Company registration number 12365749 (England and Wales)
LCM FUNDING UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
LCM FUNDING UK LIMITED
CONTENTS
Page
Director's report
1
Director's responsibilities statement
Statement of financial position
2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
LCM FUNDING UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The director presents his annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company continued to be that of investing in l itigation f inancing projects.

Results and dividends

The results for the year are set out on .

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

P Moloney
(Resigned 21 February 2025)
M Gangemi
(Resigned 5 September 2024)
D Collins
(Appointed 4 October 2024)
Auditor

The auditor, Beavis Morgan Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 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.

On behalf of the board
D Collins
Director
20 August 2026
LCM FUNDING UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2025
30 June 2025
- 2 -
2025
2024
Notes
£
£
£
£
Non-current assets
Contract assets falling due after more than one year
4
97,127,356
171,206,054
Non-current trade and other receivables
5
42,279,015
-
139,406,371
171,206,054
Current assets
Contract assets
4
-
15,346,703
Trade and other receivables
5
36
5,026,707
Cash and cash equivalents
246,462
3,394,407
246,498
23,767,817
Current liabilities
6
(68,892,807)
(41,469,939)
Net current liabilities
(68,646,309)
(17,702,122)
Total assets less current liabilities
70,760,062
153,503,932
Non-current liabilities
6
(56,593,588)
(98,616,687)
Provisions for liabilities
Deferred tax liabilities
8
(3,216,109)
(13,891,756)
Net assets
10,950,365
40,995,489
Equity
Called up share capital
9
1
1
Retained earnings
10,950,364
40,995,488
Total equity
10,950,365
40,995,489

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

The director of the company has elected not to include a copy of the income statement within the financial statements.

The financial statements were approved by the board of directors and authorised for issue on 20 August 2026 and are signed on its behalf by:
D Collins
Director
Company registration number 12365749 (England and Wales)
LCM FUNDING UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 July 2023
1
22,055,608
22,055,609
Year ended 30 June 2024:
Profit and total comprehensive income
-
18,939,880
18,939,880
Balance at 30 June 2024
1
40,995,488
40,995,489
Year ended 30 June 2025:
Loss and total comprehensive income
-
(30,045,124)
(30,045,124)
Balance at 30 June 2025
1
10,950,364
10,950,365
LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -
1
Accounting policies
Company information

LCM Funding UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 181 Queen Victoria Street, Bridge House, London, EC4V 4EG. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

- inclusion of an explicit and unreserved statement of compliance with IFRS;

- presentation of a statement of cash flows and related notes;

- disclosure of the objectives, policies and processes for managing capital;

- disclosure of key management personnel compensation;

- disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;

- the effect of financial instruments on the statement of comprehensive income;

- comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment, intangible assets, investment property and biological assets;

- disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;

- related party disclosures for transactions with the parent or wholly owned members of the group.

Where required, equivalent disclosures are given in the group accounts of Litigation Capital Management Limited. The group accounts of Litigation Capital Management Limited are available to the public and can be obtained from the company's website https://www.lcmfinance.com/shareholders/annual-reports-financial-reports/.

Under Companies Act 2006,s454,on a voluntary basis, the members can amend these financial statements if they subsequently prove to be defective.

1.2
Going concern

After the balance sheet date, the company is negotiating a long-term amendment to its principal financing arrangements. Once this is agreed the director will have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. true

Until this has been agreed there is a material uncertainty over the ability of the group and therefore the company to continue as a going concern. The current financier is offering short term financing which is renewed on a month-by-month basis. The director believes that the long-term funding will be confirmed and therefore he continues to adopt the going concern basis of accounting in preparing the financial statements.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 5 -
1.3
Revenue

The company recognises revenue as follows:

Revenue from contracts with customers

Revenue is recognised at an amount that reflects the consideration to which the company is expected to be entitled in exchange for transferring services to a customer. For each contract with a customer the company: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money;allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct service to be delivered;and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the services promised.

