Company registration number 07978824 (England and Wales)
FEDERAL CAPITAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
FEDERAL CAPITAL LIMITED
COMPANY INFORMATION
Directors
Mr M Plumridge
Mr C Angrave
Company number
07978824
Registered office
14a Old Marsh Farm Barns
Welsh Road
Sealand
Flintshire
CH5 2LY
Auditor
BK Plus Audit Limited
102 Bowen Court
St Asaph Business Park
St Asaph
Denbighshire.
LL17 0JE
FEDERAL CAPITAL LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of income and retained earnings
9
Group balance sheet
10
Company balance sheet
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 30
FEDERAL CAPITAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 1 -

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

Principal activities

The principal activity of the company and its group continued to be that of providing loan financing services.

Review of the business

The Directors report the group performance for the reporting period and its financial position at the year end. The group has demonstrated strong growth from the comparative period.

 

The Directors report that the group was profitable for the reporting period, generating a post-tax profit of £13,937,855 (2024 - £10,276,701) and an overall increase to retained earnings of £10,394,142 which is the equivalent of a 37.3% growth in reserves.

 

The group has completed the development of its head office and maintained its block funding contracts in support of the continued growth and expected demand both throughout the reporting period and the period following the year end. Thus, as reported in the previous year, continuing to improve the group's ability to lend to customers and develop market share.

 

During the reporting period the group (via it's parent company) was proud to support small local charities with donations totalling £28,180 (2024 - £24,100).

Trading operations in the Irish subsidiary have strategically reduced over the reporting period. The Irish company contribution to Turnover has reduced from 1.05% of group reported turnover in 2024 to 0.28% in 2025, thus signalling the strategic focus of the group as a whole.

Principal risks and uncertainties

The group continues a very meticulous approach to its operation and its risk identification. It does suffer some specific finance and operational risk but is also subject to market and economic uncertainties.

 

The principal risks and uncertainties are;

 

 

FEDERAL CAPITAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 2 -

The group continues to negate, mitigate and manage all of these risks in a detailed and structured approach. This includes -

 

 

 

Future Developments

The group has continued to show good growth in the reporting period. The group focus has continued to be the development of key areas of the operation in order to support and extend that growth into the future. These include -

 

- the retention of significant amounts of company profits to be made available for loan facilities to customers

- increasing the value and availability of facilities provided by the block funding partners

- increasing the staff headcount to increase the ability to service more customers

- development and investment into skills and technology to create a more efficient customer management process.

 

Lastly, the group has also chosen during the period to significantly reduce the trading operations in the Irish subsidiary, and whilst this is a strong and positive market, the strategic focus and growth map for the group focuses more on the development of the UK market and its associated market share. This strategic shift has continued into the period following the balance sheet date.

Key performance indicators

The Directors have highlighted the key performance indicators and management reporting points below.

 

Turnover has grown to £52,720,341 from the 2024 results of £40,400,991.

 

Post Tax profits have grown from £10,276,701 in 2024 to £13,937,855.

 

Bad debt to Turnover ratio is reported as 11.86%, which is an increase from the 10.22% ratio reported in the prior period.

 

Group liquidity in respect of the ratio of Trade Debtors to Block Funder loan creditors has improved to be 1.79:1 in 2025 compared to 1.51:1 in 2024.

 

The Balance Sheet total at the period end is now £38,273,045 an increase of £10,394,142. compared to £27,878,903 for the 2024 year end.

Other performance indicators

One additional and important operational KPI the business utilises, is the supplier payment policy attributed to all suppliers but specifically to brokers and broker partners. The company continues to implement a quick turnaround on broker commission payments, these are normally paid within 7 days, with the exception of some larger contracted payment periods. This policy has been maintained and continues to support the strong and efficient working relationships the company has with its brokers and customers.

