Company registration number 02789223 (England and Wales)
SOUTHERN GROUP LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
SOUTHERN GROUP LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
S Meller
B Rubins
J Rubins
L Rubins
Secretary
L Sivasubramanian
Company number
02789223
Registered office
2 Imperial Place
Maxwell Road
Borehamwood
Hertfordshire
WD6 1JN
Auditor
Mercer & Hole LLP
Trinity Court
Church Street
Rickmansworth
WD3 1RT
SOUTHERN GROUP LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 34
SOUTHERN GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 1 -

The directors present the strategic report for the year ended 30 September 2025.

PRINCIPAL ACTIVITIES

The principal activity of Southern Group Limited is the provision of short-term, residential and commercial bridging loans and residential development loans, all secured by legal charges on properties in the UK.

The structure of business includes Alternative Bridging Corporation Limited as the principal originator and servicer to a number of wholly owned lending subsidiaries, together with Alternative Bridging Corporation (Cheval) Limited, the originator and principal servicer of regulated loans. In addition, Alternative Bridging Corporation Limited is the sole originator and servicer of loans to Alternative Bridging (UK3) Limited (“ABUK3”), a special purpose off balance sheet company.

RESULTS

The group achieved a loss after tax of £1,475,882 for the year ended 30 September 2025 (2024: £736,406 profit). The reduction in profits in the current year is explained below.

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS (INCLUDING ABUK3)

During the year to September 2025, new loan origination was to just under £112m, a decrease of 9.6% on £123m (the previous year).

The reduction in new loan originations, together with strong redemptions, resulted in the overall loan book reducing from circa £205m at the start of the year, to £181m at the year end.

During the year new senior appointments were made and the numbers increased in anticipation of growing the business in the years ahead, and to strengthen the administration of the existing loan book. This increased overhead combined with a reduction in new loan originations, pressure on net interest margins within the industry, and an increase in our provisions against the value of the loan book (including one provision on a single large loan within the residential development book of £1.66m) resulted in a loss for the year of £1.8m.

The directors recognise that trading conditions remain challenging. Activity in the property market has been negatively affected by the increase in interest rates in previous years, which notwithstanding some reductions during the year, remained high and a disincentive for business activity.

Earlier in the year, the expectations were that interest rates would continue to come down. However, increasing oil and gas prices (as a consequence of the war in the Middle East) are likely to result in the Bank of England Base Rate remaining at no lower than 3.75% for the foreseeable future. We therefore remain cautious with regards to any improvement in the property market in the next six to twelve months.

Following a year during which the group invested significant sums in building the lending platform and improving operational systems, the directors have committed to increasing our operational margins and return the group to profitability. This will be achieved by reducing our cost of capital, reducing overheads and taking full advantage of the systems improvements to date. To this end in February 2026, we completed the refinance of our largest drawn banking facility at a significantly lower interest rate margin. The directors have also implemented a plan to reduce overheads and have identified savings in excess of £600,000 per annum. This is an ongoing process, and the group is expected to return to profitability in the second half of this year.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 2 -

GOING CONCERN

The Group's cash flow is continually monitored, both in terms of capital available to continue to grow the loan book and to cover operational expenses. The business is very well supported by both its institutional and private providers of capital and maintains both cash funds and undrawn committed institutional funds for this purpose. With respect to operational cash flow, this has been stress-tested and following the aforementioned reduction in our cost of capital and the overhead savings, the Group operational cash flow is expected to be positive by October 2026.

As well as the defensive measures taken as outlined above, the group has also been planning for future growth, and we are in the course of finalising a further credit line to enable us to compete favourably in the origination of long term mortgage products, utilising our existing staff, systems and premises, so increasing our income without additional overheads.

Our business relies on the continued support of our funding partners. In order to maintain and grow our loan book we require stable availability of capital. There have been a number of well publicised market events which have had a negative impact on institutional lenders attitude to funding our sector. Despite this, in February this year we completed on the refinance of our facilities in Alternative Bridging (UK 1) Limited with a new funder, increasing our funding availability at a reduction in our interest margin.

