Registered number: 05385677
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 December 2025
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PricewaterhouseCoopers LLP |
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Independent auditors' report |
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Statement of comprehensive income |
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Statement of financial position |
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Statement of changes in equity |
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Notes to the financial statements |
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FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their Strategic Report on the company for the year ended 31 December 2025.
Business review and future developments
The Company operates in the short-term finance sector providing short-term finance to both professional property developers and retail customers. Financing is provided to the Company both via wholesale financing, as described below, and via an Alternative Investment Fund Management (AIFM) structure where the Company acts as the fund manager for alternative investment funds (AIFs) and retains no credit or liquidity risk.
With the exception of the loans funded via the AIFM structure, the majority of loans originated by the Company in 2025 were sold to a special purpose funding vehicle: West One Loan No.3 Limited. Although, the loans are beneficially owned by the special purpose funding vehicle, the Company retains both legal title and administers the loans. The Company also remains exposed to the risk and rewards of the underlying mortgage assets. Consequently, these mortgage assets are recognised in the Company’s Statement of Financial Position. In January 2025, Development Finance assets of £120,1744,994 originated by West One Development Finance Limited, were transferred, with no gain/loss, from Giza Property Finance Limited to West One No.3 Limited.
The Company operates as a subsidiary of it’s indirect parent company Enra Specialist Finance Limited (Enra or the Group).
Financial key performance indicators
During the year ended 31 December 2025, on-balance sheet bridging originations increased to £579,831,475 (2024: £525,771,520), and as at the year end, assets under management increased to £446,213,734, (2024: £426,644,227). Off-balance sheet bridging originations increased to £237,270,241 (2024: £192,569,432), and as at the year end, assets under management increased to £266,335,264 (2024: £250,081,200)
During the year ended 31 December 2025, development finance assets originated by West One Development Finance Limited were transferred to West One No.3 Limited from Giza Property Finance Limited. Development finance originations (both on and off-balance sheet, using facility limits) were £215,058,396 in 2025, and as at the year end, assets under management were £443,932,558 (using facility limits).
Operating profit increased by 33% (2024: 13%) to £42,157,546 (2024: £31,594,719), reflecting the higher AUM as well as inclusion of development finance assets in 2025. The Company continued to maintain a disciplined approach to growth during the year, focusing upon origination only where both risk and economic returns meet its hurdle rates.
The Company's strategic objective continues to be a leading lender in the short-term finance sector. The strategy is delivered by:
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designing products to provide solutions to professional property investors and developers across the property development lifecycle;
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service expertise with a focus on delivering against customer requirements and expectations.
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providing good value products in segments that offer a sustainable risk-reward return.
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building strong relationships with both existing and new introducers with high engagement with repeat customers.
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using insight afforded by existing distribution to develop innovative solutions to new segments.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Strategic overview (continued)
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in-house servicing capability to provide a tailored approach to customer services and collection
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investment in a team of high-quality staff, providing the right culture and environment for individuals to continue to develop within the business; and
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ensuring continuous investment in people, processes and infrastructure to achieve a scalable, secure and compliant operating platform.
Market position and outlook
The Company primarily originates its loans via brokers and other intermediaries, and targets segments in which it has product expertise and where it can provide an end-to-end solution to customers.
The Company remains alert to continuing macroeconomic challenges, including the recent escalation in hostilities between the United States and Iran, which has resulted in large-scale military strikes across the region and increased global geopolitical uncertainty, and will continue to advance its strategy with care, ensuring that growth is built on solid foundations. In its first trading period, the loan portfolio has performed well, in a challenging macroeconomic backdrop, credit quality of the portfolio has performed as expected.
Corporate governance and risk management
The Board of the ultimate parent has established the Group’s governance model which delineates the responsibilities of the Board, Independent Chairperson and Subsidiary Boards. The governance model is supported by a Risk Management Framework that deploys a detailed and considered methodology to govern the major risks faced by the business. Both the governance model & the risk management framework are well- documented and reviewed annually.
Subsidiary Board meets four times a year. Key sub-committees of Subsidiary Board include an Audit & Risk Committee which reports to Subsidiary Board quarterly and a subsidiary Remuneration Committee which approves incentive schemes and other employee related matters.
Subsidiary Audit & Risk Committee (ARC)
The Subsidiary Audit and Risk Committee is responsible for discharging governance responsibilities in respect of audit, risk and internal control.
The Committee is chaired by a non-executive director of Eclipse Topco Limited, Mr M Preston. Its members include Mr M Preston, Ms E Gestetner, Mr S Hogg and Mr D Waters. ARC has responsibility for both the monitoring the effectiveness of the audit & financial controls and the risk function within the Group.
The business has continued to evolve the operation of management committees with the enhancement and consolidation of existing product governance within a new Product Governance Committee. Management committees are not formal sub-committees of the Board, although reports on their activities are given to the Audit & Risk Committee
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Corporate governance and risk management (continued)
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Asset & Liability Committee (ALCO)
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Product Governance Committees (PGC)
The objective of ALCO is to govern asset & liability management to achieve the Group’s commercial objectives and manage the associated risks within the Group’s risk appetite. The key areas of focus are Liquidity Management, Interest Rate Risk Management and Minimum Product Pricing.
The purpose of the PGC is to provide oversight and governance of the products and services offered by the Group to ensure that all products and services comply with applicable regulations and that they deliver an appropriate commercial outcome for the Group. The PGC ensures that prior to launching any new product, an adequate assessment of the new product has been carried out considering as a minimum identification of the target market, product design, distribution strategy, pricing, fair value, consumer support and understanding, data protection, financial crime, and process changes. The PGC ensures that the existing product catalogue is managed appropriately so that products are designed in line with the target market, that the distribution remains appropriate, and that the product continues to deliver fair value to customers.
The Credit Committee oversees and manages the Credit Risk appetite of all lending divisions across the Group to ensure the Group acts to deliver good retail customer outcomes by lending responsibly. Specific areas covered include, analysing and reporting on the performance of the loan portfolio, approving and reviewing the Responsible Lending Policy and associated documents for each lending division, setting and reviewing group’s individual lending mandate limits across the different lending divisions, setting and reviewing the Group’s Affordability Model, setting and reviewing the Group’s Stress Test policy, reviewing any exceptions to policy, reviewing any arrears trends identified and reviewing mandate audit results.
The purpose of the Servicing Committee is to oversee the Servicing activities of the business to ensure that servicing activities are conducted with the necessary skill, care, and attention to deliver good customer outcomes and to manage the risks and commercial requirements of the business. In particular, the Servicing Committee will oversee portfolio performance, risk management and servicing policy.
The Compliance Risk Forum reviews and reports quarterly on each regulated entity, covering data protection, conduct and consumer duty Ml, regulatory and financial risk.
