Caseware UK (AP4) 2023.0.135 2023.0.135 2024-09-302024-09-302023-10-01trueThe principal activity of the Company was the provision, origination and servicing of Consumer Finance lending products via a network of brokers, retailers and suppliers, to private individuals for a variety of specific products, such as home improvements, installation of renewable energy measures or the purchase of a static caravan as a holiday home.The Company is authorised and regulated by the Financial Conduct Authority to enter into regulated consumer credit agreements as the lender.2618truetrue 10965808 2023-10-01 2024-09-30 10965808 2022-10-01 2023-09-30 10965808 2024-09-30 10965808 2023-09-30 10965808 c:Director3 2023-10-01 2024-09-30 10965808 d:Buildings d:LongLeaseholdAssets 2023-10-01 2024-09-30 10965808 d:Buildings d:LongLeaseholdAssets 2024-09-30 10965808 d:Buildings d:LongLeaseholdAssets 2023-09-30 10965808 d:FurnitureFittings 2023-10-01 2024-09-30 10965808 d:FurnitureFittings 2024-09-30 10965808 d:FurnitureFittings 2023-09-30 10965808 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 10965808 d:ComputerEquipment 2023-10-01 2024-09-30 10965808 d:ComputerEquipment 2024-09-30 10965808 d:ComputerEquipment 2023-09-30 10965808 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 10965808 d:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 10965808 d:CurrentFinancialInstruments 2024-09-30 10965808 d:CurrentFinancialInstruments 2023-09-30 10965808 d:Non-currentFinancialInstruments 2024-09-30 10965808 d:Non-currentFinancialInstruments 2023-09-30 10965808 d:CurrentFinancialInstruments d:WithinOneYear 2024-09-30 10965808 d:CurrentFinancialInstruments d:WithinOneYear 2023-09-30 10965808 d:Non-currentFinancialInstruments d:AfterOneYear 2024-09-30 10965808 d:Non-currentFinancialInstruments d:AfterOneYear 2023-09-30 10965808 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2024-09-30 10965808 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-09-30 10965808 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2024-09-30 10965808 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-09-30 10965808 d:ShareCapital 2024-09-30 10965808 d:ShareCapital 2023-09-30 10965808 d:RetainedEarningsAccumulatedLosses 2024-09-30 10965808 d:RetainedEarningsAccumulatedLosses 2023-09-30 10965808 c:OrdinaryShareClass2 2023-10-01 2024-09-30 10965808 c:OrdinaryShareClass2 2024-09-30 10965808 c:OrdinaryShareClass2 2023-09-30 10965808 c:EntityHasNeverTraded 2023-10-01 2024-09-30 10965808 c:FRS102 2023-10-01 2024-09-30 10965808 c:Audited 2023-10-01 2024-09-30 10965808 c:FullAccounts 2023-10-01 2024-09-30 10965808 c:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 10965808 d:Subsidiary1 2023-10-01 2024-09-30 10965808 d:Subsidiary1 1 2023-10-01 2024-09-30 10965808 c:SmallCompaniesRegimeForAccounts 2023-10-01 2024-09-30 10965808 6 2023-10-01 2024-09-30 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 10965808









PROPENSIO FINANCE LIMITED









FINANCIAL STATEMENTS

INFORMATION FOR FILING WITH THE REGISTRAR

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
PROPENSIO FINANCE LIMITED
REGISTERED NUMBER: 10965808

STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
As restated 2023
Note
£
£

Fixed assets
  

Tangible assets
 3 
104,337
80,746

Investments
 4 
100
100

  
104,437
80,846

Current assets
  

Debtors: amounts falling due after more than one year
 5 
1,048,792
1,165,522

Debtors: amounts falling due within one year
 5 
15,971,209
10,619,692

Cash at bank and in hand
  
59,740
907,099

  
17,079,741
12,692,313

Creditors: amounts falling due within one year
 6 
(739,216)
(617,817)

