The directors present the strategic report for the year ended 31 March 2026.

The principal activity of the company is the provision of stock finance facilities to used motor vehicle dealers. The company operates as part of the LE Capital UK group and provides funding solutions to support customers in financing vehicle inventory.

During the year, the company continued to provide stock finance facilities to customers while maintaining a disciplined approach to lending, credit assessment and portfolio management.

The directors regularly monitored the company's financial performance, lending portfolio, liquidity position and risk profile to ensure that the business remained appropriately funded and positioned to meet its strategic objectives.

The company delivered a record performance during the year, achieving its highest ever level of facilities originated and a significant increase in the number of vehicles funded. Growth was supported by strong demand from both new and existing customers and further accelerated by the withdrawal of a key competitor from the market, creating opportunities to onboard additional customers. The company remained focused on disciplined underwriting and portfolio management throughout this period of growth.

The directors consider the company's financial position at 31 March 2026 to be strong and believe the company is well placed to continue growing while supporting the wider group's strategic objectives.

The directors monitor the performance of the Company using a range of financial and operational measures appropriate to its activities. Key indicators include turnover, operating profit and operating profit margin, defined as operating profit as a percentage of turnover.

Turnover increased by £3.5m to £15.7m (29.3%), reflecting increased interest and fee income generated from the larger funding portfolio.

Operating profit increased by £1.4m to £6.3m (29%). This improvement was driven by growth in the number of customers and vehicles funded throughout the year. Administrative expenses increased at a significantly lower rate than the growth in the funding portfolio, demonstrating continued operational efficiency and scalability.

While default events increased in absolute terms as the portfolio expanded, impairment losses remained low relative to turnover and continued to compare favourably with the prior year.

Operating profit margin remained stable at 40%. Finance costs increased by £245K to £4.1m as additional borrowing was required to support the significant growth in the company's lending portfolio, more than offsetting the benefit of reductions in the Bank of England Base Rate during the year.

Taken together, these key performance indicators demonstrate another year of strong, sustainable growth.

The principal risks and uncertainties facing the company include:

• Credit risk arising from lending to customers.
• Changes in economic conditions affecting customer performance and repayment behaviour.
• Fluctuations in used vehicle values.
• Liquidity and funding risks.
• Concentration risk relating to individual customers, industry sectors or geographic exposures.
• Regulatory and legislative developments.
• Operational and systems risks.

The directors regularly review these risks and maintain appropriate underwriting policies, internal controls and governance procedures designed to manage and mitigate their impact.

The company intends to continue expanding its stock finance operations by increasing its customer base and lending volumes whilst maintaining prudent underwriting standards, effective risk management and appropriate capital and liquidity resources.

The directors remain confident in the long-term outlook for the business and will continue to pursue opportunities for sustainable growth whilst supporting the wider strategic objectives of the LE Capital UK group.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2026.

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

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

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

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of Future Developments.

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.

We have audited the financial statements of LE Capital UK (Asset 1) Limited (the 'company') for the year ended 31 March 2026 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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

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

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

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

1. 1.    At the planning stage of the audit, we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws and regulations and the Financial Conduct Authority (FCA). This helps us to plan appropriate risk assessments.

    

2. 2.    During the audit, we focus on relevant risk areas and review the compliance with the laws and regulations and the FCA by making relevant enquiries and undertaking corroboration, for example by reviewing the FCA correspondence and other documentation.

    

3. 3.    We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:

   1. a.    Reviewing the controls set in place by management;

   2. b.    Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist;

   3. c.    Challenging management assumptions with regard to accounting estimates; and

   4. d.    Identifying and testing journal entries, particularly those which appear to be unusual by size or nature.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

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

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

LE Capital UK (Asset 1) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 11, Narborough Wood Park Desford Road, Enderby, Leicester, LE19 4XT.

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

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of LE Capital UK Limited. These consolidated financial statements are available from its registered office, Unit 11, Narborough Wood Park, Desford Road, Enderby, Leicester, England, LE19 4XT.

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

Turnover relates to interest and fees charged to the customers as a result of the funding facilities provided and it is recognised at the fair value of the consideration received or receivable for the relevant services.

Interest income is recognised evenly over the period of the funding facility at the applicable rates.

Turnover for fee income relates to arrangement, renewal and stocking fees. Income from arrangement and renewal fees is recognised on the date that the facility agreements are signed. Income from stocking fees is recognised on the date of the stocking invoice.

The company also purchased a bad debt book and any amounts recovered above the initial investment are recognised as turnover.

Turnover is shown net of VAT.

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

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

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

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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

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

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

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

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

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

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

In the application of the company’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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The directors calculate the bad debt provision based on the estimated credit losses at the year end by applying historical net loss rates derived from the credit performance of customers with similar risk profiles over the preceding 12 months. The provision is applied to the debt book after specific provisions are taken into consideration. The loan book is closely monitored by the directors and specific provisions are made when the underlying conditions indicate that the relevant debts are irrecoverable. The total provision at the year end date is £2,657,511.

All turnover was generated in the UK.

The company capitalises bank and legal costs associated with arranging the revolving credit facility and these are spread over the term of the facility. During the prior year, the company renegotiated the revolving credit facility early to take advantage of the more favourable terms available and as a result it released the capitalised costs associated with the previous facility.

The day to day operational expenditure of the group is borne by the parent company, LE Capital UK Limited, and recharged to this entity via management fees. The total management fees were £8,062,298 (2025: £5,565,550).

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

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:

Amounts due from group undertakings are interest free and repayable on demand.

Amounts owed to group undertakings are interest free and repayable on demand.

Alter Domus Trustees (UK) Limited holds security in the way of a fixed and floating charge covering all property or undertakings of the company. This was created on 9 June 2021. Further charges on the same terms were created on 23 March 2023, 30 January 2025 and 25 February 2026.

Trustmoore UK Trustees Ltd holds security by way of a fixed and floating charge covering all property and/or undertakings of the company. This was created on 11 December 2023.

The revolving credit facility accrues interest at 3.625% above SONIA and is repayable in February 2030.

The Ordinary shares have full voting, dividend and capital distribution rights, including on winding up. They confer no right to redemption.

The company has taken advantage of the exemption provided by FRS 102 Section 33, not to disclose transactions and outstanding balances with LE Capital UK Limited and its 100% controlled subsidiary undertakings.

The immediate and ultimate parent company is LE Capital UK Limited, a company registered in England and Wales. The smallest and largest group which draws up consolidated financial statements including LE Capital UK (Asset 1) Limited, is that headed by LE Capital UK Limited. Copies of the group financial statements are available from its registered office, Unit 11, Narborough Wood Park, Desford Road, Enderby, Leicester, England, LE19 4XT.

The Directors are of the opinion that there is no ultimate controlling party.