FEDERAL CAPITAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 3 -
Promoting the success of the company

The Directors acknowledge their responsibilities under section 172 of the Companies Act 2006. The Directors have given due consideration in developing the group and its business in providing and securing value for all its stakeholders. The key stakeholders being identified as the customers, block funders, brokers and staff. Whilst the other stakeholders are the local community and the environment.

 

Given the operational size of the group, the board is both strategic and operational and as such is heavily involved directly with day to day operations. This generates much of the direct access to the day to day considerations outlined in the responsibilities under s172, including -

 

Customers - The group constantly utilises sample cases and feedback to ensure that continual improvements are made to the customer experience. These therefore improve the process for ease of use and speed of turnaround, two key customer value metrics.

 

Block Funders - Our close operating relationships are extremely important. The group operates an open book approach with its funding providers to assist with audits, security reviews and financial reporting to ensure that decisions are made in a collaborative structure.

 

Brokers - Again, constructing great relationships with the brokers is a key aspect to enable open and positive communication. That coupled with strong and fair payment practices (such as the targeted 7 day payment process) are the main value propositions with this stakeholder, noting there is a significant waiting list to become a Broker partner with the group.

 

Staff - As one of the most important stakeholders, they are at the forefront of driving the business forward. Aspect of the considerations given in this area are numerous but include regular one to one meetings with Directors, flexible working pattern support, engaging and inclusive social events, best practice and training discussions. These all form part strong engagement and great working culture.

 

Local Community - Consideration is given to the locality in which the group operates by giving back where possible. The group supports local foodbank initiatives, sports clubs and schools, all within the catchment area in which the staff live as a method to consider and improve the impact the group has in its own location.

 

Environment - The group maintains as small an environmental impact as possible. The group in terms of energy usage and application is very small. We continue to consider environmental impacts via simple principles, for example continuing to operate from a single, smaller site and mitigating travel.

On behalf of the board

Mr M Plumridge
Director
31 July 2026
FEDERAL CAPITAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2025
- 4 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £3,543,713. The directors do not recommend payment of a further dividend.

Directors

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

 

Mr M Plumridge

Mr C Angrave

 

Future developments

Information is not disclosed within the Director's report but within the Strategic Report, in line with s414c (11) Companies Act 2006.

Auditor

BK Plus Audit Limited 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.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

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 prepared 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:

 

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.

FEDERAL CAPITAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 5 -
Statement of disclosure to auditor

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

On behalf of the board
Mr M Plumridge
Director
31 July 2026
FEDERAL CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FEDERAL CAPITAL LIMITED
- 6 -
Opinion

We have audited the financial statements of Federal Capital Limited (the 'parent company') and the consolidated financial statements (the 'group') for the year ended 31 October 2025 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not 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:

Responsibilities of directors

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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

FEDERAL CAPITAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FEDERAL CAPITAL LIMITED
- 8 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that rise due to fraud can be harder to detect than these that arise from error as they may involve deliberate concealment or collusion.

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.

The purpose of our audit work and to whom we owe our responsibilities

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.

