Company registration number 06738633 (England and Wales)
PDL FINANCE LIMITED T/A MR LENDER
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
PDL FINANCE LIMITED T/A MR LENDER
COMPANY INFORMATION
Directors
A Freeman
E Nisbet
J Grant
D Shrier
Company number
06738633
Registered office
2 Leman Street
London
United Kingdom
E1W 9US
Auditor
Gravita II LLP
Aldgate Tower
2 Leman Street
London
E1 8FA
Business address
Freeman House
Langston Road
Loughton
IG10 3TQ
PDL FINANCE LIMITED T/A MR LENDER
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
PDL FINANCE LIMITED T/A MR LENDER
STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 December 2023.

 

Principal Activities and Business Review

 

The principal activity of the company is the provision of short-term loans.

Review of the business

In 2023 the aim and focus was to continue portfolio growth, whilst ensuring the customers continued to receive a high standard of customer services.

 

The number of active customers increased by 45% in the year and the financial statements give insight in the positive impact that this growth has had on the business.

 

In the year to 30 December 2023:

 

 

 

 

 

The directors were pleased with the positive performance in 2023. Not only were the financials in line with expectation, the further customer centric culture drive, resulted in 96% of accounts monitored, receiving good customer outcomes with the business continuing to receive extensive positive customer reviews totalling over 37,000 at Reviews.co.uk, Trustpilot.com and Google.com combined.

Financial Risk Management, Objectives and Policies

The company is exposed to a moderate level of price, credit, liquidity and cash flow risks. The company manages these risks by financing its operations through retained profits supplemented by borrowing where necessary to fund expansion or capital expenditure programs.

 

The management objective is to retain sufficient liquid funds via retained earnings, enabling the company to meet its day-to-day funding requirements, whilst minimising the risk of fluctuating interest rates on external borrowings.

 

The company makes little use of financial instruments other than an operational bank account and the facility to loan from its parent company SDJ Enterprise Limited where required. Therefore, its exposure to price, credit, liquidity and cash flow risk is not material for the assessment of assets, liabilities, financial position and profit and loss of the company.

Regulatory, Political and Legal Risk Management and Policies

The company is regulated by the FCA, therefore has a high level of exposure to potential regulatory, political and legal risks.

 

If the company fail to comply with any laws, regulations, rules or codes relating to the consumer credit industry it could potentially be fined by the FCA or expose the company to negative publicity which would in turn have a negative impact on the business.

 

Controls, systems and processes have been developed to manage these risks. These include monitoring regulatory and legal changes, developing appropriate compliance policies, monitoring adherence to these policies and reporting accordingly, as well as regular monitored compliance training for all employees.

 

 

PDL FINANCE LIMITED T/A MR LENDER
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 2 -
Going Concern

The company’s cash requirements for the next twelve months are adequately resourced to continue their operations and to meet all liabilities.

 

On behalf of the board

A Freeman
Director
11 October 2024
PDL FINANCE LIMITED T/A MR LENDER
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 December 2023.

Principal activities

The principal activity of the company continued to be the provision of short term loans.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,956,832 (2022: £1,595,750). The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Freeman
E Nisbet
J Grant
D Shrier
Research and development

The company continues to invest in the development of its website and software. The directors regard the investment in research and development as integral to the continuing success of the business and ensuring customers' needs and requirements as well as internal reporting needs are met.

Future developments

The company seeks continued growth through both marketing and enhanced service offering.

Auditor

In accordance with the company's articles, a resolution proposing that Gravita II LLP (formerly Gravita ABG LLP) be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PDL FINANCE LIMITED T/A MR LENDER
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Auditors

On 17 August 2023 our auditors changed their name to Gravita II LLP.

 

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
A Freeman
Director
11 October 2024
PDL FINANCE LIMITED T/A MR LENDER
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PDL FINANCE LIMITED T/A MR LENDER
- 5 -
Opinion

We have audited the financial statements of PDL Finance Limited t/a Mr Lender (the 'company') for the year ended 30 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PDL FINANCE LIMITED T/A MR LENDER
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PDL FINANCE LIMITED T/A MR LENDER
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

PDL FINANCE LIMITED T/A MR LENDER
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PDL FINANCE LIMITED T/A MR LENDER
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Wilson FCA
Senior Statutory Auditor
For and on behalf of Gravita II LLP
11 October 2024
Chartered Accountants
Statutory Auditor
Aldgate Tower
2 Leman Street
London
E1 8FA
PDL FINANCE LIMITED T/A MR LENDER
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
31,418,519
19,591,468
Cost of sales
(1,298,162)
(1,110,821)
Gross profit
30,120,357
18,480,647
Administrative expenses
(20,021,456)
(15,158,744)
Operating profit
4
10,098,901
3,321,903
Interest payable and similar expenses
7
(489,432)
(152,921)
Amounts written off investments
-
(377,351)
Profit before taxation
9,609,469
2,791,631
Tax on profit
8
(2,251,646)
(289,354)
Profit for the financial year
7,357,823
2,502,277

