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

The directors of the company have elected not to include a copy of the income statement within the financial statements.

Assetz Provision Funding Limited is a private company limited by shares incorporated in England and Wales. The registered office is Assetz House, 335 Styal Road, Manchester, England, M22 5LW. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS

• inclusion of an explicit and unreserved statement of compliance with IFRS;

• presentation of a statement of cash flows and related notes;

• disclosure of the objectives, policies and processes for managing capital;

• disclosure of key management personnel compensation;

• disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

• the effect of financial instruments on the statement of comprehensive income;

• disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

• comparative narrative information;

• related party disclosures for transactions with the parent or wholly owned members of the group.

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany 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.

Cash and cash equivalents 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.

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

The provision funds have been repurposed during the year to support management charges and recovery activities on loans in default. These charges incurred are expected to be recovered from future loan capital recoveries. The charges are recognised as debtors at the reporting date.

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

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

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Other income

Funds received by the Company in relation to discretionary provision funds operated by the peer to peer platform of the sister company, Assetz SME Capital Limited, and which are not matched by a provision for a liability are recognised as other income.

Other receivables

Where funds held by the Company have been used to pursue recovery action in relation to non-performing loans on the peer to peer platform of sister company Assetz SME Capital Ltd in order to create a favourable outcome for investors in those loans, in accordance with the Provision Fund policy operated by the peer to peer platform, these amounts have been recognised as Other Receivables. The Company would then recover these amounts funded from the recoveries made on those peer to peer platform loans before distributions were made to investors.

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, 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The company holds cash balances belonging to the group but which relate to discretionary funds operated by the peer to peer platform of the sister company, Assetz SME Capital Limited.

When calculating the provision, management utilises historical loan behaviours and its own experiences to determine the provisions which may be required to be accounted for at a given time. These provisions relate to the potential coverage of some or all of the capital losses on peer to peer loans on a discretionary basis should capital losses arise from a defaulted loan post any recovery work carried out.

The company reviews and adjusts the balances of provisions appropriate for the level of risk and the timing of that risk - the credit for this financial year being released to the profit and loss is £32,359 (2024: £1,040,412) but does not change the cash balances held by the company.

At the reporting date, the provision for liabilities totalled £3,664,213 (2024: £3,723,564).

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

Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.

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

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

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

The parent company of the largest and smallest group that includes the company and for which group financial statements are prepared is Assetz Capital Limited. Copies of Assetz Capital Limited financial statements can be obtained from the registered office at Assetz House, 335 Styal Road, Manchester, M22 5LW.

The Directors do not consider there to be one single ultimate controlling party.