The director presents the strategic report for the period ended 30 March 2024.

Performance

Barings is a leading UK claimant law firm, acting for tens of thousands of consumer and commercial clients across multiple group litigation actions.

A number of Barings’ high-profile cases have recently been reported and then referred to in the national and legal press, most notably the High Court’s 2025 ruling in “Angel & Others”, which was the first motor vehicle finance claim brought by “omnibus” claimants (which means that Barings issued proceedings on behalf of multiple claimants at the same time via a single claim form); the Court endorsed this approach and agreed that this was an appropriate way to conduct such claims, consequently this omnibus approach will facilitate the processing of claims in a more expedient and costs proportionate manner, to the benefit of claimants and in accordance with our professional obligations under part 1 of the Civil Procedure Rules.   We also prevailed in six ‘test’ cases concerning business interruption insurance policy claim triggers and, following a successful Court of Appeal judgment in 2024, we are now on track to establish a settlement pattern for such claims. Moving forward into 2025 Barings is on track to be one of the leading Data Breach and Privacy firms, with a number of high profile claims in the High Court.

Post year end, we have put in place a new, stronger finance team and as part of a review in liaison with our Auditors, we determined that it was necessary to re-state the firm's 2023 financial statements, which then had a subsequent impact on the completion of these 2024 accounts.

In addition, we have undertaken a retrospective review of ongoing claims and their validity (in terms of their asset values to the business). As part of this exercise, it was found that a proportion had been closed for various reasons. This has resulted in a write-off and correction to asset values as at the 30th March 2024.

Work-In-Progress

It should be noted that from a financial reporting and policy perspective, no fee revenue (or WIP) is recognised where the fee is contingent upon the success of the case until that case has been won. This means that WIP shown in the company’s balance sheet does not take account of fees that will become payable once a case is successfully concluded.

By way of guidance, we believe that the WIP balance likely to be realised upon the success settlement of existing cases, would equate to materially in excess of £300m. As part of the financial review, we have recently engaged external cost draftsmen to review the WIP calculation across the whole business.

KPIs

Management uses a number of financial performance measures to access the performance of the company.

The company operates in an attractive but competitive market which continues to attract new (and often inexperienced) entrants. In order to protect the company’s operating margins, the directors are continually seeking new economically attractive claims types to diversify the company’s current portfolio.

The company’s business is also subject to the risks set out below which are mitigated as indicated.

Technology and Operations

In 2024, Barings Law made substantial investments in its technology infrastructure and software platforms. A key focus has been the development and deployment of advanced automation tools including Robotic Process Automation (RPA). These systems are designed to significantly reduce the administrative burden on our workforce, accelerate settlement cycles, and improve the accuracy of Work in Progress reporting.

By applying these technologies across multiple claim types, we are enhancing our ability to generate more reliable settlement data and increasing the efficiency of new client sign-ups. While these investments have temporarily increased our overheads, they are expected to deliver long-term benefits by streamlining processes, improving productivity, and ultimately reducing costs. This forms part of our wider strategy to build a scalable, technology-driven platform capable of handling cases effectively.

People
Alongside our technology investment, we have continued to strengthen our workforce. Post year-end the business has brought in new key management personnel with a focus on the accounting and compliance functions.

Operational & IT Risk

Risk

The company relies significantly on its technology and IT systems to automate the running of its cases.

Mitigating factors

The company monitors the resilience of its information systems and has moved to Cloud-based servers allowing employees to work from home if required. Data is stored in the Cloud with two-factor authentication in place to keep all connections secure.

Professional liability and uninsured risks

Risk

The company provides professional services, predominantly legal advice. Like all providers of professional services, it has a potential liability to negligence, breach of client contract, and other claims by clients.

Mitigating factors

The company is advised by market leading insurance brokers and the Directors believe that it holds comprehensive professional liability insurance. Any claims are defended strongly by senior members of the business at all stages and external advice is sought where appropriate. The Company works hard to ensure its employees provide excellent advice and services to all its clients, underpinned by quality processes and bespoke training programs.

Growth Risk

Risk

The company’s strategy is to grow organically by sourcing economically attractive claims. The availability of such claims may decrease or the claims may fail to generate the expected level of economic return.

Mitigating factors

The board considers the growth of consumer claims within the professional services market will continue and that as a result there will be continuing profitable opportunities to grow the business.

