Environmental

Our environmental indicator relates to areas of our performance that have an environmental impact.

	ESG	ESG Impact	What we’re doing
1	Reduce paper	Low	We have made tremendous leaps into moving into the cloud and minimising the need for paper in the office. Being a FinTech business we feel it is achievable to go fully paperless within the year.
2	Cycle-to-work Programs	Medium	We have set this offering up for our employees and hope to see people take this up soon.
3	Energy Efficient Offices	High	Our current office premises has an EPC rating of C. Within the next two-year we will be moving to new purpose-built energy-efficient premises. We have let all staff know they can apply through the Kent website for solar panels to help with their own energy efficiency at home
4	Development Loans - Element of Green - solar, car chargers	High	We work with many different property developers who work on anything from refurbishments to brand new housing estates, we will shortly be publishing how green some of these are, watch this space!
5	Electric Charger at the Office and BCP Address	High	We have Electric charging points both at the Head Office premises and also at our Business Continuity Site (from August 2021).
6	We expect to achieve Net Zero carbon emissions by 2030	High	Migrate remaining systems to the Cloud, fund green innovation, fund green innovation in property developments, give clients better information when they make decisions, Build carbon-free head office and use AI technologies to enhance our algorithms and effect efficiencies.

	Total Floor Area	EPC Rating	Link
1	102 Square Metres	C (Target B by 2030)	Energy performance certificate EPC Find an energy certificate GOV.UK
2	403 Square Metres	C (Target B by 2030)	Energy performance certificate EPC Find an energy certificate GOV.UK

Our social indicator relates to areas of our performance in respect of our management of relationships with employees, suppliers, customers and the communities within which we operate.

	ESG	ESG Impact	What we’re doing
1	Vulnerable customers	Medium	We are continually working to ensure we incorporate vulnerability considerations into the way we do business be that by tailoring our communications with people, making our products easy to understand and having dedicated people for our customers to talk to.
2	Employee training	Low	We train all our staff to ensure they can deliver the best possible service to our customers, we equip them with the knowledge they need to effectively carry out their roles and we ensure they undertake all the relevant training in order for us to remain compliant in all we do.
3	Develop Socially responsible products	High	We work with many different property developers who work on anything from refurbishments to brand new housing estates, we will shortly be publishing how green some of these are, watch this space!
4	Health and wellbeing of colleagues	Medium	It’s no secret that a healthy workforce is a more productive workforce, we ensure we regularly ask our people what they want from the business and how we can improve. We want to ensure they are happy in their environment and we want people to want to be here with us.
5	Financial Wellbeing of colleagues	Medium	We encourage people to undertake qualifications that will help them in their role and we fund this to help them and us. We also do financial educational training.
6	Adaptation to ways of working due to the pandemic	Medium	We have adopted a flexible working environment as we appreciate that no two people are the same. We let our team work from home one day a week if they choose to and they can change their working hours if they need to.
7	Access to skills	Medium	We have a lot of experts in their fields within the business who are able to offer training and we have regular training sessions for all compliance topics. We encourage people to continually learn and so should there be specific courses they want to do, we will look at it for them.
8	Charity and Community Support	Medium	1. We currently sponsor Kuflink Stadium - Ebbsfleet United Football club and have done for many years now 2. We have four staff members who act as Trustees on The Kuflink Foundation, whose objectives are to support community-focused projects for the youth, the advancement of education, the advancement of amateur sport, the advancement of health or the saving of lives. In 2022 our team are looking to get more involved in the community to help children and young adults in Kent. 3. Sponsor Guru Nanak Football club for kids 4. One of our directors sponsors a local football team - Northfleet Eagles Under 10. 5. We have people who volunteer in the local community by picking up and dropping off clothing to homeless charities. 6. We have people who worked on "Christmas in a box" whereby items were collected and then sorted and delivered to those in need. 7. Some of our team individually give money to their chosen charities and undertake sponsored events to raise money and we also have a first responder who is able to pick up and deliver medicines if required. 8. Some of our directors have housed a family from Ukraine. 9. We have a team member who has been a blood donor for the last 30 years and who is registered with DKMS as a donor for blood stem cells for bone marrow and blood cancer. 10. We have a staff member who is on the Board of The Grand a youth and public health CIC (community interest company) and Age UK Northwest Kent looking after the interest of the elderly in the wider North Kent area. 11. In March 2022 two of Kuflink's staff members visited a local school's "Careers" day. We provided the pupils with an insight into the business and investing world, which so many were keen to learn and understand.
9	Modern Slavery Statement	Medium	Voluntary slavery and human trafficking statement Voluntarily Implemented 23/06/2022
10		High	ESG Policy Statement Implemented 23/06/2022
11	Code Of Ethics (Adopted 30/01/2022)	Medium	1. You must comply with this Code and all relevant laws and regulations. 2. You must act with the highest ethical standards and integrity. 3. You must act in the best interests of each client. 4. You must provide a high standard of service. 5. You must treat people fairly regardless of: a. Age b. Disability c. Gender Reassignment d. Marriage and Civil partnership e. Pregnancy and Maternity f. Race g. Religion and Belief h. Sex i. Sexual orientation
12	Financial Conduct Authority Principles	Medium	1 Integrity 2 Skill, care and diligence 3 Management and control 4 Financial prudence 5 Market conduct 6 Customers' interests 7 Communications with clients 8 Conflicts of interest 9 Customers: relationships of trust 10 Clients' assets 11 Relations with regulators
13	Employee satisfaction index	Medium	The employee satisfaction index measures the extent to which employees report that they are happy working at Kuflink. 95% (From Employee Engagement Survey: 1st February 2022) 100% (From Employee Engagement Survey: 30th June 2022)