Net current assets
  
 
 
16,340,525
 
 
12,074,496

Total assets less current liabilities
  
16,444,962
12,155,342

Creditors: amounts falling due after more than one year
 7 
(18,011,263)
(13,559,416)

Provisions for liabilities
  

Provisions
  
(30,000)
(30,000)

  
 
 
(30,000)
 
 
(30,000)

Net liabilities
  
(1,596,301)
(1,434,074)


Capital and reserves
  

Called up share capital 
 9 
100
100

Profit and loss account
  
(1,596,401)
(1,434,174)

  
(1,596,301)
(1,434,074)


Page 1

 
PROPENSIO FINANCE LIMITED
REGISTERED NUMBER: 10965808
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2024

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The Company has opted not to file the profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A G Lunt
Director

Date: 27 January 2025

The notes on pages 3 to 12 form part of these financial statements.

Page 2

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

The principal activity of Propensio Finance Limited ("the Company") was the provision, origination and servicing of Consumer Finance lending products via a network of brokers, retailers and suppliers, to private individuals for a variety of specific products, such as home improvements, installation of renewable energy measures or the purchase of a static caravan as a holiday home.
The Company is limited by shares and is registered in England and Wales. The Registered Office is Building 3, Callflex Business Park, Golden Smithies Lane, Wath-Upon-Dearne, Rotherham, South Yorkshire, S63 7ER.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ("FRS 102") and the Companies Act 2006.

 
2.2

Exemption from preparing consolidated financial statements

The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.

 
2.3

Going concern

The financial statements have been prepared on the going concern basis. The director has considered the loss for the year, the Statement of Financial Position at the accounting date and reviewed forecasts and is satisfied the Company is in a position to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.
As at the year end, the Company made a loss of £162,227 (2023: profit £88,877), and had net liabilities of £ 1,596,301 (2023: £ 1,434,074).
From shareholder entities, there was £580k of undrawn capital ready to be deployed from the QCL entity as at 30th September 2024 with plans during the first half of the financial year 2024/25 to add a further £2m, to the current £6m facility. Plus unused capacity of £8.120m remaining to be drawn from the QSOL entity both of which will support the additional senior bank facilities that the Company has during the next financial year. The loan book continues to grow strongly, and the Company is projecting for the 2024/25 financial year to be profitable.
Whilst Net Asset Value is still negative at 30th September 2024 this has been driven via further investment into the business to allow growth in the coming years.  With a budget now for the 24/25 year suggesting the business will be profitable and the longer view showing a path to continued profitability the negative net asset value should be reversed in the short to medium term.
In summary the business is well capitalised and set up to support long-term growth for the foreseeable future.

Page 3

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: 
Interest Income
Interest on loans is calculated using the effective interest method which allocates any interest, fees and subsidies receivable over the expected life of the assets and represents the return on credit risk faced by the entity. The effective interest method requires the Company to estimate future cashflows, in some cases based on experience of behaviour, the terms of the loan agreement and the expected lives of the receivables. 
The effective interest rate is calculated at the time of initiating the loan facility and the calculation is based on estimating future cash flows over the shorter of the contractual life of the loan or the expected behavioural life. The expected life assumptions utilise repayment profiles to represent how borrowers are expected to repay.
Service Income
The income accrues monthly and relates to the management fee recharged to Propensio Receivable Limited. The amount is derived from the apportionment of the operating expenses, by the portion of the total interest, of both entities, which relates to Propensio Receivable Limited.
 

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Borrowing costs

All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 4

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
10%
Fixtures and fittings
-
20% to 33%
Computer equipment
-
20% to 33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of income and retained earnings.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.11

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, and, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the prevent value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
 
Page 5

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.

Page 6

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.


