Interim Result

Hansard Global plc ("Hansard" or "the Group"), the specialist long-term savings provider, issues its results for the six months ended 31 December 2024. All figures refer to the six months ended 31 December 2024 ("H1 2025") and all comparisons are with the six months ended 31 December 2023 ("H1 2024"), except where indicated.

SUMMARY OF RESULTS

1 Present Value of New Business Premiums

2 Annual Premium Equivalent

Thomas Morfett, Group Chief Executive Officer, commented:

"The Hansard Group has begun to deliver growth in new business flows after several years of laying the groundwork for the future through its Japanese license and new IT system.

We are pleased to now be able to launch new, competitive, and innovative products quickly. Our plan is to make the evolution of our proposition a continuous feature of our business model moving forward.

There are early signs that our recently launched products and fund range are appealing to clients and advisors.

Nevertheless, as we navigate continuing regulatory changes and a challenging financial landscape, we anticipate that it will take time for the growth in new business to translate into improvements in income and profitability.

I am confident that we have the right people and culture in place to deliver long-term, sustainable success for the business and all its stakeholders."

FINANCIAL HIGHLIGHTS

• New business sales grew by 36% year-on-year to £49.1m in PVNBP terms, whilst IFRS profit before tax decreased by 88% to £0.5m in H1 2025.
• The 36% sales growth comprised 18% half-year-on-half-year in the six months to 31 December 2024 and the previously reported 15% growth half-year-on-half-year in the six months to 30 June 2024.
• Sales growth was driven by the successful launch of a new single premium product earlier in the calendar year, which delivered a 123% increase in single premium sales.
• Regular premium sales experienced a 22% decline, highlighting the challenges of an aging regular premium product. In response, the Group introduced a new, competitive regular premium offering in December.
• IFRS profit before tax decreased due to currency movements, strategic investment, new IT system depreciation costs, and litigation costs.
• Profits have also been impacted by declining sales in recent years. The Group's investment in strategic initiatives is now generating sales momentum but this will take time to translate into higher profits given the long-term nature of our products.
• Fees and commissions remained stable at £23.7m in H1 2025.
• Investment and other income decreased by 22% to £2.4m in H1 2025 due to adverse currency movements and lower interest rate returns.
• Expenses increased by 25% to £18.4m in H1 2025, primarily due to the costs of robustly defending historic litigation claims against the Group. Total writs reduced marginally to £20.0m, with a reducing volume of new writs received in the period.
• Expenses also increased due to our continuing investment in strategic initiatives to improve future performance, and depreciation of our new IT system.
• Assets under administration remained steady at £1.2 billion at 31 December 2024.
• The value of the in-force book fell by 2% to £108.3m between 30 June 2024 and 31 December 2024.
• The Board has declared an interim dividend of 1.8p per share, consistent with previous years.

STRATEGIC & OPERATIONAL HIGHLIGHTS

• Our new IT system has enabled the Group to refresh its entire product range and launch a new fund range quickly. We aim to roll out further proposition improvements on a continuous and frequent basis.
• The Group continues to develop a distribution opportunity in Japan following the registration of two new products in that market. Although the speed of delivery to market is slower than anticipated, constructive progress is being made.
• The combination of future sales growth and utilisation of our new IT system is expected to help realise economies of scale in due course.

NEW BUSINESS

New business flows for the half-year are summarised as follows:

New business flows based on PVNBP are broken down as follows:

Assets under Administration ("AUA")

The composition and value of AuA is based upon the assets selected by or on behalf of contract holders to meet their savings and investment needs. Reflecting the wide geographical spread of the Group's customer base, most premium contributions and AuA are designated in currencies other than sterling. Over 60% of Group AuA are denominated in US dollars.

The total of such assets is affected by the level of new premium contributions received from new and existing policy contracts, the amount of assets withdrawn by contract holders, charges and the effect of investment market and currency movements. These factors ultimately affect the level of fund-based income earned by the Group. Net withdrawals are typically experienced in Hansard Europe dac ("Hansard Europe") as it closed to new business in 2013.

The following analysis shows the components of the movement in AuA:

AuA is split as follows between Hansard International (incorporating business reinsured from Hansard Worldwide) and Hansard Europe:

Outlook

Looking ahead, there are early indications that our new product range will continue to drive sales and foster long-term growth for the business.

However, it will take time for improved sales to fully translate into increased profits and we anticipate profit pressures over the next two years as we continue to invest in strategic initiatives, defend historic litigation claims, depreciate our IT system and meet continuing regulatory changes.

The improved sales momentum from our new products, investment in Japan, and utilisation of our new technology platform are expected to deliver profit growth thereafter.

NOTICE OF TRADING UPDATE

A trading update in respect of our financial year ending 30 June 2025 is expected to be published on 25 September 2025.

Hansard Global plc

Interim Report and Accounts for the period ended 31 December 2024

CHAIRMAN'S STATEMENT

I am pleased to present Hansard Global plc's ("Hansard" or "Group") financial results for the first six months of our 2025 financial year ("H1 2025").

Financial objectives

Hansard's financial objectives are measured primarily in terms of its income generation, expense management, solvency management, and generation of cash to pay dividends. In the short term the Group is balancing its net profit result with dividend expectations, while maintaining its strategic solvency target. In the medium term it is seeking to reduce its cost base and increase new business sales by offering a new product range, whilst, in the longer term, it is aiming to increase its scale organically and leverage its relatively fixed cost base to deliver a geared increase in profitability.

Financial performance

IFRS profit before tax decreased by 88% to £0.5m in H1 2025 due to currency movements, strategic investment, new system costs, and litigation costs.

New business grew by 36% to £49.1m in H1 2025 in PVNBP terms from £36.2m in H1 2024, driven by the successful launch of a new single premium product earlier in the calendar year. The Group launched a new, competitive regular premium offering in December.

It will take time for improved sales to fully translate into increased profits and we anticipate profit pressures over the next two years as we continue to invest in strategic initiatives, defend historic litigation claims, depreciate our new IT system and meet continuing regulatory changes.

The Group's new IT system has enabled the Group to refresh its entire product range and launch a new fund range quickly. We aim to roll out further proposition improvements on a continuous and frequent basis. The new system provides the Group with a solid base from which to leverage its relatively fixed cost base.

During the year, the Group has continued to develop its distribution opportunity in Japan following the registration of two new products for that market. Although the speed of delivery to market is slower than anticipated, constructive progress is being made.

The Group remains sufficiently capitalised to meet its regulatory requirements.

Looking ahead, there are early indications that our new product range will continue to drive sales and foster long-term growth for the business.

Dividend declaration

The Board has declared an interim dividend of 1.8p per share, consistent with previous years. This will be paid on 24 April 2025 with an ex-dividend date of 13 March 2025.

Board changes

Jose Ribeiro, Independent Non-executive Director, stepped down from the Board on 31 December 2024. On behalf of the Board, I extend our great gratitude to Jose for his valuable contribution.

We are pleased to announce that Lynzi Harrison joined the Board as an Independent Non-executive Director on 11 December 2024. With over 25 years of industry experience, Lynzi will serve on the Audit and Risk, Remuneration, and Nomination Committees. We are delighted to welcome Lynzi to the Board.

Additionally, Noel Harwerth, OBE, succeeded Jose as Chair of the Remuneration Committee and Senior Independent Director on 1 January 2025.