The adjustments to the balance sheet and the P&L do not change at all the firm’s longer-term plan, which is to repay all of the external litigation funding over the course of the next five years or so. The strategy to achieve this includes the following steps that we have already taken, including:

• Improvements in the firm’s time recording process in order to capture more time and to increase recovery rates;

• Implementing new charging rates;

• Increase in productivity through setting targets for the team and monitoring performance;

• Delivery of time recording training to all staff to ensure we capture the maximum time on each matter;

• Focus on the reduction of the lock-up period from receipt of settlement funds until disbursement to client and billing of costs, by setting inter-team SLAs and by close monitoring/management of that process;

• Creating efficiencies in the claims processes in order to shorten the periods for responses to incoming correspondence and chasing third parties for responses more regularly, rather than leaving these in abeyance;

• Employing additional solicitors and supporting the development of paralegals on their pathways to qualification, which means that we are now well-placed to deal with the issues and risks posed by the recent judgment in Mazur;

• Engaging a legal consultant, to undertake a root-and-branch Diagnostic Review of the entire business. This has been specifically designed to address the root causes of the issues now emerging and to provide the Board with a reliable financial model and business plan built on validated data involving a nine-week structured programme examining:

• WIP and debtor accuracy;

• Case inception quality and client engagement;

• Operational workflows and case throughput;

• Financial modelling, forecasting and cash requirements;

• Governance and controls;

• Legal strategy – to include a review of litigation plans and underpinning financial assumptions and

• Recovery potential for external funders.

Diversification of the business (see further below).

The FCA has recently announced its intention to create a redress scheme for motor vehicle finance claims. This has caused Barings to take stock of its PCP book of business and to reconsider both its strategy and also its likely revenues in respect of that work-type. Barings is comfortable with its position in respect of the PCP book, having identified that a large proportion of its claims fall within the criteria set down by the Supreme Court in Johnson.

As always, there will be many outliers within our PCP business for which the proposed redress scheme might not be suitable, specifically cases with a value in excess of around £1000, in which case, proceedings will probably still be the most appropriate way forward. By aggregating claims (known as “Omnibus Claims”), we should be able to issue such claims as group actions in the County Court (multi-track) or in the High Court, ensuring that costs become recoverable, thereby enhancing the business model. Barings established the authority for Omnibus Claims in its Angel case in the High Court earlier this year - the lender’s appeal against that decision is due to be heard by the Court of Appeal in Spring 2026.

However, PCP claims are only one part of the firm’s current business – some other work-types have no external funding whatsoever and these have the potential to deliver significant revenues over the next twelve months or so. These include Business Interruption cases arising from the Covid-19 pandemic; Barings issued six of the ten cases currently in the High Court and we have a large unfunded book of these claims, which we aim to settle by Q3 2026. We have also had number of successes with Data Breach claims and, again, we are involved in some of the highest profile Data Breach claims in the UK, which have attracted a great deal of press coverage, particularly in respect of the MOD Afghan data breach. We expect further significant claim settlements over the next twelve months, which will realise some of our WIP.

The financial statements are prepared on a going concern basis as the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Financial projections have been prepared which shows positive earnings and cash flow generations. The directors are aware of certain uncertainties and these are disclosed further in note 1.2.

Notwithstanding the above, the board has also considered mitigating actions such as overhead expenditure and other short term cash management activities within the Company's control as part of their assessment of going concern.

Based on all available information, the Company expects to be able to operate within its existing financing facilities for the foreseeable future and currently demonstrates debt capacity headroom based on its current financial performance. Accordingly, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and they have adopted the going concern basis of accounting in preparing the financial statements.

On behalf of the board

The director presents his annual report and financial statements for the period ended 30 March 2024.

The principal activity of the company continued to be that of the provision of legal services as set out in the strategic report.

The results for the period are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

The director who held office during the period and up to the date of signature of the financial statements was as follows:

The auditor, AMS Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and the exposure of the company to risk.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Barings Limited (the 'company') for the period ended 30 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 March 2024 and of its loss for the period 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw attention to Note 1.2 in the financial statements, which indicates that the company incurred a net loss during the period ended 31st March 2024 and, as of that date, the company's current liabilities exceeded its total assets due to how the entity recognises its income. As set out in Note 1.2, a significant proportion of the company's income and economic value relates to work in progress ('WIP') arising from legal cases operated on a contingent fee basis. Under the applicable accounting standards, such contingent WIP cannot be recognised as an asset until the outcome of a case becomes certain and measurable. Consequently, the substantial work performed on ongoing cases is not reflected on the balance sheet, whereas the associated funding costs and liabilities are recognised, contributing to the reported deficit at the year end.

