INTERNATIONAL PERSONAL FINANCE PLC

Annual Report • Jul 17, 2023

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

(Company Number 01525242)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

	Page
Strategic report	1-2
Directors' report	3
Directors' responsibilities statement	4
Independent auditor's report	5-7
Profit and loss account	8
Statement of comprehensive income	8
Balance sheet	9
Statement of changes in equity	10
Notes to the financial statements	11-19

STRATECIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

1. Principal activities and going concern

The principal activity of the company is to act as a holding and investment company for the operations of International Personal Finance plc.

The company participates in the group's centralised treasury arrangements and banking arrangements with its parent and fellow subsidiaries.

In considering whether the company is a going concern, the directors have made enquiries of the reviews performed by the directors of the ultimate parent company in assessing the Group's 2021 business plan and the expected trajectory of recovery from the Covid-19 pandemic. The financial forecasts in the business plan have been stress tested in a range of downside scenarios to assess the impact that the Group's principal risks and uncertainties (including the short and medium-term impacts of the Covid-19 pandemic) on future profitability, funding requirements and covenant compliance. In addition, the Group's debt facilities are forecast to be sufficient to fund business requirements for the foreseeable future.

As at 31 December 2020, the company has net assets of £69,473,000. On the basis of their assessment of the company's financial position and of the enquiries made of the directors of International Personal Finance ple, the company's directors have a reasonable expectation that the company will be able to continue in operational existence in the next 12 months from the date of approval of the financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2 Results

The Profit and Loss Account for the year is set out on page 8. The profit after tax for the year of £66.236,000 (2019: £45,484,000) has been added reserves. The company's result benefited from the receipt of a dividend of £60,219,000 (2019: £39,835,000) from a subsidiary.

3. Principal risks and uncertainties

The directors of International Personal Finance ple manage the Group's risks at a Group level, rather than at an individual business unit level. For this reason, the company's directors believe that a discussion of the Group's risks would not be appropriate for an understanding of the development, performance or position of the company's business. The principal risks and uncertainties of International Personal Finance plc, which include those of the company, are reported within the 'Principal risks and uncertainties' section of the Group's annual report, which does not form part of this report, but is publicly available. However, the company has a number of specific risks;

• · The company is subject to a risk of credit default on its intercompany debtor balances. The repayment is dependent on the performance of the counterparties which is reviewed on a regular basis. During the year these reviews have included consideration of the impact that Covid-19 has had on the ability of counterparties to repay these balances in full on their maturity. Whilst the directors acknowledge that Covid-19 has led to a challenging external environment for its debtors, they remain confident that the balances due can be recovered.
• · The company has significant invesments in other entities. There is a risk that the value of these investments may deteriorate as a result of the performance of these entities. Performance is reviewed on a regular basis and corrective action to protect the value of these investments is taken as appropriate. During the period. this review has included consideration of the impact that Covid-19 may have on the future cashflows and performance of the Company's investments. Whilst the directors acknowledge that Covid-19 has led to a challenging external environment for the company's investment entities, they remain confident that sufficient cash flows will be received in the future to recover the investment balances in full. A shortfall in profitability compared to current expectations may result in future adjustments to investment in subsidiary balances.

STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4. Kev performance indicators (KPIs)

Given the nature of the business, the company's directors are of the opinion that an analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.

న. Future Development

As the company acts as a holding and investment company the general level of activity is to remain consistent in the forthcoming year.

APPROVED BY ORDER OF THE BOARD

L Dobson Company Secretary

LEEDS 9 June 2021

DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

The directors present their annual report together with the audited financial statements of the company and the auditors' opinion for the year ended 31 December 2020.

1. Dividend

During the year the company declared and paid a dividend of £225,219,000 (2019: Enil).