Variable consideration within the transaction price, if any, reflects the variability of potential outcomes in awards or settlements of the litigation and any other contingent events. Such estimates are determined using either the "expected value" or "most likely amount" method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are recognised as a refund liability.

Litigation service revenue

The performance of a litigation service contract by the company entails the management and progression of the litigation project during which costs are incurred by the company over the life of the litigation project.

As consideration for providing litigation management services and financing of litigation projects, the company receives either a percentage of the gross proceeds of any award or settlement of the litigation, or a multiple of capital deployed, and is reimbursed for all invested capital.

Revenue, which includes amounts in excess of costs incurred and the reimbursement for all invested capital, is not recognised as revenue until the successful completion of the litigation project i.e. complete satisfaction of the performance obligation, which is generally at the point in time when a judgment has been awarded or on an agreed settlement between the parties to the litigation, and therefore when the outcome is considered highly probable. On this basis, revenue is not recognised over time and instead recognised at the point in time when the company satisfies the performance obligation. Costs includes only external costs of funding the litigation, such as solicitors' fees, counsels' fees and experts' fees.

The terms and duration of each settlement or judgment varies by litigation project. Payment terms are not defined by the company's litigation contracts however upon successful completion of a litigation project, being the satisfaction of a single performance obligation, funds are generally paid into trust within 28 days. The funds will remain in trust until the distribution amounts have been determined and agreed by the relevant parties, after which payment will be received by the company.

1.4
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held on call with financial institutions.

1.5
Trade and other receivables

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using t he effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The company has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 6 -
Financial assets at fair value through profit or loss

Financial assets are carried in the statement of financial position at their fair value net of changes in fair value recognised through the Income Statement. This category includes litigation funding assets. The litigation funding assets are derecognised when the underlying litigation resolves.

1.6
Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition

Other financial liabilities

Other financial liabilities, including financial liabilities relating to third party interests, are initially recognised at fair value in the statement of financial position. Gains or losses on financial liabilities held at fair value are recognised through the Income Statement.

Other financial liabilities are derecognised when the obligation to settle through cash flows has expired or has been transferred .

1.7
Issued capital

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

1.8
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 income statement 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

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 7 -
1.9
Foreign exchange

Foreign currency transactions are translated into the entity’s functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

1.10

Contract costs recoverable

Contract costs are recognised as an asset when the company incurs costs in fulfilling a contract and when all the following are met: (i) the costs relate directly to the contract; (ii) the costs generate or enhance resources of the company that will be used to satisfy future performance obligations; (iii) the costs are expected to be recovered.

1.11

Impairment of non-financial assets

Non-financial assets are review for impairment at each reporting date an d whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

2
Critical accounting estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed as follows:

Critical judgements
Revenue from contracts with customers

The entity’s active involvement in litigation service contracts to achieve a successful resolution for the client is the predominant purpose of the service provided and accordingly the litigation funding contracts are within the scope of IFRS 15 ‘Revenue from Contracts with Customers’, and so are excluded from the scope of IFRS 9 ‘Financial Instruments’ which would require the recognition of a financial asset for each contract, measured at fair value.

Performance obligations and recognition of revenue

In the provision of litigation management services and financing of litigation projects, management has determined that there is a single performance obligation and that complete satisfaction of that performance obligation occurs at the point in time when the company achieves a successful resolution for the client as it is the predominant purpose of the service provided. On this basis, revenue is not recognised over time and only recognised at the point in time when the company satisfies that performance obligation.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
2
Critical accounting estimates and judgements
(Continued)
- 8 -
Key sources of estimation uncertainty
Impairment of non-financial assets other than goodwill

The company assesses impairment of non-financial assets other than goodwill at each reporting date, and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, by evaluating conditions specific to the company and to the particular asset that may lead to impairment. This includes evaluating the expected outcome pursuant to the contracts, including consideration of whether each individual litigation contract is likely to result in a successful outcome, the cost and timing to completion and the ability of the defendant to pay the settlement or award. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves value in use calculations, which incorporate a number of key estimates and assumptions.

