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

8 June 2023

Fiinu Plc

("Fiinu", the "Company" or the "Group")

Final Results

Fiinu, a fintech group, creator of the Plugin Overdraft®, announces its results for the period ended 31 December 2022 ("2022 Annual Report").

Commenting, Chris Sweeney, Chief Executive Officer said:

"Fiinu has had a very encouraging year with significant progress made despite the extremely difficult capital markets, the increasingly challenging cost environment and the extremely tight timetable in which to launch our business. Whilst the business has focused on delivery against key milestones targets, we have also built an exceptional team of motivated colleagues who want to build something that will challenge the status quo in UK Retail Banking by utilising technology to make a difference for hard-pressed consumers.  I am proud of what we have achieved together in such a short space of time"

ENDS

 About Fiinu

Fiinu, founded in 2017, is a fintech group, that developed the Plugin Overdraft® which is an unbundled overdraft solution allowing 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 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.

For more information, please visit 
www.fiinu.com.

FOUNDER'S STATEMENT

We have come a long way and our mission is to revolutionise how people manage their finances, creating better financial inclusion and increasing financial flexibility for consumers.

We are currently focused on building a Bank Independent Overdraft® platform, to promote our flagship product in the UK - Plugin Overdraft®, which will give consumers access to an overdraft facility without the need to switch banks and current accounts..

Evidence suggests that the current macroeconomic environment, rising inflation, and cost-of-living crisis is resulting in more demand for an overdraft, and that the gap between supply and demand of overdraft credit is widening. In 2017, we presented a thematic analysis and details on how to technically unbundle overdrafts from current accounts without the need for customers to switch banks and thereby extending access to a broader population and improving financial inclusion. The Fiinu business model is based on this. It is technology- led using Open Banking to improve consumer outcomes in the lending sector.

Customers will be able to link multiple bank accounts to their dedicated overdraft account through Open Banking application programming interfaces (APIs). The underwriting process is also led by Open Banking, as opposed to conventional underlying risk-based underwriting methods.

Financial Inclusion

The presence of an arranged overdraft in a credit file can improve the credit rating if consumers use it sensibly. The Open Banking-led underwriting model is based on the principle that overdraft limits will be provided to those who can demonstrate an ability to make repayments within a reasonable time without adversely impacting their overall financial well-being or needing to borrow more elsewhere to make repayment.

Over the past 12 months, only circa 10% of newly opened personal current accounts in the UK include an agreed overdraft. Our model is adopting a sophisticated approach to assess affordability and to set credit limits, thereby potentially enabling it to extend its overdraft credit to a substantially wider population than traditional banks.

Outlook and the Year Ahead

We have achieved a sequence of critical milestones, including the admission to the AIM public market coupled with raising £14m of initial funding which has allowed us to move at pace in developing our systems and control structures and now, most recently, the conditional raising of up to £6.5m before costs to support ongoing operations. The company is now focused on securing £34-42m of capital and as is anticipated, a full unrestricted banking licence in the second half of 2023.

MARKO SJOBLOM

Founder and Executive Director

CHAIR'S STATEMENT

Review and Outlook

I am delighted to present my first statement as Chairman at a most exciting time in the UK banking market which Fiinu aims to revolutionise with the provision of services to so many, to this point in time, under-served people.

I am particularly pleased with the work effort, commitment and achievements of the entire team ranging from the Board through the management team and to all our employees who have worked with diligence and speed and with a very clear focus on the goal of obtaining an unrestricted banking licence and commencing the provision of services to the UK public in, we anticipate, the second half of 2023.

The building of a thorough governance framework across the group has been particularly impressive and puts us in good shape in advance of the anticipated commencement of business by providing a robust platform upon which to build and develop.

I thank the Board for the huge progress we have made and in such a challenging environment and want to also thank the previous Immediate Acquisition PLC Board, for their stewardship up and until the reverse takeover by Fiinu Holdings Limited in July 2022. This takeover provided the ability for the group to access the capital markets through its AIM listing to obtain capital to enable the growth of the business.

I also thank our shareholders for their support. We would not have been able to achieve what we have without their loyalty and support.

We very much look forward to building upon these achievements and a very exciting future.

DAVID HOPTON

Chair

CHIEF EXECUTIVE'S STATEMENT

Chief Executive's Statement Overview

Fiinu has had a significant year of progress despite the serious challenges posed by the difficult capital markets, the ever increasing cost environment and the extremely tight mobilisation year timetable.