PRINCIPAL RISKS AND UNCERTAINTIES

As a consequence of the war in the Middle East and the effect on oil and gas prices, the risks of high levels of inflation and higher interest rates have increased, albeit we do not anticipate at this stage they will be long term. Nevertheless, the economic outlook remains uncertain, which continues to impact the property market.

In addition, the main risks arising from the Group’s financial instruments are credit risk, interest rate risk and liquidity risk. The directors review and agree policies for managing each of these risks, which are summarised below.

Credit risk

Credit risk will likely increase. Consequently, we remain cautious and we continue to regularly review our lending policies and underwriting procedures and have invested further in our servicing and recoveries teams, to mitigate this risk as best we can and to adapt to and counter these uncertainties.

Interest rate risk

Interest rates affect our business in two principal ways. Higher interest rates effect the property market, and we adapt our lending policies to reflect any concerns we have in this regard. Higher interest rates also increase our cost of capital, with the potential to reduce our overall operating margins. However, only about 12% - 15% of our loan book is subject to fixed rates, the balance being floating. Accordingly, the risk of higher cost of capital to our operating margins is significantly reduced.

Liquidity risk

Liquidity risk is that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 3 -

KEY PERFORMANCE INDICATORS

The directors and the management team review a variety of key performance indicators to monitor and improve Group performance, including:

Consolidated amounts (excluding ABUK3) | 30-Sep-25 | 30-Sep-24
Turnover | £20,733,359 | £26,4 94,247
Gross Profit | £3,597,184 | £6,793,021
Profit/(loss) after tax | -£1,475,882 | £736,406
Consolidated amounts (Including ABUK3) |  |
Completions | £111,683,201 | £123,930,376
Loan Book | £181,000,000 | £205,000,000

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

There have been no significant events after the Balance Sheet date other than the refinance of our largest drawn banking facility in February 2026 and, the implemented plan to reduce overheads as noted above.

On behalf of the board

S Meller
Director
30 June 2026
SOUTHERN GROUP LIMITED (CONSOLIDATED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2025.

Principal activities

The principal activity of the company continued to be that of issuing bridging loans.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £386,760. The directors do not recommend payment of a further dividend.

Directors

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

S Meller
B Rubins
J Rubins
L Rubins
Auditor

Mercer & Hole LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-
sized companies exemption.
On behalf of the board
S Meller
Director
30 June 2026
SOUTHERN GROUP LIMITED (CONSOLIDATED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 5 -

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

United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable U nited K ingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SOUTHERN GROUP LIMITED (CONSOLIDATED)
- 6 -
Opinion

We have audited the financial statements of Southern Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2025 and of the group's loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- T he information given in the strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

SOUTHERN GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTHERN GROUP LIMITED (CONSOLIDATED)
- 7 -
Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to breaches in Health & Safety and General Data Protection Regulations, and we considered the extent to which non-compliance may have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principle risks were related to posting inappropriate entries including journals to mis state revenue or expenditure, and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

- discussions with management, including considerations of known or suspected instances of non-compliance with laws and regulations and fraud;

- evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;

- identifying and testing journal entries.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SOUTHERN GROUP LIMITED (CONSOLIDATED)
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://w w w.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The financial statements of Southern Group Limited for the year ended 30 September 2024 were audited by another auditor who expressed an unmodified opinion on those financial statements on 20 January 2025. Our opinion on the financial statements does not cover the comparative financial statements and we do not express any conclusion thereon.