Mr Chris Hession CA (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
31 July 2026
BK Plus Audit Limited
102 Bowen Court
St Asaph Business Park
St Asaph.
Denbighshire.
LL17 OJE
FEDERAL CAPITAL LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 9 -
2025
2024
Notes
£
£
Turnover
3
52,720,341
40,400,991
Administrative expenses
(29,680,949)
(23,423,368)
Other operating income
680,612
570,175
Operating profit
4
23,720,004
17,547,798
Interest payable and similar expenses
8
(5,165,187)
(3,776,519)
Amounts written off investments
9
25,000
-
Profit before taxation
18,579,817
13,771,279
Tax on profit
10
(4,641,962)
(3,494,578)
Profit for the financial year
23
13,937,855
10,276,701
Retained earnings brought forward
27,878,901
19,652,700
Dividends
(3,543,713)
(2,050,500)
Retained earnings carried forward
38,273,043
27,878,901
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FEDERAL CAPITAL LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2025
31 October 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
150,987
187,116
Investment property
13
695,000
670,000
845,987
857,116
Current assets
Debtors
16
91,149,060
77,051,178
Cash at bank and in hand
3,001,027
6,499,630
94,150,087
83,550,808
Creditors: amounts falling due within one year
17
(54,671,242)
(54,454,251)
Net current assets
39,478,845
29,096,557
Total assets less current liabilities
40,324,832
29,953,673
Creditors: amounts falling due after more than one year
18
(2,000,000)
(2,000,000)
Provisions for liabilities
Deferred tax liability
20
51,787
74,770
(51,787)
(74,770)
Net assets
38,273,045
27,878,903
Capital and reserves
Called up share capital
22
2
2
Profit and loss reserves
23
38,273,043
27,878,901
Total equity
38,273,045
27,878,903
The financial statements were approved by the board of directors and authorised for issue on 31 July 2026 and are signed on its behalf by:
31 July 2026
Mr M Plumridge
Director
Company registration number 07978824 (England and Wales)
FEDERAL CAPITAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2025
31 October 2025
- 11 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
150,987
187,116
Investment property
13
695,000
670,000
Investments
14
73
73
846,060
857,189
Current assets
Debtors
16
91,999,936
76,540,733
Cash at bank and in hand
1,977,728
6,050,513
93,977,664
82,591,246
Creditors: amounts falling due within one year
17
(54,666,626)
(54,447,875)
Net current assets
39,311,038
28,143,371
Total assets less current liabilities
40,157,098
29,000,560
Creditors: amounts falling due after more than one year
18
(2,000,000)
(2,000,000)
Provisions for liabilities
Deferred tax liability
20
51,787
74,770
(51,787)
(74,770)
Net assets
38,105,311
26,925,790
Capital and reserves
Called up share capital
22
2
2
Profit and loss reserves
23
38,105,309
26,925,788
Total equity
38,105,311
26,925,790

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 £14,723,233 (2024 - £10,139,407 profit).

The financial statements were approved by the board of directors and authorised for issue on 31 July 2026 and are signed on its behalf by:
31 July 2026
Mr M Plumridge
Director
Company registration number 07978824 (England and Wales)
FEDERAL CAPITAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
10,118,096
(9,334,890)
Interest paid
(5,137,699)
(3,713,202)
Income taxes paid
(5,113,131)
(3,338,923)
Net cash outflow from operating activities
(132,734)
(16,387,015)
Investing activities
Purchase of tangible fixed assets
(13,380)
(175,876)
Net cash used in investing activities
(13,380)
(175,876)
Financing activities
Proceeds/(Repayment) of borrowings
(260,000)
194,584
Movement in bank loans
451,224
22,751,761
Dividends paid to equity shareholders
(3,543,713)
(2,050,500)
Net cash (used in)/generated from financing activities
(3,352,489)
20,895,845
Net (decrease)/increase in cash and cash equivalents
(3,498,603)
4,332,954
Cash and cash equivalents at beginning of year
6,499,630
2,166,676
Cash and cash equivalents at end of year
3,001,027
6,499,630
FEDERAL CAPITAL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 13 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
8,650,352
(9,344,367)
Interest paid
(5,137,699)
(3,713,202)
Income taxes paid
(5,095,665)
(3,312,261)
Net cash outflow from operating activities
(1,583,012)
(16,369,830)
Investing activities
Purchase of tangible fixed assets
(13,380)
(175,876)
Dividends received
877,116
-
0
Net cash generated from/(used in) investing activities
863,736
(175,876)
Financing activities
Proceeds/(Repayment) of borrowings
(261,020)
195,604
Movement in bank loans
451,224
22,751,761
Dividends paid to equity shareholders
(3,543,713)
(2,050,500)
Net cash (used in)/generated from financing activities
(3,353,509)
20,896,865
Net (decrease)/increase in cash and cash equivalents
(4,072,785)
4,351,159
Cash and cash equivalents at beginning of year
6,050,513
1,699,354
Cash and cash equivalents at end of year
1,977,728
6,050,513
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2025
- 14 -
1
Accounting policies
Company information

Federal Capital Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 14a Old Marsh Farm Barns, Welsh Road, Sealand, Flintshire, CH5 2LY.

