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REGISTERED NUMBER: 07112423 (England and Wales)

Valleys Finance Limited

Unaudited Financial Statements for the Year Ended 31 December 2025

| Valleys Finance Limited (Registered number: 07112423) |

Contents of the Financial Statements

for the Year Ended 31 December 2025

Page |

| Company Information | 1 |

| Balance Sheet | 2 |

| Notes to the Financial Statements | 3 |

| Valleys Finance Limited |

Company Information

for the Year Ended 31 December 2025

| Directors: | J R Phillips

| G C Southall

| H Bradbury

| N Lewis

| Registered office: | 98a Commercial Street

| Tredegar

| Gwent

| NP22 3DW

| Registered number: | 07112423 (England and Wales)

| Accountants: | Menzies LLP, Statutory Auditors

| 5th Floor Hodge House

| 114-116 St Mary Street

| Cardiff

| CF10 1DY

| Valleys Finance Limited (Registered number: 07112423) |

Balance Sheet

31 December 2025

| 2025 |  | 2024

| Notes | £ | £ |

Fixed assets

Intangible assets | 4 | 4,440 |  | 8,880 |  |

Tangible assets | 5 | 28,959 |  | 57,975 |  |

33,399 |  | 66,855 |  |

Current assets

Debtors | 6 | 4,440,837 |  | 4,330,817 |  |

Cash at bank and in hand | 320,663 |  | 187,789 |  |

4,761,500 |  | 4,518,606 |  |

Creditors

Amounts falling due within one year | 7 | (2,081,777 | ) | (2,203,533 | ) |

Net current assets | 2,679,723 |  | 2,315,073 |  |

Total assets less current liabilities | 2,713,122 |  | 2,381,928 |  |

Creditors

Amounts falling due after more than one year | 8 | (2,409 | ) | (8,890 | ) |

Net assets | 2,710,713 |  | 2,373,038 |  |

Capital and reserves

Called up share capital | 100 |  | 100 |  |

Retained earnings | 11 | 2,710,613 |  | 2,372,938 |  |

Shareholders' funds | 2,710,713 |  | 2,373,038 |  |

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

J R Phillips - Director

| Valleys Finance Limited (Registered number: 07112423) |

Notes to the Financial Statements

for the Year Ended 31 December 2025

1. | Statutory information

| Valleys Finance Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. | Accounting policies

| Basis of preparing the financial statements

| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

| The functional currency of Valleys Finance Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.

| Related party exemption

| 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.

| Turnover

| Turnover represents interest earned on loans and advances and amounts (excluding value added tax) derived from the provision of goods and services to customers during the year.

| Income arising on hire purchase agreements and credit instalment sales is credited to the profit and loss each year.

| The effective interest rate is the rate that discounts estimated future cash payments or receipts through the expected life of the financial instrument (or a shorter period where appropriate) to the net carrying value of the financial asset or financial liability. The calculation takes into account all contractual terms of the financial instrument.

| Income relating to the sale of goods is recognised when substantially all of the risks and rewards of ownership have passed to the customer, generally being at the point of sale.

| Income relating to maintenance of goods sold is treated as deferred income and released to the profit and loss account over the period of the maintenance obligation.

| Intangible assets

| Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

| Computer software - 3 - 5 years straight line

| Other intangible assets - 5 - 20 years straight line

| Other intangible assets

| Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

| All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

| Tangible fixed assets

| Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

| Fixtures and fittings | - | Straight line over 5 years

| Motor vehicles | - | Straight line over 4 years

| Computer equipment | - | 20% to 33% straight line

| Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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

| Valleys Finance Limited (Registered number: 07112423) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

2. | Accounting policies - continued

| Financial instruments

| Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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

| Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

| Taxation

| Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

| Current or deferred taxation assets and liabilities are not discounted.

| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

| Deferred tax

| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

| Pension costs and other post-retirement benefits

| The Company operates a defined contribution scheme. The amount charged to the Income Statement in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

| Impairment of assets

| Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Income Statement as described below.

| Going concern

| As at 31 December 2025, the company had net current assets of £2,679,723 (2024: £2,315,073) and reported a profit before tax for the year end of £1,598,047 (2024: £1,366,333). The directors have prepared the financial statements on a going concern basis which they consider to be appropriate for the following reasons.

| As reported in the 2024 financial statements, the company took advantage of an opportunity in the market to expand into a new region of the UK. This financial period saw a complete financial period with that region being fully established, whereby the company focused on consolidating its position.

| As at the date of this report, the company continues to look for new opportunities in the market to expand its geographical footprint. Funding this however will require the borrowing of funds. During the year, the company fully repaid its loan facility to Family Finance Limited and entered into a new loan facility with its parent company under similar terms.

| The directors have received confirmation that its loan facility will continue to be available for at least 12 months from the date of signing these financial statements. The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of signing.

| Valleys Finance Limited (Registered number: 07112423) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

3. | Employees and directors

| The average number of employees during the year was 102 (2024 - 106 ) .