It has been a year of milestones achieved against targets set and I thank all our employees and business partners for their support. These targets included especially the retention of our people, our control framework and the support of our shareholders as we look to build on this first year.

The Year 2022

Through the reverse takeover (RTO) of Immediate Acquisition Plc, which was subsequently re-named Fiinu Plc, the group concluded by the re-admission in July of its shares to trading on the AIM market. This provided the group with access to the capital markets to seek the required investment required to support unrestricted launch of banking services. Over the following 6 months the achievements were exceptional;

September 2022 saw the contract signed and configuration commenced on the core banking platform with Tuum along with completion of the hiring of key management positions;

October 2022: Contract signed with TransUnion to provide open banking and credit reference services along with the key decision engine services provider;

November 2022: The critical Payment Initiation Service Provider ("PISP") was selected following a detailed process to provide inbound and outbound secure payment services and Initial microservices covering customer identification & validation and messaging were delivered into internal test environments;

December 2022: Regulatory Senior Management Function ("SMF") approval received for Chief Financial Officer, Chief Risk Officer and Chair of Board Risk and Compliance Committee and the development of the mobile application 'front end' was completed.

Staff

We are blessed to have excellent people within the Group and we continue to attract new individuals though I continue to monitor the head count required by the our business plan. I thank all our members of staff for their commitment and hard work in the past year as they managed the uncertainty and challenges of the new working model.

Shareholders

I am delighted with the support, both in terms of capital investment and guidance, received from our major shareholders and thank them and the new investors who have joined and supported Fiinu in not only our reverse takeover of Immediate Acquisition Plc to obtain access to the capital markets through its AIM listing and £14million gross fund raise but also, following the end of this financial year, the further conditional raise of up to £6.5m before costs to support ongoing operations. The company is now focused on securing £34-42m of capital to support its full unrestricted banking licence in the second half of 2023.

Fiinu Technology

I am truly excited by the ground-breaking work being undertaken by our team members in collaboration with our key external partners as they build out the technology stack with some revolutionary applications and processes that will lead to the provision of the Plugin Overdraft. Whilst we focus on securing the future of banking it is becoming clear how large an opportunity for future revenue streams our proprietary technology will become.

Consumers, Fairness & Opportunity

We at Fiinu believe that we are on a mission which is to provide on a far fairer and more open basis a good quality banking overdraft facility to so many people who have been denied this opportunity to help them in their well- managed day-to-day affairs but also help them build up good credit histories that other consumer lending products can not and do not.

Looking forward

The progress since the July 2022 RTO has been nothing short of spectacular and has involved a deep level of commitment and dedication from our Board and staff and our key suppliers and shareholders all of whom can see the vision become reality in what is a very short period of time.

I look forward to the rest of this calendar year when we aim to move from development and into the serious business of serving the UK consumer fair and accessible lending in a market that currently underserves them.

CHRIS SWEENEY

Chief Executive Officer

CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME

Profit for the financial period is all attributable to the owners of the parent company.

Total comprehensive income for the period is all attributable to the owners of the parent company.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company's loss for the year was £752,487 (2021 - £649,784 loss).

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

As restated for the period ended 31 March 2022:

COMPANY STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED STATEMENT OF CASH FLOWS

31 December                        31 March

2022                                     2022

                              £                     £                    £                     £

COMPANY STATEMENT OF CASH FLOWS

31 December                        31 March

2022                                     2022

Notes                      £                     £                    £                     £

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1      Accounting policies

Company information

Fiinu plc is a public company limited by shares incorporated in England and Wales. The registered office is Meadows Business Park, Station Approach, Blackwater, Camberley, GU17 9AB. The group's principal activity is of banking services to provide overdrafts through Open Banking to retail customers. The group is currently in the mobilisation phase.

The 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. 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 that form a part of these approved financial statements.

The AIM Rules require that the consolidated financial statements of the group be prepared in accordance with International Financial Reporting Standards.

During the period ended December 2022, Fiinu Holdings Ltd and Fiinu Bank Ltd adopted International Financial Reporting Standards (IFRS) having previously prepared financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (UKGAAP). As such the group has applied the provisions of IFRS1, First-time adoption of International Financial Reporting Standards' (IFRS1) in the preparation of this annual report.

The reported financial position and financial performance for the previous period are reconciled in note 25.