 

The group consists of Federal Capital Limited (a company limited by shares) and all of its subsidiaries.

1.1
Basis of preparation

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

 

The principal activity of the company and its group continued to be that of providing lease and loan financing services.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The financial statements report all transactions gross of VAT where applicable.

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Federal Capital 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 31 October 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.

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 15 -

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

 

Subsidiaries where the functional currency is anything other than £, then the results and position of the entity are translated using the mid point foreign exchange rate on the last day of the reporting period, into £ and consolidated as such. Any movement on reserves due to the transaction between periods will be recognised as a foreign exchange cost or credit in the subsidiary financial statements.

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.

The group financial statements comprise Federal Capital Limited as the parent company and it's only subsidiary Federal Capital Ireland Limited, therefore these consolidated financial statements represent the largest and only consolidated financial reporting in the group. Neither entity is a component or member of any other group, corporate or otherwise.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have 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.

1.5
Revenue

Loan and lease incomes are derived from deferred cash inflows, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

Interest income and the fair value of the financial instrument is calculated using an amortised cost basis over the term of the lease or loan contract, using it's effective interest rate. The company and group turnover recognition measurement calculation and accounting policy is that of the loan and lease income is recognised on an amortised cost basis by reference to an approximation of the effective interest rate over the life of the transaction.

1.6
Tangible fixed assets

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

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 16 -

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

Leasehold improvements
Equally over the term of the lease
Fixtures and fittings
20% Reducing balance depreciation basis
Computers
33% Straight line depreciation basis

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

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 17 -
1.10
Cash and cash equivalents

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

1.11
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest 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

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.

Other financial liabilities

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

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value 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.

Derecognition of financial liabilities

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

1.12
Equity instruments

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

1.13
Taxation

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

Current tax

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

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
1
Accounting policies
(Continued)
- 19 -
Deferred tax

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.

1.14
Employee benefits

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

 

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

 

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

1.15
Retirement benefits

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

1.16
Leases
As lessee

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.

1.17

Commission Costs

Commission costs suffered by the business are accounted for in full within 30 days of the invoice date. This is recognised as a separate accounting policy to reflect the short term claw-back clauses on failed loan introductions and in recognition of the short term nature of the transactions. This is a departure from standard accounting policy to spread the cost against the associated income.

2
Judgements and key sources of estimation uncertainty

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

 

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

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 20 -
3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Loan interest income
52,720,341
40,400,991
2025
2024
£
£
Turnover analysed by geographical market
UK
52,571,313
39,979,786
Ireland
149,028
421,205
52,720,341
40,400,991
4
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(34,788)
45,421
Depreciation of owned tangible fixed assets
49,512
35,414
Operating lease charges
39,000
42,293
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and component auditor:
£
£
For audit services
Audit of the financial statements of the group and company
26,100
22,500
Audit of the financial statements of the company's subsidiaries (component auditor)
7,775
7,775
33,875
30,275
For other services
Other taxation services
893
840
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 21 -
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Office & Administration
24
22
24
22

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
2,152,072
1,646,684
2,152,072
1,646,684
Social security costs
337,328
229,949
337,328
229,949
Pension costs
43,435
40,260
43,435
40,260
2,532,835
1,916,893
2,532,835
1,916,893
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
25,140
25,140
8
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
931
Other interest on financial liabilities
4,866,146
3,615,372
4,866,146
3,616,303
Other finance costs:
Other finance costs
299,041
160,216
Total finance costs
5,165,187
3,776,519
9
Amounts written off investments
2025
2024
£
£
Changes in the fair value of investment properties
25,000
-
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 22 -
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
4,657,847
3,413,578
Adjustments in respect of prior periods
-
0
21,953
Total UK current tax
4,657,847
3,435,531
Foreign current tax on profits for the current period
7,098
23,930
Total current tax
4,664,945
3,459,461
Deferred tax
Origination and reversal of timing differences
(22,983)
35,117
Total tax charge
4,641,962
3,494,578