The Internal Audit function is outsourced and reports to the ARC. Internal Audit provides quarterly updates to the ARC on any findings from audit reviews and related actions. During the year, the internal auditors have undertaken four (2024: four) reviews in accordance with a risk-based internal audit programme.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties
The Enterprise Risk Management framework is managed by the Group Audit & Risk Committee and subject to quarterly reporting at subsidiary level. Principal risks are those that could have the greatest impact on the Company’s ability to achieve its strategic objectives and maintain operational resilience. These risks are subject to ongoing monitoring, are overseen at a senior level, and are managed through robust mitigation strategies applied across the business. The principal risk categories set out below have been identified as part of the Group Enterprise Risk Management framework. They are clearly defined to promote a shared understanding and consistent approach to risk management across the organisation.
Strategic risk is the risk of failing to achieve objectives that affect the long-term interests of stakeholders, or an inability to adapt to the external environment. This includes ensuring that the proposition, products, and services remain relevant, embedding appropriate governance, prioritising change, and managing external partnerships effectively.
The Company is exposed to a range of risks that could affect its ability to achieve its strategic objectives. These include the potential for ineffective or inefficient implementation of the agreed strategy, misalignment in business planning that could result in a loss of corporate direction, and shortcomings in the application of the Enterprise Risk Management framework, including risk mitigation, allocation of responsibilities, and the three lines of defence model. The business also recognises the risk of not meeting the expectations of current or future investors and stakeholders, the impact of increased competition or disruptive market entrants on its competitive advantage and distributor relationships, and reputational risks arising in one part of the business that could affect the wider Group. Additional risks include unforeseen market, operational, regulatory, or financial challenges and insufficient strategic resource planning.
Risk Mitigating and monitoring
The Company mitigates strategic risk through a structured and proactive approach to planning, monitoring, and governance. This includes an annual strategy day and a five-year budgeting cycle, which together provide a framework for setting long-term objectives and allocating resources effectively. In addition, the Board reviews the Group’s performance and market developments on a monthly basis, with Product Managing Directors invited to present updates at least annually, ensuring that the Board is fully informed of business performance and market trends.
The business also maintains a formal succession plan, which is regularly reviewed and monitored by the Board to ensure continuity of leadership and the ongoing capability to deliver its strategic objectives. These processes collectively support informed decision-making, reinforce corporate direction, and help the Group manage potential threats to its long-term success.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Credit risk is the risk that borrowers are unable or unwilling to meet their financial obligations in accordance with agreed terms.
The firm is exposed to a broad range of credit risks across its underwriting, and portfolio management functions. These risks stem from the possibility that borrowers may be unable or unwilling to meet their financial obligations in accordance with agreed terms, leading to financial loss and possible operational disruption, and reputational harm.
Maintaining high credit quality is essential to support the Group’s financing objectives. A decline in credit performance may impair the firm’s ability to access capital markets, resulting in increased funding costs, reduced liquidity, and difficulty securing future financing. Additionally, deteriorating credit quality can lead to higher regulatory capital requirements, further constraining the firm’s financial flexibility. Effective credit risk management is therefore critical to sustaining financial resilience and funding capacity.
The recent escalation of conflict between the United States and Iran has increased global economic and market volatility, particularly through higher energy prices, supply-chain disruption and reduced GDP growth expectations in major economies. These conditions heighten credit risk by weakening borrower affordability, while broader financial markets have shown increased stress and declining confidence following the outbreak of the conflict. Although the Group has no direct exposure to the region, the potential indirect impact on UK borrowers, through higher inflation and interest rates, increased operating costs and tighter financial conditions, is monitored within the Group’s credit risk assessment and stress-testing processes.
Risk Mitigating and monitoring
The Group undertakes a comprehensive range of actions to manage and mitigate credit risk across its lending activities. Key measures include regular loan book performance reviews, responsible lending policies and procedures which consider affordability, loan to value and repayment strategies across all product groups, and the use of stress testing and scenario analysis to estimate potential impairment losses.
The firm applies a robust governance framework, including mandate structures, concentration limits on on-balance-sheet exposures, and a Credit Committee. Operational safeguards include anti-fraud systems, insurance coverage, and ongoing monitoring of surveyor reports to assess construction risk.
The Group also ensures strong expertise and oversight within its lending processes, through staff training, a verified panel of valuers and internal valuation oversight. Additional controls include key risk indicators (KRIs), quality assurance reviews within the first line of defence, and independent re-underwrite audits.
These measures collectively provide a structured, multi-layered approach to credit risk management, ensuring risks are identified, monitored, and mitigated in line with the Group’s credit risk appetite.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Liquidity risk is the risk that the firm does not have sufficient financial resources to meet its commitments as they fall due or is unable to fund operations or its business growth aspirations or can do so only at excessive cost.
The firm is exposed to significant liquidity risks across various areas of its business, including funding operations, managing cash flow, and maintaining financial flexibility. These risks arise from potential imbalances between liquid assets and liabilities, challenges in maintaining sufficient liquidity to support ongoing lending activities, operational expenses, and repayment obligations. The firm’s exposure also includes reliance on timely access to affordable and diversified funding sources, as well as the need for robust planning and liquidity risk management to ensure the continued availability of funding under both normal and stressed conditions.
The Group manages its cash and borrowing to meet its working capital requirements, maximise interest income and minimise interest expense as effectively as possible. Debt facilities are maintained to facilitate the growth of the Group’s loan book.
Risk Mitigating and monitoring
Liquidity risk is managed in line with the firm’s Liquidity Risk Policy, which sets out key principles, limits, and governance for maintaining adequate liquidity. Oversight is provided by the Asset and Liability Committee (ALCO) and Audit and Risk Committee (ARC), which regularly reviews liquidity positions, forecasts, funding plans, and stress testing results to ensure alignment with risk appetite and business strategy. Controls set out in the liquidity policy include liquidity buffers, forecasting, diversification of funding sources, stress testing and contingency planning to ensure resilience under normal and stressed conditions.
Interest rate risk is the risk of adverse movements in the overall level of interest rates. It arises from mismatches in the timing of repricing of assets and liabilities. It includes the risks arising from imperfect hedging of exposures and the risk of customer behaviour driven by interest rates.
The Group’s is exposed to interest rate risk through a number of channels that may affect earnings, funding costs, balance sheet structure, and the effectiveness of hedging activities. The principal sources of exposure include differences in the timing of interest rate resets between assets and liabilities, which can create volatility in income or funding costs, as well as residual risk where hedging does not fully align with underlying exposures.
Changes in interest rates can also influence customer behaviour, including the timing of loan repayments and refinancing activity. These behaviours may affect expected cash flows and reduce the predictability of income, with potential implications for hedging effectiveness. In addition, the business is exposed to pipeline risk where forecasted mortgage volumes, conversion rates, or completion timings differ from expectations, potentially resulting in hedging costs being incurred without the corresponding assets.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
The Group is also subject to basis risk where funding costs linked to SONIA may not move in line with income generated from assets linked to base rate or standard variable rates.