Philip Kay

Chair

INTERIM MANAGEMENT REPORT

REPORT OF THE GROUP CHIEF EXECUTIVE OFFICER

Thomas morfett

The Hansard Group has begun to deliver growth in new business flows after several years of laying the groundwork for the future by developing its Japanese license and new IT system.

We are pleased to now be able to launch new, competitive, and innovative products quickly. Our plan is to make the evolution of our proposition a continuous feature of our business model moving forward.

There are early signs that our recently launched products and fund range are appealing to clients and advisors.

Nevertheless, as we navigate continuing regulatory changes and a challenging financial landscape, we anticipate that it will take time for the growth in new business to translate into improvements in income and profitability.

I am confident that we have the right people and culture in place to deliver long-term, sustainable success for the business and our stakeholders.

Strategy

The Group provides regular and single premium savings products to expatriate and local clients around the world seeking access to a range of international investments from a safe-haven jurisdiction.

We continue to pursue our strategy of growing our business organically through Independent Financial Advisor ("IFA") client relationships and the pursuit of targeted opportunities to improve our scale.

Our strategic focus for the second half of this financial year is to:

• Launch our two new locally licenced investment products in Japan.
• Leverage and extend our new product and funds propositions globally; and
• Further embed our new IT system in order to roll out proposition improvements on a continuous basis.

New business

Overall new business grew by 36% to £49.1m in H1 2025 in PVNBP terms ("Present Value of New Business Premiums") compared to £36.2m in H1 2024. Growth of 33% was achieved in APE terms ("Annual Premium Equivalent").

New business growth was driven by the successful launch of a new single premium product earlier in the calendar year, which delivered a 123% increase in single premium sales.

Regular premium sales experienced a 22% decline, highlighting the challenges of an aging regular premium product. In response, the Group introduced a new, competitive regular premium offering in December.

Financial results

IFRS profit before tax decreased by 88% to £0.5m in H1 2025 compared to H1 2024, due to adverse currency movements, legal costs of defending historic litigation claims, and continued investment in strategic initiatives. It will take time for improved sales to translate into higher profits given the long-term nature of our products.

Fees and commissions remained stable at £23.7m in H1 2025.

Investment and other income decreased by 22% to £2.4m in H1 2025 due to adverse currency movements.

Expenses increased by 25% from £14.7m in H1 2024 to £18.4m in H1 2025 due to the legal costs of defending historic litigation claims, continuing investment in strategic initiatives to improve future performance, and depreciation of the new IT system.

A summary of the results for H1 2025 are as follows:

Assets under administration increased marginally to £1.2 billion as at 31 December 2024.

The value of the in-force book remained steady at £108.3m as at 31 December 2024.

Details of the results for the period are contained in the Business and Financial Review.

Capitalisation and solvency

The Group remains sufficiently capitalised to meet the requirements of regulators, contract holders, intermediaries, and other stakeholders. On a risk-based capital basis, total Group Free Assets in excess of the Solvency Capital Requirements of the Group were £34.3m (June 2024: £39.4m), a solvency coverage of 143% (June 2024: 149%).

The Group's shareholders' equity is held in a wide range of deposit institutions and highly rated money market liquidity funds.

Our people

Our people continue to be crucial to the success of the Group and demonstrate a continued commitment, and resilience in managing both our on-going day-to-day operations and our key strategic projects.

We maintain a commitment to the highest levels of service and quality in relation to servicing contract holders and intermediaries, and we continue to receive external recognition by our peers. We recently won two awards at the 2024 Investment International awards - Excellence in Fintech, and Excellence in Client Service - Asia.

Regulatory environment

The pace, scale, and complexity of regulatory change continues to evolve, and the Group devotes significant resources to meeting these developments.

Hansard Europe dac ("Hansard Europe")

Hansard Europe was closed to new business in 2013, and the Group's objective is to run the business off in an efficient and well managed manner. It is well capitalised with net assets of £12.1m as at 31 December 2024 (30 June 2024: £12.1m).

We continue to robustly defend historic litigation arising out of circumstances where policyholders consider that the performance of an asset linked to a particular contract is not satisfactory. As outlined more fully in section 11 of the Business and Financial Review, total writs were £20.0m as at 31 December 2024 (30 June 2024: £20.2m).

Thomas Morfett

Chief Executive Officer

BUSINESS AND FINANCIAL REVIEW

BUSINESS MODEL

Hansard is a specialist long-term savings provider that has been providing innovative financial solutions for international clients since 1987. We focus on helping our customers with savings and investment products in secure life assurance wrappers to meet their long-term savings and investment objectives.

We administer assets in excess of £1 billion for just under 40,000 client accounts around the world.

We believe that the following areas are fundamental for the continued success of the Group:

• Proposition enhancement, product improvement and diversification of our distribution channels to enable generation of significant flows of new business from identified target markets.
• Leveraging our new IT system to drive business efficiency.
• Proactively managing our cash flows through the cycle to fund the appropriate balance of investment in new business and dividends.
• Managing and mitigating our exposure to business risks.
• Positioning ourselves to incorporate increasing levels of regulation into our business model.

Hansard International is authorised by the Isle of Man Financial Services Authority and has a branch in Malaysia, authorised by the Labuan Financial Services Authority, to support business flows from Asian growth economies. It also has a branch in Japan to support its Japanese proposition, which is authorised by the Japanese Financial Services Agency. Through its relationship with a local insurer in the UAE, Hansard International reinsures business written in the UAE

Hansard Worldwide writes international and expatriate business around the world and is underwritten by Hansard International Limited. Hansard Worldwide is authorised by the Insurance Commission of The Bahamas.

Hansard Europe is authorised by the Central Bank of Ireland and ceased accepting new business with effect from 30 June 2013.

VISION AND STRATEGY

Our vision for the Hansard Group is:

• Improve our business: We will continue to improve customer outcomes by introducing new and innovative products and services, focusing on the quality of our IFAs with whom we work with and continuing to drive up the engagement of our people within our business.
• Grow our business: In recent years we established a new life company in The Bahamas, and we have recently signed a distribution agreement with Guardian to access the Japanese domestic market. We will continue to seek out opportunities for additional distribution channels in other targeted jurisdictions in the future.
• Future-proof our business: We actively consider new and innovative technologies, propositions, and business models. It remains critical to support the online and digital needs of our clients alongside improving organisational efficiency and scalability.
• HANSARD ONLINE

Hansard is a regular recipient of numerous awards that recognise our reputation for innovation, via the provision of market-leading online platforms that are used daily by its IFAs ('Hansard OnLine') and their clients ('Online Accounts') around the globe. Hansard OnLine and Online Accounts enable us to build on an award-winning, online proposition, and is central to the development and quick deployment of new, future products.

Online Accounts

Thousands of Hansard clients access their own personal, secure online account every year. Online accounts are mobile friendly and have the capability to provide these clients with a wealth of policy information, 24/7. In addition to other functionality and benefits, clients can:

• Track the performance of their policy online, with policy valuations and contribution details at the touch of a button.
• Access their online account with our new-look mobile and tablet friendly platform, enabling access on the go, wherever they are in the world.
• Access their online account 24/7, safe in the knowledge that their details are secure and protected.
• Access a wealth of fund performance information, facilitating better informed investment decisions in the future; and
• Stay informed in a language that they understand, with Online Accounts being available in over 13 different languages.

Cyber security

Hansard has continued to invest in its cyber security infrastructure with the implementation of a Security Operations Centre, operating at an ISO27001 (Information Technology Security Standard) standard, to provide further enhanced surveillance of our systems and external threats.