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

2025
2024
£
£
Profit before taxation
18,579,817
13,771,279
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2024: 25%)
4,644,954
3,442,820
Effects of:
Expenses that are not deductible in determining taxable profit
39,252
47,568
Gains not taxable
(6,250)
-
0
Adjustments in respect of prior years
-
0
21,952
Permanent capital allowances in excess of depreciation
(7,779)
(35,115)
Depreciation on assets not qualifying for tax allowances
12,378
3,216
Other permanent differences
-
0
(4,604)
Overseas tax rates
-
0
(16,376)
Tax under/(over) provided in prior years
(10,512)
-
0
Foreign exchange differences
(7,098)
-
0
Deferred tax movement in year
(22,983)
35,117
Taxation charge in the financial statements
4,641,962
3,494,578
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
3,543,713
2,050,500
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 23 -
12
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 November 2024
155,577
61,226
50,600
267,403
Additions
-
0
11,916
1,464
13,380
At 31 October 2025
155,577
73,142
52,064
280,783
Depreciation and impairment
At 1 November 2024
18,057
35,597
26,631
80,285
Depreciation charged in the year
30,954
6,081
12,476
49,511
At 31 October 2025
49,011
41,678
39,107
129,796
Carrying amount
At 31 October 2025
106,566
31,464
12,957
150,987
At 31 October 2024
137,519
25,629
23,968
187,116
Company
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 November 2024
155,577
46,538
50,600
252,715
Additions
-
0
11,916
1,464
13,380
At 31 October 2025
155,577
58,454
52,064
266,095
Depreciation and impairment
At 1 November 2024
18,057
20,909
26,631
65,597
Depreciation charged in the year
30,954
6,081
12,476
49,511
At 31 October 2025
49,011
26,990
39,107
115,108
Carrying amount
At 31 October 2025
106,566
31,464
12,957
150,987
At 31 October 2024
137,519
25,629
23,968
187,116
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 24 -
13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 November 2024
670,000
670,000
Net gains or losses through fair value adjustments
25,000
25,000
At 31 October 2025
695,000
695,000

Investment property comprises a residential property located on the island of Anglesey. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Validus Property Consultants Limited, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The original cost of the property was £558,043, there is no accumulated depreciation charged.

14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
73
73
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2024 and 31 October 2025
73
Carrying amount
At 31 October 2025
73
At 31 October 2024
73
15
Subsidiaries

There were no acquisitions or disposals of any subsidiary entities during the reporting period.

Details of the company's subsidiaries at 31 October 2025 are as follows (all of which, have been consolidated into these group financial statements) -

Name of undertaking
Address
Class of
% Held
shares held
Direct
Federal Capital Ireland
Ireland
Ordinary
100.00

Subsidiary Registered office address:

Fitzwilliam Business Centre, 26 Upper Pembroke Street. Dublin 2
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
15
Subsidiaries
(Continued)
- 25 -
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Federal Capital Ireland
167,807
91,737
16
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
88,284,197
73,998,156
88,284,197
73,504,992
Corporation tax recoverable
17,887
7,519
-
0
-
0
Amounts owed by group undertakings
-
0
-
0
868,830
-
0
Other debtors
2,112,971
2,255,122
2,112,971
2,245,461
Prepayments
121,277
174,185
121,210
174,084
90,536,332
76,434,982
91,387,208
75,924,537
Amounts falling due after more than one year:
Trade debtors
612,728
616,196
612,728
616,196
Total debtors
91,149,060
77,051,178
91,999,936
76,540,733

Trade debtors as listed above are pledged as security against Block Funding creditors as defined in note 18.

