REGISTERED NUMBER: 14225831 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 January 2025

for

MFDP Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

P J R Stewart

N Kelly

L M Warburton

C S Garner

REGISTERED OFFICE:

Trinity Chambers

800 Mandarin Court

Warrington

Cheshire

WA1 1GG

REGISTERED NUMBER:

14225831 (England and Wales)

ACCOUNTANTS:

Voisey & Co LLP

Chartered Accountants

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

FIXED ASSETS

Intangible assets

4

179,868

-

Tangible assets

5

290,185

-

470,053

-

CURRENT ASSETS

Debtors

6

1,675,040

-

Cash at bank

901,762

298,437

2,576,802

298,437

CREDITORS

Amounts falling due within one year

7

2,166,039

299,600

NET CURRENT ASSETS/(LIABILITIES)

410,763

(1,163

)

TOTAL ASSETS LESS CURRENT LIABILITIES

880,816

(1,163

)

CREDITORS

Amounts falling due after more than one year

8

429,031

-

NET ASSETS/(LIABILITIES)

451,785

(1,163

)

CAPITAL AND RESERVES

Called up share capital

400

400

Retained earnings

451,385

(1,563

)

SHAREHOLDERS' FUNDS

451,785

(1,163

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2025 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

L M Warburton - Director

P J R Stewart - Director

1.	STATUTORY INFORMATION

MFDP Ltd 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.

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.

Significant judgements and estimates

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 concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

Carrying value and EIR of acquired loan portfolios

Forecast of ERC is prepared for each portfolio, based on predictions of probability to pay and value of total payments These predictions are generated using in-house modelling which utilises customer and account level data and our historic experience with accounts which have similar attributes. Key factors in this model are the assumptions made on the conversion of accounts from non-paying to paying, and vice-versa either through breakdown of the account or settlement/pay down of the balances due. The ERCs created from our modelling are regularly compared at a portfolio level against actual, which forms as part of the impairment review.

Going concern

At 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.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income from acquired loan portfolios arises entirely in the United Kingdom and represents the yield from acquired portfolio investments.

Where the company acquires loan portfolios via forward flow agreements, there is no difference in accounting treatment than described above.

Income derived from purchased loan portfolios comprise receipts that relate to the period, adjusted for changes in the current values by way of write ups and write downs as described below.

Portfolio write-ups

Upward revaluations ("write-ups") are increases to carrying values, discounted at the EIR rate, of the acquired loan portfolios as a result of reassessments to their estimate cash flows and are recognised in the portfolio write-up line within revenue, with any subsequent reversals to write ups also recorded in this line. A write-up adjustment will never revalue a portfolio above its original acquisition price.

Portfolio write-ups

If the forecast portfolio collections are lower than previous forecasts the revenue from any previous write-ups are reversed and this reversal is recognised in revenue recorded in the same line, up to the point that any reversals equal the previously recognised cumulative write-ups. If these reversals exceed any previously recognised cumulative write-ups, then an impairment is recognised as a separate entry within the income line ("write-downs").

Collection activity costs

These are the collection and legal costs of collecting the outstanding debts.

Financial Instruments

Financial assets (including acquired loan portfolios) are initially recognised at the transaction price (adjusted for transaction costs).

Financial assets are then subsequently measured at amortised cost using the effective interest method. As noted in the significant judgements and estimates, the calculation is performed using the estimated remaining collections and is assessed at each reporting date.

Derecognition of Financial Instruments

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.

Classification of Financial Instruments

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 receipts 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.

Derecognition of Financial Instruments

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

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Impairment of intangible assets

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 been adjusted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Research and development

Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income and 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

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. Deferred tax is charged or credited in the profit or loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

Employee benefits

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.

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.

Provisions

A provision is recognised in the balance sheet when the company has a constructive or legal obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are recognised at their discounted net present value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2024 - 4 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

Additions

220,246

At 31 January 2025

220,246

AMORTISATION

Charge for year

40,378

At 31 January 2025

40,378

NET BOOK VALUE

At 31 January 2025

179,868

5.	TANGIBLE FIXED ASSETS

Computer

and

office

equipment

£

COST

Additions

355,328

At 31 January 2025

355,328

DEPRECIATION

Charge for year

65,143

At 31 January 2025

65,143

NET BOOK VALUE

At 31 January 2025

290,185

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.1.24

£

£

Acquired loan portfolios

1,576,505

-

Prepayments and accrued income

98,535

-

1,675,040

-

Acquired loan portfolios

The following table summarises the movements in the company's acquired loan portfolios in the period.

31-01-25

31-01-24

£

£

Loan portfolios acquired from third parties

1,955,650

-

Gross collections

(2,206,598

)

-

Net revenue from acquired loan portfolios

1,827,453

Carried forward

1,576,505

-

Acquired loan portfolios are carried in the accounts at their amortised cost of acquisition. This method of accounting is significantly below the potential earnings of each acquired loan portfolio. The directors' value the company's gross Estimated Remaining Collections (ERC") from its loan portfolio.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.1.25

31.1.24

£

£

Other loans (see note 9)

300,000

-

Trade creditors

26,313

-

Amounts owed to associates

1,597,939

-

Tax

54,255

-

Social security and other taxes

13,293

-

Other creditors

1,576

299,600

Accrued expenses

172,663

-

2,166,039

299,600

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.1.25

31.1.24

£

£

Other loans (see note 9)

429,031

-

9.

LOANS

An analysis of the maturity of loans is given below:

31.1.25

31.1.24

£

£

Amounts falling due within one year or on demand:

Other loans

300,000

-

Amounts falling due between one and two years:

Other loans - 1-2 years

300,000

-

Amounts falling due between two and five years:

Other loans - 2-5 years

129,031

-

The Other loans have been received from Dandapher Limited a related party. The loan carries interest of 10% and is repayable quarterly over 38 months.

10.	RELATED PARTY DISCLOSURES

Restons Solicitors Limited

During the year the company has received a loan of £1,597,939 from Restons Solicitors Limited a related party. The loan is repayable on demand and does not carry interest.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party are Christopher Reston.and Sara Reston.