Use of our report

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Anil Kapoor (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
Trinity Court
Church Street
Rickmansworth
WD3 1RT
30 June 2026
SOUTHERN GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
20,733,359
26,494,247
Cost of sales
(17,136,175)
(19,701,226)
Gross profit
3,597,184
6,793,021
Administrative expenses
(5,918,806)
(5,788,906)
Other operating income
5,041
-
0
Operating (loss)/profit
4
(2,316,581)
1,004,115
Bank interest and similar income
8
6,313
-
0
Interest payable and similar expenses
9
(17,125)
-
0
Amounts written back from participant loans
10
945,170
-
(Loss)/profit before taxation
(1,382,223)
1,004,115
Tax on (loss)/profit
11
(93,659)
(267,709)
(Loss)/profit for the financial year
24
(1,475,882)
736,406
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(886,483)
520,440
- Non-controlling interests
(589,399)
215,966
(1,475,882)
736,406
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(886,483)
520,440
- Non-controlling interests
(589,399)
215,966
(1,475,882)
736,406
SOUTHERN GROUP LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2025
30 September 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Negative goodwill
13
-
0
(34,250)
Other intangible assets
13
11,350
34,048
Total intangible assets
11,350
(202)
Tangible assets
14
19,719
39,765
31,069
39,563
Current assets
Debtors
17
114,423,344
153,348,311
Cash at bank and in hand
8,784,875
7,552,714
123,208,219
160,901,025
Creditors: amounts falling due within one year
18
(11,923,873)
(17,564,313)
Net current assets
111,284,346
143,336,712
Total assets less current liabilities
111,315,415
143,376,275
Creditors: amounts falling due after more than one year
19
(110,249,981)
(140,288,963)
Provisions for liabilities
Deferred tax liability
21
-
0
5,143
-
(5,143)
Net assets
1,065,434
3,082,169
Capital and reserves
Called up share capital
23
9,500
9,500
Share premium account
34,125
34,125
Capital redemption reserve
500
500
Profit and loss reserves
24
964,678
2,132,575
Equity attributable to owners of the parent company
1,008,803
2,176,700
Non-controlling interests
56,631
905,469
Total equity
1,065,434
3,082,169
SOUTHERN GROUP LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2025
30 September 2025
- 11 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 June 2026 and are signed on its behalf by:
30 June 2026
S Meller
Director
Company registration number 02789223 (England and Wales)
SOUTHERN GROUP LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2025
30 September 2025
- 12 -
2025
2024
Notes
£
£
£
£
Fixed assets
Investments
15
190,273
190,273
Current assets
Debtors
17
218,051
202,950
Cash at bank and in hand
965
23,274
219,016
226,224
Creditors: amounts falling due within one year
18
(389,426)
(354,116)
Net current liabilities
(170,410)
(127,892)
Net assets
19,863
62,381
Capital and reserves
Called up share capital
23
9,500
9,500
Share premium account
34,125
34,125
Capital redemption reserve
500
500
Profit and loss reserves
24
(24,262)
18,256
Total equity
19,863
62,381

As permitted by section 408 of the Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £344,242 (2024 - £530,425 profit).

The financial statements were approved by the board of directors and authorised for issue on 30 June 2026 and are signed on its behalf by:
30 June 2026
S Meller
Director
Company registration number 02789223 (England and Wales)
SOUTHERN GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 13 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 October 2023
9,500
34,125
500
2,138,956
2,183,081
867,935
3,051,016
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
520,440
520,440
215,966
736,406
Dividends
12
-
-
-
(526,821)
(526,821)
(180,849)
(707,670)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
-
310
310
Other movements
-
-
-
-
-
2,107
2,107
Balance at 30 September 2024
9,500
34,125
500
2,132,575
2,176,700
905,469
3,082,169
Year ended 30 September 2025:
Loss and total comprehensive income
-
-
-
(886,483)
(886,483)
(589,399)
(1,475,882)
Dividends
12
-
-
-
(281,414)
(281,388)
(260,573)
(541,961)
Issue of non-controlling interest shares
-
-
-
-
-
110
110
Other movements
-
-
-
-
-
1,024
1,024
Balance at 30 September 2025
9,500
34,125
500
964,678
1,008,803
56,631
1,065,434
SOUTHERN GROUP LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2023
9,500
34,125
500
14,652
58,777
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
-
530,425
530,425
Dividends
12
-
-
-
(526,821)
(526,821)
Balance at 30 September 2024
9,500
34,125
500
18,256
62,381
Year ended 30 September 2025:
Profit and total comprehensive income
-
-
-
344,242
344,242
Dividends
12
-
-
-
(386,760)
(386,760)
Balance at 30 September 2025
9,500
34,125
500
(24,262)
19,863
SOUTHERN GROUP LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
37,275,033
38,705,289
Interest paid
(17,125)
-
0
Income taxes paid
(207,844)
(324,068)
Net cash inflow from operating activities
37,050,064
38,381,221
Investing activities
Issue of non participant shares
520
-
Purchase of tangible fixed assets
(1,307)
(554)
Negative goodwill arising
-
0
1,240
Interest received
7,311
-
0
Net cash generated from investing activities
6,524
686
Financing activities
Repayment of borrowings
(15,407,455)
(48,889,879)
Proceeds from new bank loans
-
4,641,989
Repayment of bank loans
(19,875,121)
-
Issue of non-controlling interest shares
110
-
Dividends paid to equity shareholders
(281,388)
(526,821)
Dividends paid to non-controlling interests
(260,573)
(180,849)
Net cash used in financing activities
(35,824,427)
(44,955,560)
Net increase/(decrease) in cash and cash equivalents
1,232,161
(6,573,653)
Cash and cash equivalents at beginning of year
7,552,714
14,126,367
Cash and cash equivalents at end of year
8,784,875
7,552,714
SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 16 -
1
Accounting policies
Company information