17
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans
19
49,453,247
49,002,023
49,453,247
49,002,023
Other borrowings
19
1,920,500
2,180,500
1,920,500
2,181,520
Trade creditors
651,822
769,830
651,822
769,830
Corporation tax payable
1,445,907
1,883,725
1,445,907
1,883,725
Other taxation and social security
187,845
6,100
187,845
6,100
Other creditors
387,242
414,512
387,242
414,512
Accruals and deferred income
624,679
197,561
620,063
190,165
54,671,242
54,454,251
54,666,626
54,447,875
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
17
Creditors: amounts falling due within one year
(Continued)
- 26 -

The short-term Block Funding facilities included in bank loans to the value of £49,453,247 (2024 - £49,002,203) are each secured by fixed charges over grouped components of the trade debtors ledger, being the underlying loan debtors funded by the respective facilities. All facilities are due in less than 12 months, with the respective facilities being secured under the following charges -

 

Renaissance Asset Finance Limited - Secured by Fixed charge dated 26 June 2023

Shawbrook Bank Limited - Secured by Fixed charge dated 08 April 2024

Hampshire Trust Bank Plc - Secured by Fixed charge dated 17 September 2018

Conister Bank Limited - Secured by Fixed charge dated 16 April 2018

Aldermore Bank Plc - Secured by Fixed charge dated 7 April 2017.

 

Included within Other Creditors are Directors' Loan accounts held in the sum of £1,746,284 (2024 - £1,801,941), of which £1,500,000 is listed as long term, upon which market rates of interest are charged.

18
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
£
£
£
£
Other creditors
2,000,000
2,000,000
2,000,000
2,000,000
19
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
49,453,247
49,002,023
49,453,247
49,002,023
Loans from group undertakings
-
0
-
0
-
0
1,020
Other loans
1,920,500
2,180,500
1,920,500
2,180,500
51,373,747
51,182,523
51,373,747
51,183,543
Payable within one year
51,373,747
51,182,523
51,373,747
51,183,543
20
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
17,548
46,781
Revaluations
34,239
27,989
51,787
74,770
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
20
Deferred taxation
(Continued)
- 27 -
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
17,548
46,781
Revaluations
34,239
27,989
51,787
74,770
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 November 2024
74,770
74,770
Credit to profit or loss
(22,983)
(22,983)
Liability at 31 October 2025
51,787
51,787
21
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,435
40,260

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.

22
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
20
20
2
2

Share capital is composed of 20 shares of 10p nominal value each. There are held as 10 Ordinary A shares, 2 Ordinary B shares, 7 Ordinary C shares and 1 Ordinary D share.

23
Reserves

The profit and loss reserve account contains £136,957 (2024 - £111,957) in relation to Fair Value Gains in the revaluation of an Investment property held in the business, this is £102,717 (2024 - £83,968) when net of deferred taxation. The movement represents the revaluation undertaken in the period. This closing value is not available for distribution as the gain has not crystalised.

24
Operating lease commitments
As lessee
FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
24
Operating lease commitments
(Continued)
- 28 -

The Group leases the premises from which it operates, under the term and obligation as outlined below.

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

Group
Company
2025
2024
2025
2024
£
£
£
£
Within 1 year
36,600
36,600
36,600
36,600
Years 2-5
73,200
109,800
73,200
109,800
109,800
146,400
109,800
146,400
25
Related party transactions

The Directors have provided personal guarantees on behalf of the parent company. Any credit Director's loan account balance and personal assets (to specific stated values) are pledged to support any shortfall in recovery of any of the secured block facility funders defined in the charge security disclosure above.

26
Directors' transactions

Dividends totalling £3,436,527 (2024 - £1,874,500) were paid in the year in respect of shares held by the company's directors.

