Company registration number 06426478 (England and Wales)
HARBOUR LITIGATION FUNDING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
HARBOUR LITIGATION FUNDING LTD
COMPANY INFORMATION
Directors
P K M Tonnby
S J Dunn
J K M Bark-Jones
E Macpherson
G N B Bennett
Company number
06426478
Registered office
Suite 2a Princes House
38 Jermyn Street
London
SW1Y 6DN
Auditor
Gravita Audit II Limited
Aldgate Tower
2 Leman Street
London
United Kingdom
E1 8FA
HARBOUR LITIGATION FUNDING LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
HARBOUR LITIGATION FUNDING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 1 -

The directors present the strategic report for the year ended 31 December 2025.

Review of the business

The results for the year and the financial position were considered satisfactory by the directors who expect a similar result in the foreseeable future.

The Company is authorised and regulated by the UK Financial Conduct Authority.

The turnover of the Company consists of advisory fees receivable which are generated in accordance with sub-advisory agreement s. For the year under review, the Company continued to receive fees from its existing customer, and its expenses remained at a consistent level and the directors kept these under close review.

The Company's principal financial instruments comprise cash, which provides finance for the Company's operations, along with retained profits.

Key performance indicators
The key financial highlights are as follows:
2025
2024
Turnover
6,995,096
7,983,595
Operating profit percentage
7.2%
-2.29%
Profit/(Loss) before tax
503,675
(227,741)
Promoting the success of the company

The following disclosures describe how the directors have had regard to the matters set out in section 172(I)(a)-(f) and forms the directors’ statement required under section 414CZA of the Companies Act 2006.

Engagement with employees

The Directors recognise the success of our business depends on attracting, retaining and motivating employees. The Company is committed to ensuring that they remain a responsible employer, from pay and benefits to promoting health and safety in the workplace environment.

Company reputation

The Company’s reputation is vitally important both for attracting and maintaining its business relationships as well as ensuring we can hire the best employees. A strong controls environment is operated with regular reports made and actions to ensure standards are maintained at a high level.

Long-term decision making

The Directors consider the likely consequences of any decision in the long-term, and any significant decisions are made with due thought to long term growth targets set within the Company.

On behalf of the board

P K M Tonnby
Director
22 April 2026
HARBOUR LITIGATION FUNDING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
- 2 -
The directors present their report and financial statements for the year ended 31 December 2025.
Principal activities

The principal activity of Harbour Litigation Funding Limited ("the C ompany") was that of investment sub-advisory services.

Results and dividends

The results for the year are set out on page 7.

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

Directors

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

P K M Tonnby
S J Dunn
J K M Bark-Jones
E Macpherson
G N B Bennett
Statement of directors' responsibilities

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. 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;

- 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.

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; and

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

HARBOUR LITIGATION FUNDING LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 3 -

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.

Strategic Report

The C ompany has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the C ompany'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.

Statement of disclosure to auditor

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 C ompany’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 C ompany’s auditor is aware of that information.

On behalf of the board
P K M Tonnby
Director
22 April 2026
HARBOUR LITIGATION FUNDING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARBOUR LITIGATION FUNDING LTD
- 4 -
Opinion

We have audited the financial statements of Harbour Litigation Funding Ltd (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, the statement of financial position, 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 31 December 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.

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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern.

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 strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

HARBOUR LITIGATION FUNDING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARBOUR LITIGATION FUNDING LTD (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

Auditor's responsibilities for the audit of the financial statements

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

HARBOUR LITIGATION FUNDING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARBOUR LITIGATION FUNDING LTD (CONTINUED)
- 6 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- understanding the business model as part of the control and business environment;

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence and enquiring with the company of actual and potential non-compliance with laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

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.

