The directors present the strategic report for the Year ended 31 March 2025.

Assetz Capital Funding Ltd is a leading marketplace lending platform for property secured UK business lending. We originate and service property development loans, commercial mortgages, and bridging loans, funded by a panel of institutional investors via our proprietary marketplace technology. Our aim is to provide a stable and secure income producing asset class for institutional investors who seek access to origination of direct lending investment opportunities and who also engage with our platform to address a funding gap in under-served UK SME Property Secured Lending segments.

The Company’s revenues arise principally from fee income charged to borrowers for originating and servicing their loans.

The Company has deep credit knowledge and lending experience at its core having invested in people with extensive UK SME property-backed lending experience to allow us to originate property secured loans at high volumes whilst adhering to investors chosen risk profiles and to manage the loan book effectively, minimising losses and maximising returns to investors.

Developments and performance during the year

Following the ceasing of loan funding by the retail lending platform in December 2022, operated by another sister company in the group, the Company was formed to focus on originating UK Property Secured loans for institutional investors. That role has accelerated this year with £44m of loans being originated and drawn down in FY25 compared to a nominal amount in FY24. This is alongside having built a substantial pipeline of future lending that is expected to positively benefit FY26. Some lending is still originated by other group companies as a result of the existing institutional arrangements in place and the Company cross-charges staff costs to those other companies as a result. On the launch of a revised platform lending agreement with our main institutional investor in January 2024 the Company took over the management and servicing of a portion of the loan book relating to that investor and has been managing that loan book along with new loans originated.

During the year, the Company has engaged a corporate finance specialist to help us identify additional institutional investors to add to our marketplace to support the further planned lending growth. That exercise generated a lot of interest and discussions remain ongoing with various parties, including a number of advanced ones.

Direct headcount of the Company has settled somewhat, down from 36 in FY24 to 27 in FY25, reflecting the finalisation of the restructuring work done within the group in FY23/FY24. This headcount level reflects the core lending team and is expected to grow slowly going forward as lending volumes ramp up but in a measured way as advances in productivity and efficiency in lending processes are seen.

Significant use of technology remains a core objective of the Company to underpin this productivity growth and several initiatives are live and are delivering results already. The Directors expect to see substantial benefit to the Company over the coming years from these initiatives and that these will contribute to a lower ratio of costs to lending volumes than previously seen.

The directors monitor the progress of the Company by reference to the following financial measures, alongside complimentary KPIs:

The Company has operated on a breakeven basis at an EBITDA pre-exceptionals level which is as expected by the Directors for the period representing the finalisation of the full pivot into the group being institutionally funded.

As custodian of loans originated for other investors, the Company has significant resources dedicated to assessing and managing the risk that borrowers may default on their loans.

In addition to credit risk, the Company manages other risks, including:

Liquidity Risk

The risk that the Company will not be able to meet its financial obligations as they fall due. This is managed by ensuring that there is always sufficient liquidity to meet liabilities when due both under normal and stressed conditions. The directors monitor the liquidity position on an ongoing basis.

Market risk

The Company's business is the facilitation of property secured UK SME lending and the directors are aware that a general and persistent weakening of the UK economy and, in particular, property values, may impact on for the value of assets supporting the property secured loans we have originated. The Company has sought to mitigate these risks by maintaining a modest level of Loan to Value across the loan book.

Operational risk

The Company maintains robust operational systems and controls through its investment in people and technology. A risk committee reports regularly to the directors, and the Company continues its development of strong operational and; risk function.

Capital Management

The Company's objective when managing capital is to safeguard its ability to continue as a going concern (referred to in liquidity risk above). Financial performance is regularly reviewed by various committees within the business.

Future developments

There have been no developments of note in the short time since the year end.

On behalf of the board

The directors present their annual report and financial statements for the Year ended 31 March 2025.

The principal activity of the company continued to be that of a market place lending platform, focussing on property secured UK SME business lending.

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

The directors who held office during the Year and up to the date of signature of the financial statements were as follows:

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

The company's current policy concerning the payment of trade creditors is to:

• settle the terms of payment with suppliers when agreeing the terms of each transaction;

• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and

• pay in accordance with the company's contractual and other legal obligations.

Trade creditors of the company at the year end were equivalent to XX day's purchases, based on the average daily amount invoiced by suppliers during the year.

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

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are 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. They are 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.

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.