 

As defined in note 17, the Directors also held funds on loan to the company during the accounting period, interest was charged at a rate of 5% on qualifying parts of these loans. This interest charge totalled £37,500 (2024 - £44,791).

27
Controlling party

The ultimate controlling party is Mr M Plumridge by virtue of his majority shareholding.

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 29 -
28
Cash generated from/(absorbed by) group operations
2025
2024
£
£
Profit for the year after tax
13,937,855
10,276,701
Adjustments for:
Taxation charged
4,641,962
3,494,578
Finance costs
5,165,187
3,776,519
Fair value gain on investment properties
(25,000)
-
0
Depreciation and impairment of tangible fixed assets
49,511
35,414
Movements in working capital:
Increase in debtors
(14,087,514)
(27,681,571)
Increase in creditors
436,095
763,469
Cash generated from/(absorbed by) operations
10,118,096
(9,334,890)
29
Cash generated from/(absorbed by) operations - company
2025
2024
£
£
Profit for the year after tax
14,723,234
10,139,407
Adjustments for:
Taxation charged
4,634,864
3,470,648
Finance costs
5,165,187
3,776,519
Investment income
(877,116)
-
0
Fair value gain on investment properties
(25,000)
-
0
Depreciation and impairment of tangible fixed assets
49,511
35,414
Movements in working capital:
Increase in debtors
(15,459,203)
(27,584,722)
Increase in creditors
438,875
818,367
Cash generated from/(absorbed by) operations
8,650,352
(9,344,367)
30
Analysis of changes in net debt - group
1 November 2024
Cash flows
31 October 2025
£
£
£
Cash at bank and in hand
6,499,630
(3,498,603)
3,001,027
Borrowings excluding overdrafts
(51,182,523)
(191,224)
(51,373,747)
(44,682,893)
(3,689,827)
(48,372,720)

Changes in net debt exclude long term other creditors, in relation to Directors Loans as disclosed in note 17.

