REGISTERED NUMBER: 12536163 (England and Wales)

Directors' Report and

Unaudited Financial Statements for the Year Ended 31st December 2024

for

Polonius Debt Purchase Limited

Page

Company Information

1

Directors' Report

2

Income Statement

3

Statement of Financial Position

4

Notes to the Financial Statements

6

DIRECTORS:

Miss R Maplethorpe

Miss L Pickering

SECRETARY:

REGISTERED OFFICE:

43 Cathcart Road

London

SW10 9JE

REGISTERED NUMBER:

12536163 (England and Wales)

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report.

Miss R Maplethorpe

Miss L Pickering

POLITICAL DONATIONS AND EXPENDITURE

The company made no political donations in the year.

GOING CONCERN

The directors have considered the appropriateness of adopting the going concern basis in preparation of these financial statements.

Having considered the risks and uncertainties to which the company is subject, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements.

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

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

ON BEHALF OF THE BOARD:

Miss L Pickering - Director

24th September 2025

TURNOVER

622,071

500,994

Cost of sales

(35,391

)

(181,722

)

GROSS PROFIT

586,680

319,272

Administrative expenses

(427,867

)

(265,822

)

OPERATING PROFIT

158,813

53,450

Interest receivable and similar income

9,352

3,835

168,165

57,285

Interest payable and similar expenses

(38,412

)

(38,329

)

PROFIT BEFORE TAXATION

129,753

18,956

Tax on profit

(37,261

)

(12,664

)

PROFIT FOR THE FINANCIAL YEAR

92,492

6,292

CURRENT ASSETS

Debtors: amounts falling due within one year

5

840,575

771,884

Debtors: amounts falling due after more than one year

5

598,439

938,993

Investments

6

656,807

284,811

Cash at bank

10,221

15,323

2,106,042

2,011,011

CREDITORS

Amounts falling due within one year

7

(766,624

)

(134,085

)

NET CURRENT ASSETS

1,339,418

1,876,926

TOTAL ASSETS LESS CURRENT LIABILITIES

1,339,418

1,876,926

CREDITORS

Amounts falling due after more than one year

8

-

(630,000

)

NET ASSETS

1,339,418

1,246,926

CAPITAL AND RESERVES

Called up share capital

10,500

10,500

Share premium

1,192,044

1,192,044

Retained earnings

136,874

44,382

1,339,418

1,246,926

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31st December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the Board of Directors and authorised for issue on 24th September 2025 and were signed on its behalf by:

Miss L Pickering - Director

1.	STATUTORY INFORMATION

Polonius Debt Purchase 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The directors have considered the appropriateness of adopting the going concern basis in preparation of these financial statements.

Having considered the risks and uncertainties to which the company is subject, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements.

Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Turnover

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets

Financial assets including trade debtors, are initially recognised at transaction cost which is considered to be fair value and subsequently held at amortised cost. At each statement of financial position date, the company assesses whether there is objective evidence that a financial asset has become impaired. Impairment losses are recorded as charges in the income statement and the carrying amount of the financial asset is reduced by establishing an impairment loss provision. Impairment loss provisions are maintained at the level that management deems sufficient to absorb incurred losses. Financial assets are subsequently carried at transaction cost less provision for impairment.

Loan portfolios are credit-impaired consumer loans acquired from lenders at a deep discount. Initial recognition is at acquisition cost. On the acquisition of a loan portfolio, an estimate is made of the expected amounts and timing of cash collection from the portfolio in order to calculate the effective interest rate for the portfolio.

At subsequent reporting dates, loan portfolios are revalued using the remaining expected future cash flows discounted at the effective interest rate. Revaluations are included in portfolio income.

Financial liabilities

Financial liabilities are presented as such in the Statement of Financial Position. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities and held at amortised cost. Finance costs and gains or losses relating to financial liabilities are included in the Income Statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Dividends and distributions relating to equity instruments are debited directly to equity.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

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.

3.	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 amounts 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:

Loan portfolios are comprised of credit-impaired loans to individuals purchased at a deep discount to the outstanding loan amounts. In valuing the portfolios, the directors use estimates of the amounts of cash recoverable from these loans and the timing of the cash collections. The estimates are based on historical data where available and consideration of economic factors which may affect the individuals' ability to maintain repayments. At the reporting date the directors review cash collections experienced in the reporting period and where appropriate revise their estimates of future cash flows with a corresponding revaluation of the loan portfolios. As actual outcomes may differ from the estimates, the loan portfolio valuation is a key source of uncertainty.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2023 - 2 ) .

5.

DEBTORS

2024

2023

£

£

Amounts falling due within one year:

Loan portfolios

754,996

645,056

Other debtors

85,579

126,828

840,575

771,884

Amounts falling due after more than one year:

Loan portfolios

598,439

938,993

Aggregate amounts

1,439,014

1,710,877

Loan portfolios

2024

2023

£

At 1 January

1,584,049

1,931,868

Purchased

281,879

215,601

Revaluations

(512,493

)

(563,420)

At 31 December

1,353,435

1,584,049

Due within one year

754,996

645,056

Due after more than one year

598,439

938,993

1,353,435

1,584,049

The loan portfolio disclosed as due within one year represents the expected cash collections from the loan portfolios in the year following the reporting date.

6.	CURRENT ASSET INVESTMENTS

2024

2023

£

£

Loans

656,807

284,811

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

46,763

66,678

Taxation and social security

50,623

32,794

Other creditors

669,238

34,613

766,624

134,085

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Other creditors

-

630,000

9.	RELATED PARTY DISCLOSURES

10.	ULTIMATE CONTROLLING PARTY