2. Directors

The directors of the company at 31 December 2020 and at the date of this report, all of whom were directors for the whole of the year then ended, were:

J N Dahlgreen	(Resigned 10 February 2020)
D J Kleppen	(Appointed 24 May 2021)
J A Lockwood
C Nelischer	(Appointed 10 February 2020, Resigned 22 June 2020)
J A Ormrod
G J Ryan

3. Capital structure

The company's capital structure includes a combination of ordinary called-up share capital and retained earnings.

4. Disclosure of information to the auditor

As far as each director is aware, there is no relevant audit information of which the company's auditor is unaware. Each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is avare of that information. This statement is given and should be interpreted in accordance with the provision of section 418(2) of the Companies Act 2006.

Risks ડ.

All principal risks and uncertainties have been assessed and disclosed in the company's strategic report and are included in this report by cross reference.

6. Auditor

The auditors Deloitte LLP are deemed to be reappointed under Section 487(2) of the Companies Act 2006.

approved by order of the board

1,55 (10000)

L Dobson Company Secretary

LEEDS

9 June 2021

DIRECTORS' RESPONSIBILITIES STATEMENT

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable Iaw), including FRS 101 "Reduced Disclosure Framework". Under company law the directors must not approve the financial statements unless they are saisfied that they give a true and fair view of the state of affairs of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• · select suitable accounting policies and then apply them consistently;
• · make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
• · prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Legislation in the United Kingdom governing the preparation of financial statements may differ from legislation in other jurisdictions.

APPROVED BY ORDER OF THE BOARD

L Dobson Company Secretary

LEEDS

9 June 2021

Independent auditor's report to the members of IPF Holdings Limited

Report on the audit of the financial statements

Opinion

In our opinion the financial statements IPF Holdings Limited (the 'company'):

• give a true and fair view of the company's affairs as at 31 December 2020 and of its profit for the year then ended:
• · have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 101 "Reduced Disclosure Framework; and
• · have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of which comprise:

• the profit and loss account;
• the statement of comprehensive income;
• the balance sheet; .
• the statement of changes in equity: and
• the related notes 1 to 16.

The financial reporting framework that has been applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council's (FRC's) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except 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 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 misstatements 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 IPF Holdings Limited (continued)

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 saisfied that they give a true 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 goiny 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 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 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.

A further description of our responsibilities for the financial statements is located on the FRC's website at: www.fre.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered 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.

We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:

• · had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the UK Companies Act and tax laws applicable to the company; and
• · do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• · reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements:
• · performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud:
• · enquiring of management and legal counsel concerning actual and potential hitigation and claims, and instances of non-compliance with laws and regulations; and
• · reading minutes of those charged with governance.

Independent auditor's report to the members of IPF Holdings Limited (continued)

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

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

• · the information given in the 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 any material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

• · adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• · the financial statements are not in agreement with the accounting records and returns; or
• · certain disclosures of directors' remuneration specified by law are not made; or
• · we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Birch FCA (Senior Statutory Auditor) For and on behalf of Deloitte LLP Statutory Auditor Leeds, United Kingdom 9 June 2021

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER

	Notes	2020 £2000	2019 £ 000
REVENUE	3	3,872	1,587
GROSS PROFIT		3,872	1.587
Administrative expenses		(2,075)	(1,585)
OPERATING PROFIT		1,797	2
Interest payable and similar expenses Interest receivable Dividends received	4 4 3	(45) 4,266 60,219	(76) 5,713 39,835
PROFIT BEFORE TAXATION	C	66,237	45.474
Tax (charge) / credit on profit	હ	(1)	10
PROFIT FOR THE YEAR ATTRIBUTABLE TO THE EQUITY SHAREHOLDER OF THE COMPANY		66,236	45,484

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER

	Notes	2020 £'000	2019 £.000
PROFIT FOR THE YEAR		66,236	45.484
Total comprehensive income for the year		66,236	45.484

The results shown in the Profit and Loss account derive wholly from continuing activities.

