REGISTERED NUMBER: 03693534 (England and Wales)

Group Strategic Report, Directors' Report and

Audited Consolidated Financial Statements for the Year Ended 31 December 2025

for

CSI Leasing UK Limited

Page

Company Information

1

Group Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

B D Naylor

S G Hamilton

J W Gunson

I R Shaw

S J Shepherd

REGISTERED OFFICE:

1-2 Chambers Way

Newton Chambers Road

Thorncliffe Park, Chapeltown

Sheffield

South Yorkshire

S35 2PH

REGISTERED NUMBER:

03693534 (England and Wales)

INDEPENDENT AUDITORS:

Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

BANKERS:

Barclays

1 Churchill Place

London

E14 5HP

The directors present their strategic report of the company and the group for the year ended 31 December 2025.

REVIEW OF BUSINESS

The group's business model is to use internal and external sources of funds to structure funding solutions for its customers. Key competitive differentiators include knowledge of the industry, close relationships with manufacturers, suppliers and resellers and the ability to provide lines of credit and to raise competitively priced funds. The group's portfolio of operating and finance leases continues to grow as the Group increases its lease origination.

The group continues to experience annual growth in its portfolio and is pleased to report strong trading in the year.

Operating profit decreased £14.1m to £13.9m

Profit before tax decreased from £6.4m to £5.2m

Net assets increased from £34.2m to £37.6m

CSI continues to seek expansion opportunities, developing its range of services and widening its markets. With the backing of CSI Leasing Inc. and Tokyo Century Corporation groups, the directors believe the group is well placed to take advantage of further opportunities that may arise within the UK and internationally.

The group's consolidated key financial and other performance indicators during the year were as follows:

2025

2024

£

£

Turnover

71,210,424

66,948,903

Operating profit

13,925,979

14,078,895

Profit before tax

5,223,064

6,432,207

Net assets

37,581,772

34,231,579

PRINCIPAL RISKS AND UNCERTAINTIES

Within the control of CSI are its internal controls, the retention of skilled staff and its flexibility to adapt to changes in the market.

As well as the continued monitoring of opportunities, the group regularly reviews risk and uncertainty. The main threats outside of our control are the risks of defaults in respect of loans or leases not funded with non recourse loans.

SECTION 172(1) STATEMENT

In performing their duties under section 172, the Directors of CSI Leasing UK Limited have had regard to the matters set out in section 172(1) as follows:

The Directors' Approach

The Directors have a duty to promote the success of the Group for the benefit of its members and stakeholders.

In doing so, the Directors place great importance in the interest of the Group's employees, its business relationships with suppliers and customers and the impact of its operations on communities and the environment when making decisions.

The Directors engage strongly with employees, promoting success as well as having regard to wellbeing and health through the offering of benefits and events.

The Group takes very seriously its environmental, quality and health & safety commitments. The Group is able to operate safely, with increasing focus on environmental issues, thereby ensuring that working practices are kept up to date to ensure compliance with the Health & Safety at Work Act and UK BS ISO Occupational Health and Safety, Environmental and Quality standards as appropriate.

The products and services offered across industry, schools and others are closely tailored to the needs and requirements of these sectors, and the Group's recycling services all positively impact the environment and communities.

With regards to the Group's operations the Directors take a close regard to regulatory requirements in all areas from its financial services to recycling and can be demonstrated by certifications within ISO and R2v3.

The Directors have always taken decisions for the long term and consistently aim to uphold the highest standards of business conduct. In this regard the UK based Directors meet on a regular basis with their global counterparts and discuss and agree ways in which the Group can continue to uphold the highest values in its relationships with customers, suppliers, employees, the local community and the environment.

ON BEHALF OF THE BOARD:

S J Shepherd - Director

8 September 2026

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of lease and sale of computers and computer related equipment.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

B D Naylor

S G Hamilton

J W Gunson

I R Shaw

S J Shepherd

Other changes in directors holding office are as follows:

N M Bodur - resigned 4 November 2025

FINANCIAL INSTRUMENTS

Objectives and policies

The directors have considered and reviewed the provisions included in the Companies Act 2006 relating to the financial risk management objectives and policies of the group. As part of that review, the directors have also considered the exposure to the group to a variety of financial risks and have various policies and procedures to mitigate or reduce these risks.

Residual Value Risk

Residuals are established following an assessment of the market value of the equipment, the maturity date of the lease and the value of similar assets, of similar age to when the lease matures. Residual values are assessed on a regular basis and where applicable, adjusted to reflect the current market values of these assets.

Credit & Interest Rate Risk

The group enjoys strong long term relationships with its panel of long term lease financing partners. These provide lease finance on a non recourse basis matched with the currency and term of the lease receivables financed. This significantly reduces the group from exposure to credit, interest rate and foreign exchange rate risk. The group has also implemented rigorous credit assessment policies that require appropriate credit checks on potential customers before leases are written and invests considerable resources in its credit control department to ensure lease receivables are collected on time.