For the year ended 31 December 2022 the parent company has continued to apply International Financial Reporting Standards (IFRS) in line with previous accounting periods.

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.

There are no new standards or amendments to standards which are material to the financial statements and mandatory for the first time for the financial year ended 31 December 2022.

1.2    Reverse takeover transactions

On 15 June 2022 The Directors of Immediate Acquisition Plc announced that it had entered into a Sale and Purchase Agreement to acquire Fiinu Holdings Ltd which, on account of the relative sizes of the two entities, constituted a reverse takeover under the London Stock Exchange AIM Rules. As a prelude to the acquisition, which completed on 7 July 2023, Immediate Acquisition Plc raised £8.01million in new equity capital. The shares in the enlarged company were then readmitted to trading on the AIM market on 8 July 2023 under its new name of Fiinu plc.

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.

Fiinu Holdings Ltd has been identified as the accounting acquirer and Fiinu plc, the legal acquirer. The share capital in the consolidated accounts reflects that of the legal acquirer, being Fiinu plc. The comparatives, and any results prior to 8 July 2022 of Fiinu plc have not been presented and the assets and liabilities of the Fiinu Holdings Limited group have been recorded in the consolidated financial statements at their pre-combination amounts.

1.3    Basis of consolidation

All financial statements are made up to 31 December 2022. 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.

1.4    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.

The circumstances in relation to the requirement to raise capital to support year one of operations post approval from the PRA and FCA to operate as a bank without restrictions, following the re-submission of Fiinu Bank's banking application. This represents a material uncertainty that may cast significant doubt on the ability of the bank and therefore potentially the Group to continue as a going concern.

1.5    Intangible assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Research and development expenditure

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

1.6    Property, plant and equipment

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

Cost includes expenditures that are directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives, leased assets are depreciated over the shorter of the lease term and their useful lives. Depreciation is recognised on the following bases:

Leasehold property                                       Over the period of the lease

Office and IT equipment                               3-10 years

Plant and equipment                                     3-7 years

Computers and network equipment               3-5 years or contract term if shorter

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

1.7    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.

1.8    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.

1.9    Impairment of tangible and intangible assets

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

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

1.10  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.

1.11  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 at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is 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.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the group's business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The parent company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognised or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI 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.

1.12  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.

1.13  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.

The company also has warrants in issue following an equity fund raising process. The warrants had a life of 1 year from grant date, which was extended to 30 June 2022 and have since expired. The grant date fair value of warrants granted to investors is recognised as an expense against share premium, with a corresponding increase in equity. The amount recognised as an expense is adjusted to reflect the expected number of share warrants that vest unless this adjustment is due to the share price not achieving the exercise price threshold.

The investment revaluation reserve includes accumulated gains and losses on financial assets.

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.

1.14  Taxation

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

Current tax

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

Deferred tax

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.

1.15  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.

For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.

1.16  Retirement benefits

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

1.17  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.

1.18  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.

1.19  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.

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.

In accordance with IAS 33 the diluted earnings/(loss) per share is stated at the same amount in both December 2022 and March 2022 as basic as there is no dilutive effect.

3. Events after the reporting date

On 15 March 2023, the Company announced that it had conditionally raised up to £6.49 million before costs in new equity funding.

The first quarter 2023 saw a series of banks, including but not limited to Silicon Valley Bank ('SVB') and Credit Suisse, which operate in the UK and globally enter into either bankruptcy or merger leading to a widespread unrest in the financial markets. The Group had no direct exposures to any of these failed entities. At this stage, the Directors do not believe this would have a material adverse effect on the Group and consider this to be a non-adjusting post balance sheet event.

On 28 April 2023 Fiinu Plc announce through the London Stock Exchange Regulatory News Service that continuing challenging capital market conditions have impeded its fundraising process. Whilst good progress has been made with regard to our operational readiness for Fiinu's full banking activity, the lack of full funding commitment at this stage has slowed the necessary regulatory application processes such that Fiinu has determined a preferential course of action is to make an application to withdraw its licence aiming to re-apply after a short period of 2 - 3 months. This application was submitted to the PRA and FCA and is awaiting completion of the process. This action will allow the Company to focus on securing its exit funding requirement which is estimated to be in the range of £34 - £42 million. Once this funding has been secured it is intended for the application process to be resumed and completed promptly, again subject to the necessary PRA and FCA approval.