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

The directors of the company have elected not to include a copy of the income and expenditure account within the financial statements.true

The LEAP Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 843 Finchley Road, London, NW11 8NA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

The company provides loans to individuals in financially underserved communities in East Africa. At present, the company does not plan on any future expansion and is fully focused on managing its existing loan portfolio and collecting loans already made to students. LEAP Trust is ensuring that its operating costs match interest income received from its students. It has successfully restructured the loans owed to investors to pass through any principal repayments from students directly to investors. Any future losses on the loan liabilities are fully borne by the investors. The company has taken significant steps to reduce its costs across all areas of operations through the negotiations of service contracts. A third party debit collection agency has been engaged to improve the loan collections from students through intense efforts to enhance borrower engagement and follow ups on that engagement and the introduction of alternative repayment options from the students. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date their financial statements are approved.

Revenue represents grant income provided by funders for the administration of programmatic funds with promote equitable access to education to underserved communities in East Africa. Revenue is recognised to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable.

Interest receivable represents any interest income derived from funding to financial service providers for the administration of local lending projects. Amounts are recognised in accordance with funding contracts.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the agreed milestone and deliverables when all of the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the company will receive the consideration due under the contract;

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 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, which include debtors and cash and bank balances, 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. Financial assets classified as receivable within one year are not amortised.

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

The company is exempt from corporation tax, it being a company not carrying on a business for the purposes of making a profit.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company reviews its loans receivable on a regular basis. The fair value of loans receivable is assessed as a collective portfolio, with gains and losses recorded in the income and expenditure account. In making this judgement, the company evaluates, along other factors, the duration and the financial health of and the short-term outlook for the borrowers, including factors such as wider economic performance. At the year end the carrying amount of loans receivable is stated in note 4.

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

During the 2021 financial year the company entered into an agreement to borrow £50,000 from Barclays Bank under the Bounce Back Loan Scheme (BBLS). Interest is charged at 2.5% and is due to be fully repaid by 11 January 2027.

Included within other creditors are loan notes of £675,754 (2023: £800,753) due to Kyros and Netri Foundation. Interest on these loans accrues at a rate of 2% per annum and the loans have been restructured in the year and so will be payable when the company is in correct financial situation to do so..

Also included within other creditors is a loan owed to the US International DFC of £903,597 (2023 - £835,028). Interest on this loan accrues at a rate of 4.82% per annum and the loan is due to be fully repaid by 30 March 2028, secured by way of a legal charge over cash balances.

The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

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 deficit 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.

Grant income of £46,238 (2023: £Nil) was receivable from Volta Limited, a company with a common director.

Included in other debtors is an amount of £11,619 (2023: 30,000) owed from a company with a director in common.