REGISTERED NUMBER: 07259223 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

PROPEL HOLDINGS (UK) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

Ms F Asuman

Mr S A Saidakovsky

Mr T A Spence

REGISTERED OFFICE:

8TH FLOOR WATERFRONT HOUSE,

STATION STREET,

NOTTINGHAM

NG2 3DQ

REGISTERED NUMBER:

07259223 (England and Wales)

SENIOR STATUTORY AUDITOR:

MARTIN MYERS FCA

AUDITORS:

GOLDWYNS AUDIT LLP

STATUTORY AUDITOR

1 ROYAL EXCHANGE

LONDON

EC3V 3DG

The directors present their strategic report for the year ended 31 December 2024.

Business Review

During 2024 the focus of the business was to steadily and prudently increase our loan portfolio. The ownership of the company changed during the year; the parent company is now Propel Holdings Inc, a company registered in Canada.

The Company's performance in 2024 evidences:

- Gross profit was £19.5m (up from £13.3m in 2023)

- Full year revenue was £25.7m (up from £18.1m in 2023)

The Directors were pleased with the performance in 2024, and the financial results were in line with the directors' expectations.

Principal Risks and Uncertainties

In operating its business and strategy, the company is exposed to several inherent risks. The directors have implemented robust procedures for the assessment, management and reporting of these risks. The principal risks faced by the company are summarised below.

Credit Risk

The principal risk of the company is the market sector that the company operates in. The risk is losses incurred from non-recoverable loans advanced to customers.

The Company manages this risk through lending systems and procedures, ensuring monies advanced are recoverable in line with expectations. Repayment levels are in excess of the sector average.

Financial Risk Management

The Company is exposed to moderate levels of financial risk. The company manages its day to day running through retained earnings. The goal of the Management board is to ensure that there are sufficient retained earnings to manage both day to day operations and prudent expansion.

The Company does not use financial instruments apart from an operational bank account, and the risk arising from unexpected cash outlays is monitored regularly.

Regulatory Risk

The Company is regulated by the Financial Conduct Authority and is subject to a high level of regulatory risk, this being defined as the non-compliance of current regulations, as well as the potential impact of any future regulations that may arise.

The Company manages this risk through its robust policies and procedures, thus ensuring both compliance with regulation and the provision of positive outcomes for our customers.

Reputational Risk

The Company manages this risk through its organisational culture, ensuring that strong corporate values are embedded from the top down across the company.

Key financial performance indicators includes the monitoring and management of profitability and monetary working capital.

Financial Data

2024

2023

Measure

Return on capital

25.89%

46.26%

Profit after tax / total assets less current liabilities

Current ratio

9.45

6.70

Current assets: current liabilities

Cash £'000

2,046

1,941

FCA regulated activities

Propel Holdings (UK) Limited is trading as QuidMarket.

Propel Holdings (UK) Limited is an FCA regulated entity and has the following permanent permissions in relation to regulated activities:

- Credit broking; and

- Entering into high cost short-term credits as a lender

The Company is not authorised to hold client money.

Management actively reviews the controls in place around FCA regulated activities to ensure that regulatory requirements are appropriately monitored and controlled. The Company receives advice from trusted advisers where appropriate to understand or clarify modifications to regulations as and when these occur.

ON BEHALF OF THE BOARD:

Mr T A Spence - Director

3 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The Principal Activity of the company is the provision of short-term loans to individual borrowers in the United Kingdom.

DIVIDENDS

Ordinary dividends were paid amounting to £2,305,881. The directors do not recommend payment of a final dividend.

DIRECTORS

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

Ms F Asuman

Mr S A Saidakovsky (Appointed 23 May 2025)

Mr T A Spence (Appointed 23 May 2025)

Mr G J Rable (Resigned 15 November 2024)

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr T A Spence - Director

3 September 2025

Opinion

We have audited the financial statements of Propel Holdings (UK) Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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 December 2024 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

The objectives of our audit with regards to fraud are to identify and assess the risks of material misstatement of the financial statements due to fraud; design and perform procedures that respond appropriately to identified or suspected fraud; and obtain audit evidence regarding the risks of material misstatement of the financial statements due to fraud.

However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

- obtain an understanding of the nature of the industry, the performance of the business, and of the design of the entity's policies for the remuneration of the management;

- consider the internal control environment to mitigate the risk of fraud or non-compliance with laws and regulations;

- identify laws and regulations applicable to the company through discussions with management and from our commercial knowledge and sector experience, and assess the extent of compliance with laws and regulations from making enquiries of management;

- obtain an understanding of the legal and regulatory framework within which the company operates focusing on the most significant laws and regulations that have a direct impact on the financial statements and the operations of the entity including FRS 102, the Companies Act 2006 and tax compliance regulations;

- communication of identified laws and regulations to our audit team and remain alert to any indications of non-compliance throughout the audit; and

- ensure that the audit engagement team have the capability, competence and skill to identify non-compliance with laws and regulations.