The Statement Of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

PDL FINANCE LIMITED T/A MR LENDER
STATEMENT OF FINANCIAL POSITION
AS AT
30 DECEMBER 2023
30 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
8,024
8,024
Tangible assets
11
128,888
96,950
136,912
104,974
Current assets
Debtors
12
19,062,796
13,551,082
Cash at bank and in hand
3,218,239
2,266,144
22,281,035
15,817,226
Creditors: amounts falling due within one year
13
(3,456,288)
(2,260,689)
Net current assets
18,824,747
13,556,537
Total assets less current liabilities
18,961,659
13,661,511
Creditors: amounts falling due after more than one year
14
(2,756,833)
(1,857,676)
Net assets
16,204,826
11,803,835
Capital and reserves
Called up share capital
17
2,250
2,250
Share premium account
18
1,701,727
1,701,727
Profit and loss reserves
14,500,849
10,099,858
Total equity
16,204,826
11,803,835

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 11 October 2024 and are signed on its behalf by:
A Freeman
Director
Company registration number 06738633 (England and Wales)
PDL FINANCE LIMITED T/A MR LENDER
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
2,250
1,701,727
9,193,331
10,897,308
Year ended 30 December 2022:
Profit and total comprehensive income
-
-
2,502,277
2,502,277
Dividends
9
-
-
(1,595,750)
(1,595,750)
Balance at 30 December 2022
2,250
1,701,727
10,099,858
11,803,835
Year ended 30 December 2023:
Profit and total comprehensive income
-
-
7,357,823
7,357,823
Dividends
9
-
-
(2,956,832)
(2,956,832)
Balance at 30 December 2023
2,250
1,701,727
14,500,849
16,204,826
PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

PDL Finance Limited t/a Mr Lender is a private company limited by shares incorporated in England and Wales. The registered office is 2 Leman Street, London, United Kingdom, E1W 9US. The principal place of business is Freeman House, Langston Road, Loughton, IG10 3TQ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of SDJ Enterprises Limited. These consolidated financial statements are available from its registered office, 2 Leman Street, London, United Kingdom, E1W 9US.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The turnover shown in the profit and loss account represents interest receivable on short term loans made during the period and amounts invoiced to affiliates on the sale of debts and customer leads.

 

Interest receivable is accrued daily over the life of the loan.

 

Amounts invoiced on the sale of debts and customer leads are recognised at point of sale to a third party.

 

1.4
Intangible fixed assets other than goodwill

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

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website design and build
3 years on a straight line basis
Trademark
10 years on a straight line basis
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
33.3% on a straight line basis
Computer equipment
33.3% on a straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Taxation

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

Current tax

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the statement of comprehensive income for the period.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Loan capital written off

Loan capital is written off a set number of days after the missed due date. It is assumed that if a customer has not paid by this time the amount owing is unlikely to be paid. The directors review this in detail on a regular basis to ensure that it reasonably reflects the practical recoverability of loan capital issued.

Accrued income

There are 3 sources of accrued income; loans issued at the year end but paid post year end; loans funded in December with the first payment due post year end; loans due at the year end but paid post year end. Reports are extracted 3 months post year end and accrued income is calculated by multiplying the number of days overdue with the daily interest charged.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Interest income on short term loans
29,946,217
18,549,224
Sale of debts and leads
1,472,302
1,042,244
31,418,519
19,591,468
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(141,295)
(37,793)
Fees payable to the company's auditor for the audit of the company's financial statements
67,993
58,945
Depreciation of owned tangible fixed assets
76,644
119,586
Operating lease charges
537,265
493,800
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Operations
82
70
Administrative
27
25
Total
109
95
PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
5
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,380,895
4,307,781
Social security costs
651,646
523,009
Pension costs
69,742
56,208
6,102,283
4,886,998
6
Directors' remuneration

During the year the directors remuneration for qualifying services was £1,775,023 (2022 : £1,221,494). This amount included company pension contributions to defined contribution schemes of £5,283 (2022 : £5,283).

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 : 4).

The total remuneration included the following amounts paid to the highest paid director being remuneration for qualifying services of £924,886 (2022 : £558,300) and company pension contributions to defined contribution schemes of £1,321 (2022 : £1,321).