In addition, delays in the progression of one of the company's principal case types deferred the timing of WIP realisation during the period. Since the reporting date, the FCA has announced its intention to introduce a redress scheme and has provided further updated and clarification regarding the ongoing review. While the final structure is not yet confirmed, this increased visibility has contributed to renewed progression and activity within affected case types. The director remains confident in the recoverability of unrecognised WIP and the company's continued trading performance, this along with the other matters as set forth in Note 1.2, indicate that a material uncertainty exists that may cause significant doubt on the company's ability to continue as a going concern but the director deems it appropriate to prepare the financial statements on a going concern basis. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of director's remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates, drawing on our broad sector experience, and considered the risk of acts by the Group that were contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, SRA regulations, Companies Act 2006 and equivalent local laws and regulations.

We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the board meetings, legal reports provided to the Group and correspondence between the Group and its solicitors. Audit procedures performed by the engagement team included:

• Discussion with management, including consideration of known or suspected instances of noncompliance with laws and regulations and fraud;

• Review of financial statement disclosures to underlying supporting documentation;

• Challenging assumptions and judgements made by management in their significant accounting estimates;

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Barings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8th Floor, Cardinal House, 20 St Mary's Parsonage, Manchester, M3 2LY.

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.

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.

These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the director is aware of certain material uncertainties which may cast doubt on the company’s ability to continue as a going concern.

Barings continues to be at the forefront of many consumer claim types within the legal sector. Motor vehicle finance, business interruption, data breach and privacy cases are currently being litigated across the country, from the County Court to the Supreme Court. In the case of Motor Vehicle Finance and Business Interruption cases Barings continues to be a leading firm with a very high profile in its sector. With a number of cases listed for hearing in 2026 we expect to see significant settlements by quarter three of 2026.

As noted within the strategic report the company engages in legal cases which operate on a contingent basis, and as such the company incurs costs upfront on these cases which require funding. Income is not recognised, or received until cases are complete, which results in recognition of the costs which are incurred as the work progresses and results in prepaid disbursements being recognised as debtors on the balance sheet and associated funding of the cases being recognised as liabilities on the balance sheet.

Progress on some of the firm’s major case types, including motor vehicle finance commission claims, slowed during the year due to wider market uncertainty following the Supreme Court’s ruling in Johnson v FirstRand Bank Limited and the subsequent, ongoing FCA review. Since the reporting date, the FCA has confirmed its intention to introduce a redress scheme and has continued to provide further updates. Although the final details of the redress scheme have not yet been published, this has nevertheless provided more clarity and cases have begun to move forward again.

The company continues to have the support of its main funder, along with other lenders, banks and shareholders. The business has also started to broaden its case portfolio into areas with shorter settlement times and lower funding needs. This will reduce Barings’ reliance on any single type of case and will strengthen the company’s cash flow position overall. Some of the new case types do not require external funding but have significant potential and these are expected to generate further unencumbered revenue for the business.

The company has in place a primary facility with a third-​party lender, which continues to provide funding to enable the financing of existing and future cases. In addition to the above, the company received specific working capital funding from a number of other lenders to support the continued operation of the business and in addition has the support of its creditors, bank and shareholders.

The business continues to operate across a number of contingent case types, some of which are completing and realising revenue within the accounts in the year and post year-end. Post year-end, the business has restructured to diversifying its offering and portfolio.

These new offerings have no external funding whatsoever and these have the potential to deliver significant revenues in future periods.

A large part of the company’s value comes from work carried out on cases that are funded on a contingent fee basis. Under the accounting rules in FRS 102, this type of work cannot be shown as an asset on the balance sheet until the case has concluded. This means that although the company has completed a significant amount of work, which has a high expected value, this cannot yet be recognised in the financial statements. The expected settlement values of such cases held by the business are far in excess of the liabilities associated to these claims, and the costs currently incurred by the business. This is due to established industry claims which have shorter lead times to complete. Barings’ WIP currently stands at in excess of £300m, but company is currently undertaking a review and revaluation exercise, for which it has engaged a third party cost draftsperson.