Southern Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, WD6 1JN.

The group consists of Southern Group Limited and all of its subsidiaries.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Southern Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 30 September 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 18 -
1.4
Going concern

In carrying out their duties in respect of going concern, the directors have reviewed the Group's forecast cash flows, liquidity, loan facilities and relating covenant requirements and the expected operational and lending activities of the Group. This included an assessment of the impact of principal risks and uncertainties brought about by the current economic environment.

Forecasts have been prepared factoring in the latest view on the economic environment. These forecasts also included the impact of cost saving measures that have been impl emented post year end . The Directors are optimistic that a combination of the cost saving measures and the reduction in the cost of capital of the Group is expected to produce positive operational cash flows by October 2026. The Directors have also identified further cost saving measures that can be implemented if required.

The Group relies on the continued support of its funding partners being lending institutions as well as shareholder investors. The forecasts demonstrate that the Group has sufficient cash reserves and are forecast to remain in compliance with its financial covenants for a period of at least twelve months from the date of signing these financial statements.

The directors have applied extensive scrutiny to the forecasts, including stress tests, and are satisfied that reasonable assumptions have been made for the going concern opinion. The directors have also assessed their current cash position and the ability for the group to generate cash from other financial instruments held.

As such, the directors believe that the Group is well placed to manage its financing and other business risks satisfactorily and have a reasonable expectation that the Group will have adequate resources to continue to operate for the foreseeable future. They therefore consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Revenue

Turnover represents fees and interest receivable on secured advances. Fees are recognised as services are provided and interest is recognised on an effective interest basis which spreads the income over the life of the advances.

1.6
Intangible fixed assets - goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2013, is being amortised evenly over its estimated useful life of five years.

1.7
Intangible fixed assets other than goodwill

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

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years
1.8
Tangible fixed assets

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

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 19 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
In accordance with the lease term
Fixtures and fittings
25% on cost
Computers
25% on cost

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

1.9
Fixed asset investments

I n the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 20 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

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

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

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for a ll timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

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

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

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

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Loan provisions

The valuation of debtor balances relating to bridging loans involves a degree of estimation, as recoverability is dependent on the borrower’s ability to repay. Factors management take into consideration in determining the recoverable amount of advances include but are not limited to the economic viability, expected future financial performance of the customer and valuation of collateral.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 23 -
3
Turnover and other revenue
2025
2024
£
£
Turnover analysed by class of business
Interest and fees receivable
20,733,359
26,494,247
2025
2024
£
£
Other revenue
Interest income
6,313
-
4
Operating (loss)/profit
2025
2024
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Hire of plant and machinery
-
215
Depreciation of owned tangible fixed assets
21,353
23,974
Amortisation of intangible assets
22,698
22,698
Release of negative goodwill
(34,770)
-
Profit on disposal of intangible assets
-
(2,509)
Operating lease charges
156,399
269,134
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,850
16,000
Audit of the financial statements of the company's subsidiaries
128,100
116,000
144,950
132,000
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Directors
4
4
-
-
Administration
38
44
-
-
Total
42
48
0
0
SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
6
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
3,259,994
3,247,600
-
0
-
0
Social security costs
421,951
405,853
-
-
Pension costs
124,121
116,726
-
0
-
0
3,806,066
3,770,179
-
0
-
0
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
614,116
526,200
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
237,812
196,320
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Other interest income
6,313
-
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
17,125
-
10
Amounts written back from participant loans
2025
2024
£
£
Amounts written back from participant loans
945,170
-
0

