The directors present the strategic report for the year ended 31 October 2025.

Billing Finance has remained resilient in an uncertain trading environment, notwithstanding the uncertainty that carried forward into this financial year as a result of the Court of Appeal ruling regarding Commission Disclosure in October 2024. Sufficient clarity was subsequently gained in August 2025, through the Supreme Court ruling on the matter, to enable the business to progress its discussions with new investors with a view to refinancing its existing credit facilities and provide additional capital for growth. This investment was successfully completed post year end in December 2025. We are now looking forward to returning Billing Finance to growth and profitability with the help of the new funding and our funding partner.

A pre tax loss of £6.1m was recorded compared to a prior year loss of £1.9m due to high cost of funds, costs associated with arranging the new financing, and investment in the cost base to ready the business for growth including the addition of personnel in leadership, technology and credit risk positions. These increased costs were set against reduced income generated from a smaller loan book, as funding constraints and market challenges constrained originations. The company also continued to invest in its transformation plan, with new systems being developed that will enhance partner and customer experience and drive efficiencies. Despite the challenges in 2025 the company has put in place the foundations to grow.

There were c.2,600 new business originations during the year (2024: c.4000) with a value of c.£23m (2024: c.£33m). This was reduced from 2024 levels primarily due to funding constraints and market uncertainty.

The directors would like to thank all staff, brokers and customers for their continued support.

Due to the nature of the industry, the business is susceptible to bad debts. During the year the business continued to write good balanced business supported by industry standard affordability and credit worthiness products.

The company continued to invest in credit risk functionality as well as reevaluating risk appetite in line with improved credit risk governance and reporting.

Consumer Duty is considered in strategy and decision making and the company continues to develop its regulatory robustness and reporting.

Good customer risk management is reflected in arrears metrics that remain broadly in line with management expectations and low complaints volumes, and focus on customers requiring extra support continues to be a central tenet of the firms culture.

The company continues to receive commission complaints which continue to be under a regulatory pause. Billing Finance did not use discretionary commission arrangements, nor did the company have tied relationships.

Customer receivables decreased to £75.5m due to reduced origination volumes. New funding and investment in the cost base and systems, however, should support growth in the loan book over the coming years.

Net assets have decreased from £26.1m to £21.7m, driven by the loss made during the financial year.

On behalf of the board

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

The principal activity of the company continued to be that of the provision of finance for purchase of motor vehicles by individuals in the form of hire purchase agreements.

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

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

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of signing these financial statements

In the prior year there was a material uncertainty regarding going concern in relation to potential post year end events relating to the FCA Redress Scheme and future funding. These factors are now more certain and have been deemed not to give rise to a material uncertainty over the going concern status. Further details on these factors have been provided in note 15 and 21.

To assess this, the directors have completed base case forecasts and considered severe but plausible downside scenarios. The ability of the company to continue to operate as a going concern is predicated on the ability of the group of companies headed by Billing Finance Group Limited remain a going concern by meeting financial covenants in place in relation to the funding facility. Having reviewed and assessed the forecasts prepared the directors are confident that the business will be able to continue as a going concern based on the current funding structure and managing the business costs on an ongoing basis.

Consequently, the directors have a reasonable expectation that the Company has access to the necessary resources to continue in operation for the foreseeable future and have adopted the going concern basis of accounting for these financial statements. The financial statements do not include adjustments that would result if the Company were unable to continue as a going concern.

The company will continue to strength its processes and controls within robust risk management framework and our long term funding strategy will continue to support future growth.

Azets Audit Services were appointed as auditor to the company 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.

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 company’s auditor 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 company’s auditor is aware of that information.

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the 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 company and of the profit or loss of the company 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; and

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

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

We have audited the financial statements of Billing Finance Limited (the 'company') for the year ended 31 October 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 October 2025 and of its 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 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 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:

• 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.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

• the 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.

