Interim results - six months ended 30 June 2023

17 August 2023

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement, this information is considered to be in the public domain.

FIINU PLC

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

Interim results for the six months ended 30 June 2023

Fiinu, a fintech group, creator of the Plugin Overdraft®, announces its unaudited half-year results for the six months ended 30 June 2023.

Consolidated statement of comprehensive income 

Consolidated statement of financial position

Consolidated statement of cash flows 

* Statement of cashflows has been reformatted in line with audited accounts for 12 months ended 31 Dec 2021

Consolidated statement of changes in equity

Attributable to equity shareholders of the company

NOTES TO THE FINANCIAL STATEMENTS

Financial information contained in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 ("the Act"). The statutory accounts for the year ended 31 December 2022 have been filed with the Registrar of Companies. The report of the auditors confirmed that the financial statements:

· give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2022 and of the Group's loss for the period then ended;

· have been properly prepared in accordance with UK-adopted international accounting standards and, as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006; and

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

The auditors conducted the audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Group and the Parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's ('FRC') Ethical Standard as applied to listed entities and public interest entities and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

The auditors drew the attention to the financial statements, which indicates that when assessing the Group and Parent Company's ability to continue as a going concern, the directors have concluded that a material uncertainty exists in relation to the Company's ability to raise the capital required to support its subsidiaries, ('Fiinu 2 Limited's'), year one of operations post approval from the Prudential Regulatory Authority ('PRA') and the Financial Conduct Authority ('FCA') to operate as a bank without restrictions, following the re-submission of the Bank's banking application.

The financial information for the six months ended 30 June 2023 and 30 June 2022 are unaudited.

This announcement was approved by the Board on 16 August 2023.

1. Reporting entity

Fiinu Plc (the "Company" or, the "Group") is a public company limited by shares incorporated in England and Wales. The registered office is Meadows Business Park, Blackwater, Camberley, GU17 9AB. The consolidated financial statements of the Company as at 30 June 2023 and for the six months ended 30 June 2022 comprise the Company and its subsidiaries (together referred to as the "Group").

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 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.

2. Basis of preparation

The consolidated financial information has been prepared in accordance with UK adopted international accounting standards. The consolidated financial statements are presented in pounds sterling, the functional currency of the Company and presentation currency of the Group.

The interim financial information is made up to 30 June 2023. Where necessary, adjustments are made to the financial information 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.

The Group has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing the interim financial information.

3. Significant accounting policies

The accounting policies set out in detail in note 2 of the Group's consolidated financial statements to 31 December 2022 have been applied consistently to these unaudited financial statements to 30 June 2023There are no new standards or amendments to standards which are material to the accounts for the half year ended 30 June 2023.

4. Events in the six months ended 30 June 2023

Business Highlights

· The Company continues to source the additional funding required for it to re-apply to the regulators to re-start its banking licence application

· April 2023: Successful completion of the technology build of the Plugin Overdraft®

· July 2023: Cost reductions initiated within subsidiaries Fiinu 2 Limited and Fiinu Holdings Limited, including providing notice to reduce staffing levels and re-negotiation or termination of agreements with suppliers

· March 2023: Raised £0.5m of new ordinary share capital by immediate subscription to new and existing shareholders

· April 2023: Raised £0.75m of new ordinary share capital by exercising the right to convert the drawn down loans with Dewscope Limited into equity

· April 2023: Application to withdraw its banking licence with aim to re-apply after a short period of two to three months once full funding commitment is secured

· Other options are also being considered by the Board, which may include a change of strategy and/or a sale of the Group's technology assets should the additional funding commitment it requires not be forthcoming

5. Share capital

Allotted, issued and fully paid:

There are no restrictions on the transfer of shares in Fiinu Plc. All shares carry equal voting rights.

FORWARD LOOKING STATEMENTS

This document contains certain forward-looking statements which reflect the knowledge and information available to the Company during the preparation and up to the publication of this document. By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty. Although the Group believes that the expectations reflected in these statements are reasonable, it can give no assurance that these expectations will prove to have been correct. Given that these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

The Group undertakes no obligation to update any forward-looking statements whether because of new information, future events or otherwise.