 

7
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
489,432
151,517
Other interest
-
0
1,404
489,432
152,921
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,251,646
539,116
Adjustments in respect of prior periods
-
0
(249,762)
Total current tax
2,251,646
289,354

The tax rate increased on 1st April 2023 from 19% to 25%. Therefore the average tax rate used for the year is 23.5%.

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
8
Taxation
(Continued)
- 17 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
9,609,469
2,791,631
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
2,258,225
530,410
Tax effect of expenses that are not deductible in determining taxable profit
2,768
6,550
Adjustments in respect of prior years
-
0
(249,762)
Capital allowances in excess of depreciation
(9,347)
2,156
Taxation charge for the year
2,251,646
289,354
9
Dividends
2023
2022
£
£
Final paid
2,956,832
1,595,750
10
Intangible fixed assets
Website design and build
Trademark
Total
£
£
£
Cost
At 31 December 2022 and 30 December 2023
246,446
8,024
254,470
Amortisation and impairment
At 31 December 2022 and 30 December 2023
246,446
-
0
246,446
Carrying amount
At 30 December 2023
-
0
8,024
8,024
At 30 December 2022
-
0
8,024
8,024
PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 18 -
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 31 December 2022
702,643
591,228
1,293,871
Additions
80,646
27,936
108,582
At 30 December 2023
783,289
619,164
1,402,453
Depreciation and impairment
At 31 December 2022
651,497
545,424
1,196,921
Depreciation charged in the year
45,797
30,847
76,644
At 30 December 2023
697,294
576,271
1,273,565
Carrying amount
At 30 December 2023
85,995
42,893
128,888
At 30 December 2022
51,146
45,804
96,950
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
15,157,472
10,447,649
Unpaid share capital
1,500,000
1,500,000
Other debtors
-
0
163,174
Prepayments and accrued income
2,130,346
1,440,259
18,787,818
13,551,082
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
274,978
-
0
Total debtors
19,062,796
13,551,082
PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 19 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
564,183
535,156
Amounts owed to group undertakings
384,736
621,336
Corporation tax
1,661,108
443,924
Other taxation and social security
466,066
347,614
Other creditors
20,298
1,610
Accruals and deferred income
359,897
311,049
3,456,288
2,260,689
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
2,756,833
1,857,676
15
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
3,141,569
2,479,012
Payable within one year
384,736
621,336
Payable after one year
2,756,833
1,857,676

The loan represents amounts drawn under a line of credit on which interest is payable at 15% per annum.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,742
56,208

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 20 -
17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A of £1 each
500
500
500
500
Ordinary B of £1 each
1,500
1,500
1,500
1,500
Ordinary C of £1 each
250
250
250
250
2,250
2,250
2,250
2,250

All classes of shares have full rights in respect of voting, dividend and capital distribution (including on winding up). None of the classes of shares confers any right of redemption.

On 14 March 2018 the company issued 250 Ordinary C Shares of £1 each at £6,000 per share. This remains unpaid, see Note 12.

18
Share premium account

Consideration received for shares issued above their nominal value net of transaction costs.

19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
493,800
493,800
Between two and five years
1,975,200
1,975,200
In over five years
344,984
838,784
2,813,984
3,307,784
PDL FINANCE LIMITED T/A MR LENDER
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2023
- 21 -
20
Related party transactions

During the year, the company saw an increase in the loan from its parent company. Interest is charged at 15% and £489,432 (2022: £151,517) in interest was charged and paid in the year. At the year end, the company owed £3,141,569 (2022: £2,479,012)

 

During the year, the company incurred expenditure of £(37,500) (2022: £134,171) to entities in which the directors of the parent entity have an interest for purchases made. In the prior year, this included an over accrual of £37,500 which was reversed out in the current year, resulting in a negative balance. The company made an increase in the loan only. At the balance sheet date, the company was owed £274,978 (2022: £150,000) by these entities.

 

During the year, the company made donations of £43,167 (2022: £14,975) to Lenderhand, a charity in which two of the directors are trustees.

 

During the year, the company paid the following dividends;

•    £834,484 (2022: £450,321) to directors and entities in which directors have an interest.

•    £2,122,348 (2022: £1,145,429) to the parent company, SDJ Enterprises Limited.

21
Ultimate controlling party

The immediate and ultimate parent company is SDJ Enterprises Limited, whose registered office is Ashdon House, Second Floor, Moon Lane, Barnet, EN5 5YL.

 

The smallest and largest group for which consolidated accounts including the company are prepared is the one headed by SDJ Enterprises Limited; these accounts are available from the registered office.

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