
relates to items charged or credited directly to equity, in which case the
deferred tax is also dealt with in equity. Deferred tax assets and liabilities
are offset when the group has a legally enforceable right to offset current
tax assets and liabilities and the deferred tax assets and liabilities relate
to taxes levied by the same tax authority.
1.12 Employee benefits
The costs of short-term employee benefits are recognised as a liability and an
expense, unless those costs are required to be recognised as part of the cost
of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in
which the employee's services are received.
Termination benefits are recognised immediately as an expense when the group
is demonstrably committed to terminate the employment of an employee or to
provide termination benefits.
1.13 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an
expense as they fall due.
1.14 Leases
At inception, the group assesses whether a contract is, or contains, a lease
within the scope of IFRS 16. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. Where a tangible asset is
acquired through a lease, the group recognises a right-of-use asset and a
lease liability at the lease commencement date. Right-of-use assets are
included within property, plant and equipment, apart from those that meet the
definition of investment property and are recognised for all leases except
those which are considered to have a fair value below £4,500 and those with a
duration of 12 months or less.
The right-of-use asset is initially measured at cost, which comprises the
initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date plus any initial direct costs and an estimate
of the cost of obligations to dismantle, remove, refurbish or restore the
underlying asset and the site on which it is located, less any lease
incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful life
of the right-of-use asset or the end of the lease term. The estimated useful
lives of right-of-use assets are determined on the same basis as those of
other property, plant and equipment. The right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements
of the lease liability.
The lease liability is initially measured at the present value of the lease
payments that are unpaid at the commencement date, discounted using the
interest rate implicit in the lease or, if that rate cannot be readily
determined, the group's incremental borrowing rate. Lease payments included in
the measurement of the lease liability comprise fixed payments, variable lease
payments that depend on an index or a rate, amounts expected to be payable
under a residual value guarantee, and the cost of any options that the group
is reasonably certain to exercise, such as the exercise price under a purchase
option, lease payments in an optional renewal period, or penalties for early
termination of a lease.
1.15 Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the
rates of exchange prevailing at the dates of the transactions. At each
reporting end date, monetary assets and liabilities that are denominated in
foreign currencies are retranslated at the rates prevailing on the reporting
end date. Gains and losses arising on translation in the period are included
in profit or loss.
1.16 Earnings per share
The group presents basic and diluted earnings per share ("EPS") data for its
ordinary shares. Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the company by the weighted average
number of ordinary shares outstanding during the period. Diluted EPS is
determined by adjusting the profit or loss attributable to ordinary
shareholders and the weighted average number of ordinary shares outstanding
for the effects of all dilutive potential ordinary shares, which comprise
share options granted to employees.
1.17 New and amended standards
New and amended standards adopted by the Group
The Group has applied the following pronouncements and amendments for the
first time for the annual reporting period commencing 1 January 2024:
· IFRS S1 General Requirements for Disclosure of Sustainability-related
Financial Information
· IFRS S2 Climate-related Disclosures
· Classification of Liabilities as Current or Non-Current - Amendments
to IAS 1
· Lease Liability in a Sale and Leaseback - Amendments to IFRS 16
· Non-current Liabilities with Covenants - Amendments to IAS 1
· Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
The amendments listed above did not have any impact on the amounts recognised
in prior periods and are not expected to significantly affect the current or
future periods.
New standards and interpretations not yet adopted
At the date of authorisation of these financial statements, the Group has not
applied the following new and revised IFRS Accounting Standards that have been
issued but are not yet effective:
· Presentation and Disclosures in Financial Statements - Amendments to
IFRS 18
· Subsidiaries without Public Accountability: Disclosures - Amendments
to IFRS 19
· Lack of Exchangeability - Amendments to IAS 21
The directors do not expect that the adoption of the Standards listed above
will have a material impact on the financial statements of the company in
future periods.
2 Earnings per share
2024 2023
Number Number
Number of shares
Weighted average number of ordinary shares in issue 274,747,246 272,128,700
Less weighted average number of own shares - (192,323)
Weighted average number of ordinary shares for basic earnings per share
274,747,246 271,936,377
Weighted average number of ordinary shares for diluted earnings per share 274,47,246 271,936,377
2024 2023
Earnings £ £
Continuing operations
Loss for the period from continued operations (700,068) (8,317,531)
2024 2023
Pence per Pence per
share share
Basic and diluted earnings per share
From continuing operations (0.25) (3.06)
Basic earnings per share is calculated by dividing the earnings attributable
to ordinary shareholders by the weighted average number of shares outstanding
during the year.
For diluted earnings per share, the weighted average number of shares in issue
is adjusted to assume conversion of all potentially dilutive warrants and
options over ordinary shares. Potential ordinary shares resulting from the
exercise of warrants and options have an anti-dilutive effect due to the group
being in a loss position. As a result, dilutive loss per share is disclosed as
the same value as basic loss per share.
3 Financial information in this Announcement
The financial information presented in this announcement does not comprise the
statutory accounts for the Group for the financial years ended 31 December
2024 and 31 December 2023, but extracts from them. The Annual Report and
Accounts for the year ended 31 December 2024, together with the Notice of
Annual General Meeting, will be dispatched to shareholders shortly and will be
available to download from the Company's website at
https://fiinuplc.com/annual-and-interim-reports.
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