The notes on pages 11 to 19 form part of these financial statements.

BALANCE SHEET AS AT 31 DECEMBER

	Notes	2020 £'000	2019 £'000
NON - CURRENT ASSETS
Tangible assets	7		22
Right-of-use asset	8	606	ાં જેવી ન
Investments	9	59,279	59,279
Deferred tax	10	100	101
		59,985	61,093
CURRENT ASSETS
Debtors		11,384	169,367
Cash at bank and in hand		2	ದ
		11,386	169.369
NON - CURRENT LIABILITIES
CREDITORS: amounts falling due within one year	12	(1,898)	(1.337)
NET CURRENT ASSETS		0,488	168.032
Lease Liability	8		(୧୯୨)
NET ASSETS		69,473	228.456
CAPITAL AND RESERVES	13		3.239
Called-up share capital Profit and loss account		3,234 66,234	225,217
		69,473	228.456

The financial statements on pages 11 to 19 were approved and authorised for issue by the board of directors on 9 June 2021 and were signed on its behalf by:

J A Lockwood

(Directors)

D J Kleppen

9

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER

	Called-up share capital Note 13 £³000	Profit and loss account £ 000	Total 1.000
Balance at 1 January 2019	3.239	179.733	182.972
Profit for the year		45,484	45.484
Total comprehensive income for the year		45,484	45.484
Balance at 31 December 2019	3.239	275 217	228.456
Profit for the year		66,236	66,236
Total comprehensive income for the year		66,236	66,236
Dividends paid		(225,219)	(225,219)
Balance at 31 December 2020	3,239	66,234	69,473

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Principal accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the year and the preceding year, unless otherwise stated.

Basis of accounting a)

IPF Holdings Limited "the company" is a private company limited by shares incorporated and registered in England and Wales in the United Kingdom under the Companies Act. The address of the registered office is given in note 15. The nature of the company's operations and its principal activity are set out in the strategic report on page 1.

These financial statements were prepared in accordance with FRS 101 (Financial Reporting Standard 101) 'Reduced Disclosure Framework' as issued by the Financial Reporting Council.

The financial statements have been prepared on the historic cost basis.

The functional and presentational currency of the company is pounds sterling.

These financial statements are separate financial statements. The company is exempt from the preparation of consolidated financial statements, because it is included in the Group financial statements of International Personal Finance plc. Details of the parent in whose consolidated financial statements the company is included are shown in note 15 to the financial statements.

As permitted by FRS 101. exemptions from applying the following requirements have been adopted: IFRS 7 "Financial Instruments: Disclosures"; IAS 7 "Statement of Cash Flows; IAS 24; "Related Party Disclosures' paragraph 7; IAS 8 "Changes in Accounting Estimates and Errors" paragraphs 30-31and IAS 36 "Impairment of Assets" paragraphs 134(d)-(f) and 135 (c)-(c)-(c).

The Group financial statements of International Personal Finance ple are available to the public and can be obtained as set out in note 15.

b) Revenue

Revenue represents the amounts receivable from fellow subsidiary undertakings in respect of the provision of business know-how and services and is recognised when such services are rendered to its fellow subsidiary undertakings.

Administrative expenses c)

Administrative expenses represent costs incurred in the development and strategic management of the overseas business units of International Personal Finance ple and are recognised on an accruals basis.

d) Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Assets and liabilities denominated in foreign currencies are expressed, in sterling, at the rates of exchange ruling at the end of the financial year or the contracted rate to the extent that they are hedged. Resultant gains or losses are taken to the profit and loss account.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

1. Principal accounting policies (continued)

e) Taxation

Deferred taxation is provided in respect of all timing differences that have originated but not reversed at the balance sheet date and is determined using the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent that it is regarded as more likely than not that they will be recovered. Deferred taxation is not recognised on revalued assess unless there is a binding agreement at the balance sheet date to sell the revalued assel and the related gain has been recognised in the financial statements. Deferred taxation balances are not discounted.