Amounts written back from participant loans arise from the group being unable to recover advances, which in turn reduce amounts repayable to the participant loan holder, who consequently risk a shortfall on repayment of their loan.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 25 -
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
87,570
267,709
Adjustments in respect of prior periods
11,232
-
0
Total current tax
98,802
267,709
Deferred tax
Origination and reversal of timing differences
(5,143)
-
0
Total tax charge
93,659
267,709

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

2025
2024
£
£
(Loss)/profit before taxation
(1,382,223)
1,004,115
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
(345,556)
251,029
Effects of:
Expenses that are not deductible in determining taxable profit
152,569
15,874
Income not taxable in determining taxable profit
(378,507)
(627)
Change in unrecognised deferred tax assets
725,464
-
0
Adjustments in respect of prior years
11,232
-
0
Permanent capital allowances in excess of depreciation
1,350
-
Depreciation on assets not qualifying for tax allowances
8,552
5,665
Exempt ABGH distributions
(81,445)
(4,232)
Taxation charge in the financial statements
93,659
267,709
12
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Interim paid
386,760
526,821
SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 26 -
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Software
Total
£
£
£
£
Cost
At 1 October 2024
61,549
(34,250)
67,369
94,668
Additions
-
0
(520)
-
0
(520)
Written back
-
0
34,770
-
0
-
0
At 30 September 2025
61,549
-
0
67,369
128,918
Amortisation and impairment
At 1 October 2024
61,549
-
0
33,321
94,870
Amortisation charged for the year
-
0
-
0
22,698
22,698
At 30 September 2025
61,549
-
0
56,019
117,568
Carrying amount
At 30 September 2025
-
0
-
0
11,350
11,350
At 30 September 2024
-
0
(34,250)
34,048
(202)

Negative goodwill has arisen within various subsidiaries as a result of the issue of non-participating shares in those subsidiaries at a premium. This has been written off to the P&L in the year.

14
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 October 2024
132,821
159,771
73,665
366,257
Additions
-
0
-
0
1,307
1,307
At 30 September 2025
132,821
159,771
74,972
367,564
Depreciation and impairment
At 1 October 2024
119,917
141,106
65,469
326,492
Depreciation charged in the year
6,453
8,633
6,267
21,353
At 30 September 2025
126,370
149,739
71,736
347,845
Carrying amount
At 30 September 2025
6,451
10,032
3,236
19,719
At 30 September 2024
12,904
18,665
8,196
39,765
SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 27 -
15
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Shares in group undertakings
16
-
0
-
0
273
273
Preference shares in group undertakings
16
-
-
190,000
190,000
-
0
-
0
190,273
190,273
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2024 and 30 September 2025
273
Carrying amount
At 30 September 2025
273
At 30 September 2024
273
16
Subsidiaries

Details of the company's subsidiaries at 30 September 2025 are as follows:

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
16
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Southern Funding Limited
England
Provision of administrative and management services to group entities
Ordinary £1
100.00
Alternative Bridging Corporation Limited
England
Holding company
Ordinary £1
73.00
Alternative Bridging Corporation (Cheval) Limited
England
Origination of regulated loans
Ordinary A £1
65.70
Property Finance Capital Limited
England
Provision of funding to group entities
Ordinary A £1
73.00
Property Finance Capital (No.3) Limited
England
Provision of bridging loans
Ordinary £1
73.00
Property Finance Capital (No.2) Limited
England
Provision of funding to group entities
Ordinary A £1
73.00
Alternative Development Finance Limited
England
Provision of bridging loans
Ordinary £1
73.00
Alternative Bridging (UK1) Limited
England
Provision of bridging loans
Ordinary £1
73.00
Property Finance Nominees (No.3) Limited
England
Provision of bridging loans
Ordinary A £1
73.00
Alternative Bridging (UK2) Limited
England
Provision of bridging loans
Ordinary £1
73.00
Alternative Bridging (Management) Ltd
England
Provision of administrative and management services to group entities
Ordinary A £1
54.75
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Southern Funding Limited
20,187
294,877
Alternative Bridging Corporation Limited
(600,386)
(1,391,785)
Property Finance Capital Limited
28,190
-
Property Finance Nominees (No.3) Limited
100
-
Alternative Bridging Corporation (Cheval) Limited
11,677
20,611
Alternative Bridging (UK1) Limited
2,669,740
627,372
Property Finance Capital (No.2) Limited
13,260
-
Alternative Bridging (UK2) Limited
(27,026)
(27,026)
Property Finance Capital (No.3) Limited
140,546
945,170
Alternative Bridging (Management) Limited
430,393
287,647
Alternative Development Finance Limited
(1,629,024)
(1,899,778)

