The directors present the strategic report for the year ended 31 March 2025.

Secured Fixed Income plc’s (the Company) mission is to provide funding primarily to UK-based SMEs, carefully structuring transactions to meet the specific needs of each business and delivered using robust underwriting processes that are both responsive and responsible.

The Company continued to deploy funds into trading partnerships primarily focused on lending, whilst also growing levels of directly originated business written in its own name. The funds deployed into trading partnerships provide access to mature and diverse portfolios of loan agreements, generating income immediately from established and profitable partnerships.

As the Company grows business in its own name, it benefits from access to an experienced team recruited from the UK financial services sector, and supported by high quality Credit, Legal and Operational teams. Over the year, further resource has been added to all of these teams to support the growth ambitions of the Company. The team has developed a deep and broad introducer network, accessing good levels of lending opportunities. During the coming year, the Company expects to continue its offering, with a particular focus on providing finance to established and profitable SME businesses for growth and acquisition. The Company’s proposition encompasses a range of funding types, including secured lending, and small ticket leasing via its established SME Debt Finance, Specialty Finance and Property Development Finance teams. The SME debt finance proposition remains a key sector for the business, providing finance for both growth and acquisition to businesses, with the Company maintaining security over their cashflows and/or assets.

Secured Fixed Income plc works with business partners and management teams whom it considers to be the leaders in their field, benefiting from their knowledge, expertise and technology. It also selectively funds other privately-owned lenders operating in the non-bank market, where they too require funding which is more flexible and pragmatic than conventional bank finance, which in turn can help to fuel their own growth.

Secured Fixed Income plc focuses on actively engaging with its origination partners. The company has continued to grow our origination network through additional resources to access greater volumes of deal flow across all lending activities to continue increasing levels of deployment within the Company.

New lending opportunities are agreed by a credit committee which considers the nature of the counterparty, asset type, sector risk, and terms such as maturity, structure and return. As a B Corp registered business, Triple Point (the provider of services to Secured Fixed Income plc and associated business) maintains a commitment to sustainability and responsibility, incorporating Environmental, Social, and Governance (ESG) factors into all its analyses, thereby enhancing its risk assessment framework. Secured Fixed Income plc considers it important to act as a responsible lender and has worked proactively in helping borrowers through challenging economic and trading environments.

During the financial year to 31 March 2025, the Bank of England reduced interest rates, ending the period with a base rate of 4.5%. Inflation trended down from the prior year and was maintained close to the 2% target. The economic outlook will depend somewhat on how markets respond to ongoing geopolitical and trade tensions.

Despite these external uncertainties, the Company does not anticipate any material impact on its investment strategy or portfolio performance. The lending activity remains primarily focused on UK-based businesses with limited exposure to international trade. As a result, the portfolio’s direct sensitivity to cross-border tariffs or global trade disruptions remains low, and no significant impact on asset performance is currently expected.

Going forward, the Company will consider non-UK based lending opportunities, but only where there is a very compelling reason to do so. It is expected that this will represent a small part of the loan book.

The Company delivered another year of positive performance, achieving a profit before tax of £1.0m for the year to 31 March 2025 (2024: £1.8m). While this represents a decrease from the prior year, it is a strong result considering the period's economic and political challenges. Profitability was impacted by an increase in bad and doubtful debts, which rose to £2.3m from £1.3m in 2024; and a rise in administrative costs to £3.5m, compared to £2.3m in the previous year. This growth in operational expenditure supported the expansion of the Company’s loan book and the resource required to manage an increasing portfolio.

After taxation, profit for the year was £0.6m (2024: £1.7m). Importantly, every bondholder continued to be repaid in full and on time, preserving the Company’s unbroken record of meeting its obligations to investors.

While credit losses increased during the year, these were largely attributable to the pressures faced by borrowers in a higher-inflation environment. The Company’s security arrangements and access to the CBILS scheme helped to mitigate the impact of these historic defaults. Credit exposures are monitored on a monthly basis, and provisions are adjusted where specific borrower, sector, or macroeconomic risks are identified.

The Company raised £49.4m in new bond funding during the year (2024: £43.8m), continuing to demonstrate its ability to access capital in support of its lending activities. All bonds are issued at fixed rates and over fixed terms, consistent with the Company's objective of delivering predictable income to investors.

Despite the external challenges, the Company has maintained profitability, preserved its track record of full and timely bond repayments, and positioned itself for future growth. The Company maintains a disciplined approach to lending and portfolio management, which underpins its stable performance.

Geopolitical events, such as Russia’s ongoing invasion of Ukraine, have contributed to inflationary price pressure and wider economic disruption. These conditions continue to affect SMEs through higher input costs, supply chain delays, and weaker consumer confidence. The recent imposition of US trade tariffs has not yet had any material impact on the Company’s performance, but that could change as we better understand the tariffs outlook. Prolonged instability may pose further risks to economic growth. In turn, the Company could experience increased borrower defaults or requests for forbearance, potentially leading to higher levels of bad debt.

Liquidity risk is the risk that the Company’s assets will not generate sufficient liquidity – cash flow generated from loan interest and loan repayments – to meet its obligations to pay interest or capital to bondholders. The Company continually monitors bond maturities, which are known in advance, and is able to plan to ensure that sufficient liquidity is maintained to meet payment obligations.

