LendInvest Secured Income II

30 July 2026

LENDINVEST SECURED INCOME II PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

Registered No: 14068186

TABLE OF CONTENTS

Pages

Officers and Professional Advisors                                     1

Strategic report                                                                                                                                                                             2

Directors' report                                                                                                                                                                                                                                                                                                                                                                       9

Directors' responsibilities statement                                                                                                                                          12

Independent auditor's report to the members of LendInvest Secured Income II PLC                                                      13

Statement of profit and loss 21

Statement of comprehensive income                                    22

Statement of financial position                                     23

Statement of changes in equity                                   24

Statement of cash flows                                    25

Notes to the financial statements 26

OFFICERS AND PROFESSIONAL ADVISORS

DIRECTORS Roderick Lockhart

Ian Thomas

SECRETARY Indigo Corporate Secretary Limited (Resigned 1 May 2026)

                                                         Gracie Governance Solutions Limited (Appointed 1 May 2026)

COMPANY NUMBER           14068186

REGISTERED OFFICE              4-8 Maple Street

London

England W1T 5HD

AUDITORSBDO LLP

55 Baker Street London

W1U 7EU

BANKER HSBC Bank PLC    8 Canada Square London

E14 5HQ

STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2026

The Directors present their strategic report for LendInvest Secured Income II PLC (the "Company") for the year ended 31 March 2026.

The Directors, in preparing this strategic report, have complied with section 414C of the Companies Act 2006.

The company was incorporated in England and Wales on 26 April 2022 as a public listed company with the registered number of 14068186.

Principal activity

The principal activity of the Company during the financial period was to provide secured property finance to third party borrowers in the United Kingdom. This is now done both directly through underlying loans to third party borrowers, and indirectly where proceeds are used within an intermediary vehicle that feeds others, stretching the reach of the Company.

Performance in the year

The Company issued a prospectus dated 12 July 2022 offering fixed rate secured loan notes to be listed on the London Stock Exchange's Order Book for Retail Bonds (ORB) market and guaranteed by the Company's ultimate parent, LendInvest PLC.

As at 31 March 2026 the Company had £35.9 million of issued bonds by principal value outstanding. The company had a gross loan book of £18.1 million of which a £182k fair value adjustment was posted in the period.

The Company has a number of covenants which it is required to comply with as outlined in the prospectus issued on 12 July 2022. Quarterly, the Company is required to report to bondholders, an analysis of its loan portfolio, via the London Stock Exchange's Regulatory News Service and on the LendInvest website. These have all been complied with in the year to 31 March 2026.

The Company's Interest Coverage Ratio, which compares interest earned from borrowers to interest paid to bondholders, indicates that the Company's earnings from loans at the period end date, are expected to cover the cost of interest paid to bondholders 1.22 times.

In November 2025 the Company exchanged £17.0m of Retail Bond 3 and £34.9m of Retail Bond 4 with LendInvest Secured Income III PLC's Retail Bond 5 for £53.5m. Retail bond 4 was exchanged for a premium as such the Company incurred a £1.6m exceptional charge as a result.

The Company generated a profit after tax of £1,345,000 (2025: £397,000) during the year.

Directors

The Directors of the Company who were in office during the period and up to the date of signing of the financial statements, were as follows:

Roderick Lockhart

Ian Thomas

Future outlook

The Company continues to invest in short term loans to property professionals and may issue further notes according to the strategy of the LendInvest Group (the "Group").

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Principal risks and uncertainties

The Board has the overall responsibility for the establishment and oversight of the Company's risk management framework. The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and ensure any limits are adhered to. The Company's activities are reviewed regularly, and potential risks are considered. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the competitiveness and flexibility of the business.

Creating a positive impact on the environment, the communities our borrowers serve, and our talented people is at the heart of our approach. From rewarding borrowers that use environmentally sound practices and contributing to social regeneration, to supporting our employees' career development and seek to do right by all of our stakeholders.

The Company has exposure to the following risks from its use of financial instruments: market, liquidity and credit risk:

Market risk management

There is a risk that the Company will be adversely hit by market rate or price movements. The company has fixed price liabilities which should mitigate any pressure from market risk on that side. The Company's assets are also fixed rate, but loan values will deviate through fair value adjustments should interest rates move. This is substantiated in note 10. We have continued to see elevated interest rates and inflation which are impacting our financing costs and operations. This pressure has alleviated through FY26 and resilient demand has been evident from a range of investors. The business continues to monitor the level of headline pricing, the size and nature of pipeline commitments and to seek to ensure refinancing transactions and contingencies are developed on a timely basis.

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Principal risks and uncertainties (continued)

Liquidity risk management

There is a risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's position. The Company's liquidity position is monitored and reviewed on an ongoing basis by the Directors and the Assets and Liabilities Committee. The Company's strategy is to grow the portfolio and then periodically securitise the assets.

The tables below analyse the Company's contractual undiscounted cash flows of its financial assets and liabilities:

	Carrying amount		Gross nominal inflow / (outflow)		Amount due in less than six months		Amount due in six to twelve months				Amount due between one to five years
At 31 March 2026	£'000		£'000		£'000		£'000			£'000
Financial assets
Cash and cash equivalents	1,794		1,794		1,794		-			-
Receivables from related parties	38,337		39,980		1,079		30,585			8,316
loans and advances	16,346		17,530		5,127		12,403			-
Total	56,477		59,304		8,000		42,988			8,316
Financial liabilities
Other payables	(390)		(390)		(390)		-			-
Payables to related parties	(18,620)		(18,658)		(38)		(18,620)			-
Interest bearing liabilities	(36,465)		(38,649)		(1,522)		(14,773)			(22,354)
Total	(55,475)		(57,697)		(1,950)		(33,393)			(22,354)
	Carrying amount		Gross nominal inflow / (outflow)		Amount due in less than six months		Amount due in six to twelve months				Amount due between one to five years
At 31 March 2025	£'000		£'000		£'000		£'000			£'000
Financial assets
Cash and cash equivalents	70		70		70		-			-
Receivables from related parties	76,232		87,089		3,150		25,731			58,208
Other receivables	34,527		35,893		24,460		11,433			-
Total	110,829		123,052		27,680		37,164			58,208
Financial liabilities
Other payables	(237)		(237)		(237)		-			-
Trade and other payables	(20,954)		(21,296)		(35)		(20,726)			(535)
Interest bearing liabilities	(90,059)		(102,333)		(4,092)		(4,070)			(94,171)
Total	(111,250)		(123,866)		(4,364)		(24,796)			(94,706)

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Principal risks and uncertainties (continued)

Credit risk management

Credit risk is the risk that the Company's loans and advances are subject to borrower default. It arises principally from the Company's loans and advances to customers, receivables from related parties and cash and cash equivalents held at bank.

Credit risk management lies at the core of the business and the Company has continued to develop its strong credit risk management framework which includes:

•             A clearly defined credit risk policy.

•             The continued recruitment of specialist skills in credit underwriting.

•             A Credit Committee which meets monthly.

•             An Impairment and Modelling Committee - specifically formed for the governance of IFRS 9 - which meets quarterly.

In addition to managing the credit risk associated with borrowers, the Company manages other risks including:

Climate risk management

The Company gives consideration to climate risk also and as part of the Group.

The Company considers climate risk as part of the wider LendInvest Group approach. Emerging EPC legislation may require properties to hold a minimum EPC rating of C by 2026 in order to qualify for a mortgage or remain suitable for rental. We therefore monitor this risk closely, as energy-inefficient properties could become harder to refinance, increasing default risk at term. Our lending activity is closely tied to energy performance: by funding upgrades and retrofits, our products help borrowers meet evolving Minimum Energy Efficiency Standards ("MEES") and contribute to the transition to a lower-carbon housing stock.

Capital management

The Company considers its capital to comprise of its equity share capital plus retained earnings. The Company's objectives when maintaining capital are to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns to shareholders. The Company sets the amount of capital it requires in proportion to risk. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell assets to reduce debt.

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Director's responsibilities under the Companies Act 2006

Under section 172 of the Companies Act 2006, a Director of a UK Company must act in the way they consider would be most likely to promote the long-term success of the Company while having regard to the interests of stakeholders and the broader impacts of our decisions. This section sets out how we have discharged those duties during the financial year ended 31 March.

We identify key stakeholder groups based on their direct influence on our ability to deliver our strategy and operate sustainably.

Customers and brokers

Why they matter: 

Our customers - including landlords, developers and brokers - rely on our speed, technology and reliability to seize opportunities and scale portfolios.

How we considered their interests:

Customer and broker feedback directly informed enhancements to our digital mortgage portal and product offering. As market conditions evolved, we prioritised responsiveness, including rate reductions and faster decision-making to maintain customer confidence and trust.

Investors and capital partners

Why they matter:

We rely on continued confidence from institutional and retail investors to grow our lending platform and deliver shareholder value. 

How we considered their interests:

The Board engaged regularly with shareholders and funding partners throughout the year, supporting a number of strategic milestones. These decisions were guided by our commitment to improving returns, reducing capital intensity and enhancing transparency across all aspects of reporting and investor communications.

Regulators

Why they matter:

Regulatory compliance is fundamental to our licence to operate and reputation as a responsible financial services provider.

How we considered their interests:

Our governance framework remained robust, with Board-level oversight of risk and compliance.

Suppliers and delivery partners

Why they matter:

Our third-party providers support key operational functions, from legal services to platform infrastructure.

How we considered their interests:

We engaged with our partners through structured reviews and clear commercial terms. As part of our continued digital investment, we strengthened several relationships to ensure delivery reliability and platform scalability, aligned with our capital-light strategy and customer expectations.

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Director's responsibilities under the Companies Act 2006 (Continued)

Communities and the environment

Why they matter:

We recognise the impact of our activities on the communities we lend to and our responsibility to support environmental sustainability in the built environment.

How we considered their interests:

We continued to promote energy-efficient property financing across our product suite and maintained our carbon neutrality status for operational emissions. Board discussions included ESG progress updates and supported initiatives that contribute to the long-term resilience and sustainability of the housing sector.

The Board remains focused on acting in good faith, fairly between members, and in a manner aligned with our purpose, culture and long-term goals.

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Key performance indicators

The Company uses key performance indicators to track progress against its plans. The performance of the main indicators in this reporting period were:

		31 March 2026	31 March 2025	Increase/(Decrease)
Gross amounts of loans outstanding (£m)		18.1	37.7	(52%)
Net amounts of loans outstanding (£m)		16.3	34.5	(53%)
Expected credit loss provision (£m)		1.97	3.32	(41%)
Cash not deployed (£m)		1.8	0.1	N/A
Euro Medium Term Note loan notes issued (£m)		35.9	87.9	(59%)
Total loan losses realised (annualised %)		(10.85%)	4.39%	(347%)
Weighted average Loan to Value of loans (%)		72%	67%	-
Profit before tax (£k)		1,600	397	303%

For further details of the loan and ECL provision movements, please see note 8.

Events after the reporting date

There are no events after the reporting period that require disclosure.

Approved by the Board on 28 July 2026 and signed on its behalf by:

Roderick Lockhart

Director

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2026

The Directors present their report and the audited financial statements of the Company for the year ended 31 March 2026.

Future outlook

See strategic report on page 2. Principal risks and uncertainties   See strategic report on pages 3 to 5.  Going concern

The financial statements are prepared on a going concern basis. To assess the appropriateness of this basis, the Directors considered a wide range of information relating to present and future conditions, including the Company's current financial position and future projections of profitability, cash flows and capital resources.

The Company benefits from a Group support arrangement through its ultimate parent LendInvest plc as when required. The Directors believe the Group is well capitalised and efficiently funded, with sufficient levels of liquidity. The Directors have reviewed the Group's capital and liquidity plans, which have been stress tested under a range of severe but plausible scenarios as part of the annual planning process. The stressed forecasts indicate that under stressed scenarios the Group continues to operate with sufficient levels of liquidity and capital for the next 12 months.

The Directors also considered the impact of the funding lines maturing in the next 12 months from the date of approval of the financial statements. In line with the normal operations of the Group, there are a number of facilities which mature during this period. The Directors believe that the Group will be able to refinance these facilities either with the existing funding provider or with new third parties to continue its growth trajectory. A comprehensive review of all covenants attached to the listed bonds has also been conducted to ensure ongoing compliance with both under expected circumstances and potential stressed scenarios.

If these facilities were not to be refinanced, the Group would be able to sell individual loans or portfolio of loans to facilitate the repayment of the outstanding amounts. This strategy is in line with the existing approach of the Group to both hold assets on its balance sheet and sell to the third parties. The Directors do not consider that this creates a material uncertainty in the going concern assessment of the Group.

Based on the above, the Directors believe the Group has sufficient resources to continue its activities for a period of at least 12 months from the date of approval of these financial statements. Accordingly, the Directors have concluded that it is appropriate to adopt the going concern basis in preparing these financial statements. Through reliance on its ultimate parent, the Directors have concluded that it is appropriate to adopt the going concern basis in preparing these financial statements for the Company.

DIRECTORS' REPORT - (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Results and dividends

The statutory profit after tax for the year ended 31 March 2026 amounted to £1,345,000. The Company paid no dividends during the period and the Directors do not recommend a final dividend.

Director's responsibilities under the Companies Act 2006

See strategic report on pages 2 to 8.

Financial risk management objectives (including credit, market and liquidity risk)

See strategic report on pages 3 to 5.

Political donations

No political donations were made during the period.

Events after the reporting date

There are no events after the reporting period that require disclosure.

Directors

The Directors of the Company who were in office during the period and up to the date of signing of the financial statements, were as follows:

Roderick Lockhart

Ian Thomas

DIRECTORS' REPORT - (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2026

Qualifying third party indemnity insurance

The Company has arranged qualifying third-party indemnity insurance for all its Directors.

Director confirmations

Each of the persons who is a Director at the date of approval of this report confirms that:

•        so far as the Directors are aware, there is no relevant audit information of which the Company's auditor is unaware; and

•        each Director has taken all the steps he/she ought to have taken as a Director in order to make himself/herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

The confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006.

Appointment of auditors

In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of BDO LLP as auditors of the Company is to be proposed at the forthcoming Annual General Meeting.

Approved by the Board on 28 July 2026 and signed on its behalf by:

Roderick Lockhart

Director

Directors' responsibilities statement

The Directors are responsible for preparing 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 act the Directors have elected to prepare the financial statements in accordance with UK adopted International Accounting Standards. 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 they have been prepared in accordance with IFRS, 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 Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC

Report on the audit of the financial statements

Opinion

In our opinion:

•     the financial statements give a true and fair view of the state of Company's affairs as at 31 March 2026 and of its profit and cash flows for the year then ended;

•     the Company financial statements have been properly prepared in accordance with UK adopted international accounting standards; and

•     the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of LendInvest Secured Income II PLC (the 'Company') for the year ended 31 March 2026 which comprise of the following:

1	Statement of profit and loss
2	Statement of comprehensive income
3	Statement of financial position
4	Statement of changes in equity
5	Statement of cash flows
6	Notes 1 to 15 to the financial statements
7	Material accounting policy information

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain 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 as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. The non-audit services prohibited by the FRC's Ethical Standard were not provided to the Company and we remain independent of the Company in conducting our audit.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

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. Our evaluation of the Directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:

·      reviewing minutes of meetings of those charged with governance and correspondence with regulators, such as the Financial Conduct Authority, for any factors which could be of higher risk in relation to going concern;

·      challenging the appropriateness of the Directors' assumptions and judgements made in the base forecast and stress-tested forecast. In doing so we agreed key assumptions such as forecast growth to historic actuals and relevant data and considered the historical accuracy of the Directors' forecasts by comparing them to actual results;

·      enquiring with the Directors to determine whether there were any breaches of borrowing covenants within the year or subsequent to year end and the ability for the Company to meet the requirements of the covenants;

·      performing a review of compliance with borrowing covenants which comprised obtaining and reviewing covenant compliance statements to verify that no covenant breaches have occurred which may trigger penalties or repayment of borrowings ahead of the maturity dates;

·      obtaining and assessing the Directors plans in respect of funding lines which are approaching maturity within the next 12 months by considering the Company's past experience of extending the maturity of facilities, their discussions with new providers of funding and experience of portfolio sales;

·      inspecting the latest post period end management accounts and reviewed minutes of the meeting to determine if there were any significant matters which could affect the going concern of the Company; and

·      reviewing the going concern disclosure in note 1 to the financial statements to assess that it gives a complete and accurate description of the Directors' assessment of going concern.

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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company's ability to continue as a going concern.

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

Overview

Key audit matters	2026 2025 Determination of expected credit loss (ECL) - individually assessed Stage 3 (credit impaired) loans P P Determination of expected credit loss (ECL) - Accuracy of forward-looking information * O P Valuation techniques of loans and advances * O P *Accuracy of forward‑looking information is no longer considered a key audit matter, as our risk assessment indicates that changes to the assumption have a low impact on the overall ECL balance. *Valuation techniques of loans and advances is no longer considered a key audit matter, as our risk assessment indicates that changes in the key assumption i.e. discount rates have a low impact on the overall fair value adjustment of the company's loan products
Materiality		£564,000 (2025: £1,109,000) based on 1% of total assets

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

An overview of the scope of our audit

Our audit was scoped by obtaining an understanding of the Company and its environment, the applicable financial reporting framework and the Company's system of internal control. We identified and assessed the risks of material misstatement of the Company's financial statements. We then applied professional judgement to focus our audit procedures on the areas that posed the greatest risks to the Company financial statements. We continually assessed risks throughout our audit, revising the risks where necessary, with the aim of reducing the Company's risk of material misstatement to an acceptable level, in order to provide a basis for our opinion.

How Climate change affected the scope of our audit

The Company has determined that climate change does not currently have a material impact on its operations. Our work on the assessment of potential impacts of climate-related risks on the Company's operations and financial statements included:

·      Enquiries and challenge of management to understand the actions they have taken to identify climate-related risks and their potential impacts on the financial statements;

·      Our own qualitative risk assessment taking into consideration the sector in which the Company operates and how climate change affects this particular sector;

·      Review of the entity's loan book to identify collateral types and exposures vulnerable to climate related risks such as flooding and assess whether these factors materially impact expected recoveries and in turn the expected credit loss; and

·      Review of the minutes of Board related to climate change and performed a risk assessment as to how this may affect the financial statements and our audit.

The management disclosures on page 5 form part of the strategic report. Our responsibilities in relation to these disclosures are described in the relevant section of this report and our procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained from the audit or otherwise appear to be materially misstated. 

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

Key audit matter		How the scope of our audit responded to the risk
Determination of expected credit loss (ECL) - individually assessed Stage 3 (credit impaired) loans The Company's accounting policies are disclosed in note 1 with detail about judgements in applying accounting policies and critical accounting estimates in note 1. The ECL Provision at year-end is disclosed in Note 8	The carrying value of loans and advances to customers may be materially misstated if credit‑impaired exposures (Stage 3) are not appropriately identified and individually assessed. The assessment of impairment for these exposures involves complex and highly judgemental recoverability analyses, as management is required to consider multiple potential recovery scenarios, including restructuring of existing exposures and collateral realisation. Management judgement and assumptions are prevalent in: -  The timing of the sale or realisation of collaterals underpinning the Stage 3 individually assessed exposures; and -  The probability weightings applied to different recovery scenarios, reflecting alternative paths of recovery. Variations in expected disposal timelines can have a significant impact on the present value of estimated future cash flows. In addition, the probability scenario weightings are inherently subjective and can differ materially between individual cases, depending on borrower circumstances and collateral characteristics. Given the high degree of judgements and estimation uncertainty in timing of sale and realisation of collaterals, the sensitivity of outcome on the probability weightings, and the quantum of the ECL from the Stage 3 exposures, this area is considered to be of significant audit focus, a significant risk and represents a key audit matter.	We performed granular and detailed risk assessment procedures over the ECL balance. As part of these risk assessment procedures, we identified the specific assumptions in the individually assessed ECL associated with the risk of material misstatement. The procedures we performed to address the key audit matter included the following: Tested the design and implementation of relevant controls related to the determination of the credit impaired individually assessed accounts. Performed completeness and accuracy checks on the data feeding into the Stage 3 individually assessed models. This involved reconciling key data fields to source systems and documents, checking the integrity of inputs used in the models. Reviewed credit files of all individually assessed exposures and challenged management on the key inputs into the scenarios by obtaining supporting evidence for recovery scenarios, collateral values, exit strategies, scenario weighting and expected timing of cash flows. Performed back-testing and post-period review procedures on the Time to Sale assumption and actual realisation on the collaterals that have been disposed to evaluate the predictive power of management's models and identify any systematic biases. This included comparing the historical assumptions applied by management against actual outcomes observed and assessed the accuracy and reliability of these assumptions. Engaged our internal valuation experts to perform an independent assessment of the reasonableness of the values attributed to sampled collaterals. This included reviewing the valuation methodologies applied, assessing key assumptions and inputs by benchmarking against relevant market data and comparable transactions where available. Performed sensitivity analysis on key assumptions applied to the individually assessed exposures, including probability weightings and Time to Sale of the underlying collateral to determine the impact of these assumptions on the overall ECL balance under stressed scenarios. Assessed whether the disclosures appropriately reflect and describe the key judgements and assumptions when determining the expected credit losses on the individually assessed accounts. Key observations: Based on our audit work performed, we consider the estimates and judgements made by management in the calculation of the stage 3 Individually assessed ECL to be reasonable.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

Our application of materiality

We apply the concept of materiality both in planning and performing our audit, and in evaluating the effect of misstatements.  We consider materiality to be the magnitude by which misstatements, including omissions, could influence the economic decisions of reasonable users that are taken on the basis of the financial statements.

In order to reduce to an appropriately low level the probability that any misstatements exceed materiality, we use a lower materiality level, performance materiality, to determine the extent of testing needed. Importantly, misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:

	Company financial statements
	2026	2025
Materiality	£564,000	£1,109,000
Basis for determining materiality	Materiality is based on 1 % of total assets.	Materiality is based on 1 % of total assets.
Rationale for the benchmark applied	The entity is primarily an investment entity as it was established to issue listed debt and from its proceeds, issue financing to customers.  As such a total assets basis, which in turns drives the funding of the entity, is considered to be the most appropriate.	The entity is primarily an investment entity as it was established to issue listed debt and from its proceeds, issue financing to customers.  As such a total assets basis, which in turns drives the funding of the entity, is considered to be the most appropriate.
Performance materiality	£423,000	£832,000
Basis for determining performance materiality	75%	75%
Rationale for the percentage applied for performance materiality	Determined on the basis of our risk assessment together with our assessment of the overall control environment Determined on the basis of our risk assessment together with our assessment of the overall control environment.

Reporting threshold 

We agreed with the Audit and Risk Committee that we would report to them all individual audit differences in excess of £28,200 (2025: £55,000).  We also agreed to report differences below this threshold that, in our view, warranted reporting on qualitative grounds.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our auditor's report 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. 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.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

Other Companies Act 2006 reporting

Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below. 

Strategic report and Directors' report

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

Matters on which we are required to report by exception

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 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 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.

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.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, 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:

Non-compliance with laws and regulations

Based on:

·      Our understanding of the Company and the industry in which it operates;

·      Discussion with management and those charged with governance; and

·      Obtaining and understanding of the Company's policies and procedures regarding compliance with laws and regulations,

·      we considered the significant laws and regulations to be:

·      London Stock Exchange Listing rules;

·      UK tax legislation; and

·      UK-adopted International Accounting Standards.

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Financial Conduct Authority rules.

Our procedures in respect of the above included:

·      enquires of management whether there were any litigations and claims;

·      enquires of the legal team of the Company

·      review of minutes of meetings of those charged with governance for any instances of non-compliance with laws and regulations;

·      review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations;

·      review of financial statement disclosures and agreeing to supporting documentation;

·      involvement of tax specialists in the audit; and

·      Review of legal expenditure accounts to understand the nature of expenditure incurred.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

·      enquiry with management and those charged with governance regarding any known or suspected instances of fraud;

·      obtaining an understanding of the Company's procedures relating to:

o  Detecting and responding to the risks of fraud; and

o  Internal controls established to mitigate risks related to fraud.

·      review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;

·      discussion amongst the engagement team as to how and where fraud might occur in the financial statements; and

·      performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls and in relation to accounting estimates within the loss given default of individually assessed Stage 3 loans.

Our procedures in respect of the above included:

·    testing journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;

·    Involvement of forensic specialists in the audit to review our risk assessment on fraud risks identified;

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME II PLC (CONTINUED)

·      involvement of property valuation experts in the areas of high estimation by management which is covered in the KAM section under 'Determination of expected credit loss (ECL) - individually assessed Stage 3 (credit impaired) loans';

·      evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

·      Assessing significant estimates made by management for bias which is covered in the KAM section under 'Determination of expected credit loss (ECL) - individually assessed Stage 3 (credit impaired) loans'

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

We were appointed by the Board of Directors on 5 April 2023 to audit the financial statements for the year ended 31 March 2023.

Our total uninterrupted period of engagement is 4 years, covering the periods ended 31 March 2023 to 31 March 2026.

Our audit opinion is consistent with the additional report to the Board of Directors.

Use of our report

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.

In due course, as required by the Financial Conduct Authority Disclosure Guidance and Transparency Rule 4.1.15R - 4.1.18R, these financial statements will form part of the Electronic Format Annual Financial Report filed on the National Storage Mechanism of the FCA in accordance with DTR 4.1.15R - DTR 4.1.18R. This auditor's report provides no assurance over whether the Electronic Format Annual Financial Report has been prepared in compliance with DTR 4.1.15R - DTR 4.1.18R.

Stefan Beyers (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor

London, United Kingdom

28 July 2026

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31 MARCH 2026
	Note		2026	2025
			£'000	£'000
Interest income calculated using the effective interest rate			8,341	10,670
Interest expense and similar charges	4		(6,877)	(8,675)
Net Interest Income			1,464	1,995
Administrative expenses			(34)	(81)
Net loss on derecognition of financial liabilities	12		(1,573)	-
Impairment reversals/(losses) on financial assets	8		1,743	(1,517)
Profit before tax			1,600	397
Tax charge	7		(255)	-
Profit for the year			1,345	397

All amounts relate entirely to continuing activities and to owners of the Company.

The notes on pages 26 to 53 form an integral part of these financial statements.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2026

	Note		2026	2025
			£'000	£'000
Profit for the period			1,345	397
Fair value gain on loans and advances measured at fair value through other comprehensive income			78	3
Deferred tax charge	7		(20)	(1)
Other comprehensive (loss)/income			58	2
Total comprehensive profit for the period			1,403	399

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026
	Notes		2026	2025
			£'000	£'000
Assets
Cash and cash equivalents			1,794	70
Receivables from related parties			38,337	76,232
Loans and advances	8		16,346	34,527
Total assets			56,477	110,829
Liabilities
Other payables			(390)	(237)
Payables to related parties			(18,620)	(20,954)
Interest bearing liabilities	9		(36,465)	(90,059)
Deferred tax liability			(46)	(26)
Total liabilities			(55,521)	(111,276)
Net assets/(liabilities)			956	(447)
Equity
Share capital	11		50	50
Fair value reserve			135	77
Retained earnings/(loss)	12		771	(574)
Total equity			956	(447)

The notes on pages 26 to 53 for an integral part of these financial statements.

The financial statements were approved by the Board of Directors and authorised for issue on 28 July 2026. They were signed on its behalf by:

Roderick Lockhart Director

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2026

		Share capital £'000		Fair Value reserves £'000		Retained (loss)/earnings £'000		Total £'000
Balance as at 01 April 2024		50		75		(971)		(846)
Profit for the period		-		-		397		397
Other comprehensive income1		-		2		-		2
Total comprehensive income		-		2		397		399
Balance at 31 March 2025		50		77		(574)		(447)
Profit for the period		-		-		1,345		1,345
Other comprehensive income1		-		58		-		58
Total comprehensive (loss)/income		-		58		1,345		1,403
Balance at 31 March 2026		50		135		771		956

1 Other comprehensive income/(loss) consists of fair value adjustments on loans and advances through OCI (£78k) (2025 £3k) less deferred tax charge of £20k (2025 £1k).

The notes on pages 26 to 53 form an integral part of these financial statements.

STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2026
	Notes		2026	2025
			£'000	£'000
Cash flow from operating activities
Profit for the period			1,345	397
Adjusted for:
Tax charge	7		255	-
Impairment (release)/provision	8		(1,743)	1,517
Loss on derecognition of financial liabilities			1,573	-
Amortisation of pre-paid funding costs			508	519
Accrued interest expenses	4		(2,129)	434
Intercompany lending interest income			(4,812)	(5,541)
Working capital adjustments
Decrease/(increase) in loans and advances	8		20,002	(4,976)
Increase in receivables from related parties and other receivables			(10,864)	(3,448)
(Decrease)/increase in trade and other payables			(2,411)	2,850
Net cash flow from/(used in) operating activities			1,724	(8,248)
Cash flows from financing activities
Proceeds from issuance of retail bonds	9		-	7,650
Cost of bond issuance	9		-	(17)
Net cash flow from financing activities			-	7,633
Net increase/(decrease) in cash and cash equivalents			1,724	(615)
Cash and cash equivalents at start of period1			70	685
Cash and cash equivalents at end of period1			1,794	70

Interest received was £8.3million (2025: £10.3million) and interest paid was £6.9million (2025: £8.1million).

¹Cash and cash equivalents wholly consists of cash held within bank accounts which is immediately accessible.

The notes on pages 26 to 53 form an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026

1        Accounting policies General information

LendInvest Secured Income II PLC is a public company limited by share capital which was incorporated on 26 April 2022 in England and Wales and is domiciled in the United Kingdom under the Companies Act 2006. The address of its registered office is given on page 1.

The principal activity of the Company is to provide secured lending to third party borrowers in the United Kingdom.

The Company is a 100% subsidiary of LendInvest Loan Holdings Limited (which is in turn a 100% subsidiary of LendInvest PLC) and its results are included in the consolidated financial statements of the Group.

Basis of accounting

The financial statements have been prepared in accordance with the Companies Act 2006 and the UK-adopted International accounting standards.

The financial statements have been prepared on a historical cost basis, except as required in the valuation of certain financial instruments which are carried at fair value. The preparation of financial statements, in conformity with IFRS (International financial reporting standards), requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed on pages 28-30. The financial statements have been prepared on a going concern basis, see page 28 for further details.

Items included in the financial statements are measured using the currency of the primary economic environment in which the Company operates ("functional currency"). The Company maintains its books and records in pound sterling ("£") and its financial statements are presented in pounds sterling, which is the Company's functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.

New standards not yet effective

The IASB has issued a number of amendments to reporting standards which the Company has determined as being applicable to its financial reporting. These amendments are effective in future accounting periods and the Company has not opted for any early adoption, with a full assessment to be carried out in subsequent periods. The following amendments are effective for the period beginning on or after 1 April 2027:

•         IFRS 18 Presentation and Disclosure in Financial Statements; and

•         IFRS 19 Subsidiaries without Public Accountability: Disclosures.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1              Accounting policies - (continued)

Revenue recognition

Revenue represents interest and other income from borrowers and for the provision of finance. Revenue recognised on loans held by related and third parties is recognised as follows:

Recognised under IFRS 9

·      Interest income calculated using the effective interest rate Interest on loans and advances made by the Company is recognised in the Consolidated statement of profit and loss using the effective interest rate method. Under the effective interest rate method fees earned from borrowers and transaction costs incurred which are integral to the creation of a loan such as arrangement, valuation and broker fees are amortised over the expected life of the loan.

Revenue comprises the fair value of the consideration received or receivable in the ordinary course of the Company's activities.

All revenue recorded in the financial statements is generated in the UK and sourced from transactions relating to property loans. Fees on these transactions are calculated based on the above revenue recognition policy.

Interest expense and similar charges

This represents interest expenses on interest bearing liabilities which are accounted for under IFRS 9 on an effective interest rate (EIR) basis, inclusive of directly attributable incremental transaction costs and fees including structuring fees, uncommitted fees, and set up costs (legal fees).

Administrative expenses

Expenses are recognised in the statement of profit and loss in the period in which they are incurred (on an accruals basis).

Cash and cash equivalents

Cash and cash equivalents comprise of cash balances and short-term balances that are highly liquid and are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial Instruments

As per IFRS 9, the Company classifies its financial instruments with reference to both the Group's business model for managing the assets and the contractual cash flow characteristics of the instrument.

Financial assets

(i)      At amortised cost

These are assets for which the business model is to hold the asset and collect the contractual cash flows. The cash flows are solely payments of principal and interest and are on specified dates.

The Company measures cash and cash equivalents and trade and other receivables at amortised cost.

On initial recognition the asset is held at its fair value minus any transaction costs. Subsequent measurement is calculated on the effective interest rate method and is subject to impairment where the recoverable value falls below the carrying value. This assessment is performed quarterly.

(ii)     At fair value through other comprehensive income

These are assets for which the business model is to collect the contractual cash flows and to sell the assets. The contractual cash flows are solely payments of principal and interest and are on specified dates.

The Company measures drawn loans and advances held under this business model at fair value through other comprehensive income.

These assets are initially recognised at fair value, plus any attributable costs. Subsequent changes in fair value are recognised in equity, except for impairment losses which are recognised in the Consolidated statement of profit and loss.

For further information on the measurement of impairment losses, please see note 8.

Upon derecognition, any accumulated movements in fair value previously recognised in equity (fair value reserve) are reclassified to profit or loss in the consolidated statement of profit and loss.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1        Accounting policies - (continued)

Financial Instruments - (continued)

(iii)   At fair value through profit or loss

These are assets for which the business model is neither to hold nor to hold or sell, or where contractual cash flows are not solely payments of principal and interest. The assets that result on origination of the loans are initially recognised at fair value, adjusting for the recorded fair value to date. 

Financial liabilities

(iii)   At amortised cost

All financial liabilities are measured at amortised cost, unless IFRS 9 specifically determines they should be valued at fair value through profit or loss. The Company holds trade and other payables and interest-bearing liabilities at amortised cost. On initial recognition the liability is held at its fair value plus any transaction costs. Subsequent measurement is based on the effective interest rate method.

(iv)    At fair value through profit or loss

Financial liabilities are measured at fair value through profit or loss when they meet the definition of held for trading, or when they are designated as such to eliminate or significantly reduce an accounting mismatch that would otherwise arise.

Forbearance

The Company maintains a forbearance policy for the servicing and management of customers who are in financial difficulty and require some form of concession to be granted, even if this concession entails a loss for the Company. A concession may be either of the following:

·      A modification of the previous terms and conditions of an agreement, which the borrower is considered unable to comply with due to its financial difficulties, to allow for sufficient debt service ability, that would not have been granted had the borrower not been in financial difficulties; or

·      A modification of the previous terms and conditions of an agreement, which the borrower is considered unable to comply with due to its financial difficulties, to allow for sufficient debt service ability, that would not have been granted had the borrower not been in financial difficulties; or

  Forbearance in relation to an exposure can be temporary or permanent depending on the circumstances, progress on financial rehabilitation and the detail of the concession(s) agreed. The Company excludes short-term repayment plans that are up to three months in duration from its definition of forborne loans.

Modification of financial assets and financial liabilities

When a financial asset or financial liability is modified, a quantitative and qualitative evaluation is performed to assess whether or not the new terms are substantially different to the original terms. For financial assets, the Company considers the specific circumstances including:

·      If the borrower is in financial difficulty, whether the modification merely reduces the contractual cash flows to amounts the borrower is expected to be able to pay;

·      Whether any substantial new terms are introduced that substantially affects the risk profile of the loan;

·      Significant extension of the loan term when the borrower is not in financial difficulty;

·      Significant change in the interest rate; and

·      Insertion of collateral, other security or credit enhancements that significantly affect the credit risk associated with the loan.

  The Company specifically, but not exclusively, considers the outcome of the '10% test'. This involves a comparison of the cash flows before and after the modification, discounted at the original EIR (Effective interest rate), whereby a difference of more than 10% indicates the modification is substantial.

If the terms and cash flows of the modified financial instrument are deemed to be substantially different, the derecognition criteria are met and the original financial instrument is derecognised and a 'new' financial instrument is recognised at fair value. The difference between the carrying amount of the derecognised financial instrument and the new financial instrument with modified terms is recognised in the statement of profit and loss.

If the terms and cash flows of the modified financial instrument are not deemed to be substantially different, the financial instrument is not derecognised and the Company recalculates the 'new' gross carrying amount of the financial instrument based on the revised cash flows of the modified financial instrument discounted at the original EIR and recognises any associated gain or loss in the statement of profit and loss. Any costs and fees incurred are recognised as an adjustment to the carrying amount of the financial instrument and are amortised over the remaining term of the modified financial instrument by recalculating the EIR on the financial instrument.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1        Accounting policies - (continued)

Financial Instruments - (continued)

Derecognition of financial assets and liabilities

Financial instruments are only derecognised when the contractual rights/obligations to receive/deliver cash flows from them have expired or when the Company has transferred substantially all risks and rewards of ownership.

Interest income and expense

Interest income and expense on all financial instruments is recognised in interest receivable or payable in the statement of profit and loss. Interest income, any fees considered an integral part of effective interest rate of the loan and interest expense are calculated using the effective interest rate method for financial assets and liabilities held at amortised cost and at FVOCI.

The effective interest rate method is a method of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortised cost of a financial liability.

Specifically, for loans and advances, the effect of this policy is to spread arrangement, broker and valuation fees, and costs directly attributable and incremental to setting up the loan, over the expected life of the contractual period.

Current and deferred tax

The tax expense for the period comprises current and deferred tax. Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the period end date.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affect neither accounting nor taxable profit and loss. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted at the year-end date and are expected to apply when the related deferred tax asset is realised, or the deferred tax liability is settled. Deferred tax balances are not discounted. Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

Going concern

The Directors have considered the Company's business activities alongside those of the Group's, together with the factors likely to affect its future development and position. The Company benefits from a Group support arrangement through its ultimate parent LendInvest plc when required.

In line with the normal operations of the Group, there are a number of facilities which mature during this period. The Directors believe that the Group will be able to refinance these facilities either with the existing funding provider or with new third parties to continue its growth trajectory. A comprehensive review of all covenants attached to the listed bonds has also been conducted to ensure ongoing compliance with both under expected circumstances and potential stressed scenarios.

Directors have a reasonable expectation that the Company will have adequate resources to continue to operate for a period of at least 12 months from the signing of these accounts including severe yet plausible downside scenarios that the Company will have sufficient funds to meets its liabilities as they fall due for that period. Therefore, it is on this basis that the Directors have continued to prepare the accounts on a going concern basis. More information on the Directors' assessment of going concern is set out in the Directors' report.

Critical accounting estimates and judgements

The preparation of these financial statements in accordance with IFRS requires the use of estimates. It also requires management to exercise judgement in applying the accounting policies.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1 Accounting policies - (continued)

Critical judgements in applying the Company's accounting policies

Significant increase in credit risk

The determination of how significant an increase in lifetime PD should be to trigger a move between credit risk stages for impairment requires significant judgement. Management have adopted a test-based approach to derive objective thresholds such that credit deterioration is recognised at the appropriate point. Similarly significant judgement is also applied when assessing the risk of a default occurring following the modification of a financial asset that does not result in derecognition.

Fair value measurement

Judgements were applied to determine the unobservable inputs to the fair value models used to calculate the fair values of loans and advances. These include the discount rate, prepayment rates, PDs, LGDs (Loss given default), recovery costs and cure probabilities driven from the ECL models.

Estimates and assumptions

Fair value measurement

A number of assets and liabilities included in the Company's financial statements require disclosure of fair value such as loans and advances and interest bearing liabilities. The fair value measurement of the Company's financial and non-financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are ('the fair value hierarchy'):

Level 1: Quoted prices in active markets for identical assets;

Level 2: Observable direct or indirect inputs other than Level 1 inputs;

Level 3: Unobservable inputs (i.e., not derived from market data and require a level of estimates and judgements within the model).

For further discussion around the key estimates and sensitivity, please refer to note 11.

Expected Credit Loss Calculation

The accounting estimates with the most significant impact on the calculation of impairment loss provisions under IFRS 9 are macroeconomic variables, in particular UK house price inflation and unemployment, and the probability weightings of the macroeconomic scenarios used. The Group has used three macroeconomic scenarios, which are considered to represent a range of possible outcomes over a normal economic cycle, in determining impairment loss provisions:

The baseline scenario reflects the most profitable economic outlook, the downside scenarios account for plausible stress conditions and an upside scenario representing the impact of modest improvements to assumptions used in the baseline scenario.

For the period ended 31 March 2026 management have applied 60%/30%/10% to the central, downside and upside scenarios respectively.

Changes to macroeconomic assumptions, as expectations change over time, are expected to lead to volatility in impairment loss provisions and may lead to pro-cyclicality in the recognition of impairment provisions.

Sensitivity Analysis

Sensitivity analysis on the ECL models has been completed. Due to the high number of loans which are individually assessed, the model demonstrates very low levels of sensitivity, as can be seen from the two changes below:

•               An 10% increase in the forced sale discount. This would increase the ECL by £0.1m (2025 £0.7m).

•               A 100% downside was applied to all the models. This would increase the ECL by £0.5m (2025 £2.8m).

•               A 100% upside was applied to all the models. This would decrease the ECL by £0.1m (2025 £1.0m).

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

1              Accounting policies - (continued)

                 Write-offs

Loans and advances are written off (either partially or in full) when there is no reasonable prospect of recovery. This is generally the case when the primary security has been realised and the Company is unable to reach an agreement with the borrower for immediate or short-term repayment of the amounts subject to the write-off. Write-offs constitute a derecognition event as detailed under Financial Instruments in note 1. Financial assets that are written off can still be subject to enforcement activities in order to recover amounts due. Amounts subsequently recovered on assets previously written off are recognised in impairment losses on financial assets in the statement of profit and loss.

Funding

All borrowings are initially recorded at fair value plus any transaction costs. Borrowings are subsequently measured using the effective interest rate method. The interest is calculated using effective interest rate method and recognised to the income statement over the period of the relevant borrowing.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

2        Financial risk management

The Board has the overall responsibility for the establishment and oversight of the Company's risk management framework. The risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and ensure any limits are adhered to. The Company's activities are reviewed regularly, and potential risks are considered. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the business's competitiveness and flexibility.

The Company has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk, market risk:

Credit risk management

Credit risk is the risk that the Company's loans and advances are subject to borrower default. It arises principally from the Company's loans and advances to customers, receivables from related parties and cash and cash equivalents held at banks. The Company's maximum exposure to credit risk by class of financial asset is as follows:

Assets	2026 £'000	2025 £'000
Gross loans and advances	18,131	37,743
Cash and cash equivalents	1,794	70
Receivables from related parties	38,337	76,232
Total	58,262	114,045

The Company manages its exposure to credit losses by assessing borrowers' affordability of loan repayments, risk profile, and stability during the underwriting process. Impairments are monitored and provided for under IFRS 9. The credit policy is designed to ensure that the credit process is efficient for the applicant while providing the Group with the necessary details to make an informed credit decision.

The fair value of cash and cash equivalents at 31 March 2026 and 31 March 2025 approximates the carrying value. Credit risk relating to cash and cash equivalents is mitigated as cash and cash equivalents are held with reputable institutions. These institutions have a Moody's credit rating of Prime-1 (superior ability to repay short-term debt obligations).

The risk of movements in the price of the underlying collateral secured by the Company against loans to borrowers is actively managed by the Company. Security over loan collateral is registered with the Land Registry, and only properties within England, Wales and Scotland are suitable for security. Loans are capped at 85% of the open market value of the property against which security is held, and minimum loan period interest is retained on completion for some short-term loans.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

2        Financial risk management - (continued)

Liquidity risk management

There is a risk that the Company will not be able to meet its financial obligations as they fall due. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's position. The Company's liquidity position is monitored and reviewed on an ongoing basis by the directors and management.

The table below analyses the Company's contractual undiscounted cash flows of its financial assets and liabilities:

	Carrying amount		Gross nominal inflow / (outflow)		Amount due in less than six months		Amount due in six to twelve months	Amount due between one to five years
At 31 March 2026	£'000		£'000		£'000		£'000	£'000
Financial assets
Cash and cash equivalents	1,794		1,794		1,794		-	-
Receivables from related parties	38,337		39,980		1,079		30,585	8,316
loans and advances	16,346		17,530		5,127		12,403	-
Total	56,477		59,304		8,000		42,988	8,316
Financial liabilities
Other payables	(390)		(390)		(390)		-	-
Payables to related parties	(18,620)		(18,658)		(38)		(18,620)	-
Interest bearing liabilities	(36,465)		(38,649)		(1,522)		(14,773)	(22,354)
Total	(55,475)		(57,697)		(1,950)		(33,393)	(22,354)
At 31 March 2025
Financial assets
Cash and cash equivalents	70		70		70		-	-
Receivables from related parties	76,232		87,089		3,150		25,731	58,208
loans and advances	34,527		35,893		24,460		11,433	-
Total	110,829		123,052		27,680		37,164	58,208
Financial liabilities
Other payables	(237)		(237)		(237)		-	-
Payables to related parties	(20,954)		(21,296)		(35)		(20,726)	(535)
Interest bearing liabilities	(90,059)		(102,333)		(4,092)		(4,070)	(94,171)
Total	(111,250)		(123,866)		(4,364)		(24,796)	(94,706)

All gross nominal inflows and outflows on financial assets and financial liabilities are due within 5 years at the reporting date.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

3        Segmental analysis

The Company's lending operations are carried out solely in the UK, and effective from 1 April 2023, were carried out solely from the Company's LendInvest Mortgages and Capital Divisions, reflective of the product offerings. The results and net assets/(liabilities) of the Company are derived from the provision of property related loans only. The following describes the operations of the two reportable segments for the year ended 31 March 2026:

LendInvest Mortgages

LendInvest Mortgages provides mortgages to both professional BTL landlords and homeowners as well as a range of short term mortgages.

LendInvest Capital

The LendInvest Capital division provides larger, more structured finance primarily to property developers and larger Bridging

loans and houses the Fund and Self-Select Platform.

Please see below for a segmental analysis of the profit and loss and statement of financial position balances:

Year ended 31 March 2026	Mortgages	Capital	Central	Total
Statement of profit and loss information	£'000	£'000	£'000	£'000
Interest income calculated using the effective interest rate	3,427	4,914	-	8,341
Interest expense and similar charges	(3,254)	(3,623)	-	(6,877)
Net interest income	173	1,291	-	1,464
Administrative expenses	(3)	(1)	(30)	(34)
Net losses on derecognition of financial liabilities	(559)	(1,014)	-	(1,573)
Impairment provisions	(129)	1,872	-	1,743
(Loss)/profit before tax	(518)	2,148	(30)	1,600
Year ended 31 March 2025	Mortgages	Capital	Central	Total
Statement of profit and loss information	£'000	£'000	£'000	£'000
Interest income calculated using the effective interest rate	2,615	8,055	-	10,670
Interest expense and similar charges	(570)	(8,105)	-	(8,675)
Net interest income/(loss)	2,045	(50)	-	1,995
Administrative expenses	(25)	(6)	(50)	(81)
Impairment provisions	(219)	(1,298)	-	(1,517)
Profit/(loss) before tax	1,801	(1,354)	(50)	397
As at 31 March 2026	Mortgages	Capital	Central	Total
Statement of financial position information	£'000	£'000	£'000	£'000
Assets
Cash and cash equivalents	-	-	1,794	1,794
Receivables from related parties	-	-	38,337	38,337
Loans and advances	10,703	5,643	-	16,346
Total assets	10,703	5,643	40,131	56,477
Liabilities
Other payables	-	-	(390)	(390)
Payables from related parties	-	-	(18,620)	(18,620)
Interest bearing liabilities	(19,428)	(17,037)	-	(36,465)
Deferred tax liabilities	-	-	(46)	(46)
Total liabilities	(19,428)	(17,037)	(19,056)	(55,521)

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

3        Segmental analysis (continued)

As at 31 March 2025	Mortgages	Capital	Central	Total
Statement of financial position information	£'000	£'000	£'000	£'000
Assets
Cash and cash equivalents	-	-	70	70
Receivables from related parties	-	-	76,232	76,232
Loans and advances	9,107	25,420	-	34,527
Total assets	9,107	25,420	76,302	110,829
Liabilities
Other payables	-	-	(237)	(237)
Trade and other payables	-	-	(20,954)	(20,954)
Interest bearing liabilities	-	-	(90,059)	(90,059)
Deferred tax liability	-	-	(26)	(26)
Total liabilities	-	-	(111,276)	(111,276)

4        Interest expense and similar charges

			2026	2025
			£'000	£'000
Interest Expense			6,369	8,157
Funding Line Costs			508	518
			6,877	8,675

5        Auditor's remuneration

			2026	2025
			£'000	£'000
Audit of financial statements			35	35
			35	35

Fees payable to the Company's auditors for audit services of £34,600 in the current year are borne by LendInvest PLC and disclosed in note 10 of the consolidated financial statements of the Group.

6        Staff costs

Key management personnel compensation

Key management personnel, whom are only the Directors, are those persons having authority and responsibility for planning, directing and controlling the activities of the Company.

			2026	2025
			£'000	£'000
Salary, short-term benefits and pension			764	755
Equity Based compensation			252	-
			1,016	755

The Company employed no employees for the year ended 31 March 2026. The Directors' emoluments are paid by LendInvest PLC for their work across all 26 Group Companies. The highest paid Director had emoluments of £806k for the year ended 31 March 2026.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

7        Taxation

Tax charge
The charge/(credit) for the period in the statement of profit and loss and other comprehensive income
Tax related to items charged or credited to the statement of profit and loss:
	2026	2025
	£'000	£'000
Current taxation
UK corporation tax	229	-
Adjustment in respect of prior years	26	-
Total current tax charge	255	-
Deferred Taxation
Origination and reversal of temporary differences	-	-
Total deferred tax charge	-	-
Total tax charge	255	-

Deferred tax		2026	2025
		£'000	£'000
Fair value movement on loans and advances		(20)	1
Tax credit in the statement of other comprehensive income		(20)	1

The tax on profit before tax for the period is lower than the standard rate of corporation tax in the UK of 25%. The differences are reconciled below:

		2026	2025
		£'000	£'000
Profit before tax		1,600	397
Corporation tax at standard UK corporation tax rate of 25%		400	99
Expenses not deductible		2	-
Adjustment in respect of prior years		26	-
Movement in unrecognised deferred tax		(173)	-
Utilisation of group relief for carried forward losses		-	(99)
Total tax charge		255	-

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

8        Loans and advances

		2026	2025
		£'000	£'000
Gross loans and advances		18,131	37,743
ECL provision		(1,967)	(3,320)
Fair value adjustment		182	104
Loans and advances		16,346	34,527

Fair value adjustment to gross loans and advances due to classification as FVOCI, based on the Company's business model for managing these financial assets.

ECL Provision
		2026	2025
		£'000	£'000
Movement in the period
Under IFRS 9 at the beginning of the period		3,320	1,931
Additional provisions made during the period1		(1,353)	2,015
Utilised in the period2		-	(626)
Under IFRS at the end of the period		1,967	3,320

¹The ECL provision of £1,967k is stated including the expected credit losses incurred on the interest income recognised on loans and advances. The net ECL impact on the statement of profit and loss is (£1,353k). This has decreased due to a number of loans redeeming and being transferred to other LendInvest Group entities. Expected credit losses have been calculated using internal modelling and outcome statements on the loans in question.

This includes the £1,743k reversal of impairment provisions shown in the statement of profit and loss and the total impact of expected credit losses on income recognised on loans and advances using the effective interest rate of £391k.

²Loans that are written off can still be subject to enforcement activities in order to comply with the Company's procedures for recovery of amounts due. The contractual amount outstanding on loans and advances that were written off during the reporting period and are still subject to enforcement activity is nil.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

8        Loans and advances

Analysis of loans and advances by stage	Stage 1		Stage 2		Stage 3		Total
Period ended 31 March 2025	£'000		£'000		£'000		£'000
Gross loans and advances	9,878		5,224		22,641		37,743
ECL	(7)		(2)		(3,311)		(3,320)
Fair value adjustment	34		21		49		104
Loans and advances	9,905		5,243		19,379		34,527
Year ended 31 March 2026
Gross loans and advance	9,636		4,793		3,702		18,131
ECL	(14)		(22)		(1,931)		(1,967)
Fair value adjustment	168		14		-		182
Loans and advances	9,790		4,785		1,771		16,346

The maximum LTV on stage 1 loans is 85% (2025: 81%). The maximum LTV on stage 2 loans is 75% (2025: 76%). The maximum LTV on stage 3 loans is 75% (2025: 85%) and the total value of collateral (capped at the gross loan value) held on stage 3 loans is £18.0m.

NOTES TO THE FINANCIAL STATEMENTS - (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2026

8        Loans and advances

Movement analysis of Net loans by stage
	Stage 1	Stage 2	Stage 3	Total
	£'000	£'000	£'000	£'000
As at 01 April 2024	7,548	50	23,466	31,064
Transfer to stage 1	-	-	-	-
Transfer to stage 2	(3,768)	3,768	-	-
Transfer to stage 3	13	1	(14)	-
New financial assets originated	13,274	-	-	13,274
New financial assets originated and transferred to stage 2 & stage 3	(3,363)	3,363	-	-
Financial assets which have repaid	(3,795)	(51)	(2,324)	(6,170)
Balance movement in loans	(4)	(1,888)	(1,749)	(3,641)
Write-offs	-	-	-	-
Total movement in loans and advances	2,357	5,193	(4,087)	3,463
As at 31 March 2025	9,905	5,243	19,379	34,527
Transfer to stage 1	-	-	-	-
Transfer to stage 2	(1,960)	10,957	(8,997)	-
Transfer to stage 3	-	-	-	-
New financial assets originated	10,429	-	-	10,429
New financial assets originated and transferred to stage 2 & stage 3	(643)	643
Financial assets which have repaid	(7,945)	(3,024)	(144)	(11,113)
Balance movement in loans	4	(9,034)	(8,467)	(17,497)
Write-offs	-	-	-	-
Total movement in loans and advances	(115)	(458)	(17,608)	(18,181)
As at 31 March 2026	9,790	4,785	1,771	16,346