	Density of Offices	Formula
1	1 person to every 170 square feet	(5,435.77 square feet (total floor area) / 32 employees)

Our governance indicator relates to areas of performance that support good governance practices and facilitate Kuflink Group being considered a responsible business. Governance for climate-related risk will be embedded into the Group’s existing governance structure and is complementary to the governance of the Group’s sustainability strategy.

1. Purpose 2. Strategy 3. Accountability informing Risk 4. Ethical behaviour

	ESG	ESG Impact	Ease of Implementation	Internal / External	DATE	Link
1	Improve Board Diversity	Low	High	Internal
2	Tax transparency	Low	Low	External		Please see below in Profit & Loss.

	ESG	ESG Impact	Ease of Implementat ion	Internal / External	Formation Date	Implemented
1	Technology Committee	Low	Low	Internal	March 2018	The Technology Committee focuses primarily on the Company’s IT, digital and cyber strategies and their implementation plans and strategic technology opportunities for the Group.
2	Compliance / CASS committee	Low	Low	Internal	July 2019	Regulatory reporting, maintaining risk assessments, Operational resilience/business impact analysis, Security forum, Environmental, Social and Governance performance, implementing measures for consumer duty, Client money controls and MLRO reporting
3	Remuneration committee	Low	Low	Internal	July 2019	To ensure remuneration is aligned to the business strategy and regulatory expectation and to oversee any major changes to the structure
4	Nomination committee	Low	Low	Internal	July 2019	To review the structure, size, and composition of the Board, give consideration to the leadership needs of the Group and review and control related party transactions
5	Audit & RISK committee	Low	Low	Internal	July 2019	To review and monitor the effectiveness of the Group’s risk management, capital management and internal controls frameworks
6	Asset & Liability committee (ALCO)	Low	Low	Internal	July 2019	To Discuss management and monitoring of Debt Collections.
7	Executive committee (EXCO)	Low	Low	Internal	July 2019	To discuss the overall business Objectives, Key Performance Indicators (KPIs) and Strategy.
8	Wind Down planning committee	Low	Low	Internal	May 2020	To monitor Kuflink Well-being metrics within the business
9	Property Developments committee	Low	Low	Internal	July 2021	To monitor and discuss all development funding projects ensuring they are managed effectively through to completion

	ESG	ESG Impact	Ease of Implementation	Internal / External	Link	Awards / Ratings
1	P2PIndependent forum	Low	Low	External	https://p2pindependentforum.com/	N/A
2	P2P Market Data	Low	Low	External	https://p2pmarketdata.com/p2p-lending-funding-volume-uk/	2nd placed in UK
3	4th Way	Low	Low	External	https://www.4thway.co.uk/	3 out of 3 Star Exceptional
4	Financial Thing	Low	Low	External	https://www.financialthing.com/	4 out of 5 Star
5	TrustPilot	Low	Medium	External	https://www.trustpilot.com/search?query=kuflink&search-button=	4.6 out of 5

	ESG	Date of Survey	ESG Impact	Ease of Implementation	Internal / Extenal	Scored 8 and above (out of 10) for rating overall experience with kuflink	Scored happy on customer service	Found products and services clear and easy to understand	Found it easy to find answers	Found platform easy to use	Found right information at the right time	Confirmed using the platform brought a positive outcome.	Feel they have a good understanding of P2P property loans	Said we make risks and challenges associated with online investing clear and easy to understand
1	Consumer Survey to All	Jan 2022	Low	Low	External	84.37%	84.85%	96.87%	96.87%	93.75%	84.37%	100.00%	93.75%	N/a
2	Consumer Survey to Everyday Investors Only	Feb 2022	Low	Low	External	72.50%	76.25%	77.00%	86.25%	81.25%	78.75%	87.00%	90.00%	94.00%
3	Consumer Survey to All	Jun 2022	Low	Low	External	84.45%	97.90%	91.75%	89.69%	85.93%	86.01%	95.74%	96.39%	96.89%

Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23	Jan-24	Feb-24	Mar-24	Apr-24	May-24	Jun-24	Jul-24	Aug-24	FY23	FY22	FY21	FY20	FY19
4.4	4.5	4.5	4.4	4.5	4.5	4.5	4.5	4.6	4.6	4.6	4.6	4.6	4.5	4.5	4.7	4.6	4.6	4.6

	ESG	ESG Impact	Ease of Implementation	Internal / External	Last Certification DATE	Link
1	Cyber Essentials	High	Medium	External	December 2023	Cyber Essentials Certificate
2	ISO 27001 (UKAS) Auditor	High	Medium	External	March 2022	ISO27001 Certificate
3	External Independent Auditor	High	Medium	External	June 2022	Macintyre Hudson MHA
4	Internal Independent Audit Team	High	Medium	External	February 2022	Internal Control Framework incorporates: 1. COBIT 2. COSO
5	HMRC ISA Manager Approvals	Low	Medium	External	May 2017	HMRC ISA Manager Approval Certificate
6	Insurances Professional Indemnity, Directors & Officers, Employers and Public, Cyber insurance	Low	Low	External	May 2022	Markel International Insurance Company Ltd
7	Operational Resilience	High	Medium	Internal	March 2022	New requirements to strengthen operational resilience in the Payment Services sector (Open Banking - Kuflink One Ltd). We have undertaken this task across the Whole Group
8	B Corp Certified	High	High	External	April 2023	Kuflink is proud to meet high standards of environmental and social performance (90.6 out of 100)

	ESG	ESG Impact	Ease of Implementation	Internal / External	DATE	Directorship	Biography
1	Balbir Thind	Low	Medium	External	19/05/2016	Independent Non-Executive Chairman	Balbir is an entrepreneur and businessman who co-founded Michelin Star restaurant Hakkasan in London’s Mayfair, as well as Thai restaurant Basuba, both of which he has since sold. Balbir has invested the substantial proceeds from his businesses into property Investment and has extensive knowledge of the UK property market.

No	Group Company name	Model	Co No
1	Kuflink Group Ltd	Group	09084634

	Authorised and Regulated Subsidiaries Company name	Companies House Number	Incorporation Date	Model	Internal / External	FCA Link	FCA Reg. No (FRN)	FCA Authorised Since
1	Kuflink Ltd	08460508	25/03/2013	Online P2P platform	External	Kuflink Ltd on FCA Search Register	724890	27/04/2017
2	Kuflink Bridging Ltd	07889226	21/12/2011	Unregulated Bridging loans	External	Kuflink Bridging Ltd on FCA Search Register	723495	14/10/2016
3	Kuflink Home Loans Ltd	07817421	20/10/2011	Regulated mortgage loans	External	Kuflink Home Loans Ltd on FCA Search Register	571773	06/06/2012
4	Kuflink One Ltd	12206864	13/09/2019	Registered Account Information Service Provider (AISP) Open Banking	External	Kuflink One Ltd on FCA Search Register	922026	17/04/2020

		FY23	FY22	FY21	FY20	FY19	FY18	FY17

Interest Income	(1)	15,249.0	10,361.3	6,141.2	5,850.0	3,990.4	2,829.7	3,787.7

Total Net Income	(2)	7,557.0	5,126.6	2,940.1	2,895.1	2,078.7	1,865.5	3,787.7
Direct Costs	(3)	(863.6)	(1,021.3)	142.6	507.1	(891.7)	(2,529.9)	(1,529.4)
Gross Profit	(4)	6,693.4	4,105.3	3,082.7	3,402.1	1,187.0	(664.4)	2,258.3

Other Costs	(5)	(4,811.1)	(3,376.1)	(2,853.0)	(3,624.0)	(3,906.2)	(3,073.3)	(2,140.1)
Net Profit before Tax	(6)	1,882.3	729.1	229.7	(221.9)	(2,719.2)	(3,737.7)	118.1
Taxation	(7)	0.0	0.0	232.9	103.3	0.0	341.4	(82.1)
Net Profit after Tax	(8)	1,882.3	729.1	462.6	(118.6)	(2,719.2)	(3,396.4)	36.0

CAGR	(9)	26%	22%	13%	16%	3%	-25%

Notes

(1) Interest earned from loan book. (Reported net in FY17).

