The directors present the strategic report for the year ended 30 September 2025.
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.
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.
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 | £26,494,247 |
Gross Profit | £3,597,184 | £6,793,021 |
Profit/(loss) after tax | -£1,475,882 | £736,406 |
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Consolidated amounts (Including ABUK3) |
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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
The directors present their annual report and financial statements for the year ended 30 September 2025.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
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 United Kingdom 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.
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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report 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.
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 misstate 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £344,242 (2024 - £530,425 profit).
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.
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 amounts 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.
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 group.
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.
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 implemented 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.
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.
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.
In 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.
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.
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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, 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.
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.
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.
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.
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 payments 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.
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 through 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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.
Deferred tax liabilities are generally recognised for all 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 leased asset are consumed.
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.
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.
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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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.
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:
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.
Details of the company's subsidiaries at 30 September 2025 are as follows:
The registered address for all subsidiaries named above is 2 Imperial Place, Maxwell Road, Borehamwood, Hertfordshire, United Kingdom, WD6 1JN.
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.
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.
The following are the major deferred tax liabilities and assets recognised by the group and company:
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.
All shares rank pari passu in all respects.
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:
In February 2026, the group refinanced one of the largest drawn banking facility.
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).
Included within other debtors 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.