Sarah Wilson FCA (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited, Statutory Auditor
Chartered Accountants
Aldgate Tower
2 Leman Street
London
E1 8FA
United Kingdom
23 April 2026
HARBOUR LITIGATION FUNDING LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
6,995,096
7,983,595
Administrative expenses
(6,863,587)
(8,582,992)
Other operating income
372,166
382,336
Operating profit/(loss)
4
503,675
(217,061)
Amounts written off investments
8
-
12,584
Profit/(loss) before taxation
503,675
(204,477)
Tax on profit/(loss)
9
(126,157)
78,510
Profit/(loss) for the financial year
377,518
(125,967)
HARBOUR LITIGATION FUNDING LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2025
31 December 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
37,032
62,756
Current assets
Debtors falling due after more than one year
12
256,377
256,377
Debtors falling due within one year
12
2,555,410
2,522,606
Cash at bank and in hand
1,018,907
716,303
3,830,694
3,495,286
Creditors: amounts falling due within one year
13
(2,492,911)
(2,560,745)
Net current assets
1,337,783
934,541
Net assets
1,374,815
997,297
Capital and reserves
Called up share capital
15
1,800
1,800
Share premium account
16
48,000
48,000
Capital redemption reserve
16
200
200
Profit and loss reserves
16
1,324,815
947,297
Total equity
1,374,815
997,297
The financial statements were approved by the board of directors and authorised for issue on 22 April 2026 and are signed on its behalf by:
P K M Tonnby
Director
Company registration number 06426478 (England and Wales)
HARBOUR LITIGATION FUNDING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 January 2024
1,800
48,000
200
1,073,264
1,123,264
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
-
(125,967)
(125,967)
Balance at 31 December 2024
1,800
48,000
200
947,297
997,297
Year ended 31 December 2025:
Profit and total comprehensive income
-
-
-
377,518
377,518
Balance at 31 December 2025
1,800
48,000
200
1,324,815
1,374,815
HARBOUR LITIGATION FUNDING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 10 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
273,335
(112,100)
Income taxes refunded/(paid)
29,331
(128,592)
Net cash inflow/(outflow) from operating activities
302,666
(240,692)
Investing activities
Purchase of tangible fixed assets
(13,912)
-
0
Proceeds from disposal of tangible fixed assets
13,850
-
Proceeds from disposal of subsidiaries
-
0
35,198
Net cash (used in)/generated from investing activities
(62)
35,198
Net increase/(decrease) in cash and cash equivalents
302,604
(205,494)
Cash and cash equivalents at beginning of year
716,303
921,797
Cash and cash equivalents at end of year
1,018,907
716,303
HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
- 11 -
1
Accounting policies
Company information

Harbour Litigation Funding Ltd is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Suite 2a Princes House, 38 Jermyn Street, London, SW1Y 6DN.

1.1
Basis of preparation

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

During the year the company has generated a profit of £378k and closed the year with £1,375k of total assets less liabilities. The directors have prepared up to the end of December 2027, forecasts which demonstrate an expectation that total assets less liabilities will improve over this period. Therefore a true t the time of approving the financial statements, t he directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Turnover represents amounts receivable for sub-advisory services and shared service charges. Fees are charged on a cost plus basis and are recognised in the period to which they relate.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. The Intangible Asset is now fully amortised.

Intangibles
33% Straight Line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 12 -

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:

Land and buildings short leasehold
20% Straight line
Plant and machinery
33% Straight Line
Fixtures, fittings & equipment
50% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The assets' residual lives and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

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.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has chosen to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments 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. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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.

Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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 s ubsequently 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 th r ough 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.

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

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 income statement, 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.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases
As lessee

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.14
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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 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.

Key sources of estimation uncertainty

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

Accruals

The company makes estimate s around certain accruals balances, principally bonuses and other commission-related payments. When assessing the likely final value, management considers various factors including the likely ultimate value of the payment, the profile of the underlying model and historical experience.

Provision for dilapidations

The company makes estimates around the provision for dilapidations. When assessing the likely final value, management considers the last quote received from building suppliers which is based on the square footage of similar buildings within London and adjusts for labour costs and inflationary measures.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 16 -
3
Turnover

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

2025
2024
£
£
Turnover analysed by class of business
Fees receivable
6,995,096
7,983,595

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

4
Operating profit/(loss)
2025
2024
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(1)
2,014
Depreciation of owned tangible fixed assets
39,636
63,668
(Profit)/loss on disposal of tangible fixed assets
(13,850)
2,849
Operating lease charges
372,332
293,953
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
32,700
27,675
For other services
Taxation compliance services
7,570
7,350
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was 22 (2024: 29)

2025
2024
Number
Number
Directors
5
5
Administrative staff
18
24
Total
23
29
HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
4,401,006
5,151,600
Social security costs
626,708
660,935
Pension costs
149,327
200,275
5,177,041
6,012,810
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
887,486
1,268,664
Company pension contributions to defined contribution schemes
10,000
34,375
897,486
1,303,039
Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
671,950
640,632
Company pension contributions to defined contribution schemes
10,000
10,000
8
Amounts written off investments
2025
2024
£
£
Other gains and losses
-
12,584
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
120,447
(85,041)
Adjustments in respect of prior periods
5,710
6,531
Total current tax
126,157
(78,510)
HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
9
Taxation
(Continued)
- 18 -