The business actively manages these exposures through robust governance, stress testing and scenario analysis, disciplined pipeline management, and prudent hedging strategy, supporting financial stability and sustainable performance.
Risk Mitigating and monitoring
The business operates a range of controls to manage interest rate and market risks and to ensure that exposures remain within its approved risk appetite. These controls are embedded within the Group’s financial management and governance framework and are subject to regular oversight.
Key measures include a defined hedging strategy to manage exposure to interest rate movements, alongside robust modelling of customer behaviours such as prepayments, early redemptions, and loan conversions. These models are regularly reviewed and benchmarked against both internal experience and external market data to ensure their ongoing accuracy and relevance.
The Group also maintains strong pipeline management controls to monitor future lending volumes and funding requirements. Interest rate risk is assessed through detailed modelling and scenario analysis, enabling the business to understand the potential impact of changes in market conditions and to take timely mitigating actions where required.
Oversight of these risks is provided through regular reporting to the Asset and Liability Committee (ALCo) and the Audit and Risk Committee, ensuring that exposures, assumptions, and mitigation strategies are subject to appropriate challenge and governance.
Capital risk is the risk that the firm’s capital becomes insufficient to operate effectively, including meeting minimum regulatory requirements and supporting the firm’s strategic goals.
A capital risk event arises when the firm has insufficient capital resources to support its strategic objectives and plans, and to meet both regulatory and external stakeholder requirements and expectations. This could arise due to a depletion of the firm’s capital resources as a result of the crystallisation of any of the risks to which it is exposed, or through a significant increase in risk weighted assets as a result of rule changes or economic deterioration. Alternatively, a shortage of capital could arise from an increase in the minimum requirements for capital. The firm’s capital management approach is focused on maintaining sufficient and appropriate capital resources across all regulated levels of its structure in order to prevent such exposures while optimising value for shareholders.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Risk Mitigating and monitoring
The business undertakes a range of measures to support prudent capital management and ensure ongoing compliance with regulatory requirements. Capital adequacy is assessed annually through a formal planning process, which evaluates capital requirements against minimum regulatory standards and includes stress scenario analysis to assess the firm’s ability to maintain adequate capital under adverse conditions. This assessment is complemented by a forward-looking view of capital needs, reflecting the Group’s strategic plans and projected growth.
Annual capital plans are reviewed and approved by the Board, with any potential capital shortfalls identified and addressed through appropriate management actions. Capital adequacy is monitored on an ongoing basis through regular calculation and review of risk-weighted assets, ensuring that sufficient capital buffers are maintained.
Dividend distributions are subject to Board approval and are considered in the context of the firm’s overall capital position and financial strength. In addition, capital stress testing is undertaken as part of the annual budgeting process, including scenarios reflecting economic downturns and increased credit losses. Senior management and the Board receive regular reporting on capital adequacy, liquidity, and risk exposures, providing effective oversight and supporting timely and informed decision-making.
Model risk is the potential for adverse consequences from model errors or the inappropriate use of modelled outputs to inform business decisions.
The firms increasing use of models to inform key business decisions as well as the increasing complexity of models invariably increases the firms' potential exposure to model risk. Inadequate or flawed design and implementation, and inappropriate use of models could lead to adverse consequences that pose risks to the safety and soundness of firms and overall financial stability.
Risk Mitigating and monitoring
The Group maintains a robust framework to manage model risk, with clear Board-approved governance and executive oversight by the CFO. A central model inventory, supported by risk-based tiering, ensures the firm prioritises high-risk models for validation and monitoring. Annual independent reviews, periodic assumption checks, and a formal process for post-model adjustments provide additional assurance. Controls over model access, recovery times, and contingency plans further support the resilience and reliability of the firm’s models.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Operational risk is the risk of business disruption, and/or losses, resulting from inadequate or failed internal processes, people, systems, or from external events.
The business’s key operational exposures include the risk of breakdowns in operational processes, controls, or procedures particularly as the business grows in scale and complexity. The business is also exposed to financial control weaknesses, which may lead to misstatements, inefficiencies, or poor decision-making due to inadequate systems or the improper application of accounting policies. A further risk arises from delays or deficiencies in the production of timely, accurate, and insightful management information, which may impair the business’s ability to monitor risks or make sound strategic decisions.
The business also faces exposure from people-related risks, including the inability to attract, retain, or effectively manage skilled and competent employees. This includes challenges such as resourcing gaps in key areas, high turnover, insufficient training, or poor talent management, all of which can weaken operational capability and compliance oversight. The business is also vulnerable to internal and external fraud, including misconduct, theft, falsification of records, or fraudulent activity by third parties.
There is also a heightened exposure to key person risk, where the loss of individuals in senior or specialist roles could significantly impact the business's income or ability to operate. Given the reliance on counterparties and critical third-party suppliers, the business remains exposed to weaknesses in its supply chain, including inappropriate onboarding, insufficient oversight, non-compliance, or overdependence on a single provider as well as risks arising from the use of third-party systems and technology platforms, including performance issues, service availability, cybersecurity vulnerabilities, and inadequate resilience or recovery capabilities.
In addition, the business is exposed to information security risks stemming from inadequate data protection, human error, or misconduct, which may result in unauthorised access to or misuse of sensitive information. Lastly, the business faces exposure to change control failures, particularly in the execution of non-technology-related changes, where ineffective planning or governance may lead to delays, increased costs, or poor-quality outcomes.
Climate and sustainability risk
Climate and sustainability-related risks are recognised as emerging risk factors within the Group’s operational risk framework. These risks arise from the potential impact that environmental change, shifting sustainability expectations and increasing regulatory focus may have on the Group’s operations, systems, supplier relationships and credit activities. They include both physical risks, such as more frequent severe weather events that may affect the condition or value of secured properties, and transition risks, such as evolving environmental standards, customer expectations and regulatory requirements relating to climate impact disclosures.
While climate risk is not currently considered a principal standalone risk for the Group, it is integrated into existing operational risk assessments and control processes. This includes consideration of climate-related factors within underwriting assessments, property valuations and due diligence, as well as regular horizon-scanning to ensure the Group can respond to developing regulatory expectations and market practices. The Board and management committees continue to monitor climate and sustainability-related developments to ensure that the Group’s operations, lending practices and risk management remain resilient and aligned with the Group’s long-term strategic objectives.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Risk Mitigating and monitoring
The Group manages operational risk through a combination of governance, controls, and resilience measures. Management committees, including ExCo and key business area forums, oversee and continuously monitor operational risks. Risk and control self-assessments empower risk owners to understand and manage risks within their areas of accountability.