New business

PROPOSITION

The Group's proposition is to develop and enhance relationships with contract holders and intermediaries through the use of our people, products and technology in a way that meets shared objectives.

The results of activities in each region in H1 2025 are reported in the table below.

New business performance for the six months ended 31 December 2024

New business for H1 2025 was £49.1m on a PVNBP basis, up 36% from £36.2m in H1 2024 and continuing the upward trend from the second half of 2024.

New business levels for H1 2025 are summarised as follows:

The following tables show the breakdown of new business calculated on the basis of PVNBP:

Our new single premium portfolio bond launched last financial year continues to be a successful offering for our clients and advisers, helping to drive the increase in new business on a PVNBP basis. We have refreshed our single and regular premium propositions, and we expect these to contribute to growth as we move forwards.

We continue to work with key IFAs to leverage existing and new opportunities. We are exploring new relationships to further expand our network of distributors.

Our sales team remains well positioned to drive IFA and product initiatives to increase new business in future, including the development and launch of new products for key target markets, updates and improvements to existing products and continuation of system developments to support our service and overall proposition.

IFRS RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024

The Group administers, and earns fees from, a portfolio of unit-linked investment contracts distributed to contract holders around the world.

The nature of the Group's products means that new business flows have a limited immediate impact on current earnings reported under IFRS, as initial fees and acquisition costs from the contracts sold are mostly deferred and amortised over the life of the contract. The benefit of sales to fee income levels are felt in future financial periods, noting also that our newer products have a longer earning period than our older products.

The Group also continues to invest strategically for the future, particularly in relation to new markets and new licensing opportunities.

Results under IFRS

Consolidated profit before taxation for the period was £0.5m (H1 2024: £4.1m). The decrease on the prior year period is driven by adverse currency movements, legal costs of defending historic litigation claims, continued investment in strategic initiatives, and depreciation of the new IT system.

The following is a summary of key items to allow readers to better understand the results of the period.

Abridged income STATEMENT

The condensed consolidated statement of comprehensive income which is presented within these half-year results reflects the financial results of the Group's activities during the period under IFRS. However, this statement, as a result of its method of presentation, incorporates a number of features that might affect a clearer understanding of the results of the Group's underlying transactions. This relates principally to:

• Investment gains attributable to contract holder assets were £29.8m (H1 2024: £41.7m). These assets are selected by the contract holder or an authorised intermediary, and the contract holder bears the investment risk; these gains are therefore also reflected within 'Change in provisions for investment contract liabilities'.
• Third party fund management fees collected and paid onwards by the Group to third parties having a relationship with the underlying contract. In H1 2025 these were £2.5m (H1 2024: £2.5m). These are reflected on a gross basis in both income and expenses under IFRS.

An abridged consolidated income statement is presented below, excluding the items of income and expenditure indicated above.

Fees and commissions

Fees and commissions attributable to Group operations for H1 2025 were £21.3m (H1 2024: £21.5m). A summary of fees and commissions attributable to Group activities is set out below:

Included in contract fee income is £7.8m (H1 2024: £9.1m) representing the amounts prepaid in previous years and amortised to the income statement, as can be seen in section 7 in the reconciliation of deferred income.

Net fund management fees, together with commissions receivable, totalling £7.3m (H1 2024: £6.3m), are related to the value of contract holder Assets under Administration ("AuA") but also have elements amortised from previous periods.

Investment and other income

The Group's own liquid assets are held predominantly in sterling and invested in highly rated money market funds and bank deposits.

Further information about the Group's foreign currency exposures is disclosed in note 4.1 to these condensed consolidated financial statements.

Origination costs

Under IFRS, new business commissions paid, together with the directly attributable incremental costs incurred on the issue of a contract, are deferred, and amortised over the life of that contract to match the longer-term income streams expected to accrue from it. Typical terms range between 8 and 16 years, depending on the nature of the product. Other elements of the Group's new business costs, which reflect investment in distribution resources in line with our strategy, are expensed as incurred.

This accounting policy reflects that the Group will continue to earn income over the long-term from contracts issued in a given financial year.

Origination costs in the period were:

Reflecting the long-term nature of the Group's income streams, amounts totaling £6.5m (H1 2024: £7.1m) have been expensed to match contract fee income of £7.8m (H1 2024: £9.1m) earned in H1 2025 from contracts issued in previous financial years. This reflects the profitability of the existing book.

Summarised origination costs for the period were:

Administrative and other expenses

We continue to manage our expense base robustly to control administrative expenses while investing strategically in our Japanese proposition and other product developments.

A summary of administrative and other expenses attributable to the Group is set out below:

Salaries and other employment costs have increased by £1.1m over the comparative period to £6.6m as previously capitalised staff costs incurred during the implementation of our new IT system are expensed through profit and loss following implementation of the system on 1 March 2024. Average Group headcount for H1 2025 was 175 compared to 182 for the full 2024 financial year. Headcount at 31 December 2024 was 173.

Other administrative expenses have increased by £1.8m to £5.9m against the comparative period. This includes an increase of £0.9m in depreciation, and £0.8m in respect of ongoing development and licence costs of the new IT system.

Professional fees including audit (excluding litigation defence costs) have increased by £0.1m to £0.9m against the comparative period, with inflationary pressures well controlled.

Investment in strategic initiatives of £0.6m represents internal and external costs to generate opportunities for growth. This includes the costs of our head office strategy team, support costs for our new IT system and development costs associated with our Japanese proposition.

Litigation defence and settlement costs represent those costs incurred in defending claims against Hansard Europe of £1.5m for the period, compared with £0.7m in H1 2024. The provision for claim settlements was increased by £0.1m.

Provision for doubtful debts reflects the provision for balances considered unlikely to be recoverable.

CASH FLOW ANALYSIS

The sale of the Group's products typically produces an initial cash strain as a result of the commission and other costs incurred at inception of a contract.

The following summarises the Group's own cash flows in the period:

Initial new business cash strain is shown within "net cash investment in new business" and varies depending on the level and type of new business written. The Group also invested £4.0m of shareholder funds into a USD bond portfolio as part of its Treasury management activity. These factors, together with the payment of our final dividend for 2024 led to a net cash outflow of £10.3m (H1 2024: £1.6m outflow) in the Group's own cash resources since 1 July 2024. The Group continues to maintain significant cash reserves to cover short-term outflows during this period of strategic investment.

Bank deposits and money market funds

The Group holds its liquid assets in highly rated money market liquidity funds and with a wide range of deposit institutions to diversify counterparty risk. Deposits totalling £15.0m (2024: £20.7m) have original maturity dates typically greater than 3 months and are therefore excluded from the definition of "cash and cash equivalents" under IFRS and are instead included within 'Deposits and money market funds' in the consolidated balance sheet. The following table summarises the total cash and deposits at the balance sheet date.

The following table summarises the total shareholder cash and deposits at the balance sheet date.

Abridged consolidated balance sheet

The condensed consolidated balance sheet presented under IFRS reflects the financial position of the Group as at 31 December 2024. As a result of its method of presentation, the consolidated balance sheet incorporates the financial assets held to back the Group's liability to contract holders and incorporates the net liability to those contract holders of £1,153.0m (31 December 2023: £1,106.0m). Additionally, that portion of the Group's capital that is held in bank deposits is disclosed in "cash and cash equivalents" based on original maturity terms, as noted above.