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

2025
2024
£
£
Profit/(loss) before taxation
503,675
(204,477)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
125,919
(51,119)
Tax effect of expenses that are not deductible in determining taxable profit
(9,798)
(19,196)
Adjustments in respect of prior years
5,710
6,531
Permanent capital allowances in excess of depreciation
4,326
(12,439)
Loss on Disposal of Fixed Assets
-
0
670
Profit on disposal of subsidiary
-
0
(2,957)
Taxation charge/(credit) for the year
126,157
(78,510)
10
Intangible fixed assets
Intangibles
£
Cost
At 1 January 2025 and 31 December 2025
7,924
Amortisation and impairment
At 1 January 2025 and 31 December 2025
7,924
Carrying amount
At 31 December 2025
-
0
At 31 December 2024
-
0

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 19 -
11
Tangible fixed assets
Land and buildings short leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 January 2025
500,761
139,579
262,425
902,765
Additions
-
0
13,912
-
0
13,912
Disposals
-
0
-
0
(52,467)
(52,467)
At 31 December 2025
500,761
153,491
209,958
864,210
Depreciation and impairment
At 1 January 2025
464,835
113,787
261,387
840,009
Depreciation charged in the year
14,800
23,798
1,038
39,636
Eliminated in respect of disposals
-
0
-
0
(52,467)
(52,467)
At 31 December 2025
479,635
137,585
209,958
827,178
Carrying amount
At 31 December 2025
21,126
15,906
-
0
37,032
At 31 December 2024
35,926
25,792
1,038
62,756
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,063,724
1,959,167
Corporation tax recoverable
-
0
109,259
Other debtors
220,185
185,647
Prepayments and accrued income
271,501
268,533
2,555,410
2,522,606
2025
2024
Amounts falling due after more than one year:
£
£
Other debtors
256,377
256,377
Total debtors
2,811,787
2,778,983
HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 20 -
13
Creditors: amounts falling due within one year
2025
2024
£
£
Trade creditors
30,156
48,212
Corporation tax
46,229
-
0
Other taxation and social security
123,102
234,267
Other creditors
321,750
368,475
Accruals and deferred income
1,971,674
1,909,791
2,492,911
2,560,745
14
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,327
200,275

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.

15
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,800
1,800
1,800
1,800
16
Reserves
Share premium

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

Profit and loss reserve

Retained earnings representing accumulated comprehensive income for the year and prior periods less dividends paid.

17
Operating lease commitments
As lessee

Operating lease payments represent rentals payable by the company for office premises and photocopiers.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
17
Operating lease commitments
(Continued)
- 21 -

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:

2025
2024
£
£
Within 1 year
246,321
439,620
Years 2-5
378,841
1,108,575
625,162
1,548,195
18
Events after the reporting date

The company entered into a new lease agreement on 6th February 2026 at Suite 2a Princes House, 38 Jermyn Street, London SW1Y 6DN. The company reassigned the lease at Waterloo Place together with the future rights/obligations.

19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2025
2024
£
£
Other related parties
6,000
6,000
Services provided
2025
2024
£
£
Other related parties
7,367,262
8,365,930

The following amounts were outstanding at the reporting end date:

2025
2024
Amounts due from related parties
£
£
Other related parties
2,225,698
2,066,348
20
Directors' transactions

During the year, the company disposed of artwork s to a director of the company. The artwork had a net book value of £nil at the date of sale and consideration of £13,850 was received based on an independent valuation. There were no amounts outstanding at the balance sheet date.