Operational resilience is supported by a comprehensive business continuity framework, including disaster recovery plans for all business units, regularly tested to ensure effectiveness. Policies and procedures are maintained centrally to communicate management expectations, covering operational integrity, risk management, compliance, information security, and human resources. Standard operating procedures, staff training, and competence programs ensure employees can identify, manage, and mitigate operational risks effectively. A structured incident management process captures and addresses unexpected deviations, identifying root causes, mitigating impact, and preventing recurrence, supporting continuous improvement in operational resilience.
Technology risk is the risk of disruption to a business service or process due to an internal IT asset or service becoming unavailable or due to malicious activity (including a cyber-attack). The risk to business objectives or future growth trajectory by failing to ensure that system requirements are aligned and fit for purpose.
The business is exposed to a range of technology-related risks that could impact operational resilience, customer trust, regulatory compliance, and the delivery of strategic objectives. These risks include cyber and information security threats, system availability and scalability challenges, and risks associated with the delivery of technology change.
Cyber and information security risks arise from the potential for unauthorised access to systems or data, which could result in data loss, financial or regulatory penalties, and reputational damage. The availability and performance of critical systems are also essential to the effective operation of the business, and service disruption or insufficient system scalability could lead to operational inefficiencies, customer dissatisfaction, or revenue impacts.
In addition, the business faces technology change risk associated with the delivery of system enhancements and transformation initiatives. Failure to deliver these initiatives to the required standard, within agreed timeframes or budgets, could adversely affect operational performance and strategic execution.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Risk Mitigating and monitoring
The firm maintains a mature and layered control environment designed to mitigate the above exposures. While it recognises that certain risks, particularly cyber threats, cannot be fully eliminated, it is committed to reducing their likelihood and impact through a combination of technical, procedural, and strategic measures. Key elements of the firm’s control framework include:
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Continuous monitoring of agreed limits and triggers through automated dashboards and regular audits. If a risk trigger is activated, an immediate incident response is initiated, and escalation procedures are followed to ensure the risk remains within defined limits.
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Preventative and detective controls such as secure network architecture, penetration testing, and 24/7 SOC monitoring
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Governance and policy frameworks including formal information security policies, access controls, and structured software development practices
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Operational resilience measures such as recovery planning, infrastructure scalability, and incident response protocols
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Human-centric controls including cyber awareness training, role-based access, and physical security safeguards
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Risk transfer mechanisms such as cyber insurance and contractual liability provisions with third-party providers
Conduct risk is the risk that the firm’s culture, business activities, behaviours and actions result in poor outcomes and detriment for customers and/or damage to consumer trust and integrity of the markets in which it operates.
The business faces significant conduct risks, which affect all aspects of its operations from its distribution, sales activity, underwriting, customer service, collections activity, complaint handling, use of third-party suppliers and its brokering and advising activities and all types of customers.
The introduction of the FCA’s Consumer Duty regulation has increased expectations in relation to customer outcomes, including how the business demonstrates, monitors and measures them.
There is a considerable focus from the regulator on the treatment of customers in financial difficulty and those with characteristics of vulnerability, to ensure good outcomes, and the business continues to apply significant focus on its treatment of all customers in these areas. While unregulated commercial products fall outside the scope of consumer regulation, poor practices or outcomes in this area can still significantly damage consumer trust and undermine the integrity of the markets in which the business operates.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
Risk Mitigating and monitoring
The business undertakes a range of mitigating actions to manage conduct risk and has established a conduct risk policy that sets out how this risk is managed across the business.
The Group fosters a strong risk-aware culture underpinned by clear values and ethical standards. Governance structures ensure accountability for customer outcomes, with oversight of product design, staff behaviour, and business practices. Quality assurance, monitoring frameworks, and management information provide ongoing visibility, enabling the business to identify issues promptly and maintain high standards of conduct and customer care.
Compliance risk is the risk of failure to identify, assess, correctly interpret, comply with, or manage regulatory and/or legal requirements, including ineffective legal documentation.
The firm recognises the critical importance of adhering to a broad range of legal and regulatory requirements, ensuring compliance with all relevant laws and regulations. This includes, but is not limited to, the risk of failing to detect, understand, or comply with Financial Conduct Authority (FCA) regulations, data protection laws (such as GDPR), financial crime prevention regulations (including anti-money laundering, terrorist financing, bribery and corruption, and fraud prevention), health and safety standards, employment practices laws, and other legal obligations like contractual performance and liability breaches.
Non-compliance with these laws and regulations exposes the firm to significant legal, financial, and reputational risks, including penalties, litigation, and operational disruptions. The firm must maintain robust systems and controls to detect and address potential compliance gaps, proactively managing legal risks across all business areas, from financial crime prevention to employment practices and corporate governance.
Risk Mitigating and monitoring
The business undertakes a range of mitigating actions to manage compliance risks comprising:
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Horizon scanning to determine new legislation and regulation the business is subject to
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Policies for the prevention of financial crime, data protection adherence and employment practices and health and safety policies are contained in the employee handbook
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Mandatory compliance training which incorporates all nature of compliance risks including, prevention of financial crime, data protection, health and safety, employment practices, key FCA regulatory requirements
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Quality assurance frameworks that evaluate areas of the business that pose the highest compliance risks
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Appointed solicitors providing legal advice and counsel in respect of loan documentation and other contractual obligations
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HR consultants providing advice on HR and H&S matters
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Principal Risks and Uncertainties (continued)
During the year, the business also focused on preparing for the forthcoming “failure to prevent fraud” offence introduced under the Economic Crime and Corporate Transparency Act 2023. This has increased emphasis on fraud risk assessment, prevention controls, staff training, and oversight of third parties. These actions further strengthen the firm’s financial crime framework and support compliance with evolving regulatory expectations.
The Group adopts a proactive and forward-looking approach to identifying and monitoring emerging risks that could impact its strategic and operational objectives. This enables the business to remain resilient, respond effectively to change, and support informed decision-making in an evolving external environment. As part of this approach, The Group regularly assesses emerging risks across a number of key areas, including climate and environmental risk. This includes consideration of physical climate risks, as well as risks arising from economic, regulatory, and transition-related developments, which may affect the Group’s operations, counterparties, and long-term strategic position.
The Directors have undertaken a Going Concern assessment, including a review of geopolitical uncertainty and continued stresses that customers are facing from higher interest rates and inflation. The Directors have considered the information contained in the financial statements, the latest business plan, profit forecasts and liquidity projections. These forecasts have been subject to sensitivity tests. The stress scenarios included severe but plausible downside scenarios to satisfy the Directors that the business will be unable to meet its liabilities as they fall due over the coming year (after appropriate management action as necessary).