Deferred origination costs

The deferral of origination costs ("DOC") reflects that the Group will earn fees over the long term from contracts issued in a given financial year. These costs are recoverable out of future net income from the relevant contract and are charged to the consolidated statement of comprehensive income on a straight-line basis over the life of each contract.

The table below shows lower origination costs deferred during the period as a result of lower levels of new business sold compared to last year.

Deferred income

The movement in value of deferred income over the financial year is summarised below

Assets under administration ("AuA")

In the following paragraphs, "AuA" refers to net assets held to cover financial liabilities as analysed in note 13 to the condensed consolidated financial statements presented under IFRS. Such assets are selected by or on behalf of contract holders to meet their investment needs.

The Group receives investment inflows to its AuA from single and regular premium contracts which are offset by charges, withdrawals, premium holidays affecting regular premium policies and by market valuation movements.

The majority of premium contributions and AuA are designated in currencies other than sterling, reflecting the wide geographical spread of those contract holders. The currency denomination of AuA at 31 December 2024 is similar to that of 31 December 2023 and consists of approximately 74% denominated in US dollars, 19% in sterling and 6% denominated in euro as reflected in note 4.1 to the condensed consolidated financial statements.

The following table summarises Group AuA movements for H1 2025:

Group AuA increased to £1,153.0m during H1 2025, an increase of £2.1m from the position at 30 June 2024. Since 31 December 2023, AuA have increased £47.0m (4.2%) reflecting the move in global stock markets over the period.

The analysis of AuA held by each Group subsidiary to cover financial liabilities is as follows:

Premiums acquired by Hansard Worldwide are reinsured to Hansard International and therefore are included within Hansard International's total AuA.

Since it closed to new business in 2013, Hansard Europe's AuA has been declining broadly in line with expectations as withdrawals are made or contracts mature.

CAPITALISATION AND SOLVENCY

The Group's life insurance subsidiaries continue to be well capitalised with free assets in excess of the regulatory requirements in each relevant jurisdiction. There has been no material change in the Group's management of capital during the period.

Solvency capital is a combination of future margins, where permitted by regulation, and capital. Where future margins are denominated in non-sterling currencies, it is vulnerable to the weakening of those currencies relative to sterling. All of the Group's excess capital is invested in a wide range of deposit institutions, highly rated money market liquidity funds, and high-quality corporate bonds, predominantly in sterling. This approach protects the Group's capital base from stock market falls.

The in-force portfolio has no material investment options or guarantees that could cause capital strain and the Group retains very little of the mortality risk that it has accepted (the balance being reinsured with premium reinsurers). There is no longevity risk exposure.

Policy on capital maintenance

It is the Group's policy to maintain a strong capital base in order to:

• satisfy the requirements of its contract holders, creditors and regulators;
• maintain financial strength to support new business growth and create shareholder value;
• match the profile of its assets and liabilities, taking account of the risks inherent in the business;
• generate operating cash flows; and
• fund dividend requirements.

Within the Group each subsidiary company manages its own capital. Capital generated in excess of planned requirements is returned to the Company by way of dividends. Group capital requirements are monitored by the Board. The capital held within Hansard Europe is considered not to be available for dividend to Hansard Global plc until such time as the legal cases referred to in section 11 below are substantially resolved.

DIVIDENDS

A final dividend of 2.65p per share in relation to the previous financial year was paid in November 2024. This amounted to £3.7m. A portion of the dividend is paid in US dollars which gives rise to the variance against the prior year when translated to pounds sterling.

The Board has considered the results for H1 2025, the Group's continued cash flow generation and its future expectations and has resolved to pay an interim dividend of 1.8p per share (H1 2024: 1.8p). This dividend will be paid on 24 April 2025.

The Board has considered the impact of the dividend on the negative consolidated retained earnings of £2.7m as at 31 December. Dividends are paid from Hansard's parent company retained earnings, and not from consolidated Group retained earnings. As at 31 December Hansard's parent company retained earnings were £13.1m and as such the ability to pay dividends is not constrained.

complaints and litigation

Financial services institutions can be drawn into disputes in cases where the performance of assets selected directly by or on behalf of contract holders through their advisors fails to meet their expectations. This is particularly relevant in the case of more complex products distributed throughout Europe prior to 2014.

Even though the Group has never given any investment advice, as this is left to the contract holder directly or through an agent, advisor or an entity appointed at their request or preference, the Group has been subject to a number of complaints in relation to the performance of assets linked to contracts. Most of the cases have arisen in Italy, with a smaller number in Belgium and Germany.

As at 30 June 2024, the Group had been served with writs with a net cumulative exposure totalling €23.8m, or £20.2m in sterling terms (30 June 2023: €26.1m / £22.4m) arising from contract holder complaints and other asset performance-related issues. The corresponding figure as at 31 December 2024 was €24.1m or £20.0m (31 December 2023: €25.2m or £22.0m). Between 31 December 2024 and the date of this report there have been no material changes.

Our policy is to maintain contingent liabilities even where we win cases in the court of first instance if such cases have been subsequently appealed. This includes our largest single case in Belgium.

We have previously noted that we expect a number of our claims to ultimately be covered by our Group insurance cover. During the period to 31 December 2024, we recorded £0.5m in insurance recoveries in relation to litigation expenses (31 December 2023: £0.7m). We expect such reimbursement to continue during the course of those claims.

While it is not possible to forecast or determine the final result of such litigation, based on the pleadings and advice received from the Group's legal representatives and experience with cases previously successfully defended, we believe we have a strong chance of success in defending these claims. Other than smaller cases where, based on past experience, it is expected a settlement might be reached, the writs have therefore been treated as contingent liabilities and are disclosed in note 21 to the consolidated financial statements. Where there is an established pattern of settlement for a grouping of claims, a provision has been made for the remaining exposures and included in note 20 'Provisions', to the extent that they can be reliably estimated.

Net asset value per shaRE

The net asset value per share on an IFRS basis at 31 December 2024 is 12.8p (31 December 2023: 16.2p) based on the net assets in the consolidated balance sheet divided by the number of shares in issue, being 137,557,079 ordinary shares (31 December 2023: 137,557,079).

Risk Management and internal control

The Group continues to operate a comprehensive Enterprise Risk Management Framework, reflective of the Board's focus on effective risk management as an integral element of corporate success. The ERM Framework sets out the governance arrangements, principles, guidelines, practices and standards for risk management and internal control, which cumulatively ensure that the business is robustly prepared to identify, understand, and navigate the uncertainties and risks which it may encounter, and which can either pose threats or offer opportunities. The ERM Framework ensures that all such threats and opportunities, whether actual or emerging, are identified, assessed, monitored, managed, and reported using structured, consistent, and comprehensive methodologies, which seek to embed risk management within strategic decision-making and business planning activities and continuously shape organisational values and culture. The maturity of the ERM Framework and its capacity to respond quickly to emerging risks and adapt to changes arising via the internal or external environment, ensure that risk management and internal control remain central to the Board's oversight, direction and control of the Group, compelling informed decision making and sound business practices.

Approach

Having regard to the Financial Reporting Council's 'Guidance on Risk Management, Internal Control and Related Financial and Business Reporting', the ERM Framework encompasses the policies, processes, tasks, cultural attributes, behaviours, reporting conventions, and other aspects of the Group's environment, which cumulatively:

• Seek to ensure continuous compliance with applicable laws and regulations as well as with internal policies governing the conduct of business; and

Risk governance arrangements

• Independent evaluation of the ERM Framework to confirm that it remains adequate, effective, and proportionate to the nature, scale and complexity of the risks inherent in the business.