As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 company's member those matters we are required to state to the member 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 company and the company's member, for our audit work, for this report, or for the opinions we have formed.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

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

Billing Finance Limited (the "company") is a private company limited by shares incorporated in England and Wales. The registered office is Billing House, The Causeway, Great Billing, Northampton, Northamptonshire, United Kingdom, NN3 9EX.

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 £1.

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

This 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:

• 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 financial statements of the company are consolidated in the financial statements of Billing Finance Group Ltd as at 31 October 2025. These consolidated financial statements are available from its registered office or Companies House.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Company can continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of signing these financial statements

In the prior year there was a material uncertainty regarding going concern in relation to potential post year end events relating to the FCA Redress Scheme and future funding. These factors are now more certain and have been deemed not to give rise to a material uncertainty over the going concern status. Further details on these factors have been provided in note 15 and 21.

To assess this, the directors have completed base case forecasts and considered severe but plausible downside scenarios. The ability of the company to continue to operate as a going concern is predicated on the ability of the group of companies headed by Billing Finance Group Limited remain a going concern by meeting financial covenants in place in relation to the funding facility. Having reviewed and assessed the forecasts prepared the directors are confident that the business will be able to continue as a going concern based on the current funding structure and the support of its funding partner and managing the business costs on an ongoing basis.

Consequently, the directors have a reasonable expectation that the Company has access to the necessary resources to continue in operation for the foreseeable future and have adopted the going concern basis of accounting for these financial statements. The financial statements do not include adjustments that would result if the Company were unable to continue as a going concern.

Contractual cashflows are apportioned between repayments of capital and interest so that revenue is recognised over the contractual term under the amortised cost method to provide a constant periodic rate of return on the net investment in the agreement.

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:

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

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:

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.

At each reporting period end date, the company 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.

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.

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.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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 company 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 company 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, notably interest rate swaps, 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.

It is company policy to adopt hedge accounting where permitted, per section 12 of FRS 102. Management prepare all necessary documentation to apply hedge accounting whenever an applicable hedging relationship exists.

Interest rate swaps constitute a cash flow hedge since the company is hedging against the variability in cash flows on a floating rate loan due to interest rate risk.

Where hedge accounting applies, the following accounting policy is adhered to:

(a) the separate component of equity associated with the hedged item (‘hedging reserve’) is adjusted to the lower of the following:

• the cumulative gain or loss (i.e. the fair value movement) on the hedging instrument (in this case the interest rate swap); and

• the cumulative change in fair value on the hedged item (in this case the underlying interest payments on the loan). Note – see consideration below re hedge effectiveness however given the hedging relationship is considered to be highly effective, this would result in the fair value of both the hedged item and instrument to be virtually consistent.

(b) the portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognised in other comprehensive income and any hedge ineffectiveness is recognised in the profit and loss account.

(c) the amount that has been accumulated in the cash flow hedge reserve (i.e. in OCI) in accordance with the above, is reclassified from the cash flow hedge reserve to Profit or Loss in the same period during which the hedged expected future cash flows affect profit or loss. Therefore, amounts in OCI are recycled to the profit or loss account in the period in which the underlying payments on the swaps are settled and recognised in the profit or loss account. Therefore at each financial year end, the actual amount settled to/from the bank in relation to the gain/loss generated in that particular period from the swap is allocated to the profit or loss account and the associated opposite entry also allocated from OCI to the profit or loss to offset also.

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 company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

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 company’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 when the company has 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

In the application of the company’s accounting policies, the directors 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.

Provisions for doubtful debtors are calculated based on the classification of finance leases, by experience, and the age of the outstanding debts with a relevant percentage being applied, based on experience. The total of the provision for doubtful debtors is £25,009,078 (2024: £19,813,723 ).

The FCA published its final Policy Statement with respect to a redress scheme to compensate customers for unfair motor finance commission arrangements post year end. This has enabled the company to review its year end provision and confirm its reasonableness against the latest scheme rules. This has been carried out at an agreement level, while costs to administer the scheme have also been estimated. Our initial estimate for redress cost was reviewed and verified by an independent third party and we plan to have this revalidated as the scheme progresses through the implementation phase.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 1).