3
Employees

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

2025
2024
Number
Number
2
2
4
Contracts with customers
2025
2024
2024
Period end
Period end
Period start
£
£
£
Contracts in progress
Contract costs recoverable
97,127,356
186,552,757
110,916,745
Analysis of contract assets
2025
2024
£
£
Opening balance
186,552,757
110,916,745
Fair value adjustment to contract assets
(86,985,713)
47,982,301
Additions
36,717,156
27,970,766
Litigation service expense - write down
-
(317,055)
Capital realised in the period
(39,156,844)
-
97,127,356
186,552,757

The following LCM funded cases have been unsuccessful post year-end:

- T wo have lost their appeal resulting in the case s being unsuccessful in their claim s. The fair value of these cases as at 30 June 2025 was £7,461,019 with total costs deployed of £13,276,747;

- One was terminated post year-end. This case was being held at cost as at 30 June 2025 at £2,1 4 8,602; and

- One has lost at first instance but is currently under appeal. The fair value of this case as at 30 June 2025 was £42,834,164 with total costs deployed of £15,975,971.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 9 -
5
Trade and other receivables
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Trade receivables
35
-
42,279,015
-
Amount owed by parent undertaking
1
1
-
0
-
0
Amounts owed by related parties
-
5,026,706
-
-
36
5,026,707
42,279,015
-
6
Liabilities
Current
Non-current
2025
2024
2025
2024
Notes
£
£
£
£
Trade and other payables
7
68,892,807
41,469,831
56,593,588
98,616,687
Corporation tax
-
0
108
-
-
68,892,807
41,469,939
56,593,588
98,616,687
7
Trade and other payables
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Trade payables
679,363
8,415,722
-
0
-
0
Amounts owed to fellow group undertakings
68,204,019
21,718,770
-
-
Amounts owed to related parties
-
0
11,330,339
-
0
-
0
Accruals and deferred income
9,425
5,000
-
0
-
0
Other payables - related parties
-
-
56,593,588
98,616,687
68,892,807
41,469,831
56,593,588
98,616,687
8
Deferred taxation
Liabilities
2025
2024
£
£
Deferred tax balances
3,216,109
13,891,756
LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
8
Deferred taxation
(Continued)
- 10 -

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Fair value uplifts
£
Liability at 1 July 2023
7,308,000
Deferred tax movements in prior year
Charge/(credit) to profit or loss
6,583,756
Liability at 1 July 2024
13,891,756
Deferred tax movements in current year
Charge/(credit) to profit or loss
(10,675,647)
Liability at 30 June 2025
3,216,109
9
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. Each share entitles the holder to one vote. The company does not have a limited amount of authorised capital.

10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 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.

LCM FUNDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
10
Audit report information
(Continued)
- 11 -

Material uncertainty related to going concern

We draw attention to the going concern accounting policy note 1.2 in the financial statements where the directors conclude that the company is a going concern on the basis that long term financing will be obtained within the next 12 months to provide the company with the resources it requires. The directors are confident that the current negotiations will prove successful. The company made a loss of £30,045,124 in the year. The company is dependent upon the future support of its principal lender and such support is not currently legally binding. These matters are a material uncertainty that may cast doubt on the ability of the company to continue as a going concern. Our opinion is not modified in respect of this matter.

Senior Statutory Auditor:
Matthew Burge
Statutory Auditor:
Beavis Morgan Audit Limited
Date of audit report:
20 August 2026
11
Related party transactions

The company has taken advantage of the exemptions available to it under FRS101 Section 8 not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly owned by such a member.

12
Controlling party

The immediate parent company is LCM Group Holdings Pty Limited, a company registered in Australia, replacing Litigation Capital Management Limited as the immediate parent company. The ultimate parent company is Litigation Capital Management Limited, an Australian company which prepares consolidated accounts for the group. T hese accounts are available from the company's website https://www.lcmfinance.com/shareholders/annual-reports-financial-reports/.

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