Current tax is calculated based on taxable profit or loss for the year using tax rates that have been enacted or substantively enacted by the balance sheet date. Where withholding tax has been suffered on overseas income received, it has been accounted for as overseas tax. Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the Group intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Subsidiary underlakings ಿ

The company undertakes an annual impairment review of investments in subsidiaries, which is performed by way of a comparison of the carrying value of the investment with the net assets of the subsidiary, or the future value in use. Where the carrying value is greater than the net assets or future value in use, a provision for impairment is made.

ട്ട) Fixed Assets

Fixed assets are measured at cost less depreciation and accumulated impairment. Depreciation of tangible fixed assets has been calculated by reference to the expected usual lives of the assets concerned. The following are the principal annual bases:

	Percent	િજ્હાદાદ
Equipment, including computers	10 - 33.33%	Straight line
Leasehold improvements	1 0%	Straight line

Where fixed assets become obsolete, or suffer impairment in value, provision is made in the profit and loss account where necessary.

Income from shares in Group undertakings h)

The company receives dividends from Group undertakings which are recognised in the profit and loss account on an accruals basis.

Right-of use assets / lease liabilities i)

The Company assesses whether a contract is or contains at lease at the inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

1. Principal accounting policies (continued)

i) Right-of use assets / lease liabilities (continued)

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the rate implicit in the lease or, where this rate cannot be readlity determined, the Company's incremental borrowing rate. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Interest receivable j)

Interest income represents interest receivable on certain Group balances and is recognised on an accruals basis.

k) Interest payable and similar expenses

This represents the interest payable on certain Group balances. This was accounted for on an accruals basis.

l) Going concern

The directors have, at the time of approving the Financial Statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future (12 months from the date of these Financial Statements). Thus they continue to adopt the going concern basis of accounting in the Financial Statements. Further detail is contained in the Strategic Report on page 1.

Exceptional (ווו

The company classifies as exceptional those significant items that are one-off in nature and do not reflect the underlying performance of the company.

Cash and cash equivalents n)

Cash and cash equivalents comprise cash at bank and in hand.

0) Debtors and Creditors

Debtors and creditors do not carry interest and are stated at amortised cost as reduced by appropriate allowances for estimated irrecoverable amounts. They are recognised when the Group's right to consideration is only conditional on the passage of time. Allowances incorporate an expectation of life-time credit losses from initial recognition and are determined using an expected credit loss approach.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

2. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, which are described in note 1. the directors are required to make judgements, estimates and assumptions about the carrying amounts of assess and liabilities that are not readily apparent from other sources. The directors deem that the only significant critical judgement are regarding the carrying value of investments in subsidiaries and the impairment of its intragroup receivable balances.

The directors monitor the carrying values of all investments in subsidiaries by reference to annual budgets and impair the carrying values of investments in subsidiaries if the budgets do not support the current valuation of investments. During the period, these reviews considered the impact of Covid-19 on future cash!lows and performance. Following this review, the directors concluded that no impairment losses were required as at 31 December 2020.

The company's debtor balances are accounted for in accordance with IFRS 9 Financial Instruments. In assessing the recoverability of these balances, the directors are required to make estimates about the ability of counterparties to repay these loans in full on their maturity and the quantum of expected credit losses that the company expects to incur. As at 31 December 2020, the directors have an expectation that all outstanding balances will be repaid in full on their maturity and expected credit losses of £nil (2019: £nil) have therefore been recognised within the company's financial statements. In reaching their conclusions, the directors have considered the financial position of the company's counterparties and the impacts that Covid-19 may have on their ability to repay these loans as and when they become due and payable.

3. Revenue and profit before taxation

Interest receivable - Group

4.

Revenue relates to one class of business, the origin of which is wholly within the UK.

