Company No: 13806371 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2024		2023
		£		£
Fixed assets
Tangible assets	3	45,428		55,395
Investments	4	400		400
		45,828		55,795
Current assets
Stocks	5	61,160		61,160
Debtors
- due within one year	6	9,627,638		7,760,712
- due after more than one year	6	83,287,353		81,356,303
Cash at bank and in hand		7,296,502		7,273,300
		100,272,653		96,451,475
Creditors: amounts falling due within one year	7	( 6,825,654)		( 4,165,279)
Net current assets		93,446,999		92,286,196
Total assets less current liabilities		93,492,827		92,341,991
Net assets		93,492,827		92,341,991
Capital and reserves
Called-up share capital	9	1		1
Profit and loss account		93,492,826		92,341,990
Total shareholder's funds		93,492,827		92,341,991

For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Comprehensive Income has not been delivered.

The financial statements of Pearl Finance Ltd (registered number: 13806371) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

P J Crocker Director

04 September 2025

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial period, unless otherwise stated.

General information and basis of accounting

Pearl Finance Ltd (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the company's registered office is 35 Ballards Lane, London, N3 1XW, United Kingdom. The principal place of business is 4th Floor, 1 Vere Street, London, W1G 0DF.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Comprehensive Income in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover comprises revenue recognises by the company in respect of the sale in trading properties, loan arrangement fees and loan interest charged from providing finance to other entities.

Revenue on the sale of a property is recognised when completion of the sales contract occurs during the accounting period.

Loan arrangement fees and similar income are recognised on a straight line basis over the term of the related loan.

Other operating income compromises of income recognised by the company in respect of any rent receivable on properties held as trading stock. Any such income is recognised in the period in which it relates.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

Employee benefits

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

Defined contribution schemes
The company operates a defined contribution scheme. The amount charged to the Statement of Comprehensive Income in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	depreciated over the life of the lease
Fixtures and fittings	15 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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

Leases

The company as lessee
Rentals payable under operating leases, including any leases incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

The company as lessor
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income as described below.

Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks

Stock represents properties held for sale to third parties. Stock are stated at the lower of cost and net realisable value. Cost comprises of all direct costs associated with the purchase and any subsequent improvements of the properties.

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.

Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

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

Equity instruments
Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2024		2023
	Number		Number
Monthly average number of persons employed by the company during the year, including directors	10		4

3. Tangible assets

	Land and buildings		Fixtures and fittings		Total
	£		£		£
Cost
At 01 January 2024	37,127		224,446		261,573
At 31 December 2024	37,127		224,446		261,573
Accumulated depreciation
At 01 January 2024	35,176		171,002		206,178
Charge for the financial year	1,951		8,016		9,967
At 31 December 2024	37,127		179,018		216,145
Net book value
At 31 December 2024	0		45,428		45,428
At 31 December 2023	1,951		53,444		55,395

4. Fixed asset investments

Investments in subsidiaries

	2024
	£
Cost
At 01 January 2024	400
At 31 December 2024	400
Carrying value at 31 December 2024	400
Carrying value at 31 December 2023	400

Investments in shares

Details of the companies subsidiaries at 31 December 2024 are as follows:

Name of entity	Registered office	Principal activity	Class of shares	Ownership 31.12.2024	Ownership 31.12.2023	Held
Park City Limited	35 Ballards Lane, London, England, N3 1XW	Lending business	Ordinary	100.00%	100.00%	Direct
PP 1 Limited	1 Vere Street, London, England, W1G 0DF	Dormant	Ordinary	100.00%	100.00%	Indirect

5. Stocks

	2024		2023
	£		£
Stocks	61,160		61,160

6. Debtors

	2024		2023
	£		£
Debtors: amounts falling due within one year
Trade debtors	4,086		0
Amounts owed by group undertakings	1,837,554		738,810
Prepayments and accrued income	2,196,383		2,621,641
Corporation tax	218,543		51,034
Other debtors	5,371,072		4,349,227
	9,627,638		7,760,712
Debtors: amounts falling due after more than one year
Trade debtors	83,287,353		81,356,303

7. Creditors: amounts falling due within one year

	2024		2023
	£		£
Trade creditors	27,902		25,661
Amounts owed to group undertakings	1,910		0
Accruals	61,211		93,651
Deferred tax liability	11,357		0
Other creditors	6,723,274		4,045,967
	6,825,654		4,165,279

8. Deferred tax

	2024		2023
	£		£
At the beginning of financial year/period	0		0
Charged to the Profit and Loss Account	( 11,357)		0
At the end of financial year/period	( 11,357)		0

9. Called-up share capital

	2024		2023
	£		£
Allotted, called-up and fully-paid
1 Ordinary share of £ 1.00	1		1

10. Related party transactions

The disclosure exemption conferred by FRS 102 Section 33:1A has been utilised, whereby the company has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

At the period end, the company was owed £3,916,401 (2023: £4,185,973) to companies under common control which is included within other debtors. The balance is repayable on demand.

At the period end, the company was owed £83,287,353 (2023: £81,356,303) to companies under common control which is included within trade debtors. Provisions carried forward at the period end were £1,627,025 (2023: £1,627,025) for expected losses on recoverability on amounts owed by companies under common control. Interest of £2,190,922 (2023 : £2,835,865) and arrangement fees if £Nil (2023 : £217,822) has been charged in the period.

At the period end, the company owed £3,913,523 (2023: £1,296,918) to companies under common control which is included within other creditors. The balance is repayable and on demand.

At the period end, the company owed £2,773,672 (2023: £2,747,046) to the directors which is included within other creditors. The balance is interest free and repayable on demand.

At the period end, the company were owed £1,343,166 (2023: £1,401) by the directors which is included within other debtors. The balance is repayable on demand, and has an interest payable of 2.25% per annum.

During the period, management charges of £524,557 (2023: £728,373) have been paid to companies under common control.

11. Ultimate controlling party

The immediate and ultimate parent company is Delph Group Holdings Limited, a company registered in England and Wales.