The registered address for all subsidiaries name d above is 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, United Kingdom, WD6 1JN.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 29 -
17
Debtors
Group
2024 as
Company
2025
restated
2025
2024
Amounts falling due within one year:
£
£
£
£
Advances
64,085,860
103,802,316
-
0
-
0
Corporation tax recoverable
13,500
-
0
13,500
-
0
Amounts owed by group undertakings
-
0
82,500
44,101
82,500
Other debtors
850,860
2,213,785
160,450
120,450
Prepayments and accrued income
473,400
603,636
-
0
-
0
65,423,620
106,702,237
218,051
202,950
Amounts falling due after more than one year:
Advances
38,902,202
26,024,546
-
0
-
0
Amount owed by related parties
10,000,000
20,500,033
-
0
-
0
Other debtors
7,135
7,135
-
0
-
0
Prepayments and accrued income
90,387
114,360
-
0
-
0
48,999,724
46,646,074
-
-
Total debtors
114,423,344
153,348,311
218,051
202,950

Advances are secured on property as collateral and the company has recognised provisions for doubtful debts against individual loans where there is evidence to suggest that the value of the underlying security is lower than the balance outstanding.

At the year end provisions of £14,358,484 (2024: £8,524,266) have been recognised against advances.

Prior Year Restatement

During the year, the Company identified and corrected a classification error relating to the prior year’s financial statements as follows:

In the Group reported information:

A non‑current balance totalling £20,500,033 owed to related parties was incorrectly classified as a current debtor in the prior year. This amount has been reclassified to non‑current related party balances to align with its expected settlement profile and presentation. Current Other debtors has moved by £20,500,033 from £22,713,818 to £2,213,785 and Amounts due by related parties after more than one year have increased the same amount from £Nil to £20,500,033.

These restatements affected only the classification of balances within the debtors note and have no impact on the reported profit or net assets for the year to 30 September 2024.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Other borrowings
20
10,812,808
16,096,094
156,425
156,425
Amounts owed to group undertakings
-
0
-
0
199,281
197,691
Corporation tax payable
104,538
200,080
13,500
-
0
Other taxation and social security
133,432
130,985
-
0
-
0
Other creditors
549,699
836,458
-
0
-
0
Accruals and deferred income
323,396
300,696
20,220
-
0
11,923,873
17,564,313
389,426
354,116
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
44,025,000
63,900,121
-
0
-
0
Other borrowings
20
66,224,981
76,349,150
-
0
-
0
Accruals and deferred income
-
0
39,692
-
0
-
0
110,249,981
140,288,963
-
-
20
Borrowings
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
44,025,000
63,900,121
-
0
-
0
Preference shares
510,000
510,000
-
0
-
0
Participant loans
76,527,789
91,935,244
156,425
156,425
121,062,789
156,345,365
156,425
156,425
Payable within one year
10,812,808
16,096,094
156,425
156,425
Payable after one year
110,249,981
140,249,271
-
0
-
0

The bank loans are secured on a first charge over advances made by Alternative Bridging (UK 1) Limited and Alternative Development Finance Limited.

The participants' loans are secured on first and second charges over advances made by Property Finance Nominees (No.3) Limited, Alternative Bridging (Cheval) Limited, Alternative Bridging (UK 1) Limited, Alternative Bridging (UK 2) Limited, Alternative Development Finance Limited and Alternative Bridging (UK 3) Limited.