During the period to 31 December 2024 the Group Risk Forum ("GRF") has continued to champion the embedding of risk ownership, ensuring responsibilities and accountabilities for risk management and risk-based decision making are transparent and proactively owned at all business levels. The value of effective, dynamic interfaces between the governance, risk management and internal control conventions of the ERM Framework and those constituting the Group and subsidiary Own Risk and Solvency Assessment ("ORSA") cycles remains a core focus for the GRF.

The Group ORSA report reflects the cycle of ongoing activities and arrangements which enable the Board and the Executive Committee to properly assess and understand at a practical level the short and long-term risks facing the Group and the capital required to cover those risks, under both normal and stressed conditions. The 2024 ORSA cycles concluded during the reporting period, and these considered the major sources of risk that the Group, or the subsidiary entities, may face under the principal and subordinate risk designations of the ERM Framework. Both internal and external risks were considered, together with emerging risks and any risks associated with the Group's systems of governance. The ORSA included capital, performance and strategic information, providing management with key information for decision making.

Governance, risk management and internal control protocols remain structured upon a 'three lines' model, which determines how specific duties and responsibilities are assigned and coordinated. First line management are responsible for identifying risks, executing effective controls, and escalating risk issues and events to the Group's Control Functions. The Group Risk and Compliance Functions (Second line) oversee and work in collaboration with the First Line, ensuring that the business is conducted in a manner consistent with rules, limits, and risk appetite constraints. The Group Internal Audit Department (Third line) provides independent assurance services to the Board and the Executive Committee on the adequacy and effectiveness of the Group's governance, risk management and internal control arrangements.

Emerging Risks

• Management oversight and the control culture.
• Risk recognition and assessment.
• Control activities and segregation of duties.
• Information and communication.
• Monitoring activities and correcting deficiencies.

In addition to existing risks the ERM conventions, which support delivery of the elements listed above, target emerging and evolving risks using both top-down and bottom-up bases. The top-down aspect involves the Board regularly analysing and evaluating the nature and extent of the risks to which the Group is or may be exposed, even where these may be difficult to assess and quantify. The bottom-up approach involves the identification, review and continuous monitoring of risk issues and emerging risks at functional and divisional levels, with analysis and formal reporting to the Group Risk Forum on a quarterly basis. This allows actions to be developed or adapted on a timely basis and enables onward analytical reporting to the Board. These arrangements ensure that the Board remains aware of potential changes in risk profile on a forward-looking basis and sensitive to the materiality of potential impacts.

Review of Risk Management and Internal Control Systems

· Formal declarations from Executive Managers, via quarterly risk and control self-assessments, that risks falling under their respective span of control are being managed and assessed appropriately and key controls are working effectively and as intended. Reporting must include progress updates on the timely and effective delivery of Management Actions to address any identified control weaknesses, in accordance with the commitments recorded in the Group Risk Management Platform. The cumulative results of cyclical risk reporting by senior and executive management via the GRF, having regard to the 'five pillar' structure of the ERM Framework, which drives analytical reporting to the Audit and Risk Committee. Independent assurance work by the Group Internal Audit Department to identify any areas for enhancements to internal controls and work with management to define associated action plans to deliver them.

The Board has determined that there were no areas for enhancement which constituted a significant weakness for the year under review and the Directors are satisfied that the Group's governance, risk management and internal control systems are operating effectively and as intended.

Financial Reporting Process

Outsourcing

The majority of investment dealing and custody processes in relation to contract holder assets are outsourced under a formal contract to Capital International Limited (CIL, https://www.capital-iom.com), a company authorised by the Isle of Man Financial Services Authority and a member of the London Stock Exchange. The contract is managed by a dedicated Relationship Manager against a documented Service Level Agreement, which includes Key Performance Indicators. CIL is required to confirm quarterly that no material control weaknesses have been identified in their operations; this is overseen via service delivery monitoring performed by the Relationship Manager. Each year CIL are required to confirm and evidence the adequacy and effectiveness of their internal control framework through a formal Assurance Report on Internal Controls, with an external independent review performed in in 2023 and 2024.

Manx Telecom (wwww.manxtelecom.com) provides our hosting services and core internet connectivity, which supports several core infrastructure elements such as our virtual desktops and servers. Manx Telecom data centres operate to Tier 3 standard and are ISO 27001 accredited. Monthly service meetings are held with Manx Telecom with a formal annual review undertaken. Manx Telecom is an active participant in scheduled security tests and simulations.

Risks Relating to the Group's Financial and Other Exposures

Principal Risks

The following table sets out the principal inherent risks that may impact the Group's strategic objectives, profitability, capital position or resilience and provides an overview of how such risks are managed or mitigated. The Board robustly reviews and considers its principal risks on at least a quarterly basis and for the period ended 31 December 2024 has continued to consider specifically the likelihood, impacts and timescales within which such risks might crystallise, together with assessment of contingent uncertainties and any emerging risks. No emerging risks have been identified during the reporting period, which require disclosure additional to the principal risks described below.

The condensed consolidated financial statements on pages 26 to 29 were approved by the Board on 5 March 2025 and signed on its behalf by:

Thomas Morfett Ollie Byrne

Chief Executive Officer Chief Financial Officer

Condensed Consolidated Cash Flow Statement

Notes to the Condensed Consolidated Financial Statements

1 General information

Hansard Global plc ("the Company") is a limited liability company, incorporated in the Isle of Man under the Isle of Man Companies Act 1931 - 2004, whose shares are publicly traded. The principal activity of the Company is to act as the holding company of the Hansard Group ("the Group") of companies. The activities of the principal operating wholly owned subsidiaries include the transaction of life assurance business and related activities. Hansard Europe was closed to new business with effect from 30 June 2013. The principal subsidiaries of the company are as follows:

Company name Incorporated Activity

Hansard International Limited Isle of Man Life Assurance

Hansard Worldwide Limited The Bahamas Life Assurance

Hansard Europe Designated Activity Company Ireland Life Assurance

Hansard Administration Services Limited Isle of Man Administration Services

Hansard Development Services Limited Isle of Man Marketing and

Development Services

The registered office of the Company is 55 Athol Street, Douglas, Isle of Man, IM99 1QL.

The Company has its primary listing on the London Stock Exchange.

These condensed consolidated interim financial statements are unaudited and do not include all of the information required for a complete set of financial statements prepared in accordance with IFRS Standards and the Isle of Man Companies Acts 1931 - 2004. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual financial statements. The condensed consolidated interim financial statements were approved by the Board of Directors on 5 March 2025.

The Board of Directors approved the Group's statutory financial statements for the year ended 30 June 2024 on 25 September 2024. The report of the independent auditor on those financial statements was unmodified and did not contain an emphasis of matter paragraph.

2 Basis of presentation

The consolidated financial statements have been prepared in accordance with with the Disclosure and Transparency Rules of the Financial Conduct Authority ("DTR") and with IAS 34 "Interim Financial Reporting" as adopted by the United Kingdom ("UK"). The financial statements have been prepared under the historical cost convention as modified by the revaluation of financial investments and financial liabilities at fair value through profit or loss. The Group has applied all International Financial Reporting Standards adopted by the United Kingdom and effective at 31 December 2024.