We have audited the financial statements of Assetz Capital Funding Limited (formerly Assetz 2023 Limited) (the 'company') for the Year ended 31 March 2025 which comprise the income statement, the statement of financial position, the statement of changes in equity 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 101 Reduced Disclosure Framework (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 31 March 2025 and of its loss 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.

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.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 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 directors are 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 directors' report for the financial Year for which the financial statements are prepared is consistent with the financial statements; and

• the directors' report has 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 directors' 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 directors' 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 directors' responsibilities statement, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have 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:

Identifying and assessing potential risks relating to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations we have considered the following:

• The nature of the industry and sector, control environment and business performance including the company's remuneration policies, key drivers for directors remuneration, bonus levels and performance targets;

• Results of the enquiries of management about their own identification and assessment of the risks of irregularities;

• Any matters we have identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

• the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and provisions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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 members, as a body, 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 members those matters we are required to state to them 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Assetz Capital Funding Limited is a private company limited by share capital, incorporated in England and Wales, registration number 14669696. The address of the registered office and principal place of business is Assetz House, Manchester Green, 335 Styal Road, Manchester, M22 5LW.

The company has presented financial statements for the year ended 31 March 2025. The comparative figures include transactions for the period from its incorporation on 17 February 2023 to 31 March 2024. The extension was made to bring the company in line with the group. For this reason the comparative amounts presented in the financial statements are not entirely comparable.

The company maintains its books and records in sterling ("£") and presents its annual financial statements in conformity with United Kingdom laws and regulations.

These annual financial statements have been prepared in accordance with Financial Reporting Standard FRS 101 Reduced Disclosure Framework and in accordance with applicable accounting standards, as adopted by the European Union and the Companies Act 2006.

The results of Assetz Capital Funding Limited (formerly Assetz 2023 Limited) are included in the consolidated financial statements of Assetz Capital Limited which are available from Assetz House, 335 Styal Road, Manchester, M22 5LW.

The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. Changes in assumptions may have a significant impact on the financial statements in the year the assumptions changed. Management believes that the underlying assumptions are appropriate.

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

• 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.

Where required, equivalent disclosures are given in the group accounts of Assetz Capital Limited. The group accounts of Assetz Capital Limited are available to the public and can be obtained as set out in note 13.

The financial statements have been prepared on a going concern basis, applying a historical cost convention.true

Having made appropriate enquiries, the directors consider that the company has the ability to remain in operation for the foreseeable future, as they have confirmed the continuing financial support and the ability to provide that support of the parent and other group undertakings and have therefore continued to adopt the going concern basis in preparing the financial statements.

Revenue represents fees receivable for the arranging and servicing of finance through the marketplace lending platform, and the referral of corporate loan applications to other funders.

Revenue earned for the arrangement of finance and referral of corporate loan applications is classified as arrangement fees and is recognised immediately when loans are funded on the marketplace and after the loans are accepted by the borrowers. Such fees are automatically deducted from the amount borrowed or received from the funder and recognised at that point as the company has the right to consideration.

Revenue also includes the cost of Valuation and Monitoring surveys instructed by the Company in the course of its due diligence on loans which are recharged back to the customer and recognised at the time of the receipt. This revenue is received directly from the customer.

Revenue earned from servicing of finance via the marketplace lending platform is recognised throughout the term of the contract.

Revenue comprises the fair value of the consideration received or receivable in the ordinary course of the company's activities. All revenue recorded in the financial statements is generated in the UK and sourced from financing transactions. All fees are calculated based on the above revenue recognition policy.

Administrative expenses

Expenses are recognised as an expense in the statement of comprehensive income in the period in which they are incurred on an accruals basis.

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

Cash and cash equivalents comprise cash at bank. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

The company determines the classification of its financial assets at initial recognition. From 1 April 2018 the requirements of IFRS 9 for classification and subsequent measurement have been applied which require financial assets to be classified based on the company's business model for managing the asset, and the contractual cash flow characteristics of the asset:

• Financial assets are measured at amortised cost if they are held within a business model the objective of which is to hold financial assets in order to collect contractual cash flows, and their contractual cash flows represent solely payments of principal and interest.

• Financial assets are measured at fair value through profit or loss if they are held within a business model the objective of which is achieved by both collecting contractual cash flows and selling financial assets and their contractual cash flows represent solely payments of principal and interest.

• Financial assets that do not meet the criteria to be amortised cost or fair value through other comprehensive income are measured at fair value through profit or loss. In addition, the company may, at initial recognition, designate a financial asset as measured at fair value through profit or loss if doing so eliminates or significantly reduces an accounting mismatch.

