Company registration number 07817549 (England and Wales)
MELLOR FINANCE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
PAGES FOR FILING WITH REGISTRAR
MELLOR FINANCE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MELLOR FINANCE LIMITED
BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 1 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,073
-
0
Current assets
Debtors
5
432,688
314,887
Investments
6
11,772,823
9,907,302
Cash at bank and in hand
655,920
385,357
12,861,431
10,607,546
Creditors: amounts falling due within one year
7
(4,252,374)
(3,659,136)
Net current assets
8,609,057
6,948,410
Total assets less current liabilities
8,612,130
6,948,410
Creditors: amounts falling due after more than one year
8
(2,459,575)
(1,607,635)
Net assets
6,152,555
5,340,775
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
6,152,554
5,340,774
Total equity
6,152,555
5,340,775

For the financial year ended 31 May 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

T he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved and signed by the director and authorised for issue on 23 October 2025
Mr M S Johnson
Director
Company registration number 07817549 (England and Wales)
MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 2 -
1
Accounting policies
Company information

Mellor Finance Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bridge House, Newbridge Lane, Stockport, Cheshire, SK1 2NA.

1.1
Accounting convention

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 a mounts 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.

1.2
Turnover

Assets leased to customers under arrangements that transfer substantially all the risks and rewards of ownership of the assets to the lessee, other than legal title, are classified as finance leases.

Net investment in finance leases at the financial position date represents the minimum lease rentals accruing to the Company less the gross earnings allocated to future periods. There are no guaranteed residual values available to the Company at the end of any leases and as unguaranteed residual values are not considered to be material to the Company, they are not reflected in the net investment in finance leases.

The gross earnings from a finance lease (including any items of income incidental to the leases) are allocated to accounting periods using the sum of digit method as a proxy to approximate to the constant periodic rate of return on the Company’s net cash investment in the lease and is included in turnover.

Under the sum of digits method, the total gross earnings are apportioned over the term of the lease in proportion to the number of rentals outstanding. This method is considered immaterially different to the actuarial approach required by FRS 102.

Initial direct costs, which are incremental to the Company and are directly associated with negotiating and consummating the lease transactions are included in the net investment in finance leases and reflected in the calculation of the lease income.

Other costs and income are recognised in the profit or loss when incurred.

Any gain or loss on disposal of assets arising at the end of the lease is included in turnover when all the risks and rewards have been transferred by the Company.

Any gain or loss on early terminations of leases, calculated as the difference between the total net sums recovered and the book value of net investment in finance leases, is included in the profit or loss when such terminations arise.

Secondary rentals are recognised in the profit or loss as they accrue, after taking account of the possibility of bad debts.

Specific provision is made in respect of finance leases, which have been identified as impaired. Further, a general provision is made in respect of amounts not specifically identified, but considered to be impaired based on past experience, taking into account of current economic conditions and the level of specific provisions. Any provision for bad debts is set against the net investment in finance leases.

MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 3 -
1.3
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers
33% straight line

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.

1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.5
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 current liabilities.

1.6
Financial instruments

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.

MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 4 -
Basic financial assets

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.

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, 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 paymen ts 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. A m ounts 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.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
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 or 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.

MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 5 -
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 and 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.

1.9
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.

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.11

Assignment of finance leases

Under certain arrangements entered into by the Company, finance lease arrangements may be assigned to counterparties (“assignees”) and on assignment substantially all the risks and rewards in the assets of the finance lease arrangements are transferred to the assignees.

Volume related bonuses and incentives received form the assignees are recognised in profit or loss when realised within turnover.

Where the Company subsequently re-acquires assets from assignees for onward disposals, any gain or loss on disposal of these assets is recognised by turnover, at the point it can be determined that all risks and rewards in the assets have been transferred by the Company.

The related net investment in finance lease outstanding at the date of the transfer is derecognised and any gain is recognised within turnover.

MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 6 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

3
Employees

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

2025
2024
Number
Number
Total
1
1
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2024
-
0
Additions
3,160
At 31 May 2025
3,160
Depreciation and impairment
At 1 June 2024
-
0
Depreciation charged in the year
87
At 31 May 2025
87
Carrying amount
At 31 May 2025
3,073
At 31 May 2024
-
0
MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 7 -
5
Debtors
2025
2024
Amounts falling due within one year:
£
£
Other debtors
62,050
25,327
Deferred tax asset
370,638
289,560
432,688
314,887
6
Current asset investments
2025
2024
£
£
Other investments
11,772,823
9,907,302
7
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
92,622
53,838
Amounts owed to group undertakings
578,366
655,960
Taxation and social security
156,645
203,717
Other creditors
3,424,741
2,745,621
4,252,374
3,659,136

Included within total creditors is interest bearing debt of £5,819,362 (202 4: £4,308,271) and non interest bearing debt of £578,367 (202 4: £655,960).

8
Creditors: amounts falling due after more than one year
2025
2024
£
£
Other creditors
2,459,575
1,607,635
9
Loans and overdrafts
2025
2024
£
£
Other loans
5,819,359
4,308,271
Payable within one year
3,359,784
2,700,636
Payable after one year
2,459,575
1,607,635
MELLOR FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
9
Loans and overdrafts
(Continued)
- 8 -

Creditors included in the above liabilities, on which security has been given by the company. This represents amounts owing under block discounting agreements which are secured by a fixed and floating charge over the relevant current asset investments.

11
Parent company

The company's parent is Johnson Reed Holdings Limited, incorporated in United Kingdom. It's registered office is Bridge House, Newbridge Lane, Stockport, SK1 2NA.

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