To address the risk of non-compliance with laws and regulations, including fraud we performed the following audit procedures:

- analytical procedures to identify unusual patterns or inconsistencies, and potential indicators of fraud or non-compliance;

- testing of journal entries to identify unusual transactions and investigating the rationale behind unusual transactions;

- assessing whether judgements and assumptions made in determining accounting estimates are indicative of bias;

- reviewing the disclosures in the financial statements and agreeing to supporting documentation;

- enquiries with management and reviewing the minutes of meetings with management and those charged with governance;

Taking into consideration the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The more removed that laws and regulations are from transactions reflected in the financial statements, the less likely we would become aware of non-compliance. Also, auditing standards limit the procedures required to identify non-compliance with laws and regulations to the inspection of regulatory and legal correspondence, if any, and enquiry of management. This risk is higher in respect of irregularities arising from fraud, as such practices may involve deliberate concealment, collusion, forgery, or intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

MARTIN MYERS FCA (Senior Statutory Auditor)

for and on behalf of GOLDWYNS AUDIT LLP

STATUTORY AUDITOR

1 ROYAL EXCHANGE

LONDON

EC3V 3DG

4 September 2025

TURNOVER

3

25,666,002

18,136,135

Cost of sales

6,214,234

4,866,916

GROSS PROFIT

19,451,768

13,269,219

Impairment losses on loans

10,312,208

2,988,708

Administrative expenses

4,388,971

2,798,231

14,701,179

5,786,939

4,750,589

7,482,280

Other operating income

35,038

4,745

OPERATING PROFIT

6

4,785,627

7,487,025

Interest receivable and similar income

-

9,373

4,785,627

7,496,398

Interest payable and similar expenses

8

83,696

26

PROFIT BEFORE TAXATION

4,701,931

7,496,372

Tax on profit

9

1,175,483

1,759,042

PROFIT FOR THE FINANCIAL YEAR

3,526,448

5,737,330

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,526,448

5,737,330

FIXED ASSETS

Intangible assets

11

98,961

54,758

Tangible assets

12

174,394

49,718

273,355

104,476

CURRENT ASSETS

Debtors

13

1,960,084

921,112

Loan receivables

14

10,922,197

11,593,057

Cash at bank

2,045,786

1,941,551

14,928,067

14,455,720

CREDITORS

Amounts falling due within one year

15

1,579,661

2,159,002

NET CURRENT ASSETS

13,348,406

12,296,718

TOTAL ASSETS LESS CURRENT LIABILITIES

13,621,761

12,401,194

CAPITAL AND RESERVES

Called up share capital

18

5,809,378

5,809,378

Retained earnings

7,812,383

6,591,816

SHAREHOLDERS' FUNDS

13,621,761

12,401,194

The financial statements were approved by the Board of Directors and authorised for issue on 3 September 2025 and were signed on its behalf by:

Mr T A Spence - Director

Mr S A Saidakovsky - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5,809,378

3,863,784

9,673,162

Changes in equity

Dividends

-

(3,009,298

)

(3,009,298

)

Total comprehensive income

-

5,737,330

5,737,330

Balance at 31 December 2023

5,809,378

6,591,816

12,401,194

Changes in equity

Dividends

-

(2,305,881

)

(2,305,881

)

Total comprehensive income

-

3,526,448

3,526,448

Balance at 31 December 2024

5,809,378

7,812,383

13,621,761

Cash flows from operating activities

Cash generated from operations

1

4,978,246

6,719,647

Interest paid

(83,696

)

(26

)

Tax paid

(2,938,393

)

(892,261

)

Net cash from operating activities

1,956,157

5,827,360

Cash flows from investing activities

Purchase of intangible fixed assets

(54,000

)

(60,842

)

Purchase of tangible fixed assets

(162,901

)

(34,018

)

Interest received

-

9,373

Net cash from investing activities

(216,901

)

(85,487

)

Cash flows from financing activities

Net increase in loans to customers

-

(3,903,191

)

Net decrease in loans to customers

670,860

-

Equity dividends paid

(2,305,881

)

(3,009,298

)

Net cash from financing activities

(1,635,021

)

(6,912,489

)

Increase/(decrease) in cash and cash equivalents

104,235

(1,170,616

)

Cash and cash equivalents at beginning of year

2

1,941,551

3,112,167

Cash and cash equivalents at end of year

2

2,045,786

1,941,551

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

4,701,931

7,496,372

Depreciation charges

48,022

45,167

Impairment of fixed assets

-

34,127

Finance costs

83,696

26

Finance income

-

(9,373

)

4,833,649

7,566,319

Increase in trade and other debtors

(1,038,976

)

(701,585

)

Increase/(decrease) in trade and other creditors

1,183,573

(145,087

)

Cash generated from operations

4,978,246

6,719,647

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,045,786

1,941,551

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,941,551

3,112,167

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

1,941,551

104,235

2,045,786

1,941,551

104,235

2,045,786

Liquid resources

Current asset investments

11,593,057

(670,860

)

10,922,197

11,593,057

(670,860

)

10,922,197

Total

13,534,608

(566,625

)

12,967,983

1.	STATUTORY INFORMATION

Propel Holdings (UK) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

On 27 May 2025 the company changed its name from Stagemount Limited to Propel Holdings (UK) Limited.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

The significant accounting policies applied in the preparation of these financial statements are set out below.