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

An impairment loss of £7.2m (2024: £4.5m) was recognised against trade debtors and other debtors.

Bank loans are secured by fixed and floating charges over the Company's assets and undertakings.

In January 2023, management introduced a hedge strategy to mitigate the risk of interest rate exposure, through use of swap deals.

Per section 12 of FRS 102 an entity can opt to apply hedge accounting in their financial statements, an election which management have decided to pursue. Management are aware of the requirements to prepare hedge documentation, a condition of being able to apply hedge accounting. For each swap, the hedged item (interest baring loan), hedged instrument (swap) and the risk (interest rate exposure) being hedged have been documented.

Since the company is hedging against the variability in cash flows on a floating rate loan due to interest rate risk, the hedge constitutes a cash flow hedge.

At the reporting date, the financial instruments designated as hedging instruments had a fair value of £457,105 (2024: 869,793).

The interest rate swaps are on an amortising basis with maturity dates ranging between 31 December 2024 and 30 June 2026 in order to maintain a specified risk coverage of the underlying hedged item which is similarly on an amortising basis with no current fixed maturity date. The cash flows on the underlying hedged item and instrument are both quarterly.

In all material respects, the directors consider the hedge to be fully effective on the basis that the strategy has been adhered to, and the critical terms of the hedged item match those of the hedging instrument.

The same amount is booked in OCI, before a portion is subsequently recycled to the profit and loss account in the period in which the interest payments on the underlying loan (hedged item) are settled and recognised in the profit and loss account. For the year ended 31 December 2025, a credit of £625,388 (2024: 128,398) had been recycled to the profit and loss account. During the financial year, there have been no recycles to the profit and loss account in respect of ineffective portions.

Bank loans are secured by fixed and floating charges over the Company's assets and undertakings.

FCA Redress Scheme

The FCA has now published its Policy Statement with respect to a redress scheme to compensate customers for unfair motor finance commission arrangements. A provision has been made by applying the redress scheme rules at an individual agreement-level to estimate redress payable to customers, as well as an estimate for costs to administer the scheme.Our initial estimate for redress cost was reviewed and verified by an independent third party and we plan to have this revalidated as the scheme progresses through the implementation phase.

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

The deferred tax asset set out above is expected to reverse within subsequent periods and relates to the utilisation of tax losses against future expected profits of the same period.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The company has an inter-company guarantee in respect of the bank borrowings of the Company with Billing Finance Group Limited. There are no borrowings in Billing Finance Group Limited in the current or previous year. Total borrowings within the company as at the year end amounted to £56,172,194 (2024: £66,686,13).

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

The FCA has now released its Policy Statement on a motor finance commissions redress scheme. While the particulars of the redress scheme are still to be confirmed and implementation period is ongoing, this has provided us greater clarity on the level of redress we will likely need to pay out to customers and the costs to administer. We have been able to confirm the reasonableness of the provision made at Note 15 on this basis.

Bank facilities in place during financial year 2025 were refinanced in December 2025. A £250m funding package, provided by Quilam Capital, is now in place and will be used to accelerate the next phase of the company’s growth plan and support strategic investment in its technology capabilities.

The directors consider the following companies to be related parties for which during the year there are material transaction flows between these companies and the company:

AJ Mackaness Limtied (Registered in the United Kingdom) is a company under common control with Billing finance limited.

In the year transactions with AJ Mackaness Limited were undertaken totalling £302,806 (2024: £305,682). A balance of £66,917 (2024: £40,348 ) was due from Billing Finance Limited at the year-end.

The Company is controlled by Billing Finance Group Limited. The registered office of Billing Finance Group Limited is Billing House, The Causeway, Great Billing, Northampton, NN3 9EX.

Billing Finance Group Limited produce consolidated financial statements that represent the smallest and largest group of undertakings for which accounts are drawn up.

The company is ultimately controlled by Mr O Mackaness and Mrs L Docker by virtue of their majority shareholding in Billing Finance Group Limited.