Participants’ loans relate to facilities provided by various shareholders in subsidiaries for terms commensurate with the terms of advances to which they relate.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 31 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
-
5,143
The company has no deferred tax assets or liabilities.
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 October 2024
5,143
-
Credit to profit or loss
(5,143)
-
Asset at 30 September 2025
-
-
22
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,121
116,726

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
5,770
5,770
5,770
5,770
B Ordinary of £1 each
1,430
1,430
1,430
1,430
C Ordinary of £1 each
1,000
1,000
1,000
1,000
D Ordinary of £1 each
500
500
500
500
E Ordinary of £1 each
800
800
800
800
9,500
9,500
9,500
9,500

All shares rank pari passu in all respects.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 32 -
24
Profit and loss reserves
Group
Company
2025
2024
2025
2024
£
£
£
£
At the beginning of the year
2,132,601
2,138,956
18,256
14,652
Profit/(loss) for the year
(886,483)
520,440
344,242
530,425
Dividends
(281,414)
(526,821)
(386,760)
(526,821)
At the end of the year
964,678
2,132,575
(24,262)
18,256
25
Operating lease commitments
As lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
161,208
161,208
-
-
Years 2-5
151,418
312,626
-
-
312,626
473,834
-
-
26
Events after the reporting date

In February 2026, the group refinanced one of the largest drawn banking facility.

27
Related party transactions
SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
27
Related party transactions
(Continued)
- 33 -

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Preference share dividends of £6,400 (2024: £6,400) and £11,000 (2024: £11,000) were received from Alternative Bridging Corporation Limited and Alternative Bridging Corporation (Cheval) Limited respectively.

At the year end the company was owed £Nil (2024: £191,000), £225,628 (2024: £306,292) and £1,330,711 (2024: £1,098,019) by Alternative Bridging Corporation (Cheval) Limited, Alternative Bridging (UK3) Limited and Southern Funding Limited respectively.

At the year end the company owed £1,417,169 (2024: £1,276,126), £44,100 (2024: £82,500) and £74,739 (2024: £0) to Alternative Bridging (Management) Limited, Southern Group Limited and Alternative Bridging Corporation (Cheval) Limited respectively.

During the year the company received management fees from Alternative Bridging Corporation (Cheval) Limited, Alternative Bridging (UK3) Limited and Alternative Bridging (Management) Limited amounting to £102,000 (2024: £102,000), £2,990,966 (2024: £nil) and £480,819 (2024: £525,893) respectively.

During the year service fees were payable to Alternative Bridging (Management) Limited of £1,223,052 (2024: £1,618,424) and to Alternative Bridging Corporation (Cheval) Limited of £233,000 (2024: £0).

During the year dividends were received from Alternative Bridging (Management) Limited totalling £325,821 (2024: £188,565).

I ncluded within other d ebtors is an interest free loan repayable on demand, totalling £261,811 (2024: £261,811) owed by Grand Oaks Capital Ltd, a company of which Mr B L Rubins controls and is a director.

Included within other creditors are amounts of £73,000 and £80,000 (2024: £74,825 and £81,600) owing to Grand Oaks Capital Ltd. Interest is payable on two loans of £73,000 and £80,000 at 10% per annum and 8% per annum respectively.

28
Controlling party

Throughout the year, the company's ultimate controlling parties were Mr B L Rubins and Mrs L Rubins, by virtue of their majority shareholding in the company.

SOUTHERN GROUP LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2025
- 34 -
29
Cash generated from group operations
2025
2024
£
£
(Loss)/profit after taxation
(1,475,882)
736,406
Adjustments for:
Taxation charged
93,659
267,709
Finance costs
17,125
-
0
Investment income
(6,313)
-
0
Write back of negative goodwill
(34,770)
-
Gain on disposal of intangible assets
-
(2,509)
Amortisation and impairment of intangible assets
22,698
-
Depreciation and impairment of tangible fixed assets
21,353
46,672
Movements in working capital:
Decrease in debtors
38,938,467
38,413,120
Decrease in creditors
(301,304)
(756,110)
Cash generated from operations
37,275,033
38,705,289
30
Analysis of changes in net debt - group
1 October 2024
Cash flows
30 September 2025
£
£
£
Cash at bank and in hand
7,552,714
1,232,161
8,784,875
Borrowings excluding overdrafts
(156,345,365)
35,282,576
(121,062,789)
(148,792,651)
36,514,737
(112,277,914)
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