The Company’s business model continues to generate growth in loans and advances to customers and stable profitability. On the balance sheet date the Company had net assets of £104,991,104 (2024: £88,064,971 ), after having paid a dividend of £25,000,000 (2024: £5,000,000).
As a result, the Directors are satisfied that the Company has adequate resources to continue to operate as a going concern for a period of at least 12 months from the date of this report and have prepared the financial statements on that basis.
This report was approved by the board and signed on its behalf.
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the audited financial statements for the year ended 31 December 2025.
The principal activities of the Company are the provision and administration of short-term finance through its lending operations.
The Company is a private company limited by shares and is incorporated and domiciled in England, UK. The address of its registered office is Third Floor, The Edward Hyde Building, 38 Clarendon Road, Watford, Hertfordshire, WD17 1JW.
The profit for the year, after taxation, amounted to £41,926,133 (2024: £31,510,521).
Dividends were paid during the year in the amount of £25,000,000 (2024: £5,000,000).
The directors of the company who were in office during the year and up to the date of signing the financial statements were:
Statement of directors’ responsibilities in respect of the financial statements
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 “Reduced Disclosure Framework”, and applicable law).
Under company law, 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 the financial statements, the directors are required to:
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select suitable accounting policies and then apply them consistently;
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state whether applicable United Kingdom Accounting Standards, comprising FRS 101 have been followed, subject to any material departures disclosed and explained in the financial statements;
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make judgements and accounting estimates that are reasonable and prudent; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
The directors are also 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.
In the case of each director in office at the date the directors’ report is approved:
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so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and
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they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Matters covered in the Strategic report
The Board is responsible for identifying principal risks and for proposing suitable mitigating strategies. This has been addressed in the Strategic Report, along with a full review of the position and performance of the company for the year. The future development aspirations of the company have also been disclosed in the Strategic Report.
The directors understand the importance of their Section 172 duty to act in good faith to promote the success of the Company. When making decisions, the interests of any key relevant stakeholders will always be considered by the Company’s directors, including employees, suppliers, customers, investors, the community, and the environment. This has been addressed in the Section 172 of the Group’s Strategic Report.
The auditors, PricewaterhouseCoopers LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEST ONE LOAN LIMITED
Report on the audit of the financial statements
In our opinion, West One Loan Limited’s financial statements:
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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;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law); and
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have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise:
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the statement of financial position as at 31 December 2025;
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the statement of comprehensive income for the year then ended;
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the statement of changes in equity for the year then ended; and
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the notes to the financial statements, comprising material accounting policy information and other explanatory information.
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
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.
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.
However, because not all future events or conditions can be predicted, this conclusion 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.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEST ONE LOAN LIMITED
In connection with our audit of the financial statements, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
With respect to the Strategic report and the Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.
Strategic report and the Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and the Directors' Report for the year ended 31 December 2025 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and the Directors' Report.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of directors’ responsibilities in respect of the financial statements, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they 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.
Auditors’ 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 auditors’ 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.
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF WEST ONE LOAN LIMITED
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK corporation tax and companies act reporting regulations, and we
considered the extent to which non-compliance might have a material effect on the financial statements. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journal entries and management bias in accounting estimates. Audit procedures performed by the engagement team included:
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Discussions with management and directors, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
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Evaluation of management's controls designed to prevent and detect irregularities;
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Challenging assumptions and judgments made by management in their significant accounting estimates, in particular in relation to loan impairment allowance;
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Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
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Designing audit procedures to incorporate unpredictability around the nature, timing and extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
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we have not obtained all the information and explanations we require for our audit; or
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adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or
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certain disclosures of directors’ remuneration specified by law are not made; or
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the financial statements are not in agreement with the accounting records and returns.
We have no exceptions to report arising from this responsibility.
Christopher Dalton (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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Fees and commission income |
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Fees and commission expense |
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Impairment loss expense on financial assets |
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Other comprehensive income |
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Total comprehensive income for the year |
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The notes on pages 24 to 45 form part of these financial statements.
All results derive from continuing operations.
REGISTERED NUMBER: 05385677
STATEMENT OF FINANCIAL POSITION
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Loans and advances to customers |
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Investments in subsidiaries |
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Deemed loan from special purpose vehicle |
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Total equity and liabilities |
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The notes on pages 24 to 45 form part of these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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Total comprehensive income for the year |
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The notes on pages 24 to 45 form part of these financial statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Total comprehensive income for the year |
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The notes on pages 24 to 45 form part of these financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006 as applicable to companies using FRS 101.
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 2).
The following principal accounting policies have been applied consistently:
Financial Reporting Standard 101 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions under FRS 101:
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the requirements of paragraphs 45(b) and 46-52 of IFRS 2 Share-based payment
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the requirements of IFRS 7 Financial Instruments: Disclosures
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the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
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the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115,
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118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
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the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
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the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
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paragraph 79(a)(iv) of IAS 1;
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paragraph 73(e) of IAS 16 Property, Plant and Equipment;
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paragraph 118(e) of IAS 38 Intangible Assets;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
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the requirements of IAS 7 Statement of Cash Flows
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the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
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the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
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the requirements in IAS 24 Related Party Disclosures to disclose related party transactions
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entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
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the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
Impact of new international reporting standards, amendments and interpretations
New standards that the Company has applied from 1 January 2025
Standards and amendments to standards applicable to the Company that became effective during the year are listed below. These have no material impact on the reported performance or financial statements of the Company.
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Amendments to IAS 21 - Lack of exchangeability.
Standards issued not yet effective
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2025 reporting periods and have not been early adopted by the Company, these are listed below. None of these are expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.
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Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on or after 1 January 2026).
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IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective for annual periods beginning on or after 1 January 2027)
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IFRS 18 Presentation and Disclosure in Financial Statements (effective for annual periods beginning on or after 1 January 2027)
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Amendments to IAS 21 - Translation to a Hyperinflationary Presentation Currency (effective for annual periods beginning on or after 1 January 2027)
Exemption from preparing consolidated financial statements
The financial statements contain information about the Company as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken advantage of the exemption conferred by s400 of the Companies Act 2006 not to produce consolidated financial statements as it is included in the UK consolidated financial statements of Eclipse Topco Limited.
Interest income and expenses
Interest income and expense are recognised in the statement of comprehensive income for all financial instruments measured at amortised cost using the effective interest method. The effective interest method calculates the amortised cost of a financial asset or financial liability and allocates the interest income or interest expense over the expected life of the financial instrument. The effective interest rate is the rate that, at inception of the instrument, discounts its estimated future cash payments or receipts to the net carrying amount of the financial instrument. When calculating the effective interest rate, the Company considers all contractual terms of the financial instrument but does not consider future credit losses except for assets which are credit-impaired on origination. For credit-impaired assets a credit-adjusted effective interest rate is calculated using estimated future cash flows including expected credit losses. Interest on impaired financial assets is recognised at the original effective interest rate applied to the carrying amount as reduced by an allowance for impairment.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
Procuration and other fees are recognised on the drawdown of the loans.