STREAMLINED ENERGY AND CARBON REPORTING

In accordance with the requirements of The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the directors would like to disclose the following information for the year ended 31 December 2025:

Carbon Emissions plus Intensity ratio (as per regulations):

2025

2024

Scope 1&2 direct emissions - natural gas and electricity

Consolidated kWh

197,487

190,252

CO2e tonnes

35.39

37.04

Intensity ratio

0.0466

0.054

Methodologies used within the calculation

Electricity: Input value (in kWh/year) X 0.17489 (emission factor) ÷ 1,000 = output value in tonnes of CO2e (2024 - 0.20705)

Gas: Input value (in kWh/year) x 0.18296 (conversion factor) ÷ 1,000 = output value tonnes of CO2e (2024 - 0.

1829)

Raw energy data was extracted from the direct invoices provided to and paid by EPC Global Solutions UK Ltd and Freedom Tech Limited.

Energy Efficient Actions Taken

As a group, we seek to minimise the environmental impacts of our existing operations and ensure that the environmental impacts of new operations are fully assessed and minimised prior to their introduction.

The group's Environmental Management System (EMS) has the following components and objectives. As additional areas for monitoring are identified, they will be integrated into the EMS.

Energy: The group aims to reduce the consumption of energy and will also strive to ensure that their office premises use energy in as efficient a manner as possible. Energy is used for office lighting, heating and cooling systems and for the operation of office equipment and kitchen appliances provided for the convenience of our employees.

Lighting: We encourage the use of low energy lighting and where practicable, the use of segmented areas which will allow lights to be switched off when not required.

Heating: To make more efficient use of heating systems we ensure that the temperature is set for a comfortable working environment and not more than 22c. Where heating is provided as part of a leased or rented building system, we will aim to ensure that thermostats are controlled by our internal maintenance function.

Air conditioning: Air conditioning units are available in most of our office locations. These will only be used when required and will be switched off when the office is not in use.

Supply chain management: We wish to encourage sustainability and environmentally sound sourcing and production methods in our suppliers' manufacturing and delivery processes. To this end, we inform our suppliers of our Environmental Policy and favour companies with established environmental policies and practices in the allocation of future contracts. We will also aim to use local suppliers and local goods and services, where practicable.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S J Shepherd - Director

8 September 2026

The directors are responsible for preparing the Group Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Opinion

We have audited the financial statements of CSI Leasing UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2025 and of the group's profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Directors' Report and the Statement of Directors' Responsibilities, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 the 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 the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

- minimal reliance was placed upon the operating effectiveness of internal controls in the design and performance of our substantive procedures;

- discussions were held with management considering known or suspected non-compliance with laws, regulations and fraud;

- journal entries were reviewed for any entries made outside the ordinary reporting process with particular emphasis on those with unusual account combinations, entries crediting revenue and those without specific descriptions;

- management assumptions in their significant accounting estimates were challenged and scrutinised. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the 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 company's members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert G Hampstead (Senior Statutory Auditor)

for and on behalf of Landin Wilcock & Co

Statutory Auditor

68 Queen Street

Sheffield

South Yorkshire

S1 1WR

8 September 2026

TURNOVER

71,210,424

66,948,903

Cost of sales

(45,920,020

)

(42,888,789

)

GROSS PROFIT

25,290,404

24,060,114

Administrative expenses

(11,364,425

)

(9,981,986

)

13,925,979

14,078,128

Other operating income

-

767

OPERATING PROFIT

4

13,925,979

14,078,895

Interest receivable and similar income

891,830

334,202

14,817,809

14,413,097

Interest payable and similar expenses

5

(9,594,745

)

(7,980,890

)

PROFIT BEFORE TAXATION

5,223,064

6,432,207

Tax on profit

6

(1,872,873

)

(1,301,718

)

PROFIT FOR THE FINANCIAL YEAR

3,350,191

5,130,489

Profit attributable to:

Owners of the parent

3,350,191

5,130,489

PROFIT FOR THE YEAR

3,350,191

5,130,489

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

3,350,191

5,130,489

Total comprehensive income attributable to:

Owners of the parent

3,350,191

5,130,489

FIXED ASSETS

Intangible assets

8

4,027,377

3,724,649

Tangible assets

9

49,772,091

40,355,207

Investments

10

-

-

53,799,468

44,079,856

CURRENT ASSETS

Stocks

11

24,771,519

14,144,673

Debtors: amounts falling due within one year

12

40,766,367

50,930,810

Debtors: amounts falling due after more than one year

12

50,929,268

70,968,647

Cash at bank

6,379,198

3,243,920

122,846,352

139,288,050

CREDITORS

Amounts falling due within one year

13

(73,547,611

)

(92,944,724

)

NET CURRENT ASSETS

49,298,741

46,343,326

TOTAL ASSETS LESS CURRENT LIABILITIES

103,098,209

90,423,182

CREDITORS

Amounts falling due after more than one year

14

(61,813,678

)

(52,070,562

)

PROVISIONS FOR LIABILITIES

18

(3,702,759

)

(4,121,041

)

NET ASSETS

37,581,772

34,231,579

CAPITAL AND RESERVES

Called up share capital

19

100

100

Capital contribution

20

1,863,676

1,863,676

Retained earnings

20

35,717,996

32,367,803

SHAREHOLDERS' FUNDS

37,581,772

34,231,579

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2026 and were signed on its behalf by:

S J Shepherd - Director

FIXED ASSETS

Intangible assets

8

789,482

-

Tangible assets

9

49,367,163

39,767,700

Investments

10

7,409,416

7,409,416

57,566,061

47,177,116

CURRENT ASSETS

Stocks

11

22,645,451

12,498,108

Debtors: amounts falling due within one year

12

35,752,819

38,796,198

Debtors: amounts falling due after more than one year

12

50,841,745

70,756,808

Cash at bank

2,651,590

1,801,264

111,891,605

123,852,378

CREDITORS

Amounts falling due within one year

13

(74,414,431

)

(90,882,315

)

NET CURRENT ASSETS

37,477,174

32,970,063

TOTAL ASSETS LESS CURRENT LIABILITIES

95,043,235

80,147,179

CREDITORS

Amounts falling due after more than one year

14

(61,813,678

)

(52,070,562

)

PROVISIONS FOR LIABILITIES

18

(160,097

)

-

NET ASSETS

33,069,460

28,076,617

CAPITAL AND RESERVES

Called up share capital

19

100

100

Capital contribution

20

1,863,676

1,863,676

Retained earnings

20

31,205,684

26,212,841

SHAREHOLDERS' FUNDS

33,069,460

28,076,617

Company's profit for the financial year

4,992,843

5,936,148

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2026 and were signed on its behalf by:

S J Shepherd - Director

Called up

share

Retained

Capital

Total

capital

earnings

contribution

equity

£

£

£

£

Balance at 1 January 2024

100

27,237,314

1,863,676

29,101,090

Changes in equity

Total comprehensive income

-

5,130,489

-

5,130,489

Balance at 31 December 2024

100

32,367,803

1,863,676

34,231,579

Changes in equity

Total comprehensive income

-

3,350,191

-

3,350,191

Balance at 31 December 2025

100

35,717,994

1,863,676

37,581,770

Called up

share

Retained

Capital

Total

capital

earnings

contribution

equity

£

£

£

£

Balance at 1 January 2024

100

20,276,693

1,863,676

22,140,469

Changes in equity

Total comprehensive income

-

5,936,148

-

5,936,148

Balance at 31 December 2024

100

26,212,841

1,863,676

28,076,617

Changes in equity

Total comprehensive income

-

4,992,843

-

4,992,843

Balance at 31 December 2025

100

31,205,684

1,863,676

33,069,460

Cash flows from operating activities

Cash generated from operations

1

26,858,653

10,068,705

Interest paid

(9,485,578

)

(7,606,948

)

Tax paid

(988,297

)

(964,736

)

Net cash from operating activities

16,384,778

1,497,021

Cash flows from investing activities

Purchase of intangible fixed assets

(880,889

)

(184,612

)

Purchase of tangible fixed assets

(32,364,108

)

(31,196,429

)

Sale of tangible fixed assets

2,737,214

3,238,278

Interest received

891,830

334,202

Net cash from investing activities

(29,615,953

)

(27,808,561

)

Cash flows from financing activities

Movement in non-recourse loan balances

16,366,453

23,042,418

Net cash from financing activities

16,366,453

23,042,418

Increase/(decrease) in cash and cash equivalents

3,135,278

(3,269,122

)

Cash and cash equivalents at beginning of year

2

3,243,920

6,513,042

Cash and cash equivalents at end of year

2

6,379,198

3,243,920

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

5,223,064

6,432,207

Depreciation charges

20,787,228

16,343,300

Loss on disposal of fixed assets

943

5,390

Increase/(decrease) in provisions

(530,665

)

3,901,852

Impairment of intangible assets

-

114,866

Finance costs

9,594,745

7,980,890

Finance income

(891,830

)

(334,202

)

34,183,485

34,444,303

(Increase)/decrease in stocks

(10,626,846

)

1,667,752

Decrease/(increase) in trade and other debtors

30,203,822

(20,878,413

)

Decrease in trade and other creditors

(26,901,808

)

(5,164,937

)

Cash generated from operations

26,858,653

10,068,705

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

6,379,198

3,243,920

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

3,243,920

6,513,042

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

3,243,920

3,135,278

6,379,198

3,243,920

3,135,278

6,379,198

Debt

Debts falling due within 1 year

(41,209,431

)

(6,623,337

)

(47,832,768

)

Debts falling due after 1 year

(52,070,562

)

(9,743,116

)

(61,813,678

)

(93,279,993

)

(16,366,453

)

(109,646,446

)

Total

(90,036,073

)

(13,231,175

)

(103,267,248

)