Tangible fixed assets





Long-term leasehold property
Fixtures and fittings
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2023
59,414
25,806
23,733
108,953


Additions
-
17,497
25,007
42,504



At 30 September 2024

59,414
43,303
48,740
151,457



Depreciation


At 1 October 2023
5,446
9,929
12,832
28,207


Charge for the year on owned assets
6,064
6,079
6,770
18,913



At 30 September 2024

11,510
16,008
19,602
47,120



Net book value



At 30 September 2024
47,904
27,295
29,138
104,337



At 30 September 2023
53,968
15,877
10,901
80,746

Page 7

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 October 2023
100



At 30 September 2024
100





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Propensio Receivables Limited
Building 3, Callflex Business Park, Golden Smithies Lane, Wath-Upon-Dearne, Rotherham, South Yorkshire, S63 7ER
The ring-fencing of consumer loan receivables that support the senior funding facility provided by Nat West Bank.
Ordinary
100%

Page 8

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Debtors

2024
2023
£
£

Due after more than one year

Loans receivable
1,037,608
1,154,338

Other debtors
11,184
11,184

1,048,792
1,165,522


2024
2023
£
£

Due within one year

Trade debtors
315,322
268,445

Amounts owed by group undertakings
15,398,843
10,211,400

Prepayments and accrued income
257,044
139,847

15,971,209
10,619,692


Loans receivable are stated net of provisions. The total provision at the period end is £ 396,170 (2023: £40,994).


6.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Bank loans
297,764
278,755

Trade creditors
74,611
55,111

Other taxation and social security
42,623
-

Other creditors
72,657
79,911

Accruals and deferred income
251,561
204,040

739,216
617,817


Page 9

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

7.


Creditors: Amounts falling due after more than one year

As restated
2024
2023
£
£

Bank loans
179,915
471,014

Other loans
17,300,000
12,556,665

Other creditors
531,348
531,737

18,011,263
13,559,416



8.


Loans


Analysis of the maturity of loans is given below:


As restated
2024
2023
£
£

Amounts falling due within one year

Bank loans
297,764
278,755


297,764
278,755

Amounts falling due 1-2 years

Bank loans
177,440
297,764


177,440
297,764

Amounts falling due 2-5 years

Bank loans
2,475
173,251

Other loans
17,300,000
12,556,665


17,302,475
12,729,916


17,777,679
13,306,435


The total secured balance as at the reporting date is £ 17,761,014 (2023: £13,279,769) and is secured over the assets of the Company.
The director considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values. 

Page 10

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100,000 (2023 - 100,000) Ordinary shares of £0.001 each
100
100



10.


Contingent liabilities

The company has provided a cross guarantee by way of a fixed and floating charge over the assets of this company to National Westminster Bank plc in respect of loans advanced to the subsidiary undertaking, Propensio Receivables Limited. The balance outstanding at the year-end totalled £55,476,252 (2023: £37,952,272). 


11.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £NIL (2023 - £3,147) were payable to the fund at the reporting date and are included in creditors.


12.


Related party transactions

Where possible, the Company has taken advantage of the exemptions in Section 33.1A of FRS 102 not to disclose transactions with other wholly-owned group undertakings.
Included within creditors falling due after more than one year is a balance of £17,831,348 (2023: £13,081,737 due to a company under common control.
During the year, a total of £2,129,126 (2023: £ 1,282,168) of interest was charged to the Company by a company under common control.
Included within other creditors is a balance of £ 50,000 (2023: £ 50,000) owed to a director. This balance is unsecured with no fixed repayment terms.


13.


Prior Year Adjustment

The comparative information in these financial statements has been restated from the figures as previously reported.

Bank loans falling due within one year have increased by £268,755 with a corresponding decrease in bank loans falling due after more than one year.

There has been no change to either net results or net assets as previously reported as a result of this presentational prior year adjustment.


Page 11

 
PROPENSIO FINANCE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Auditors' information

The auditors' report on the financial statements for the year ended 30 September 2024 was unqualified.

The audit report was signed on 27 January 2025 by David Landau FCA (Senior Statutory Auditor) on behalf of BKL Audit LLP.

 
Page 12