Management and servicing fees are earned monthly from our portfolio of off-balance sheet loans under management by the Company. Management fees are based upon pre-agreed percentages of the interest income earned on the underlying loans, on a loan-by-loan basis and servicing fees are based on a pre-agreed percentage of loans under management. Management and service fees are presented in the Fees and commission income line in the statement of Comprehensive Income.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
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The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Investments in subsidiaries are measured at cost less accumulated impairment.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
The Company’s financial assets are initially recognised initially at fair value plus any directly attributable transaction costs.
The Company classifies its financial assets based on the business model and contractual cash flow characteristics of the financial assets. Under IFRS 9, the Company classifies financial assets as:
Amortised cost - the assets are held within a business model whose objective is to hold the assets in order to collect contractual cash flows, and where the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
The Company’s financial assets are classified as measured at amortised cost, being the gross carrying amount less expected impairment allowance, using the effective interest rate method
The Company’s business model for its financial assets is to hold them to collect contractual cash flows, with sales of mortgage loans and advances to customers only made internally to special purpose entities for the purpose of recognised the issuance of loans. The loans’ cash flows are consistent with a basic lending arrangement, the related interest only including consideration for the time value of money, credit and other basic lending risks, and a profit margin consistent with such an arrangement. Cash and cash equivalents also meet these conditions and accordingly management has classified all the Company's financial assets (except for derivatives) as measured at amortised cost.
Financial assets are recognised when the contractual rights to the cash flows from the financial asset have expired or where substantially all the risks and rewards of ownership have been transferred.
The Company sometimes renegotiates or otherwise modifies the contractual cash flows of loans to customers. The Company then assesses whether the new terms are substantially different from the original ones. If the terms of an asset are substantially different, it is recognised and a new asset recognised at its fair value using its new effective interest rate. If the terms are not substantially different, the Company recalculates the gross carrying amount using the original effective interest rate and recognises a modification gain or loss in the income statement. Such modifications typically arise from forbearance because of financial difficulties of the borrower, and any gain or loss is included in impairment losses. A modified loan’s credit risk is assessed to see if it remains higher than on initial recognition for the purposes of calculating expected credit losses.
Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three months or less.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
Financial instruments (continued)
Financial assets (continued)
Impairment of financial assets
The Company recognises loss allowances for expected credit losses (ECLs) on loans and advances to customers and any exposures arising from loan commitments. ECLs are an unbiased and probability-weighted estimate of the present value of credit losses discounted over the expected life of an instrument at its original effective interest rate (EIR). Credit losses for financial assets are the difference between the contractual cash flows and the discounted cash flows expected to be received.
The Company considers whether financial assets are credit impaired at each reporting date. A financial asset is credit impaired when one or more events that have a detrimental impact on its estimated future cash flows have occurred. Evidence of credit impairment includes:
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Significant financial difficulty of the borrower
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Breach of contract such as default, or becoming past due
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The granting of concessions to the borrower that the Company would not otherwise consider
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It becoming probable that the borrower will enter bankruptcy or other financial reorganization.
For financial instruments on which credit risk has not increased significantly since initial recognition, the Company measures loss allowances at an amount equal to the 12-month ECL, being the portion of lifetime ECL of those default events expected to arise within 12 months of the reporting date, weighted by probability of that event occurring. For all other financial instruments loss allowances are measured at an amount equal to the full lifetime ECL, being the lifetime ECL arising from all default events that may occur over the life of the instrument, probability weighted. The latter category of instruments includes those that have objective evidence of impairment at the reporting date.
Besides instruments that become credit impaired on entering default, lifetime ECLs are also used for any that are credit impaired on origination. If, due to the financial difficulties of the borrower, the terms of a financial asset are renegotiated or modified, or the asset is replaced with a new one, then an assessment is made of whether the asset should be recognised. A loan to a borrower granted such concessions due to forbearance is evaluated to determine whether it is considered to be credit impaired or to have experienced a significant increase in credit risk. If this is the case a loss allowance will be recognised equivalent to the full lifetime ECL. If there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there are no other indicators of impairment, the loss allowance on the new asset will generally be based on a 12- month ECL.
Loans are written off when the Company expects no further recovery, and the amount of the loss has been determined. The Company may continue to apply enforcement activities for loans written off and any subsequent recoveries are recognised as impairment gains in the income statement. Loss allowances for ECL are presented in the statement of financial position as a deduction from the gross carrying amount of financial assets measured at amortised cost and as a provision in the case of loan commitments.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
Financial instruments (continued)
Financial assets (continued)
The ECL calculation is a product of an individual loan’s probability of default (PD), and loss given default (LGD). The PD is based on a risk score conducted on loan origination, where a high-risk score would mean a higher probability of default. Both PD and LGD are modelled at a loan level.
Forward looking macroeconomic scenarios
To ensure an unbiased, probability weighted outcome, the Company uses a number of economic scenarios which include a based case as well as a range of upside and downside scenarios. The economic scenarios and probability weights are reviewed internally to ensure that they are plausible and consistent with economic outlooks used for other purposes.
The Company's financial liabilities, which largely consist of deemed loan, are all classified as measured at amortised cost, recognised initially at fair value, less any directly attributable transaction costs.
Financial liabilities are recognised when their contractual obligations are discharged, cancelled or have expired. An exchange of financial liabilities with substantially different terms or a substantial modification to the terms of an existing financial liability is treated as an extinguishment of the original liability and the recognition of a new one. All gains or losses on non-substantial modifications, calculated as a change in the net present value of future cash flows using the original effective interest rate, are recognised immediately in the income statement.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Accounting policies (continued)
The Company has entered into certain arrangements with a Special Purpose Vehicle (SPV) to raise funding by the entry into a variable funding note (“Senior Facility”) and subordinated loan agreement (“Subordinated Loan”) and to apply the amounts borrowed under such facilities to acquire the beneficial title to short term specialist mortgage loans (“Mortgage Loans”)
The SPV purchases the Mortgage Loans from the Company as part of the funding arrangements with lenders. As the Company has retained substantially all the risks and rewards of the underlying assets and funding liabilities, such financial assets continue to be recognised on the Company’s Statement of Financial Position within Gross Loans and advances to customers, and a liability recognised for the proceeds of the funding transactions within Debt issued and other borrowings in the Company’s Statement of Financial Position.
The deemed loan represents the acquisitions of beneficial interests in the Mortgage Loans recognised as a collateralised non-recourse deemed loan.
Judgments in applying accounting policies and key sources of estimation uncertainty
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The significant estimates are addressed below:
(a) Loan impairment allowance - Provisions for impairment of loans and advances are based on the expected credit loss model of IFRS 9. The Company utilises macroeconomic forecasts and the other assumptions and estimates necessary for the calculation of ECL (further details are set out in note 1.9 and note 12).