When financial assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs. ·

The company does not recognise on its balance sheet loans arranged between borrowers and investors as it is not a principal party to the contracts and is not exposed to the risks and rewards of these loans.

Other financial assets

Financial assets recognised in the balance sheet as trade and other receivables are classified as loans and receivables (from 1 April 2018: amortised cost). They are recognised at fair value and subsequently measured at amortised cost less provision for impairment.

The company applied the impairment requirements of IFRS 9. The IFRS 9 impairment model introduces a three-stage approach:

Stage 1 includes financial instruments that have not had a significant increase in credit risk since initial recognition or that have low credit risk at the reporting date. For these assets, 12-month expected credit losses (that is, expected losses arising from the risk of default in the next 12 months) are recognised and interest revenue is calculated on the gross carrying amount of the asset (that is, without deduction for credit allowance).

Stage 2 includes financial instruments that have had a significant increase in credit risk since initial recognition (unless they have low credit risk at the reporting date) but are not credit-impaired. For these assets, lifetime ECL (that is, expected losses arising from the risk of default over the life of the financial instrument) are recognised, and interest revenue is still calculated on the gross carrying amount of the asset.

Stage 3 consists of financial assets that are credit-impaired, which is when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. For these assets, lifetime ECL are also recognised, but interest revenue is calculated on the net carrying amount (that is, net of the ECL allowance).

The introduction of the 'expected credit loss' model has not significantly impacted the company's accounting as it does not have any complex financial instruments or material credit risks. The company uses its historical experience, external indicators and forward-looking information to calculate expected credit losses.

Financial assets are derecognised only when the contractual rights to the cash flows from the financial assets expire or the company has either transferred the contractual right to receive the cash flows from that asset, or has assumed an obligation to pay those cash flows to one or more recipients.

The company derecognises a transferred financial assets if it transfers substantially all the risks and rewards of ownership.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Financial liabilities included in trade and other payables are recognised initially at fair value and subsequently at amortised cost. The fair value of a non-interest bearing liability is its discounted repayment amount. If the due date of the liability is less than one year, discounting is omitted.

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.

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

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the year end date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate, based on amounts expected to be paid to the tax authorities.

Deferred tax assets for unused tax losses, tax credits and deductible temporary are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities and there is an intention to settle the balances on a net basis.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affect neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted at the year-end date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled. Deferred tax balances are not discounted.

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 inventories or non-current 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.

Trade and other receivables

Trade and other receivables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other payables

Trade and other payables are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

An analysis of the company's revenue is as follows:

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

Their aggregate remuneration comprised:

Credit risk is the risk of financial loss to the company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the company's receivables from customers and cash and cash equivalents held at banks.

The company's maximum exposure to credit risk by class of financial asset is as follows:

Trade receivables of £102,999 (2024: £Nil) represent invoiced amount in respect of due deferred arrangement or exit fees from borrowers. The risk of financial loss is deemed minimal because all loans are secured.

Ongoing credit evaluation is performed on the financial condition of other receivable and, where appropriate, a provision for impairment is recorded in the financial statements.

Individual risk limits for banks and financial institutions are set by external rating agencies. The credit risk on cash and cash equivalents is managed under the company's treasury policy that stipulates the limits and quantities that the company must remain within. No credit or counter party limits were exceeded during the year.

The company does not hold any collateral or other credit enhancements to cover this credit risk.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above.

Receivables from related undertakings are interest free and repayable on demand.

No trade receivables were impaired.

The principal financial instruments used by the company, from which financial instrument risk arises, are as follows:

• loan due from and payable to related undertakings

• trade and other receivables

• cash and cash equivalents

• trade and other payables

• categorisation of financial assets and financial liabilities

The company has exposure to the following risks from its use of financial instruments:

• credit risk

• liquidity risk

The table shows the carrying amounts and fair values of financial assets and financial liabilities by category of financial instrument as at 31 March 2025:

Financial instruments measured at amortised cost, rather than fair value, include cash and cash equivalents, trade and other receivables, trade and other payables, and loans and payables/receivables to/from related parties. Due to their short-term nature, the carrying value of each of the above financial instruments approximates to their fair value.

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.

The company has taken advantage of the exemption provided in IAS 24 from disclosing related party transactions between members of a group as a subsidiary which is fully owned.

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, Manchester Green, 335 Styal Road, Manchester, M22 5LW.

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