Alternative Bridging (UK 1) Limited

The principal activity of the Company is the provision of short-term, residential and commercial bridging loans and residential development loans, all secured by legal charge on property in the UK. RESULTS The company achieved a profit after tax of £627,372 for the year ended 30 September 2025 (2024: £3,211,375 profit). The reduction in profits in the current year is explained below. REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS During the year to September 2025 new loan completions were £57.4m, a significant decrease on the previous year of £88.7m. This was largely as a result of a full year of diverting the residential lending into an off balance sheet securitisation vehicle Alternative Bridging (UK3) Limited (“ABUK3”). Operating margins were further squeezed during the year, largely due to interest rates remaining relatively high, and the highly competitive market we operate in. This resulted in a reduction in the Gross Profit margin. However, in February this year, we completed on the refinance of our existing credit facility with a new and larger facility, at a significantly lower interest margin. PRINCIPAL RISKS AND UNCERTAINTIES As a consequence of the war in the Middle East and the effect on oil and gas prices, the risks of high levels of inflation and higher interest rates have increased, albeit we do not anticipate at this stage they will be long term. Nevertheless, the economic outlook remains uncertain, which continues to have an effect on the property market. GOING CONCERN The Company's cash flow is continually monitored, both in terms of capital available to continue to grow the loan book and to cover operational expenses. The business is very well supported by both its institutional and private providers of capital and maintains both cash funds and undrawn committed institutional funds for this purpose Our business relies on the continued support of our funding partners. In order to maintain and grow our loan book we require stable availability of capital. There have been a number of well publicised market events which have had a negative impact on institutional lenders attitude to funding our sector. Despite this, in February this year we completed on the refinance of our facilities with a new funder, significantly increasing our funding availability at a reduction in our interest margin from 4.75% to 3.65%. Credit risk Credit risk will likely increase. Consequently, we remain cautious and we continue to regularly review our lending policies and underwriting procedures and have invested further in our servicing and recoveries teams, to mitigate this risk as best we can and to adapt to and counter these uncertainties. Interest rate risk Interest rates affect our business in two principle ways. Higher interest rates effect the property market and we adapt our lending policies to reflect any concerns we have in this regard. Higher interest rates also increase our cost of capital, with the potential to reduce our overall operating margins. However, only about 12% - 15% of our loan book is subject to fixed rates, the balance being floating. Accordingly, the risk of higher cost of capital to our operating margins is significantly reduced. Liquidity risk Liquidity risk that the Group will encounter difficulty in meeting the obligations associated with it financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.