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Interest Income and other similar income |
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All interest income arose within the United Kingdom.
No revenue was derived from exchanges of goods (2024: £Nil). All turnover was generated from continuing operations in the current and preceding year.
The operating profit is stated after charging:
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Defined contribution pension cost |
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During the year, the Company obtained the following services from the Company's auditors and their associates:
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Fees paid for the audit of the Company financial statements |
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated financial statements of the parent Company.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Staff costs were as follows:
The average monthly number of employees, including the directors, during the year was as follows:
Where directors are not remunerated for their services in the company, they were remunerated on a group basis by an immediate parent company Enra Specialist Finance Limited during the year and the preceding year. The services provided to this entity are not estimable.
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Dividends paid to Enra Specialist Finance Limtied |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Tax charged in the income statement |
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Tax on ordinary activities |
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Factors affecting tax charge for the year
The tax assessed for the year is in line with the standard rate of UK corporation tax of 25%. There are no significant differences between the effective tax rate and the statutory rate for the year. The differences are explained below:
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Profit on ordinary activities before taxation |
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Tax calculated at UK standard rate of corporation tax of 25% (2024: 25%) |
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Expenses not deductible for tax purposes |
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Total tax charge reported in the income statement |
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There is no unrecognised deferred tax at the end of the current financial year (2024: £Nil).
There is no unprovided deferred tax (2024: £Nil).
Investments in subsidiaries
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At beginning and end of year |
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At beginning and end of year |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Investments in subsidiaries (continued)
The following were subsidiary undertakings of the Company:
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Country of registration or incorporation |
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West One Bridging Limited |
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The address for principal place of business for these subsidiaries is Third Floor, The Edward Hyde Building, 38 Clarendon Street, Watford, Hertfordshire, WD17 1JW and all these subsidiaries are incorporated in England and Wales.
The aggregate of the share capital and reserves as at 31 December 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:
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West One Bridging Limited |
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Loans and advances to customers
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Gross loans and advances to customers Less retained interest received in advance |
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Net Loans and advances to customers |
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Less allowance for impairment losses |
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Gross loans and advances to customers Less retained interest received in advance |
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Net Loans and advances to customers |
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Less allowance for impairment losses |
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The overall provision is in line with the prior year and growth in receivable balances, as demonstrated by the total ECL coverage percentage.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
The maturity of Gross Loans and advances as follows:
Maturity of loans and advances to customers |
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Later than one year and not later than five years |
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All borrowers are required to make monthly payments, except where interest is retained on origination and applied to the account monthly, and in the case of development loans, and a small number of bridging loans, where interest is accrued and paid on redemption.
Borrowers are entitled to settle the loan at any point, however early repayment charges may apply on certain fixed rate loans. The Group applies strict credit criteria and detailed underwriting and risk management procedures to its lending. This is to ensure a loan book of the highest possible quality.
Analysis of Stage 2 loans
Ageing of past due but not impaired Gross Loans and Advances is as follows:
The loan to value (LTV) on loans past due but not impaired remains healthy and are consistent with the Group’s credit policy. The Group’s servicing department is actively engaged with these borrowers to facilitate timely redemption.
Analysis of Stage 3 loans
Ageing of past due and impaired Gross Loans and Advances is as follows:
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Measurement of expected credit losses (ECL)
Basis of provision - ECL model
The Group considers whether financial assets are credit impaired at each reporting date. The Group calculates its ECL using a statistical model based on probability of default (PD), and loss given default (LGD), and exposure at default (EAD):
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PD: is an estimate of the likelihood of default over a given time horizon, estimated at a point in time (PIT). The calculation is based on statistical models that utilize both market and internal data.
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LGD: is an estimate of the loss in the event of a default. The expected loss amounts vary according to loan-to-value (LTV) ratios and future collateral prices. The estimates are based on the Group’s history of recovery rates, calculated as forced-sale-discounts, and the probability of repossession given default (PPGD), discounted for the average period for the recovery of sale proceeds.
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EAD: is an estimate of the expected gross carrying amount at a future default date. EAD is based on the current loan amount adjusted for expected repayment of principal and drawdowns of loan commitments.
ECL is calculated at an individual loan level as the product of PD, LGD and EAD, discounted to the reporting date.
In accordance with IFRS 9, the Group uses a three-stage model for impairment based on changes in credit quality since initial recognition:
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Stage 1: A financial instrument not credit-impaired on initial recognition is classified in stage 1. The loss allowance for such instruments is calculated as the portion of lifetime ECL of those default events expected to occur within 12 months of the reporting date, weighted by the probability of that default occurring.
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Stage 2: An instrument moves to stage 2 if there is an increase in its credit risk that is significant but not such that the instrument is considered credit impaired. The loss allowance for stage 2 instruments is calculated as the lifetime ECL.
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Stage 3: instruments are credit impaired, and the loss allowance calculated as the lifetime ECL.
Improvements in credit quality may result in instruments moving categorisation, from stage 3 to stage 2 where they are no longer considered credit impaired or to stage 1 where the credit risk is no longer significantly increased compared with initial recognition.
The Group makes post-model adjustments to its ECL provision where appropriate to reflect factors or risks that are not judged to be fully reflected in the model, which may be done at a portfolio level, as well as in respect of specific loans.
Specific loan post-model adjustments are made in relation to specific loans where further information on the loans becomes known that would require adjustments to be made to the ECL calculation for that loan to reflect the risk identified. This includes incorporating the latest information on the valuation of the security.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Incorporation of forward-looking information
The Group uses forward-looking information in its measurement of ECL. The key economic variables with the most significant impact on the calculation of the ECL for the Group’s financial instruments, are macroeconomic variables, in particular GDP, unemployment, Bank Rate, and changes in house prices. The Group has applied a range of future economic scenarios of these variables, drawing on external forecasts where appropriate.
The Group calculates ECL using macroeconomic scenarios, calibrated around a base case. In the year, the Group has used 4 scenarios, with one upside and two downside scenarios.
The base case scenario, which is weighted at 55%, is considered to represent the most likely macroeconomic outlook. Under this scenario, UK real GDP growth is expected to remain modest in the near term, reflecting ongoing fiscal consolidation, elevated interest rates by historical standards and weak global demand. Annual GDP growth is forecast to be approximately 1-1.5%, with a gradual improvement from 2027. Longer-term growth is constrained by structural factors, including subdued productivity growth and demographic pressures, and no material recession is assumed under the baseline scenario. Labour market conditions are expected to continue easing, with employment growth weakening and the unemployment rate rising modestly to just above 5% in 2026, before stabilising. Softer labour market conditions are expected to reduce upward pressure on nominal wage growth. Inflation is assessed to have peaked and is forecast to decline gradually, supported by easing energy prices and weaker demand conditions. Headline CPI inflation is expected to return towards the Bank of England’s 2% target during 2026, with core inflation continuing to trend lower. Monetary policy is expected to ease gradually, with the Bank of England policy rate forecast to fall progressively to slightly below 3% over the medium term, reflecting residual inflation risks and estimates of the neutral rate. Long-term gilt yields are expected to remain elevated in the near term before declining gradually. UK residential property prices are forecast to grow modestly over the forecast period. Structural housing supply constraints persist; however, affordability pressures arising from higher mortgage rates and recent tax measures are expected to limit near-term house price growth. The baseline does not assume a material or disorderly correction in the housing market.
There is one upside scenario, which is weighted 10%. This scenario assumes that the trade war quickly de-escalates and the intensive phase of the war in Ukraine ends. This results in a boost to aggregate demand and expansion of aggregate supply. On the demand side, these positive developments relieve recession concerns, causing an uptick in consumer and business sentiment. On the supply side, improved energy security, a total removal of supply bottlenecks, and efficiency gains driven by the government’s regulatory reforms and green investment program usher in a period of rapid productivity growth. The strong economy consolidates support for the government, which further supports effective reforms and investment. There are two downside scenarios, downside and severe downside, weighted 25% and 10%, respectively. The downside scenario assumes global growth is weak and sentiment in Europe worsens thanks to renewed trade tensions. With the calmer period in U.S. trade policy over, firms realise that the rules of the game will continue to change and decide to scale back investment plans and cut their workforce, pushing the economy into a mild recession. The BoE does not react fast enough to accommodate a faltering economy.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Scenarios and weightings (continued)
The severe downside scenario sees sentiment in Europe turn down sharply amid increasing concerns around global growth, largely driven by a new phase in the U.S. trade war. Geopolitical tensions rise on
fears that the war in Ukraine will spill over into neighbouring states and tensions between China and the U.S. increase, leading to temporary barriers to shipping along the Taiwan Strait and to bans on exports of critical components. Political risks in Europe intensify and pressure sovereigns. The resulting increase in risk aversion results in a selloff in global financial markets that sets the scene for a moderate but lengthy recession. The BoE does not act fast enough to accommodate the slumping economy.
Judgement is required to set the scenario weightings to consider the interaction between the severity of the scenarios and the weightings applied.
The most significant macroeconomic inputs, as at 31 December 2025, used for the ECL estimate are as follows:
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Annual change in house-price index (%) |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Scenarios and weightings (continued)
The most significant macroeconomic inputs, as at 31 December 2024, used for the ECL estimate are as follows:
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Annual change in house-price index (%) |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Movement in loss allowance
The following tables analyse the movement of the loss allowance during the year.
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Balance at the beginning of the year |
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Transfer to Stage 1 (from 2 or 3) |
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Transfer to Stage 2 (from 1 or 3) |
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Transfer to Stage 3 (from 1 or 2) |
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New financial assets originated or purchased |
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Derecognition of financial assets |
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Change in model - risk parameters |
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Balance at the end of the year |
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Balance at the beginning of the year |
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Transfer to Stage 1 (from 2 or 3) |
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Transfer to Stage 2 (from 1 or 3) |
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Transfer to Stage 3 (from 1 or 2) |
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New financial assets originated or purchased |
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Derecognition of financial assets |
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Change in model - risk parameters |
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Balance at the end of the year |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Movement in gross carry amounts
The following tables analyse the changes in the gross carrying amount of loans and advances to customers.
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Balance at the beginning of the year |
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Transfer to Stage 1 (from 2 or 3) |
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Transfer to Stage 2 (from 1 or 3) |
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Transfer to Stage 3 (from 1 or 2) |
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New financial assets originated or purchased |
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Derecognition of financial assets |
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Change in model - risk parameters |
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Balance at the end of the year |
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Balance at the beginning of the year |
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Transfer to Stage 1 (from 2 or 3) |
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Transfer to Stage 2 (from 1 or 3) |
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Transfer to Stage 3 (from 1 or 2) |
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New financial assets originated or purchased |
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Derecognition of financial assets |
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Change in model - risk parameters |
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Balance at the end of the year |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Loan and advances to customers (continued)
Key areas of estimation uncertainty in the ECL models are the forecast macroeconomic scenarios used, and the calculations of loss given default and probability of default.
The following table shows unweighted ECL when 100% probability was applied to each scenario.
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Total cash and cash equivilents |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Prepayments and accrued income |
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Amounts owed from group undertakings |
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Amounts owed from group undertakings are repayable on demand.
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Amounts owed to group undertakings |
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Other taxation and social security |
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Accruals and deferred income |
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Other liabilities comprises of two elements; long term liabilities (more than one year) of £33,666,666 (2024: £22,000,000) which are unsecured and bore interest at a variable rate. As well as short term liabilities of £27,777,623 (2024: £3,531,712) which are unsecured and repayable on demand.
Maturity of other liabilities |
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Deemed loan from special purpose vehicle
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Deemed loan from Special Purpose Vehicle |
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The deemed loan represents bridging loan receivables sold by the Company to West One Loan No. 3 Limited, the SPV, net of subordinated loans made by the Company to the SPV. It represents net proceeds received from the SPV from the sale of bridging loan receivables.
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Issued, called up and fully paid |
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105 (2024: 105) Ordinary shares of £1.00 each |
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Related party transactions
The company has taken the exemption from disclosing related party transactions, as disclosed in Note 1.2. As at 31 December 2025 and 31 December 2024 the company had the following balances outstanding with its related parties:
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Eclipse Financing Limited |
Intermediate parent company |
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Enra Specialist Finance Limited |
Intermediate parent company |
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The amounts above are unsecured and no guarantees have been given or received.
Directors and staff are eligible to invest in off-balance sheet loans, on the same terms as third party investors.
Post balance sheet events
The Directors have evaluated subsequent events from the date of the financial statements through to the date the financial statements were signed and confirmed that there have been no events since the period end that require adjustment or disclosure in the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The immediate parent company is Enra Specialist Finance Limited.
The smallest group to consolidate these financial statements is Eclipse Midco Limited.
The largest group to consolidate these financial statements is Eclipse Topco Limited. Copies of the Eclipse Topco Limited and Eclipse Midco Limited consolidated financial statements can be obtained from the Company Secretary at the registered office, Third Floor, The Edward Hyde Building, 38 Clarendon Road, Watford, Hertfordshire, WD17 1JW.
The immediate parent undertaking of Eclipse Topco Limited is Eclipse Investors Limited, a company incorporated in the Cayman Islands. The directors consider the ultimate controlling parties to be Elliott Associates L.P. and Elliott International L.P.