The Group underwrites an immaterial amount of insurance business. Management has undertaken an assessment of the impact of accounting for this business as investment business rather than insurance business and concluded that this would not have a material impact on the financial statements. This assessment has been refreshed to consider the impact of IFRS 17 in conjunction with new products that have been brought to market, and management have not changed their conclusion that accounting for the business as investment business would not have a material impact on the financial statements. Management will keep this assessment under review and should the outcome change in future the Group accounting treatment will be reassessed. As a result, IFRS17 has not been applied to these financial statements.

The following new standards, amendments and interpretations are in issue but not yet effective and have not been early adopted by the Group and are not expected to have a significant impact;

• Presentation and disclosure in financial statements (IFRS18) - effective from 1 January 2027
• Subsidiaries without public accountability (IFRS 19) - effective from 1 January 2027

IFRS 18 will replace IAS 1 Presentation of Financial Statements and applies for annual reporting periods beginning on or after 1 January 2027 and introduces a number of new reporting requirements. The Group is still in the process of assessing the impact of the new standard, particularly with respect to the structure of the Group's statement of comprehensive income, the statement of cash flows and the additional disclosures required for management defined performance measures. The Group is also assessing the impact on how information is grouped in the financial statements, including for items currently labelled as 'other".

Going Concern

As shown within the Business and Financial Review, the Group's capital position is sufficient and in excess of regulatory requirements. The long-term nature of the Group's business results in considerable recurring cash inflows arising from existing business. The Directors believe that the Group is well placed to manage its business risks successfully.

The Directors are satisfied that the Company and the Group have adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the condensed consolidated financial statements on that basis. The Directors are cognisant of the reduction in profit before tax recorded in the period and are satisfied that this represents a short-term decline as set out in the Future Prospects section of the 2024 Group report.

In making this statement, the Directors have reviewed financial forecasts that show the Group continuing to generate profit over the next 12 months and that the Group has sufficient cash reserves to enable it to meet its obligations as they fall due. Through the ORSA process, the Directors have reviewed a number of scenarios prepared by the Actuarial function that demonstrate resilience to a number of key stresses, and whilst reverse stress scenarios show multiple adverse events coming together result in solvency coverage falling below regulatory minimums, these are considered highly remote. Recovery actions are available to the Group in the event that the strategic solvency target is breached.

Although the Directors expect the acquisition of new business will continue to be challenging, the Group has seen a continued increase in PVNBP as set out in the Business and Financial Review. The impact of this however is not immediate to the Group's profit and cash flows and therefore allows for longer term adjustments to operations and the cost base. Long periods of lower new business or indeed lower AuA would be addressed by reducing the cost base and where necessary, the dividend paid.

The following factors are considered as supportive to the Group's resilience to business and external environment challenges:

• The business continues to demonstrate operational resilience in being able to operate remotely from its offices where required without any material impact to processing and servicing levels.
• The Group places the majority its shareholder assets into conservative, highly-liquid, highly rated bank deposits and money market funds. These are typically not subject to price fluctuation and protect the Group's assets against potential market volatility.
• The Group has no borrowing.

3 Principal accounting policies

As required by the Disclosure and Transparency Rules of the Financial Conduct Authority and IAS 34, this condensed set of consolidated financial statements has been prepared applying the accounting policies and standards that were applied, and the critical accounting estimates and judgements in applying them, in the preparation of the Group's published consolidated financial statements for the year ended 30 June 2024. The published consolidated financial statements for the year ended 30 June 2024 can be accessed on the Company's website: www.hansard.com.

4 Financial risk management

Risk management objectives and risk policies

Overall responsibility for the management of the Group's exposure to risk is vested in the Board. To support it in this role, an Enterprise Risk Management ("ERM") framework is in place comprising risk identification, risk assessment, control and reporting processes. Information concerning the operation of the ERM framework to manage financial and other risks is contained within the Report and Accounts for the year ended 30 June 2024, and particularly in note 3 thereto, "Financial Risk Management".

4.1 Market risk

This is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices, analysed between price, interest rate and currency risk. The Group adopts a risk averse approach to market risk, with a stated policy of not actively pursuing or accepting market risk except where necessary to support other objectives. However, the Group accepts the risk that the fall in equity or other asset values, whether as a result of price falls or strengthening of sterling against the currencies in which contract holder assets are denominated, will reduce the level of annual management charge income derived from such contract holder assets and the risk of lower future profits.

Sensitivity analysis to market risk

Price risk

Unit linked funds are exposed to securities price risk as the investments held are subject to prices in the future which are uncertain. The fair value of financial assets (designated at fair value through profit or loss) exposed to price risk as at 31 December 2024 was £1,096.2m (31 December 2023: £1,049.0m). In the event that investment income is affected by price risk then there will be an equal and opposite impact on the value of the changes in provisions for investment contract liabilities in the same accounting period. The impact on the profit or loss before taxation in a given financial year is negligible.

An overall change in the market value of the unit-linked funds would affect the annual management charges accruing to the Group since these charges, which are typically 1% per annum, are based on the market value of contract holder assets under administration. The approximate annual impact on the Group's profits and equity of a 10% change in fund values, either as a result of price, interest rate or currency fluctuations, is £1.5m (H1 2024: £1.5m).

Interest rate risk

Taking into account the proportion of Group funds held on longer-term, fixed-rate deposits, a change of 1% p.a. in interest rates will result in an increase or decrease of approximately £0.6m (H1 2024: £0.6m) in the Group's annual investment income and equity.

A summary of the Group's liquid assets at the balance sheet date is set out in note 4.2.

• Currency risk
• (i) Group foreign currency exposures

The Group is exposed to currency risk on the foreign currency denominated bank balances, contract fees receivable and other liquid assets that it holds to the extent that they do not match liabilities in those currencies. The impact of currency risk is minimised by frequent repatriation of excess foreign currency funds to sterling. The Group does not hedge foreign currency cash flows as a matter of course but may take advantage of historically strong or weak sterling exchange rates to do so where appropriate.

At the balance sheet date, the Group had exposures in the following currencies:

31 December

The approximate effect of a 5% change in the value of US dollars to sterling is £0.1m (H1 2024: less than £0.1m); in the value of the euro to sterling is less than £0.1m (H1 2024: £0.1m); and in the value of the yen to sterling is less than £0.1m (H1 2024: less than £0.1m).

(ii) Financial investments by currency

Certain fees and commissions are earned in currencies other than sterling, based on the value of financial investments held in those currencies from time to time. The sensitivity of the Group to the currency risk inherent in investments held to cover financial liabilities under investment contracts is incorporated within the analysis set out in (a) above.

At the balance sheet date, the analysis of financial investments by currency denomination is as follows; US dollars: 74% (31 December 2023: 71%); sterling: 19% (31 December 2023: 19%); euro: 6% (31 December 2023: 8%); other: 1% (31 December 2023: 2%).

4.2 Credit risk

The clearing and custody operations for the Group's security transactions are mainly concentrated with one broker, namely Capital International Limited, a member of the London Stock Exchange. At the balance sheet date, substantially all contract holder cash and cash equivalents, balances due from broker and financial investments are placed in custody with Capital International Limited. These operations are detailed in a formal contract that incorporates notice periods and a full exit management plan. Delivery of services under the contract is monitored by a dedicated relationship manager against a documented Service Level Agreement and Key Performance Indicators.

