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Registered number: 10965808
PROPENSIO FINANCE LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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PROPENSIO FINANCE LIMITED
REGISTERED NUMBER: 10965808
STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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PROPENSIO FINANCE LIMITED
REGISTERED NUMBER: 10965808
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2025
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 13 form part of these financial statements.
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The principal activity of Propensio Finance Limited ("the Company") was the provision, origination and servicing of Consumer Finance lending products via a network of brokers, retailers and suppliers, to private individuals for a variety of specific products, such as home improvements, installation of renewable energy measures or the purchase of a static caravan as a holiday home.
The Company is a private company, limited by shares and is registered in England and Wales. The Registered Office is Building 3, Callflex Business Park, Golden Smithies Lane, Wath-Upon-Dearne, Rotherham, South Yorkshire, S63 7ER.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' ("FRS 102") and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
The financial statements have been prepared on the going concern basis. The directors have considered the loss for the year, the Statement of Financial Position at the accounting date and reviewed forecasts and is satisfied the Company is in a position to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.
As at the year end, the Company made a loss of £129,725 (2024: loss £162,227), and had net liabilities of £ 1,726,025 (2024: £ 1,596,301). On a consolidated basis the Group made a profit for the year of £249,369.
From shareholder entities, there was £1.13m of undrawn capital ready to be deployed from the QCL entity as at 30 September 2025 plus unused capacity of £3.39m remaining to be drawn from the QSOL entity. It is envisaged that in 2025 that there will be a further £3m added to the current £20m QSOL facility. Both of these will support the additional senior bank facilities that the Company has during the next financial year. The loan book continues to grow strongly, and the Company is projecting for the 2025/26 financial year to continue to be profitable on a Group basis.
Whilst Net Asset Value has increased its negative value at 30th September for Propensio Finance Limited, on a consolidated basis the Group profit for the year of £249,369 has reduced the overall negative net asset value. With a budget now for 25/26 showing expected growth in year on year profitability Net Asset Value will again be improved on a consolidated basis whilst at the Propensio Finance Limited entity level the 25/26 budget predicts a small profit which will start to reduce its overall negative net asset value.
In summary the business is well capitalised and set up to support long-term growth for the foreseeable future.
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Interest Income
Interest on loans is calculated using the effective interest method which allocates any interest, fees and subsidies receivable over the expected life of the assets and represents the return on credit risk faced by the entity. The effective interest method requires the Company to estimate future cashflows, in some cases based on experience of behaviour, the terms of the loan agreement and the expected lives of the receivables.
The effective interest rate is calculated at the time of initiating the loan facility and the calculation is based on estimating future cash flows over the shorter of the contractual life of the loan or the expected behavioural life. The expected life assumptions utilise repayment profiles to represent how borrowers are expected to repay.
Service Income
The income accrues monthly and relates to the management fee recharged to Propensio Receivables Limited. The amount is derived from the apportionment of the operating expenses, by the portion of the total interest, of both entities, which relates to Propensio Receivables Limited.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to Statement of Income and Retained Earnings.
The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
(i) Financial assets
Basic financial assets, including trade and other debtors, and, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the prevent value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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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 the Statement of Income and Retained Earnings.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and 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.
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The average monthly number of employees, including directors, during the year was 38 (2024 - 26).
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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Long-term leasehold property
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Charge for the year on owned assets
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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Propensio Receivables Limited
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Building 3, Callflex Business Park, Golden Smithies Lane, Wath-Upon-Dearne, Rotherham, South Yorkshire, S63 7ER
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The ring-fencing of consumer loan receivables that support the senior funding facility provided by Nat West Bank.
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Loans receivable are stated net of provisions. The total provision at the period end is £ 442,493 (2024: £396,170).
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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Creditors: Amounts falling due after more than one year
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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The total secured balance as at the reporting date is £ 23,480,000 (2024: £17,761,014) and is secured over the assets of the Company.
The Company has provided a cross guarantee by way of a fixed and floating loan charge over the assets of this company to Natwest bank in respect of loans advanced to Propensio Receivables Limited. The balance outstanding at the YE totalled £86,954,522 (2024: £55,476,252).
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
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Allotted, called up and fully paid
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100,000 (2024 - 100,000) Ordinary shares of £0.001 each
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PROPENSIO FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
The company has provided a cross guarantee by way of a fixed and floating charge over the assets of this company to National Westminster Bank plc in respect of loans advanced to the subsidiary undertaking, Propensio Receivables Limited. The balance outstanding at the year-end totalled £86,954,522 (2024: £55,476,252).
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. Contributions totalling £9,931 (2024: £5,415) were payable to the fund at the reporting date and are included in creditors.
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Related party transactions
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Where possible, the Company has taken advantage of the exemptions in Section 33.1A of FRS 102 not to disclose transactions with other wholly-owned group undertakings.
Included within creditors falling due after more than one year is a balance of £24,011,335 (2024: £17,831,348 due to a company under common control.
During the year, a total of £2,721,800 (2024: £2,129,126) of interest was charged to the Company by a company under common control.
Included within other creditors is a balance of £ 50,000 (2024: £50,000) owed to a director. This balance is unsecured with no fixed repayment terms.
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Post balance sheet events
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After the year end the Group amended its financing arrangements with National Westminster Bank Plc. The revolving credit facility was increased to £100 million committed, with an additional £25 million accordion feature available subject to lender consent. As part of this amendment, the repayment terms were extended to December 2026.
The immediate parent undertaking is Quilam Capital Investments LLP. The Registered Office is 4th Floor, 24 Old Bond Street, London, W1S 4AW.
The ultimate controlling party is J C Constable.
The auditors' report on the financial statements for the year ended 30 September 2025 was unqualified.
The audit report was signed on 16 January 2026 by David Landau FCA (Senior statutory auditor) on behalf of BKL Audit LLP.
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