In respect of motor vehicle finance or commission claims, the outcome of cases and the associated settlements, are currently uncertain, Barings continues to be at the forefront of this claim type – the company’s high profile case of Angel & Others v Black Horse Limited & Others is listed for hearing at the Court of Appeal in the second quarter of 2026.

The director has prepared detailed forecasts which encompass a period up to March 2027 and he is satisfied that through the changes made above, and the diversification process that has already commenced within the business, the company will be able to reduce its reliance on external funding over the next few years.

Although these changes have taken place post year end to reduce the potential impacts of unknown outcomes, given the uncertainties surrounding the recovery of ongoing cases, there is deemed to be a material uncertainty in respect of going concern as a result of the above events and conditions which exist for the entity and the wider market.

Although this is the case, the director has support from its lenders and shareholders who have committed to support them for at least the next 12 months.

Although case timings are never certain, the director believes that recent developments and the actions taken by the company provide a sound basis for managing these uncertainties. He therefore considers the use of the going concern basis to be appropriate.

Turnover represents the fair value of amounts receivable for services provided to clients, exclusive of value added tax and professional disbursements. Turnover is recognised as contract activity progresses, and as the right to consideration is earned.

Fair value reflects the amount expected to be recovered from clients and is based on time spent, skills and expertise provided in addition to expenses incurred.

The company recognises revenue from the following major sources:

• Contingent fee assignments

• Non-contingent fee assignments

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Turnover in respect of contingent fee assignments (over and above any minimum fee which is recognised as above) is recognised in the period when the contingent event occurs, and the fee is assured.

Turnover in respect of non-contingent fee assignments is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

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:

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.

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.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

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.

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

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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease 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.

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.

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.

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

In assessing the correct amount of revenue to be recognised and the value of long-term contract balances, the directors make the best estimates of forecast costs where the amounts are unknown or disputed in order to assess the percentage completion of each case. For other balances where a percentage completion basis is not utilised, the directors use information from fee earners to assess the likely right to consideration and value the amounts recoverable on contracts on that basis.

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

Their aggregate remuneration comprised:

The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

Other loans totalling £46,489,656 are secured by fixed and floating charges dated 15 November 2021 and 31 December 2021 over the undertaking and all property and assets of the company, in favour of Claim Finance & Administration Co Limited.

The loans attract an interest rate of between 28% and 37% with no fixed repayment date but the lender has confirmed that they will not seek repayment within the next 12 months.

Bank Loans of £23,333 due are in respect of Bounce Back Loan, which are unsecured. The loans attracts an interest of 2.5% as per the agreement.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the provisions of FRS 102 33.7A as the directors and key management personnel are the same and no further disclosure is required.

There were no transactions with related parties in either year that require disclosure in accordance with FRS 102 Section 33.

Dividends totalling £0 (2023 - £0) were paid in the period in respect of shares held by the company's directors.

At the year-end, a balance of £230,000 (2023: £230,000) was due to Mrs Qian Wang, a former director of the company.

The above loan is unsecured and attracts interest of 3% per annum. During the year an interest amounting to £6,000 was paid in respect of the loan.

At the year-end, a balance of £479,061 (2023: £109,693 due from) was due to Mr Craig Cooper, a former director of the company.

The above loan is interest free and there is no fixed date for repayment.

During the year Mr Craig Cooper had personal guarantees with the bank which were limited to £50,000 as confirmed by the bank.

Advances or credits have been granted by the company to the former directors as follows:

At the balance sheet date, by virtue of ownership of the majority of issued share capital, Mr Craig Cooper is the controlling party.

Post year-end on 14th July 2025, all issued share capital of the company was transferred to Mr Robert Lee Whitehead.

Interest payable on case funding was previously accrued as being payable. As the outcome of the cases cannot be reliably estimated at the balance sheet date, the interest accrued has been removed and restated in the prior period financial statements.

Prepaid disbursements amounting to the prior period adjustment were rejected by the financial ombudsman. As such, the prepaid amounts are deemed to be irrecoverable by the entity. The amounts deemed to be irrecoverable have been removed and restated in the prior period financial statements.

Upfront loan costs which were charged in the prior year were provided in error. As such, these amounts have been reversed and have been restated in the prior period financial statements.