FEDERAL CAPITAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2025
- 30 -
31
Analysis of changes in net debt - company
1 November 2024
Cash flows
31 October 2025
£
£
£
Cash at bank and in hand
6,050,513
(4,072,785)
1,977,728
Borrowings excluding overdrafts
(51,183,543)
(190,204)
(51,373,747)
(45,133,030)
(4,262,989)
(49,396,019)
2025-10-312024-11-01falsefalseCCH SoftwareCCH Accounts Production 2026.100Mr M PlumridgeMr C M Angravefalse07978824bus:Consolidated2024-11-012025-10-31079788242024-11-012025-10-3107978824bus:RegisteredOffice2024-11-012025-10-3107978824bus:Director1bus:Consolidated2024-11-012025-10-3107978824bus:Director12024-11-012025-10-31079788242025-10-3107978824bus:Consolidated2025-10-3107978824bus:Consolidated2023-11-012024-10-31079788242023-11-012024-10-3107978824bus:Consolidated2024-10-31079788242024-10-3107978824core:LeaseholdImprovementsbus:Consolidated2025-10-3107978824core:FurnitureFittingsbus:Consolidated2025-10-3107978824core:ComputerEquipmentbus:Consolidated2025-10-3107978824core:LeaseholdImprovementsbus:Consolidated2024-10-3107978824core:FurnitureFittingsbus:Consolidated2024-10-3107978824core:ComputerEquipmentbus:Consolidated2024-10-3107978824core:LeaseholdImprovements2025-10-3107978824core:FurnitureFittings2025-10-3107978824core:ComputerEquipment2025-10-3107978824core:LeaseholdImprovements2024-10-3107978824core:FurnitureFittings2024-10-3107978824core:ComputerEquipment2024-10-3107978824core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2025-10-3107978824core:CurrentFinancialInstrumentsbus:Consolidated2024-10-3107978824core:ShareCapitalbus:Consolidated2025-10-3107978824core:ShareCapitalbus:Consolidated2024-10-3107978824core:RetainedEarningsAccumulatedLossesbus:Consolidated2025-10-3107978824core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-10-3107978824core:ShareCapital2025-10-3107978824core:ShareCapital2024-10-3107978824core:RetainedEarningsAccumulatedLosses2025-10-3107978824core:RetainedEarningsAccumulatedLosses2024-10-3107978824core:LeaseholdImprovements2024-11-012025-10-3107978824core:FurnitureFittings2024-11-012025-10-3107978824core:ComputerEquipment2024-11-012025-10-3107978824core:UKTaxbus:Consolidated2024-11-012025-10-3107978824core:UKTaxbus:Consolidated2023-11-012024-10-3107978824core:ForeignTaxbus:Consolidated2024-11-012025-10-3107978824core:ForeignTaxbus:Consolidated2023-11-012024-10-3107978824bus:Consolidated12024-11-012025-10-3107978824bus:Consolidated12023-11-012024-10-3107978824bus:Consolidated22024-11-012025-10-3107978824bus:Consolidated22023-11-012024-10-3107978824bus:Consolidated32024-11-012025-10-3107978824bus:Consolidated32023-11-012024-10-3107978824bus:Consolidated42024-11-012025-10-3107978824bus:Consolidated42023-11-012024-10-3107978824bus:Consolidated52024-11-012025-10-3107978824bus:Consolidated52023-11-012024-10-3107978824core:LeaseholdImprovementsbus:Consolidated2024-10-3107978824core:FurnitureFittingsbus:Consolidated2024-10-3107978824core:ComputerEquipmentbus:Consolidated2024-10-3107978824bus:Consolidated2024-10-3107978824core:LeaseholdImprovements2024-10-3107978824core:FurnitureFittings2024-10-3107978824core:ComputerEquipment2024-10-31079788242024-10-3107978824core:LeaseholdImprovementsbus:Consolidated2024-11-012025-10-3107978824core:FurnitureFittingsbus:Consolidated2024-11-012025-10-3107978824core:ComputerEquipmentbus:Consolidated2024-11-012025-10-3107978824core:Subsidiary12024-11-012025-10-3107978824core:Subsidiary112024-11-012025-10-3107978824core:Subsidiary12025-10-3107978824core:CurrentFinancialInstrumentsbus:Consolidated2025-10-3107978824core:CurrentFinancialInstruments2025-10-3107978824core:CurrentFinancialInstruments2024-10-3107978824core:Non-currentFinancialInstrumentsbus:Consolidated2025-10-3107978824core:Non-currentFinancialInstrumentsbus:Consolidated2024-10-3107978824core:Non-currentFinancialInstruments2025-10-3107978824core:Non-currentFinancialInstruments2024-10-3107978824core:CurrentFinancialInstrumentsbus:Consolidated12025-10-3107978824core:CurrentFinancialInstrumentsbus:Consolidated12024-10-3107978824core:CurrentFinancialInstruments22025-10-3107978824core:CurrentFinancialInstruments22024-10-3107978824core:WithinOneYearbus:Consolidated2025-10-3107978824core:WithinOneYearbus:Consolidated2024-10-3107978824core:CurrentFinancialInstrumentscore:WithinOneYear2025-10-3107978824core:CurrentFinancialInstrumentscore:WithinOneYear2024-10-3107978824core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-10-3107978824core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12025-10-3107978824core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12024-10-3107978824core:Non-currentFinancialInstrumentscore:AfterOneYear22025-10-3107978824core:Non-currentFinancialInstrumentscore:AfterOneYear22024-10-3107978824bus:PrivateLimitedCompanyLtd2024-11-012025-10-3107978824bus:FRS1022024-11-012025-10-3107978824bus:Audited2024-11-012025-10-3107978824bus:ConsolidatedGroupCompanyAccounts2024-11-012025-10-3107978824bus:Director22024-11-012025-10-3107978824bus:FullAccounts2024-11-012025-10-31xbrli:purexbrli:sharesiso4217:GBP