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Registration number: 14566089

Morley Capital LTD

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2025

 

Morley Capital LTD

Contents

Company Information

1

Director's Report

2 to 3

Balance Sheet

4

Statement of Changes in Equity

5

Notes to the Unaudited Financial Statements

6 to 11

 

Morley Capital LTD

Company Information

Director

Mr Dean Morley

Registered office

S10.B Evolve Business Centre
Cygnet Way
Houghton Le Spring
DH4 5QY

Accountants

Mr Lee Thomson ACA AIMS Accountants for Business
11a Front Street
Monkseaton
NE25 8AN

 

Morley Capital LTD

Director's Report for the Year Ended 30 June 2025

The director presents his report and the financial statements for the year ended 30 June 2025.

Director of the company

The director who held office during the year was as follows:

Mr Dean Morley

Principal activity

The principal activity of the company is The principal activity of the company during the year continued to be short-term business lending to small and medium-sized enterprises across the United Kingdom.

Business Review

The company delivered strong growth during the period and established a solid position in the market, further expanding its broker network. Toward the end of the financial year, the company launched its internal brokerage, enabling it to attract direct customer applications alongside broker-led business.

The company also implemented its proprietary SmartDecision software, which uses artificial intelligence to provide applicants and brokers with a real-time acceptance likelihood rating based on the company’s evolving credit policy. This initiative has already begun to enhance underwriting efficiency and improve broker engagement.

Financial Performance

For the financial year ended 30 June 2025, the company generated a pre-tax profit of £1.2 million. A dividend of £130,000 was declared and paid in March 2025.

Bad debt performance remained within forecast, with actual write-offs performing in line with the board’s provisioning policy, which is calculated as a percentage of loan originations. The directors are pleased with the overall financial performance and resilience of the portfolio.

The company operated with a leverage ratio of approximately 28.5% against the gross loan book through its wholesale funding partners, reflecting prudent financial management and a strong equity position.

EBITDA for the year was £1.5 million, delivering a net margin of approximately 36%.

To ensure adequate reserves are retained by the company the directors increased share capital to £100,000.

Post-Year-End Developments and Outlook

The directors forecast significant further growth for the 2025–26 financial year. This is underpinned by continued investment in the company’s internal systems, its growing UK team, and the integration of artificial intelligence across key decision-making functions. The directors believe the business is well-positioned to scale while maintaining credit discipline and operational efficiency.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 15 July 2025
 

 

Morley Capital LTD

Director's Report for the Year Ended 30 June 2025

.........................................
Mr Dean Morley
Director

 

Morley Capital LTD

(Registration number: 14566089)
Balance Sheet as at 30 June 2025

Note

2025
£

2024
£

Fixed assets

 

Tangible assets

4

3,202

1,319

Current assets

 

Debtors

5

5,507,368

1,617,397

Cash at bank and in hand

 

54,212

111,995

 

5,561,580

1,729,392

Creditors: Amounts falling due within one year

6

(4,459,807)

(1,385,573)

Net current assets

 

1,101,773

343,819

Total assets less current liabilities

 

1,104,975

345,138

Creditors: Amounts falling due after more than one year

6

(50,020)

(50,020)

Net assets

 

1,054,955

295,118

Capital and reserves

 

Called up share capital

7

100,000

1,000

Retained earnings

954,955

294,118

Shareholders' funds

 

1,054,955

295,118

For the financial year ending 30 June 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account and Director's Report.

Approved and authorised by the director on 15 July 2025
 

.........................................
Mr Dean Morley
Director

 

Morley Capital LTD

Statement of Changes in Equity for the Year Ended 30 June 2025

Share capital
£

Retained earnings
£

Total
£

At 1 July 2024

100,000

195,118

295,118

Profit for the year

-

889,837

889,837

Dividends

-

(130,000)

(130,000)

At 30 June 2025

100,000

954,955

1,054,955

Share capital
£

Retained earnings
£

Total
£

At 3 January 2023

1,000

-

1,000

Profit for the year

-

294,118

294,118

At 30 June 2024

1,000

294,118

295,118

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
S10.B Evolve Business Centre
Cygnet Way
Houghton Le Spring
DH4 5QY
England

These financial statements were authorised for issue by the director on 15 July 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Adjusting events after the financial period

The directors forecast significant further growth for the 2025–26 financial year. This is underpinned by continued investment in the company’s internal systems, its growing UK team, and the integration of artificial intelligence across key decision-making functions. The directors believe the business is well-positioned to scale while maintaining credit discipline and operational efficiency.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 3 (2024 - 3).

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

4

Tangible assets

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 July 2024

1,602

531

2,133

Additions

1,381

1,083

2,464

At 30 June 2025

2,983

1,614

4,597

Depreciation

At 1 July 2024

99

15

114

Charge for the year

808

473

1,281

At 30 June 2025

907

488

1,395

Carrying amount

At 30 June 2025

2,076

1,126

3,202

At 30 June 2024

803

516

1,319

5

Debtors

Current

Note

2025
£

2024
£

Trade debtors

 

5,421,930

1,617,397

Amounts owed by related parties

10

85,438

-

   

5,507,368

1,617,397

6

Creditors

Creditors: amounts falling due within one year

Note

2025
£

2024
£

Due within one year

 

Loans and borrowings

8

1,572,109

655,556

Trade creditors

 

103,564

7,808

Taxation and social security

 

392,869

92,484

Deferred Income

 

2,391,265

629,725

 

4,459,807

1,385,573

Creditors: amounts falling due after more than one year

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Note

2025
£

2024
£

Due after one year

 

Loans and borrowings

8

50,020

50,020

7

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary Shares of £1 each

100,000

100,000

1,000

1,000

       

8

Loans and borrowings

Non-current loans and borrowings

2025
£

2024
£

Other borrowings

50,020

50,020

Current loans and borrowings

2025
£

2024
£

Other borrowings

1,572,109

655,556

9

Dividends

Interim dividends paid

2025
£

2024
£

Interim dividend of £1.30 (2024 - £Nil) per each Ordinary Shares

130,000

-

 

 

10

Related party transactions

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Director's remuneration

The director's remuneration for the year was as follows:

2025
£

2024
£

Remuneration

12,576

15,720