(2) Total Net Income is all interest and fees earnt on loans for the period less interest paid to investors.

(3) Direct Costs includes all other loan set up costs and cashbacks due to investors. Direct Costs also includes movements in bad debt provision, hence shown as income in FY21 & FY20 as some debts previously written off in FY18 were recovered.

(4) Gross Profit reports the income remaining on loan interest and fees after deducting costs directly related to the loans.

(5) Other Costs relate to all the other costs incurred in running the business (including salaries, marketing, IT costs and depreciation of assets)

(6) Profit made by Kuflink before Tax

(7) Corporation Tax paid, note this is paid yearly, company has tax credits on historical losses, not yet calculated for FY22

(8) Remaining profit after Corporation Tax

(9) Compound Annual Growth Rate of Interest Income (CAGR)

FY = Financial years to 30th June. (FY17 was for 18 months)

£000's		FY23	FY22	FY21	FY20	FY19	FY18	FY17

Net Loan Book	(1)	108,997	85,962	54,165	36,405	29,646	16,598	10,508
Cash at Bank	(2)	3059	2,004	1,683	562	1,228	876	1,058
Other Assets	(3)	2081	2,235	2,257	1,961	2,305	1,713	1,241
Total Assets		114,138	90,191	58,105	38,927	33,179	19,188	12,807

Investors	(4)	(101,887)	(81,602)	(52,339)	(35,027)	(32,833)	(17,486)	(8,362)
Other Creditors	(5)	(6,485)	(4,705)	(2,611)	(1,574)	(1,276)	(843)	(402)
Total Liabilities		(108,372)	(86,307)	(54,950)	(36,601)	(34,109)	(18,329)	(8,764)

Net Balance Sheet		5,766	3,884	3,155	2,326	(930)	859	4,043

Share Capital	(6)	9,343	9,343	9,343	8,977	5,592	4,662	3,991
Cumulative Profits/Losses	(7)	(3,577)	(5,459)	(6,188)	(6,651)	(6,522)	(3,803)	51

Funding of Balance Sheet		5,766	3,884	3,155	2,326	(930)	859	4,043

Notes

(1) Loan Book with future retained interest deducted and adjusted for any impairments.

(2) Bank Balance.

(3) Other Assets held including fixed assets, payments made in advance and value of P2P platform and after IT applications built in-house.

(4) Platform and KBL investor balances.

(5) All others owed including interest accrued but not yet paid.

(6) Shares issued

(7) Cumulative total of all profit and losses since incorporation

£000's		FY23	FY22	FY21	FY20	FY19	FY18	FY17

Corporation Tax	(1)	470.57	138.50	(232.9)	(103.3)	0.0	(341.4)	82.1
PAYE Tax	(2)	724.42	555.61	525.5	636.3	502.2	436.8	378.1
VAT	(3)	69.82	83.20	204.1
Total		1264.80	777.30	496.8	533.0	502.2	95.5	460.2

Notes

(1) Corporation Tax paid, note this is paid yearly, company has tax credits on historical losses

(2) Pay As You Earn Tax and National Insurance payable on monthly salaries, Kuflink deferred PAYE for some months during the Covid 19 pandemic but has since settled the liability in full

(3) VAT payment was made in June 2021 for £139k. The remainder is VAT payable on non UK invoices for the quarter. Continuing on a quarterly basis thereafter.

	Dec-22	Jan-23	Feb-23	Mar-23	Apr-23	May-23	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23
Firm's own Cash position	£1,500,000	£1,600,000	£2,500,000	£1,600,000	£3,000,000	£3,200,000	£3,000,000	£2,000,000	£3,300,000	£3,100,000	£4,100,000	£4,200,000	£1,400,000

Disclaimer: The above Information contains tables and other statistical analyses that Kuflink has prepared. We have used numerous assumptions in preparing this statistical Information, which may or may not be reflected in the material. The statistical information should not be construed as legal, tax, investment, financial, or accounting advice. The Information is provided as of the dates shown and is subject to updating and revision, and may change materially without notice. Subject to applicable regulations, no person is under any obligation to update or revise the Information. The Information may contain various forward-looking statements, which are statements that are not historical facts and that reflect Kuflink’s beliefs and expectations with respect to future events and financial and operational performance. These forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates and other factors, which may be beyond the control of Kuflink and which may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. Nothing contained within the Information is or should be relied upon as a warranty, promise, or representation, express or implied, as to the future performance of any loans. Any historical Information contained in this statistical information is not indicative of future performance.

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