The Group has an exposure to credit risk in relation to its deposits with credit institutions and its investments in unitised money market funds. To manage these risks; deposits are made, in accordance with established policy, with credit institutions having a short-term rating of at least F1 or P1 from Fitch IBCA and Moody's respectively and a long-term rating of at least A or A3 respectively. Investments in unitised money market funds are made only where such fund is AAA rated. Additionally maximum counterparty exposure limits are set both at an individual subsidiary company level and on a Group-wide basis.

Deposits with credit institutions and investments in unitised money market funds

(Based on Standards & Poor's ratings)

Expected credit losses are based on the historic levels of loss experienced for the relevant financial assets, with due consideration given to forward looking information. The group expected credit loss charged in the period is less than £0.1m (H1 2024: less than £0.1m).

There have been no changes in the assets in the period ended 31 December 2024 attributable to changes in credit risk (31 December 2023: nil).

At the balance sheet date, an analysis of the Group's shareholder cash balances was as follows:

4.3 Liquidity risk

The Group's objective is to ensure that it has sufficient liquidity over short (up to one year) and medium-term time horizons to meet the needs of the business. This includes liquidity to cover, amongst other things, new business costs, planned strategic activities, servicing of equity capital as well as working capital to fund day-to-day cash flow requirements.

Liquidity risk is principally managed in the following ways:

• Assets of a suitable marketability are held to meet contract holder liabilities as they fall due.
• Forecasts are prepared regularly to predict required liquidity levels over both the short and medium term.

4.4 Insurance risk

4.4.1 Lapse risk

4.5 Fair value of financial assets and liabilities

The Group closely monitors the valuation of assets in markets that have become less liquid. Determining whether a market is active requires the exercise of judgement and is determined based upon the facts and circumstances of the market for the instrument being measured. Where the Directors determine that there is no active market for a particular financial instrument, for example where a particular collective investment scheme is suspended from trading, fair value is assessed using valuation techniques based on available, relevant information and an appraisal of all associated risks. When a collective investment scheme recommences regular trading, the value would be transferred back to Level 1. This process requires the exercise of significant judgement on the part of the Directors.

Due to the linked nature of the contracts administered by the Group's undertakings, any change in the value of financial assets held to cover financial liabilities under those contracts will result in an equal and opposite change in the value of contract liabilities. The separate effect on financial assets and financial liabilities is included in investment income and investment contract benefits, respectively, in the condensed consolidated statement of comprehensive income.

The following tables analyse the Group's financial assets and liabilities at fair value through profit or loss, at 31 December 2024:

Financial liabilities at fair value through profit or loss are classified as level 2 on the basis that they relate to policies investing in financial assets at fair value through profit or loss.

Level 3 sensitivity to changes in unobservable measurements

Significant unobservable inputs are developed as follows:

Underlying Volatility

A reconciliation between opening and closing balances of Level 3 assets is presented in the table below:

During the period under review, £1.5m of assets were transferred into Level 3, reflecting that the value of these assets was no longer based on observable market data or inputs. Separately £0.9m of assets were transferred out of Level 3 where they were again able to be valued based on observable market data or inputs. Unrealised losses include additional fair value impairments to a range of assets in liquidation which have resulted in £nil of bad debt provisions being made to fees and other receivables as shown in note 7.

Within Investment and other operating income, the Group has recognised gains of £3.2m attributable to Level 3 assets noted above. These assets are classed as financial investments held to cover liabilities under investment contracts (note 13).

5 Segmental information

Disclosure of operating segments in these condensed consolidated financial statements is consistent with reports provided to the Chief Operating Decision Maker ("CODM") which, in the case of the Group, has been identified as the Executive Committee of Hansard Global plc.

The following table analyses NICC geographically and reconciles NICC to direct origination costs during the period as set out in section 5 of the Business and Financial Review.

* Hansard Worldwide, which is based in the Bahamas, fully reinsures its business to Hansard International. All external fees and commissions for Hansard Worldwide are therefore presented within the Isle of Man category. Fees shown in respect of Hansard Worldwide represent fees received from Hansard International.

5.2 Geographical analysis of profit / (loss) before taxation

* Includes assets held in the Isle of Man in connection with policies written in The Bahamas. As at 31 December 2024 these amounted to £278.2m (31 December 2023: £203.2m).

5.4 Geographical analysis of gross liabilities

8 Taxation

Taxation is based on profit and income for the period as determined with reference to the relevant tax legislation in the countries in which the Company and its subsidiaries operate. Tax payable is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Tax is recognised in the consolidated statement of comprehensive income except to the extent that it relates to items recognised in equity. Tax on items relating to equity is recognised in equity.

The corporation tax expense for the Group for H1 2025 was £0.1m on a rounded basis (H1 2024: £0.1m). Corporation tax is charged on any profits arising at the following rates depending on location of the company or branch:

Isle of Man 0% (2023: 0%)

Republic of Ireland 12.5% (2023: 12.5%)

Japan 23.2% (2023: 23.2%)

Labuan 24% (2023: 24%)

The Bahamas 0% (2023: 0%)

No deferred tax asset is currently being recorded in relation to losses arising in Hansard Europe.

The OECD's Pillar II global minimum tax, based on the Global Anti-Base Erosion (GloBE) Model Rules, is not expected to have an impact on the Group, as the Group's total revenue is less than €750m.

9 Earnings per share

The Directors believe that there is no material difference between the weighted average number of shares in issue for the purposes of calculating either basic or diluted earnings per share. Earnings under either measure are 0.3 pence per share (H1 2024: 2.9p).

10 Dividends

The following dividends have been paid by the Group during the period:

The Board have resolved to pay an interim dividend of 1.8p per share. This amounts to £2.5m and will be paid on 24 April 2025 to shareholders on the register at 13 March 2025.

11 Intangible assets and property, plant and equipment

Intangible assets

The intangible asset relates to capitalised costs associated with the development of a replacement policy administration system. The system went live in early March 2024, at which point amortisation has commenced over its estimated Useful Economic Life.

Property, plant and equipment

Property, plant and equipment includes both tangible fixed assets and 'right of use assets' recognised in accordance with IFRS 16.

IFRS 16 - Leases

During the period to 31 December 2024, there were no changes to lease terms for any of the Group's Leases recognised under IFRS 16 and the Group did not enter into any new leases or lease extensions. The weighted average borrowing rate applied to the lease liabilities at 31 December 2024 was 7.0% (31 December 2023: 7.0%).

The recognition of the right-of-use asset represents an increase in the property, plant and equipment figure of £2.1m (31 December 2023: £2.3m). Lease liabilities relating to the right-of-use asset are included within other payables. The interest recognised on the lease liabilities in respect of the right of use asset was £0.1m (31 December 2023: less than £0.1m).

During the year ended 30 June 2021, the Group entered into a sub-lease for part of a building that is reported as a right-of-use asset. The group has classified the sub-lease as an operating lease, as it does not transfer substantially all of the risks and rewards incidental to the ownership of the sub-let asset. During the period ending 31 December 2024, the Group recognised rental income of less than £0.1m (31 Dec 2023: less than £0.1m).

12 Deferred origination costs

The movement in value over the period under review is summarised below.

13 Financial investments held to cover liabilities under investment contracts

Loans and receivables are financial assets with fixed or determinable payments that are not quoted on an active market. Loans and receivables consist, primarily, of contract fees receivable, long-term cash deposits (i.e., with an original maturity duration greater than three months) and cash and cash equivalents.