Interest rate risk is the risk of a mismatch of interest income from lending activities and interest expenditure on bonds issued. The majority of lending and funding interest rates are fixed rate and are priced to ensure the rates charged to borrowers are in excess of the rates paid to investors. This risk is managed closely by the Private Credit team.

Credit risk is the risk of loss arising from defaults in the Company’s lending portfolio. New business lines are assessed by the Company’s Board and by its appointed Investment Committee, and performance is regularly monitored in order to mitigate this risk – which is at the heart of the Company’s lending business.

In light of ongoing economic volatility, both liquidity and portfolio performance monitoring continue to be a focus. The Company, and the partnerships of which it is a member, continue to monitor lending portfolios carefully, and maintain regular communication with borrowers. In some instances, loan forbearance to borrowers has been granted, in order to support businesses that may benefit from a longer period in which to service and repay loans. Provisions have been increased where the Company’s monitoring committees have deemed it prudent to do so, and the Company’s liquidity position and profitability remain satisfactory. The higher levels of provisioning provide an increased buffer against future defaults.

The Directors continue to review and monitor the business continuity, interest rate, liquidity, and credit risks.

Monthly management accounts including KPIs are reviewed to monitor financial and non-financial business performance.

The key performance indicators which the Directors monitor include:

• New lending levels

• Average return on loans and other receivables

• Net interest margin

• Bad debt levels

Currently the Company deploys all funds raised and expects levels of new business to match funds raised.

The Company identifies its primary stakeholders as its bond holders, borrowers and shareholders. During the year the Company has directly engaged with all primary stakeholders and has continued to build strong relationships. The Company looks to play an active part in the community and seeks always to minimise the environmental impact of its activities.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company is the provision of leasing and finance to SMEs.

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

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £1,000,000.

Saffery LLP have expressed their willingness to continue in office.

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:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

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.

We have audited the financial statements of Secured Fixed Income plc (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

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.

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:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified;

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 26 form part of these financial statements.

The notes on pages 13 to 26 form part of these financial statements.

The notes on pages 13 to 26 form part of these financial statements.

The notes on pages 13 to 26 form part of these financial statements.

Secured Fixed Income plc is a public company limited by shares incorporated in England and Wales. The registered office is 1 King William Street, London, EC4N 7AF.

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.

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.

Turnover represents the share of profits received from the LLPs in which the company is a member, interest earnings from loans and similar advances, and fee income.

Revenue from contracts for the provision of professional services is recognised in arrangement fee income by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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:

Membership interests are initially measured at cost less impairment, and subsequently remeasured to fair market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit or loss for the period.

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.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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, which include trade and other receivables, 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.

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.

Financial assets, other than those held at fair value through profit and loss, 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.

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.

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, including trade and other payables, bank loans, bonds in issue, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 in the period are included in profit or loss.

Interest income and expense

Interest income and expense includes interest income and expense on the Company's financial instruments owned, short-term and long-term borrowings. These are recorded using the effective interest rates of the financial assets or financial liabilities to which they relate.

In the application of the company’s accounting policies, the directors are required to make judgements, 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.

The key assumptions or estimation uncertainties at the statement of financial position date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below.

(i) Recoverability of assets

Determining whether loan balances are fully recoverable requires an estimation of the value of the future cash flows against carrying balance of the debt. At the year end the partnership assesses recoverability of each balance through the access of available information. This may include discounted cashflow modelling and latest management accounts.

(ii) Investment fair value

The investments in the accounts are recorded at fair market value at the year end date, this can involve an element of subjectivity. At the year end, the Company undertakes a remeasurement of the investments.

An analysis of the company's revenue is as follows:

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

Their aggregate remuneration comprised:

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:

Debtors are stated after a deduction for bad debt provisions against loan receivables amounting to £3,916,990 (2024: 1,960,890).

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

At the year end a director and a close family member had interests within the bonds issued by the entity. The value of the bonds held had a total value of £397,295

The company has taken advantage of the exemption in FRS 102 from disclosing related party transactions with wholly owned members of the same group.

The parent undertaking is Triple Point Holdings Limited. The directors do not consider there to be any one ultimate controlling party.

The smallest and largest group in which the results of the Company are consolidated is that headed by Triple Point LLP, 1 King William Street, London, United Kingdom, EC4N 7AF. Copies of the group financial statements are available to the public at 1 King William Street, London, United Kingdom, EC4N 7AF.

The company's activities are exposed to market risk, credit risk and liquidity risk.

Market risk

Market risk is the risk of financial loss to the company resulting from the poor performance of the markets in which the company operates. The company considers its market risk to be low. The trading partnership offers leasing and finance to Small and Medium-Sized Enterprises across a number of industries which mitigates the market risk. 

Credit risk

Credit risk is the risk of financial loss to the company resulting from counterparties failing to discharge their obligations to the company. The company considers its credit risk to be low. The trading partnership offers leasing and finance to a large number of Small and Medium-Sized Enterprises which are not individually material to the company.

Liquidity risk

Liquidity risk is the risk of the company being unable to meet its liabilities as they fall due. The company manages liquidity risk by maintaining sufficient cash reserves and planning bond repayments through forecasts and cash flow monitoring. The company is a cash generative business.