HARBOUR LITIGATION FUNDING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
- 22 -
21
Cash generated from/(absorbed by) operations
2025
2024
£
£
Profit/(loss) for the year after tax
377,518
(125,967)
Adjustments for:
Taxation charged/(credited)
126,157
(78,510)
(Gain)/loss on disposal of tangible fixed assets
(13,850)
2,849
Depreciation and impairment of tangible fixed assets
39,636
63,666
Other gains and losses
-
(12,584)
Movements in working capital:
(Increase)/decrease in debtors
(142,063)
551,932
Decrease in creditors
(114,063)
(513,486)
Cash generated from/(absorbed by) operations
273,335
(112,100)
22
Analysis of changes in net funds
1 January 2025
Cash flows
31 December 2025
£
£
£
Cash at bank and in hand
716,303
302,604
1,018,907
2025-12-31 2025-01-01 false false false CCH Software CCH Accounts Production 2026.100 P K M Tonnby S J Dunn J K M Bark-Jones E Macpherson G N B Bennett 06426478 2025-01-01 2025-12-31 06426478 bus:Director1 2025-01-01 2025-12-31 06426478 bus:Director2 2025-01-01 2025-12-31 06426478 bus:Director3 2025-01-01 2025-12-31 06426478 bus:Director4 2025-01-01 2025-12-31 06426478 bus:Director5 2025-01-01 2025-12-31 06426478 bus:RegisteredOffice 2025-01-01 2025-12-31 06426478 2025-12-31 06426478 2024-01-01 2024-12-31 06426478 core:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 06426478 core:RetainedEarningsAccumulatedLosses 2025-01-01 2025-12-31 06426478 core:Non-currentFinancialInstruments core:AfterOneYear 2025-12-31 06426478 core:Non-currentFinancialInstruments core:AfterOneYear 2024-12-31 06426478 2024-12-31 06426478 core:CurrentFinancialInstruments core:WithinOneYear 2025-12-31 06426478 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 06426478 core:ShareCapital 2025-12-31 06426478 core:ShareCapital 2024-12-31 06426478 core:SharePremium 2025-12-31 06426478 core:SharePremium 2024-12-31 06426478 core:CapitalRedemptionReserve 2025-12-31 06426478 core:CapitalRedemptionReserve 2024-12-31 06426478 core:RetainedEarningsAccumulatedLosses 2025-12-31 06426478 core:RetainedEarningsAccumulatedLosses 2024-12-31 06426478 core:ShareCapital 2023-12-31 06426478 core:SharePremium 2023-12-31 06426478 core:CapitalRedemptionReserve 2023-12-31 06426478 core:RetainedEarningsAccumulatedLosses 2023-12-31 06426478 core:ShareCapitalOrdinaryShareClass1 2025-12-31 06426478 core:ShareCapitalOrdinaryShareClass1 2024-12-31 06426478 2024-12-31 06426478 2023-12-31 06426478 core:IntangibleAssetsOtherThanGoodwill 2025-01-01 2025-12-31 06426478 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill 2025-01-01 2025-12-31 06426478 core:LandBuildings core:LongLeaseholdAssets 2025-01-01 2025-12-31 06426478 core:PlantMachinery 2025-01-01 2025-12-31 06426478 core:FurnitureFittings 2025-01-01 2025-12-31 06426478 core:UKTax 2025-01-01 2025-12-31 06426478 core:UKTax 2024-01-01 2024-12-31 06426478 1 2025-01-01 2025-12-31 06426478 1 2024-01-01 2024-12-31 06426478 2 2025-01-01 2025-12-31 06426478 2 2024-01-01 2024-12-31 06426478 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill 2024-12-31 06426478 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill 2025-12-31 06426478 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill 2024-12-31 06426478 core:LandBuildings core:LeasedAssetsHeldAsLessee 2024-12-31 06426478 core:PlantMachinery 2024-12-31 06426478 core:FurnitureFittings 2024-12-31 06426478 core:LandBuildings core:LeasedAssetsHeldAsLessee 2025-12-31 06426478 core:PlantMachinery 2025-12-31 06426478 core:FurnitureFittings 2025-12-31 06426478 core:LandBuildings core:LeasedAssetsHeldAsLessee 2025-01-01 2025-12-31 06426478 core:LandBuildings 2024-12-31 06426478 core:PlantMachinery 2024-12-31 06426478 core:FurnitureFittings 2024-12-31 06426478 core:CurrentFinancialInstruments 2025-12-31 06426478 core:CurrentFinancialInstruments 2024-12-31 06426478 core:Non-currentFinancialInstruments 2025-12-31 06426478 core:Non-currentFinancialInstruments 2024-12-31 06426478 bus:OrdinaryShareClass1 2025-01-01 2025-12-31 06426478 bus:OrdinaryShareClass1 2025-12-31 06426478 bus:OrdinaryShareClass1 2024-12-31 06426478 core:WithinOneYear 2025-12-31 06426478 core:WithinOneYear 2024-12-31 06426478 core:BetweenTwoFiveYears 2025-12-31 06426478 core:BetweenTwoFiveYears 2024-12-31 06426478 bus:PrivateLimitedCompanyLtd 2025-01-01 2025-12-31 06426478 bus:FRS102 2025-01-01 2025-12-31 06426478 bus:Audited 2025-01-01 2025-12-31 06426478 bus:FullAccounts 2025-01-01 2025-12-31 xbrli:pure xbrli:shares iso4217:GBP