4. | Intangible fixed assets

| Computer

| software

£ |

| Cost

| At 1 January 2025

| and 31 December 2025 | 38,795 |  |

| Amortisation

| At 1 January 2025 | 29,915 |  |

| Amortisation for year | 4,440 |  |

| At 31 December 2025 | 34,355 |  |

| Net book value

| At 31 December 2025 | 4,440 |  |

| At 31 December 2024 | 8,880 |  |

5. | Tangible fixed assets

| Fixtures |

| and |  | Motor |  | Computer |

| fittings |  | vehicles |  | equipment |  | Totals

£ | £ | £ | £ |

| Cost

| At 1 January 2025 | 7,148 |  | 101,004 |  | 31,377 |  | 139,529 |  |

| Disposals | (7,148 | ) | (36,752 | ) | - |  | (43,900 | ) |

| At 31 December 2025 | - |  | 64,252 |  | 31,377 |  | 95,629 |  |

| Depreciation

| At 1 January 2025 | 7,148 |  | 62,763 |  | 11,643 |  | 81,554 |  |

| Charge for year | - |  | 18,061 |  | 8,386 |  | 26,447 |  |

| Eliminated on disposal | (7,148 | ) | (34,183 | ) | - |  | (41,331 | ) |

| At 31 December 2025 | - |  | 46,641 |  | 20,029 |  | 66,670 |  |

| Net book value

| At 31 December 2025 | - |  | 17,611 |  | 11,348 |  | 28,959 |  |

| At 31 December 2024 | - |  | 38,241 |  | 19,734 |  | 57,975 |  |

6. | Debtors: amounts falling due within one year |

2025 | 2024 |

£ | £ |

| Trade debtors | 4,304,200 |  | 4,257,617 |  |

| Other debtors | 8,919 |  | 12,317 |  |

| Deferred tax asset | 29,240 |  | 6,384 |  |

| Prepayments | 98,478 |  | 54,499 |  |

4,440,837 |  | 4,330,817 |  |

| Valleys Finance Limited (Registered number: 07112423) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

7. | Creditors: amounts falling due within one year |

2025 | 2024 |

£ | £ |

| Hire purchase contracts (see note 9) | 7,732 |  | 19,115 |  |

| Trade creditors | 18,305 |  | 12,400 |  |

| Amounts owed to group undertakings | 1,448,321 |  | 1,028,610 |  |

| Tax | 408,139 |  | 444,742 |  |

| Social security and other taxes | - |  | 92,937 |  |

| Other creditors | - |  | 20,582 |  |

| Accrued expenses | 199,280 |  | 585,147 |  |

2,081,777 |  | 2,203,533 |  |

| Whilst the director's loans and related party loans are repayable on demand, the expectation is that the loans will be repaid after more than one year.

8. | Creditors: amounts falling due after more than one year |

2025 | 2024 |

£ | £ |

| Hire purchase contracts (see note 9) | 2,409 |  | 8,890 |  |

| Net obligations under hire purchase contracts are secured by fixed charges on the assets concerned.

9. | Leasing agreements

| Minimum lease payments fall due as follows:

| Hire purchase |

| contracts |

2025 | 2024 |

£ | £ |

| Net obligations repayable:

| Within one year | 7,732 |  | 19,115 |  |

| Between one and five years | 2,409 |  | 8,890 |  |

10,141 |  | 28,005 |  |

| Non-cancellable |

| operating leases |

2025 | 2024 |

£ | £ |

| Within one year | 33,760 |  | 13,000 |  |

| Between one and five years | 75,981 |  | 52,000 |  |

| In more than five years | 26,000 |  | 39,000 |  |

135,741 |  | 104,000 |  |

10. | Deferred tax

£ |

| Balance at 1 January 2025 | (6,384 | ) |

| Credit to Income Statement during year | (22,856 | ) |

| Balance at 31 December 2025 | (29,240 | ) |

| Valleys Finance Limited (Registered number: 07112423) |

Notes to the Financial Statements - continued

for the Year Ended 31 December 2025

11. | Reserves

| Retained

| earnings

£ |

| At 1 January 2025 | 2,372,938 |  |

| Profit for the year | 1,212,675 |  |

| Dividends | (875,000 | ) |

| At 31 December 2025 | 2,710,613 |  |

12. | Ultimate controlling party

| The controlling party is Phillips Family Investments Limited.

| The ultimate controlling party is The J R Phillips Family Settlement.