Critical accounting judgements and key sources of estimation uncertainty

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty and judgements in applying accounting policies

The key assumptions concerning the future, and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are as follows:

LOAN IMPAIRMENT

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

Loans are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the loan, the estimated future cash flows have been affected. Loans are assessed in groups based on similar credit risk characteristics. Recoverability of loans are based on historical data trends on loan recoverability. If loans are impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows, discounted at the original effective interest rate. The impairment loss is recognised in the 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 the profit or loss.

In 2024, the management of Propel Holdings (UK) Limited decided to change the method used to estimate the loan impairment provision.

The change in estimate reflects the updated view of the recoverability of the loan book, and hence the required provision for the impairment of the loan book.

The change in accounting estimate results in a significant increase in expenditure, and a corresponding reduction in the Loan Receivables asset.

RESEARCH AND DEVELOPMENT COSTS

The company invests in research and development.

Development expenditure is recognised as an expense other than costs incurred on internal projects which are capitalised as intangible assets to the extent that such expenditure is expected to generate future economic benefits. Judgement is applied in determining if development costs meet the criteria to be capitalised as intangible assets.

AMORTISATION AND IMPAIRMENT OF INTANGIBLE ASSETS

Development costs capitalised as intangible assets are subsequently amortised on a straight-line basis over their expected useful economic lives of 10 years. The expected useful economic lives of development costs are estimated using the period over which the asset is expected to contribute to the cash flows or deliver economic benefit.

Amortisation begins when the intangible asset is available for use.

Furthermore, intangible assets are reviewed for impairment at the end of the financial year if events or changes in circumstances indicate that the carrying value may not be recovered. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. 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).

USEFUL ECONOMIC LIFE OF TANGIBLE ASSETS

The annual depreciation charge for tangible fixed assets is affected by changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are assessed periodically. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Turnover

Interest income on loans to customers carried at amortised cost is recognised on an accruals basis using the effective interest rate method.

Intangible assets

In the research phase of an internal project, it is not possible to determine if the project will generate future economic benefits and therefore all expenditure incurred during the research phase of an internal project is expensed as and when incurred.

Intangible assets are recognied from the development phase of an internal project if, and only if, certain criteria are met demonstrating that the intangible asset will generate future economic benefits and that the development costs can be reliably measured.

If it not possible to distinguish between the research phase and the development phase of internal project, the expenditure incurred is treated as if its were incurred during the research phase only.

Capitalised development costs are subsequently amortised to administrative expenses on a straight-line basis over their expected useful economic lives of 10 years. The expected useful economic lives of development costs are estimated using the period over which the asset is expected to contribute to the cash flows or deliver economic benefit.

Amortisation begins when the intangible assets are available for use.

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 provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Leasehold improvements - 10% on straight line

Fixtures, fittings and equipment - 25% on straight line

Computer equipment - 33.33% on straight line

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 balance sheet, 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 loans, 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 for a similar debt instrument.

IMPAIRMENT OF FINANCIAL ASSETS

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. Loans are assessed in groups based on similar credit risk characteristics. Recoverability of loans is based on historical data trends on loan recoverability. 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 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 the 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.

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, 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.

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.

DERECOGNITION OF FINANCIAL LIABILITIES

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

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the

current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial

statements of current and previous periods. It is recognised in respect of all timing differences, with certain

exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Foreign currencies

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Lease

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. Any unpaid amounts at the year end are included in Creditors in the Statement of Financial Position.

Impairment of fixed assets

Fixed assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

3.

TURNOVER

Turnover represents interest receivable on short-term loans.

All of the company's turnover is derived from its principal activity which is carried out in the UK.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,607,818

2,006,125

Social security costs

284,567

220,009

Other pension costs

96,331

53,292

2,988,716

2,279,426

The average number of employees during the year was as follows:

2024

2023

Back office and administration

55

47

Management

2

2

57

49

5.	DIRECTORS' REMUNERATION

2024

2023

£

£

Directors' remuneration

255,965

255,735

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

255,965

255,735

The company made contributions of £9,653 (2023: £5,272) to defined contribution pension schemes on behalf of one director during the year.

6.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating leases

141,365

109,022

Depreciation - owned assets

38,225

39,084

Development costs amortisation

9,797

6,084

Foreign exchange differences

1,146

4,353

The administrative expenses includes VAT reverse charges of £400k relating to prior years.