The other receivables and other payables' fair value approximates amortised cost.

14 Deferred income

Fees charged for services related to the management of investment contracts are recognised as revenue as the services are provided. Initial fees which exceed the level of recurring fees and relate to the future provision of services are deferred. These are amortised over the anticipated period in which services will be provided. The recognition of balances in the deferred income reserve is based on actuarial assumptions around future income over the life of each policy. These actuarial assumptions are complex in nature and are subject to estimation uncertainty. The actuarial assumptions are reviewed regularly by the Appointed Actuary.

The movement in value of deferred income over the period is summarised below:

With the exception of the lease liabilities shown in note 11, and the provisions referred to above, all other payable balances, including amounts due to contract holders, are deemed to be current. Due to the short-term nature of these payables the carrying value is considered to reflect fair value.

17 Called up share capital

Included within other reserves is an amount representing 863,700 (2024: 1,182,101) ordinary shares held by the Group's employee benefit trust ('EBT') which were acquired at a cost of £0.6m (see note 19). The ordinary shares held by the trustee of the Group's employee benefit trust are treated as treasury shares in the consolidated balance sheet in accordance with IAS 32 ''Financial Instruments: Presentation''.

19 Equity settled share-based payments

The Company has established a number of equity-based payment programmes for eligible employees. The fair value of expected equity-settled share-based payments under these programmes is calculated at date of grant using the market value of the shares at the date granted and is amortised over the vesting period on a straight-line basis through the consolidated statement of comprehensive income. A corresponding amount is credited to equity over the same period.

At each balance sheet date, the Group reviews its estimate of the number of shares granted that are expected to be exercised. The impact of any revision in the number of shares granted is recognised in the consolidated statement of comprehensive income so that the charge to the consolidated statement of comprehensive income is based on the number shares that actually vest. A corresponding adjustment is made to equity.

19.1 Incentive Plan Employee Benefit Trust

An Employee Benefit Trust was established in February 2018 to hold shares awarded to employees as an incentive on a deferred basis. Shares awarded under the scheme are purchased by the Trust in the open market and held until vesting. Awards made under the scheme would normally vest after three years.

The Trust has been funded by way of a loan, and as at 31 December 2024 the outstanding balance on the loan was £554,000 (2023: £554,000).

During the period the expense arising from share-based payment transactions was £148,000 (2023: £82,000).

20 Related party transactions

Intra-group transactions are eliminated on consolidation and are not disclosed separately here.

There have been no significant related party transactions in the period, nor changes to related parties. Related party transactions affecting the results of previous periods and an understanding of the Group's financial position at previous balance sheet dates are as disclosed in the Annual Report & Accounts for the year ended 30 June 2024.

Details of any share-based transactions with employees during the period are set out in note 19.

21 Contingent liabilities

21.1 Litigation

As reported previously, the Group has been subject to a number of complaints in relation to the selection and performance of assets linked to contracts. The Group has been served with a number of writs arising from such complaints and other asset-related issues. Most of the writs relate to historic business written prior to the closure to new business of Hansard Europe in 2013, with some relating to Hansard International Limited. Most of the cases have arisen in Italy, with a smaller number in Belgium and Germany

As at 30 June 2024, the Group had been served with cumulative writs with a net exposure totalling €23.8m, or £20.2m in sterling terms (30 June 2023: €26.1m / £22.4m) arising from contract holder complaints and other asset performance-related issues. The corresponding figure as at 31 December 2024 was €24.1m or £20.0m (31 December 2023: €25.2m or £22.0m).

We have previously noted that we expect a number of our larger claims and litigation costs to ultimately be covered by our Group insurance cover. During the period to 31 December 2024, we recorded £0.5m in insurance recoveries in relation to litigation expenses (31 December 2023: £0.7m). We expect such reimbursement to continue during the course of those claims.

While it is not possible to forecast or determine the final results of pending or threatened legal proceedings, based on the pleadings and advice received from the Group's legal representatives, the Directors believe that the Group has strong defences to such claims. Notwithstanding this, there may be circumstances where in order to avoid the expense and distraction of protracted litigation the Board may consider it in the best interests of the Group and its shareholders to reach a commercial resolution with regard to certain of these claims. Where an established pattern of settlement is established for any grouping of claims, a provision for expected future settlements is made in line with IAS 37.

At this time, it is not possible to make any further estimates of liability.

Between 31 December 2024 and the date of this report, there have been no material developments.

21.2 Isle of Man Policyholders Compensation Scheme

22 Foreign exchange rates

The closing exchange rates used by the Group for the translation of balance sheet items to sterling were as follows:

23 Events after the reporting period

This report for the period ended 31 December 2024 was approved for issue on 5 March 2024. No other material events have occurred between the reporting date and the issue date that require disclosure under IAS 10.

INDEPENDENT REVIEW REPORT TO HANSARD GLOBAL PLC

Conclusion

We have been engaged by Hansard Global Plc (the "Company") to review the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 31 December 2024 of the Company and its subsidiaries (together, the "Group"), which comprises the statement of financial position, the statement of comprehensive income, the statement of changes in equity, the statement of cash flows and the related explanatory notes.

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of consolidated financial statements in the half-yearly financial report for the six months ended 31 December 2024 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

Scope of review

Conclusions relating to going concern

Directors' responsibilities

As disclosed in note 2, the annual consolidated financial statements of the Group are prepared in accordance with UK-adopted international accounting standards. The directors are responsible for preparing the condensed set of consolidated financial statements included in the half-yearly financial report in accordance with IAS 34 Interim Financial Reporting.

INDEPENDENT REVIEW REPORT TO HANSARD GLOBAL PLC (continued)

Our responsibility

The purpose of our review work and to whom we owe our responsibilities

KPMG Audit LLC

Chartered Accountants

Heritage Court

41 Athol Street

Douglas

Isle of Man

IM1 1LA

Risk Based Solvency Capital

Risk Based Solvency capital position at 31 December 2024

The Group is subject to the Isle of Man (Insurance Group) Supervision Regulations 2019.

It has adopted the default consolidated accounts method ("Method 1") to calculate the Group Solvency Capital Requirement ("SCR") and Own Funds as required by these regulations.

The Group shareholder Risk Based Solvency surplus at 31 December 2024 was £34.3m (30 June 2024: £39.4m), before allowing for payment of the 2025 interim dividend. All Risk Based Solvency and related data presented in this section is subject to change prior to submission to regulatory authorities.

Totals may differ due to rounding

All Own Funds are considered Tier 1 capital.

The following table analyses the components of Own Funds:

Own Funds decreased due to the H1 IFRS result and dividend payments.

Analysis of movement in Group capital position

A summary of the movement in Group Risk Based Solvency surplus from £39.4m at 30 June 2024 to £34.3m at 31 December 2024 is set out in the table below.

The movement in Group Risk Based Solvency surplus in the first half of the 2025 financial year was the result of dividends paid and operating experience, offset by changes in assumptions.

New business written had a negative £0.4m (H1 2024: negative £0.1m) impact on Own Funds for the period.

Analysis of Group Solvency Capital Requirements

The analysis of the Group's Solvency Capital Requirement by risk type is as follows:

• Reconciliation of IFRS equity to Group Risk Based Solvency Shareholder Own

Funds

** Other is related to Intangible Assets not recognised on the solvency balance sheet.

Sensitivity analysis

The sensitivity of the Own Funds to significant changes in market conditions is as follows: