The directors present their Strategic Report on the Company for the year ended 31 December 2025.

 

The Company acts as a holding company for its trading subsidiaries which distribute and provide specialist mortgage products and provides management and financial support to these subsidiaries (see note 16 for a list of subsidiaries).

 

The profit before tax for the Company was £6,768,772 (2024 loss before tax: £7,964,203). The current year profit was due to dividends received from subsidiaries in the year.

 

The Company’s total shareholders’ funds was £59,072,595 at 31 December 2025 (2024: £52,303,823).

 

The Company and its subsidiaries ("Group") strategic objective continues to be the UK’s leading non-bank specialist finance provider & distributor. This continues to be delivered by consolidating and enhancing its position in its existing specialist product markets and by leveraging its expertise and market insight to extend its offering into related product areas, developing high quality earnings through a balance between short-term higher margin products and lower margin term lending products that provide recurring revenue streams.

 

The Group has an integrated business model enabling income to be earned at multiple points in the property lending value chain. The firm’s subsidiaries provide services and lending products to brokers, other intermediaries and direct to the consumer. The Group targets segments in which it has detailed product expertise and, in particular, where it can provide an end-to-end solution to customers, through progression into complementary product lines. In addition, The Group provides off-balance sheet asset management services. This enables the firm to leverage its expertise in these areas to earn fee income and provides an alternative means of funding loans for the benefit of customers.

 

The strategy is consistently delivered by:

 

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designing products to provide solutions to professional property investors and developers across the property development lifecycle.

•

service expertise with a focus on delivering against customer requirements and expectations.

•

providing good value products in segments that offer a sustainable risk-reward return.

•

building strong relationships with both existing and new introducers with high engagement with repeat customers.

•

using insight afforded by existing distribution to develop innovative solutions to new segments.

•

stringent focus on credit risk, both through careful underwriting of individual cases and the use of portfolio and individual product risk limits.

•

in-house servicing capability to provide a tailored approach to customer services and collections.

•

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.

•

promoting a culture of sustainability and diversity for customers, colleagues and suppliers

 

The Group 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.

 

The Company and Group continues to evolve its governance and committee structures to support the business through its continued growth in order to ensure that principal risks are appropriately overseen. Management committees are not formal sub-committees of the Board, although reports on their activities are given to the Board by Executive Directors.

 

Each Subsidiary Board has a responsibility for setting its culture, values, and business plans to show how they intend to achieve the Group strategy and objectives, and to ensure the necessary resources are in place. The Subsidiary Boards delegates responsibility for oversight of risk to the ARC. The Subsidiary Boards also have a general duty to ensure that each Subsidiary operates within its relevant laws, rules and guidance issued by relevant regulatory authorities. Each Subsidiary Board’s role is to safeguard the interests of its customers.

 

The 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.

 

Subsidiary RemCo is responsible for approving all incentive schemes which are also approved by the Head of Compliance.

 

The management committees in operation through the year included:

 

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Executive Committee (ExCo)

•

Asset & Liability Committee (ALCO)

•

Product Governance Committees (PGC)

•

Credit Committee

•

Servicing Committee

•

Compliance Risk Forum

•

Management Meeting

 

ExCo is an informal weekly management meeting tasked with managing the day-to-day activities of the business. It operates alongside an informal monthly management meeting, which is tasked with reviewing performance, promoting staff development, and acting as a communication forum for the senior management team.

 

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.

 

Management meetings are informal and are held monthly with the senior management team to provide a communication forum whereby key messages can be cascaded and to promote best practice and cross-learnings across the Group.

 

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 program.

 

Enra’s approach to risk management is underpinned by a set of clear principles that guide how we identify, assess, manage, and monitor risks across the business, these are summarised below:

 

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We operate within a clearly defined risk appetite, which is embedded within our processes and aligned with our strategic objectives. This ensures that risk management supports effective decision-making while enabling the business to pursue its goals in a controlled and sustainable manner.

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We apply a structured and systematic approach to risk management, ensuring that risks are identified, assessed, managed, and monitored consistently across the organisation. Our framework is proportionate and tailored to our culture, and to the nature, scale, and complexity of our operations.

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Our risk management processes are inclusive and involve relevant stakeholders, ensuring that material risks are appropriately considered in decision-making. We recognise that risk management is a dynamic and iterative process and adapt our approach in response to changes in the internal and external environment, emerging risks, and areas of uncertainty

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We make risk management decisions using the best available information, while acknowledging that uncertainty is inherent in business activities.

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We recognise that effective risk management depends significantly on the behaviours and actions of our people. We promote a strong risk-aware culture that emphasises ethical conduct, transparency, and open communication, supported by appropriate training, clear accountability, and adaptability.

•

We are committed to the continuous improvement of our risk management framework through ongoing monitoring, learning from experience, and the enhancement of our processes over time.

 

 

Enra believes that a strong risk culture is one in which the behaviours and actions of our people are aligned with our strategy, values, policies, and procedures, and where risks are taken in an informed, responsible, and proportionate manner. Enra fosters a strong and effective risk culture across the business through the following:

 

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Leadership Commitment: Our senior management demonstrates a clear commitment to effective risk management and promotes a positive and proactive approach to risk, while ensuring compliance with all applicable laws, regulations, and internal standards.

•

Openness and Transparency: We promote openness and transparency in the identification, escalation, and reporting of risks, incidents, and near-misses. We encourage risk reporting without fear of blame, with a focus on learning from events and preventing recurrence.

•

Training and Development: We are committed to ensuring that individuals responsible for managing risks are appropriately trained and equipped with the knowledge and tools required to identify, assess, manage, and mitigate risks effectively. This includes initial training for new risk owners and annual refresher training to maintain awareness of current risk management practices and regulatory expectations.

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Risk Ownership and Accountability: We empower risk owners to take accountability for the risks within their areas of responsibility, including through risk and control self-assessments, which enhance risk awareness and strengthen ownership of controls.

•

Appropriate Risk-Taking: Appropriate risk-taking is recognised through our performance and appraisal processes, ensuring that our core values are embedded within our approach to risk management.

•

Values and Conduct: Our values and code of conduct underpin our culture and support alignment between performance, risk, and reward, helping to ensure that good customer outcomes are consistently delivered.

 

 

Enra recognises that the acceptance of risk is an inherent part of conducting business and is necessary to support the delivery of its strategic objectives. Our risk appetite sets out the nature and level of risk that we are prepared to accept, manage, or avoid in the pursuit of those objectives.

 

Risk appetite is articulated through formal Risk Appetite Statements for each principal risk. These statement define the purpose and relevance of the risk, describe key exposures, and set out the appetite, limits, and tolerances within which the business operates. They also summarise the key controls and governance arrangements in place to manage each risk.

 

Risk appetite is expressed using a combination of qualitative indicators, such as risk posture descriptors, and quantitative measures, including defined thresholds and limits. Responsibility for the oversight of risk appetit sits with the boards of each subsidiary, typically through their Audit and Risk Committees, with Group-level oversight applied where appropriate.

 

Risk appetite is reviewed on a regular basis to ensure it remains appropriate in light of changing market conditions, strategic developments, and Enra’s evolving risk capacity.

 

 

Enra is exposed to a range of risks in pursuit of its objectives. These risks are captured within the Group’s risk universe, which is structured across two levels. All level 1 and level 2 risks are clearly defined to ensure a consistent approach to risk identification, assessment, and management across the business. Risk appetite is specifically set for principal risks (level 1).

 

Principal risks are those that could have the greatest impact on Enra’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 Enra’s 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.

 

Enra 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.

 

Enra 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 Enra manage potential threats to its long-term success.

 

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.

 

Enra 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.

 

Enra 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 Enra’s credit risk appetite.

 

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.

 

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.

 

Enra 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.

 

Enra 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.

 

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.

 

Enra 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.

 

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 Enra’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 firm’s 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.

 

Enra 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.

 

 

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 over-dependence 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-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.

Enra 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.

 

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.

 

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.

 

Enra 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.

 

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

•

Quality assurance frameworks that evaluate areas of the business that pose the highest compliance risks

•

Appointed solicitors providing legal advice and counsel in respect of loan documentation and other contractual obligations

•

HR consultants providing advice on HR and H&S matters

 

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.

 

 

Enra 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, Enra 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 Enra’s operations, counterparties, and long-term strategic position.

 

At the balance sheet date, the Company had net assets of £59,072,595 (2024: £52,303,823), having made a profit of £6,768,772 during the year. The Company has cash reserves of £10,336,609 (2024: £11,443,391).

 

The Directors have undertaken a Going Concern assessment, including a review of principal and emerging risks, including ongoing risks in relation to the conflict in Eastern Europe and the Middle East and potential economic consequences from higher interest rates and inflation. The Directors are satisfied that the Company has adequate resources to continue to operate as a going concern for a period in excess of 12 months from the date of this report and have prepared the financial statements on that basis.

 

In assessing whether the Going Concern basis is appropriate, 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 there is no realistic scenario under which the business would be unable to meet its liabilities as they fall due over the coming year. The Company has maintained an active dialogue with its lenders who continue to be supportive.

 

This report was approved by the board and signed on its behalf.

 

 

Date: 30 April 2026

 

The directors present their report and the financial statements for the year ended 31 December 2025.

 

 

The company is a private company limited by shares and is incorporated and domiciled in England, UK.

 

The profit for the year, after taxation, amounted to £6,768,772 (2024 - loss £7,951,841).

 

 

The directors who served during the year were:

 

Mr D Waters

Ms E Gestetner

Mr S Hogg

 

 

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.

 

 

 

There have been no significant events affecting the Company since the year end.

 

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.

 

Date: 30 April 2026

 

 

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise:

 

•

the statement of financial position as at 31 December 2025;

•

the statement of comprehensive income for the year then ended;

•

the statement of changes in equity for the year then ended; and

•

the notes to the financial statements, comprising material accounting policy information and other explanatory information.

 

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.

 

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.

 

 

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.

 

 

Christopher Dalton (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

 

 

The notes on pages 29 to 53 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:

 

 

 

Date: 30 April 2026

 

The notes on pages 29 to 53 form part of these financial statements.

 

The notes on pages 29 to 53 form part of these financial statements.

 

 

The notes on pages 29 to 53 form part of these 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. The financial statements have been prepared on a going concern basis.

 

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 other than where new policies have been applied:

 

 

The Company has taken advantage of the following disclosure exemptions under FRS 101:

 

•

•

•

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115,

 

118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers

•

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

•

the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:



paragraph 79(a)(iv) of IAS 1;



paragraph 73(e) of IAS 16 Property, Plant and Equipment;



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

•

•

•

•

 

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

•

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.

 

 

 

 

 

 

 

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 

 

 

 

 

 

 

 

The estimated useful lives range as follows:

 

 

 

 

Depreciation is provided on the following basis:

 

 

 

 

 

 

 

 

 

 

The significant estimates are addressed below:

 

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 1.19).

 

 

 

 

The operating loss is stated after charging:

 

 

During the year, the Company obtained the following services from the Company's auditors and their associates (excluding VAT):

 

 

 

The highest paid director received remuneration of £1,503,656 (2024 - £1,053,672), this is for services related to this entity and other Group entities.

 

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,400 (2024 - £2,400).

 

Staff costs, including directors' remuneration, were as follows:

 

 

The average monthly number of employees, including the directors, during the year was as follows:

 

 

 

 

 

 

The tax assessed for the year is the same as (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below: