Annual Report

Table of Contents

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 16743095

Registered Office 4-8 Maple Street

London

England

W1T 5HD

Auditors BDO LLP

55 Baker Street

London

W1U 7EU

Banker HSBC Bank PLC

8 Canada Square

London

E14 5HQ

Strategic Report for the period ended 31 March 2026

The Directors present their strategic report for LendInvest Secured Income III PLC (the "Company") for the period 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 25 September 2025 as a public listed company with the registered number of 16743095.

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 on behalf of the LendInvest Group. 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 period

The Company was incorporated on 25 September 2025. The Company subsequently issued a prospectus dated 13 October 2025 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 parent, LendInvest plc.

As at 31 March 2026 the Company had £69.5 million of issued bonds by principal value outstanding. The company had a gross loan book of £18.0 million of which a £214k 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 13 October 2025. 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 period 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 1.18 times.

The Company generated a profit after tax of £240k during the period.

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 period 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 period ended 31 March 2026

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

Strategic Report (Continued) for the period ended 31 March 2026

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 period 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 period 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 period 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.

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:

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 period 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.

Results and dividends

The statutory profit after tax for the period ended 31 March 2026 amounted to £240k. 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 7.

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

See strategic report on pages 3 to 5.

Directors Report (Continued) for the period ended 31 March 2026

Political donations

No political donations were made during the period.

Events after the reporting date

On 6th July 2026 £25.0m of new funding was subscribed through Retail Bond 6 into the Company.

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 period 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

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

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LENDINVEST SECURED INCOME III 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 period then ended;
• the Company financial statements have been properly prepared in accordance with UK adopted international accounting standards; and

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

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

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.

Conclusions relating to going concern

• 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;

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

• 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 period or subsequent to period 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.

Overview

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 Company the 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.

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

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.

We have determined that there are no key audit matters to be communicated in our report.

Our application of materiality

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

2026 £

Reporting threshold

We agreed with the Board of Directors that we would report to them all individual audit differences in excess of £36,500. 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 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 III PLC (CONTINUED)

Other Companies Act 2006 reporting

Responsibilities of Directors

Auditor's responsibilities for the audit of the financial statements

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

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

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

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 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

• 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;

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

Based on our risk assessment, we considered the area most susceptible to fraud to be management override of controls.

Our procedures in respect of the above included:

• testing journal entries throughout the period, which met a defined risk criterion, by agreeing to supporting documentation;
• Involvement of forensic specialists in the audit to review our risk assessment on fraud risks identified; and
• evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Other matters which we are required to address

We were appointed by the Board of Directors on 13 March 2026 to audit the financial statements for the period ended 31 March 2026.

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

Use of our report

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

STATEMENT OF PROFIT AND LOSS

FOR THE PERIOD ENDED 31 MARCH 2026

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

The notes on pages 24 to 50 form an integral part of these financial statements.

STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 MARCH 2026

The notes on pages 24 to 50 form 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 PERIOD ENDED 31 MARCH 2026

1Other comprehensive income consists of fair value adjustments on loans and advances through OCI of £214k less deferred tax charge of £54k.

The notes on pages 24 to 50 form an integral part of these financial statements

STATEMENT OF CASH FLOW FOR THE PERIOD ENDED 31 MARCH 2026

Interest received was £2.5million and interest paid was £nil.

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

The notes on pages 24 to 50 form an integral part of these financial statements

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

1 Accounting policies

General information

LendInvest Secured Income III PLC is a public company limited by share capital which was incorporated on 25 September 2025 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 was 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. These financial statements for the period ended 31 March 2026 are the first the Company has prepared in accordance with UK-adopted International Accounting Standards. The Company has applied IFRS (International financial reporting standards) 1, in the preparation of these financial statements.

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, 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 in note 1. The financial statements have been prepared on a going concern basis, see note 1 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 January 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 PERIOD 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

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.

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 PERIOD ENDED 31 MARCH 2026

1 Accounting policies - (continued)

Financial Instruments - (continued)

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

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.

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 PERIOD 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.

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. 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.

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 PERIOD 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 10.

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%/10%/30% 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 £3k.
• A 100% downside was applied to all the models. This would increase the ECL by £7k.
• A 100% upside was applied to all the models. This would decrease the ECL by £8k.

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

1 Accounting policies - (continued)

Critical judgements and accounting estimates - (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 PERIOD 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:

2026

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 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 PERIOD 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:

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 PERIOD ENDED 31 MARCH 2026

3 Segmental analysis

The Company's lending operations are carried out solely in the UK, and were carried out solely from the Company's LendInvest Mortgages and Capital Divisions, reflective of the product offerings. The results and net assets 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 a range of short term mortgages to customers.

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:

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

4 Interest expense and similar charges

2026

£'000

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

£'000

643

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 £536k for the period ended 31 March 2026.

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

7 Taxation

Tax charge

The charge 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

£'000

Current taxation

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

2026

£'000

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

8 Loans and advances

2026

£'000

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

£'000

Movement in the period

1The ECL provision of £25k 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 £25k. Expected credit losses have been calculated using internal modelling and outcome statements on the loans in question.

Loans 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 PERIOD ENDED 31 MARCH 2026

8 Loans and advances

The maximum LTV on stage 1 loans is 82%. The maximum LTV on stage 2 loans is 65%. The average LTV on stage 1 loans is 75%. The average LTV on stage 2 loans is 54% and total value of collateral (capped at the gross loan value) held on stage 3 loans is nil.

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

8 Loans and advances

Movement analysis of Net loans by stage

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

8 Loans and advances

Movement analysis of Gross loans by stage

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

8 Loans and advances

Movement analysis of ECL by stage

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

8 Loans and advances - (continued)

Credit risk on gross loans and advances

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

8 Loans and advances - (continued)

• The borrower falls more than one month in arrears
• LTV exceeds 85% for bridging loans
• LTGDV exceeds 75% for development loans
• The development will not meet practical completion by the date anticipated at origination.
• The loan is a short-term bridging loan and has less than one month before maturity
• The loan has previously been in arrears within the last 12 months on bridging loans
• The loan has gone past maturity on bridging with no authorised extension or is more than 21 days past maturity for development loans

Purchased or originated credit impaired ('POCI') - POCI assets are financial assets that are credit impaired on initial recognition.

Where there is objective evidence that asset quality has improved, assets will be allocated to a lower risk category. For example, loans no longer in default (stage 3) will be allocated to either stage 2 or stage 1.

Evidence that asset quality has improved will include:

• repayment of arrears;
• improved credit worthiness; and
• term extensions and the ability to service outstanding debt.

Critical accounting estimates relating to the impairment of financial assets:

Additional information about both of these areas is set out below.

8 Loans and advances - (continued)

Real GDP growth (% growth YoY)

GDP, unemployment rates and HPI (House price index) are key metrics that indicate the appetite for credit within the economy, the ability of borrowers to service debt and value of underlying securities that underpin credit risk management; all of which directly impact the Company's operational activities and success.

Period ended 31 March 2026

The Company undertakes a review of its economic scenarios and the probability weightings applied at least quarterly, and more frequently if required.

The results of this review are recommended to the Audit & Risk Committee and the Group's Board prior to any changes being implemented.

Critical judgements relating to the impairment of financial assets

Assessing whether there has been a significant increase in credit risk ('SICR')

If a financial asset shows a SICR, it is transferred to Stage 2 and the ECL recognised changes from a 12-month ECL to a lifetime ECL. The assessment of whether there has been a SICR requires a high level of judgement as detailed below. The assessment of whether there has been a SICR also incorporates forward-looking information.

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

8 Loans and advances - (continued)

Assessing whether there has been a significant increase in credit risk ('SICR') - (continued)

The Company considers that a SICR has occurred when any of the following have occurred:

• The overall credit worthiness of the borrower has materially worsened to a level that the probability of default has at least doubled. This is indicated by a migration to a higher risk grade (see below for risk grades and probability of default ("PDs") by product).
• Where a borrower is currently a month or more in arrears.
• Where the overall leverage of the account has surpassed a predetermined level - 75% Loan to Gross Development Value for development loans and 85% for bridging.
• Where a development loan is over 21 days past maturity.
• Stage 2 stability: this includes stability of inflows and outflows from Stage 2 and 3.

For low credit risk exposures, the Company is permitted to assume, without further analysis, that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the reporting date. The Company has opted not to apply this low credit risk exemption.

A summary of the Risk grade distribution is provided in the table below. As the Company utilises three different risk rating models, three separate PDs have been provided for each portfolio.

Risk Grades 1-9 are for non-defaulted accounts with 10 indicating default. Therefore, all Stage 3 loans are assigned to this grade.

As stated previously, degradation in a borrower's creditworthiness is an indication of SICR. Therefore, as shown in the table below, Stage 2 loan distributions are in the main assigned to risk grades higher than Risk Grade 1.

Determining whether a financial asset is in default or credit impaired

When there is objective evidence of impairment and the financial asset is considered to be in default, or otherwise credit-impaired, it is transferred to Stage 3. The Company's definition of default follows product-specific characteristics allowing for the provision to reflect operational management of the portfolio. Below we set out a short description of each product type and the Company's definition of default as specific to each product.

Bridging Loans - Bridging loans are short-term loans designed for customers requiring timely access to funds to facilitate property purchases. Typically, loans involve residential securities, however, commercial, semi-commercial and land is also taken as security.

A bridging loan is considered to be in default if:

• A borrower fails to repay their loan after 30 days and does not seek an authorised extension.
• the loan is two months in arrears either in term or after expiry

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

8 Loans and advances - (continued)

Determining whether a financial asset is in default or credit impaired - (continued)

Development Loans - Development loans support borrowers looking to undertake a significant property or site development. The resulting site should be for residential purposes only. Loan terms are typically for the short term (less than three years) with no structured repayments. A development loan is defined as being in default if it has not been redeemed 60 days after the maturity of the loan.

The Company does not apply the rebuttable presumption that default does not occur later when a financial asset is 90 days past due.

Improvement in credit risk or cure - There is no cure period assumed for loans showing improvement in credit risk. This means that any loan that does not meet the SICR criteria is assigned to Stage 1.

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

9 Interest bearing liabilities

2026

£'000

69,870

1 Funding line costs represent transaction costs incurred in issuing the retail bonds.

Interest bearing liabilities as at 31 March 2026 relate to Retail Bond 5. In November 2025, Lendinvest Secured Income III PLC exchanged £53,532,600 of Retail bond 5 with Lendinvest Secured Income II PLC's Retail Bond 3 and Retail Bond 4 for £17,024,700 and £34,948,900 respectively. The remaining £15,946,500 principal interest bearing liabilities was received from third parties.

Funding line costs are amortised on an effective interest rate basis.

Net debt represents interest bearing liabilities (as above), less cash at bank and in hand and excluding unamortised debt issue costs but including accrued interest relating to the Company's third-party indebtedness. A reconciliation of net debt is:

2026

£'000

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

10 Financial Instruments

The principal financial instruments used by the Company, from which financial instrument risk arises, are loans and advances, trade and other receivables, cash and cash equivalents, interest bearing liabilities and trade and other payables.

Categorisation of financial assets and financial liabilities

All financial assets of the Company are carried at amortised cost or fair value through other comprehensive income as at 31 March 2026. All financial liabilities of the Company are carried at amortised cost as at 31 March 2026.

