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Registration number: 14566089

Morley Capital LTD

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2026

 

Morley Capital LTD

Contents

Company Information

1

Director's Report

2 to 3

Balance Sheet

4

Notes to the Unaudited Financial Statements

5 to 11

 

Morley Capital LTD

Company Information

Director

Mr Dean Morley

Registered office

S10.B Evolve Business Centre
Cygnet Way
Houghton Le Spring
DH4 5QY

Accountants

Mr Lee Thomson ACA AIMS Accountants for Business
11a Front Street
Monkseaton
NE25 8AN

 

Morley Capital LTD

Director's Report for the Year Ended 30 June 2026

The director presents his report and the financial statements for the year ended 30 June 2026.

Director of the company

The director who held office during the year was as follows:

Mr Dean Morley

Principal activity

The principal activity of the company is The principal activity of the company during the year continued to be short-term business lending to small and medium-sized enterprises across the United Kingdom.

Business Review

The financial year ended 30 June 2026 represented another year of significant progress for the company. The business continues to expand its lending portfolio, whilst materially strengthening its balance sheet through retained profit, increasing capital reserves and reducing reliance on wholesale funding

During the year, the shareholders commenced their wider international expansion strategy through the establishment of Morley Capital APAC Limited, a separately operated sister company under common ownership. Morley Capital APAC Limited successfully launched lending operations in Australia during the year, and preparations are well advanced for the launch of New Zealand operations during the fourth quarter of 2026. Whilst these activities fall outside the scope of these financial statements, they represent an important strategic milestone in the wider development of the Morley Capital brand.

The company also continued investing in proprietary technology, artificial intelligence, workflow automation, legal recoveries, collections capability and operational infrastructure to improve scalability whilst maintaining disciplined underwriting standards.

Financial Position
The company continued to strengthen its financial position throughout the year.
Total assets more than doubled during the financial year, increasing from approximately £5.5 million to £12.8 million. Shareholders' funds increased from approximately £1.1 million to £3.8 million.

Deferred income increased to approximately £5.2 million, representing contractual lending income relating to loans already originated but recognised over their contractual term in accordance with the company's revenue recognition policy. Whilst presented as a liability for accounting purposes, this balance provides visibility over future earnings embedded within the existing lending portfolio.

The directors also monitor an internal adjusted capital measure comprising shareholders' funds together with deferred income. On this basis, the company's adjusted capital position increased from approximately £3.7 million to £9.1 million, representing growth of approximately 145% during the financial year.

Capital Management
Maintaining a strong balance sheet remains a core strategic objective.

Wholesale funding continues to support portfolio growth; however, reliance on external funding reduced materially during the year. Wholesale funding represented approximately 17.9% of gross customer receivables at 30 June 2026 compared with 28.5% at the previous year end, demonstrating the company's increasing ability to support growth from retained earnings and internally generated capital.

 

Morley Capital LTD

Director's Report for the Year Ended 30 June 2026

Credit Risk and Provisioning
The company continues to operate a disciplined underwriting framework supported by credit bureau information, bank transaction analysis, fraud detection, director profiling and proprietary credit assessment models.

Impairment provisions increased during the year in line with the continued expansion of the lending portfolio and the company's expected credit loss methodology. The directors consider the level of provisioning at the reporting date to be appropriate and reflective of the risks associated with commercial lending.

Operational Development
Key operational developments during the year included:

• Continued investment in proprietary lending technology.
• Expansion of AI-assisted underwriting and operational automation.
• Enhancement of legal recoveries and collections capability.
• Strengthening of governance and operational controls.
• Continued investment in employee development and infrastructure.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 14 July 2026
 

.........................................
Mr Dean Morley
Director

 

Morley Capital LTD

(Registration number: 14566089)
Balance Sheet as at 30 June 2026

Note

2026
£

2025
£

Fixed assets

 

Tangible assets

4

36,780

3,202

Current assets

 

Debtors

5

11,466,490

5,507,368

Cash at bank and in hand

 

1,338,764

54,212

 

12,805,254

5,561,580

Creditors: Amounts falling due within one year

6

(6,657,080)

(4,459,807)

Net current assets

 

6,148,174

1,101,773

Total assets less current liabilities

 

6,184,954

1,104,975

Creditors: Amounts falling due after more than one year

6

(2,347,526)

(50,020)

Net assets

 

3,837,428

1,054,955

Capital and reserves

 

Called up share capital

7

100,000

100,000

Retained earnings

3,737,428

954,955

Shareholders' funds

 

3,837,428

1,054,955

For the financial year ending 30 June 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account and Director's Report.

Approved and authorised by the director on 14 July 2026
 

.........................................
Mr Dean Morley
Director

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
S10.B Evolve Business Centre
Cygnet Way
Houghton Le Spring
DH4 5QY
England

These financial statements were authorised for issue by the director on 14 July 2026.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

Adjusting events after the financial period

Future Outlook
The directors remain confident regarding the company's future prospects.

Morley Capital Limited will continue focusing on disciplined growth within the United Kingdom through prudent portfolio expansion, continued investment in technology and operational capability, and careful capital management.

The wider international strategy will continue through Morley Capital APAC Limited, including the planned launch of New Zealand operations during the fourth quarter of 2026 and the evaluation of further expansion opportunities.

The directors believe the company's strengthened capital position, increasing embedded future earnings and reduced reliance on wholesale funding provide a strong foundation for sustainable long-term growth.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 37 (2025 - 3).

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

4

Tangible assets

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 July 2025

1,614

2,983

4,597

Additions

35,633

875

36,508

At 30 June 2026

37,247

3,858

41,105

Depreciation

At 1 July 2025

487

907

1,394

Charge for the year

2,019

912

2,931

At 30 June 2026

2,506

1,819

4,325

Carrying amount

At 30 June 2026

34,741

2,039

36,780

At 30 June 2025

1,126

2,076

3,202

5

Debtors

Current

Note

2026
£

2025
£

Trade debtors

 

10,079,852

5,421,930

Amounts owed by related parties

10

1,202,203

85,438

Other debtors

 

184,435

-

   

11,466,490

5,507,368

6

Creditors

Creditors: amounts falling due within one year

Note

2026
£

2025
£

Due within one year

 

Loans and borrowings

8

-

1,572,109

Trade creditors

 

100,003

103,564

Taxation and social security

 

1,345,418

392,869

Deferred Income

 

5,211,659

2,391,265

 

6,657,080

4,459,807

Creditors: amounts falling due after more than one year

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

Note

2026
£

2025
£

Due after one year

 

Loans and borrowings

8

2,347,526

50,020

7

Share capital

Allotted, called up and fully paid shares

2026

2025

No.

£

No.

£

Ordinary Shares of £1 each

100,000

100,000

100,000

100,000

       

8

Loans and borrowings

Non-current loans and borrowings

2026
£

2025
£

Other borrowings

2,347,526

50,020

Current loans and borrowings

2026
£

2025
£

Other borrowings

-

1,572,109

9

Dividends

Interim dividends paid

2026
£

2025
£

Interim dividend of £2.1375 (2025 - £1.30) per each Ordinary Shares

213,750

130,000

 

 

10

Related party transactions

 

Morley Capital LTD

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2026

Director's remuneration

The director's remuneration for the year was as follows:

2026
£

2025
£

Remuneration

12,576

12,576