Financial instruments measured at amortised cost

Financial instruments measured at amortised cost, rather than fair value, include cash and cash equivalents, trade and other receivables, trade and other payables and interest-bearing liabilities. Due to their short-term nature, the carrying value of cash and cash equivalents and trade and other payables approximates their fair value.

Carrying amount of financial instruments

£'000

Financial assets not at fair value through profit and loss

The following table compares the carrying amounts of the Company's financial assets and financial liabilities as at 31 March 2026

Financial liabilities not at fair value through the profit and loss

The fair value of the Retail Bond 5 interest bearing liability is calculated based on the mid-market price of £102.85 on 31 March 2026.

As per IFRS 9, loans and advances are classified as fair value through other comprehensive income and any changes to fair value are calculated based on the fair value model and are recognised through the statement of other comprehensive income.

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

10 Financial Instruments (Continued)

Fair value hierarchy

Level 1 - quoted prices in active markets for identical assets;

Level 2 - observable direct and 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).

As at 31 March 2026

The valuation techniques and significant input used in determining the fair value measurement of level 3 financial instruments are below.

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

10 Financial instruments - (continued)

The significant input used in the fair value measurement of the reporting entity's loans and advances is discount rates. A significant increase / (decrease) in this input in isolation would result in a lower / (higher) fair value measurement.

The significant unobservable inputs used in the fair value measurement of the reporting entity's loans and advances are prepayment rates, discount rates and probability of default. Significant increase / (decrease) in discount rates of those inputs in isolation would result in a lower / (higher) fair value measurement. A change in the assumption of these inputs will not correlate to a change in the other inputs. The impact of changes in observable inputs shown in sensitivity analysis below will be reported through other comprehensive income.

As at the reporting date, if interest rates increased 100 basis points and all other variables were held constant:

• Profit before tax for the period to 31 March 2026 would be unchanged. Although the Company's interest rates on loans to borrowers is operated as a fixed rate, the Company has the legal right to vary the borrower interest rate if certain changes in interest rates occur. Implementing this provision would improve the impact of an interest rate increase. However, we have assumed in this sensitivity analysis that the Company has not implemented this provision. Loans from lenders are fixed rate denominated.
• Movement in equity reserves as at 31 March 2026 refer to d) above.

If interest rates reduced by 100 basis points and all other variables were held constant:

• Profit before tax for the period to 31 March 2026 would be unchanged. As noted above, the Company's interest rates on loans to borrowers are fixed rate denominated, with certain provisions to vary them, while loans from lenders are also fixed rate denominated.
• Movement in equity reserves as at 31 March 2026 refer to d) above.

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

11 Share capital

2026

The company has one class of ordinary shares which carry no rights to fixed income.

12 Reserves

The company's other reserves are as follows:

Retained earnings:

The retained earnings reserves represent cumulative profits or losses, net of dividends and other adjustments

2026

£'000

Other reserves:

The other reserves represent movements on the fair value of the financial assets classified as FVOCI and the capital contribution reserve

2026

£'000

The capital contribution reserve relates to the 20% partial financial guarantee the Company has received from LendInvest PLC. This is the initial fair value of the partial guarantee provided on the listed bonds within the Company. A reciprocal entry has been posted against the interest bearing liability to represent the day 1 fair value of the bonds. This will amortise over the life of the listed bond to converge the carrying value back to the nominal price.

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

13 Related party transactions

2026

All of the above are sister Companies within the LendInvest Group with the exception of LendInvest PLC which is the Company's ultimate parent. All the above balances are unsecured intercompany balances payable on demand, except for those that are interest bearing. These have an interest rate of 10% with a receivable date of 18 th November 2030. Those not interest bearing are due to cash movement across the LendInvest Group.

2026

14 Ultimate controlling party

The controlling party is LendInvest Loan Holdings Limited, and the ultimate controlling party is LendInvest PLC whose consolidated financial statements are available at the registered address.

15 Events after reporting date

On 6th July 2026 £25.0m of new funding was subscribed through Retail Bond 6 into the Company.