The profit on ordinary activities before taxation is stated after charging/(crediting):

	2020 £'000	2019 £:000
Depreciation of right-of-use assets (note 8)	883	883
Right-of-use assets impairment (note 8)	202
Depreciation of tangible fixed assets (note 7)	22	5
Auditor's remuneration: Fees payable to the auditor for the audit of the company's financial statements	2	2
Dividends received	(60,219)	(39,835)
Net foreign exchange loss / (gains)		(2)
Interest (payable)/receivable and similar expenses
	2020	2019
	£'000	£'000
Interest payable and similar expenses
Interest on leases	(45)	(76)
Interest receivable

4,266

5,713

14

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

5. Directors' emoluments and employee information

All the costs of the directors' emoluments were borne by another Group company.

During the year none of the directors (2019: three) exercised any (2019:74,378) share options in shares of the company's parent undertaking International Personal Finance plc. The exercise price of these options in 2019 was £zero.

The average monthly number of persons employed by the company, excluding executive directors, during the year was nil (2019: nil). All employee and related costs were borne by the company's parent undertaking or fellow subsidiary undertakings.

Tax (charge) / credit on profit 6.

(a) Analysis of tax (charge) / credit for the year:

	2020 £'000	2019 £ ,000
Deferred tax :
Origination and reversal of timing differences		(28)
Adjustment in respect of prior years	(1)	38
Total deferred tax (charge) / credit (note 10(b))	(1)	10
Tax (charge) /credit on profit (note 6(b))	(1)

(b) Factors affecting the tax credit / (charge) for the year:

The tax credit / (charge) for the year can be reconciled to the profit and loss account as follows:

	2020 £'000	2019 £'000
Profit before laxation	66,237	45,474
Expected tax (charge) calculated at the standard rate of corporation tax in the UK of 19% (2019: 19%)	(12,585)	(8.640)
Effects of : Expenses not deductible for tax purposes Non taxable dividends Group relief for nil payment Adjustment in respect of prior years Deferred tax rate changes Transitional adjustment	(2) 11,442 1,133 (1) 12	7,569 1.061 રે જે (12) (6)
Total tax (charge) / credit for the year (note 6(a))	(1)	10

(c) Factors that may affect future tax charges:

The headline rate of UK corporation tax reduced from 20% to 19% on 1 April 2017. On the 3rd March 2021 the UK Chancellor of the Exchequer announced that the corporation tax rate will increase from 19% to 25% from April 2023. The proposed change in the corporation tax rate was subsequently included in Finance Bill 2021 which was published on 11 March 2021.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

7. Tangible fixed assets

		Leasehold
	Equipment £ 000	improvements £'000	Total £.000
Cost At 1 January 2019 Additions	5.064	2,609	7.673
At 31 December 2019 Additions	5,064	2,609	7,673
At 31 December 2020	ર્ ,064	2,609	7,673
Depreciation
At 1 January 2019 Charge for the year	5.044 4	2,602 {	7,646 S
At 31 December 2019 Charge for the year	5.048 16	2,603 6	7.651 22
At 31 December 2020	5,064	2,609	7,673
Net book value at 31 December 2019	। ୧	6	22
Net book value at 31 December 2020

8. Right-of-use-assets and lease liabilities

The movement in the right-of-use assets in the period is as follows:

2020	2019
£'000	£'000
1,691	2.364
	210
(202)	e
(883)	(883)
	1,691
	୧୦୧

During the period, the company ceased to use part of its leased premises, resulting in an impairment of £202,000 (2019: £nil) being recognised in profit and loss.

All right-of-use assets relate to one class of asset, being leased office premises.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

8.

The movement in the lease liability in the period is as follows:

Lease liability
	2020	2019
	£,000	£'000
Lease liability at start of period	1,533	2.364
Additions		210
Interest	ન ટે	76
Lease Payments	(681)	(1,117)
	897	1,533
Analysed as:
Current	897	864
Non-current
between one and five years	-	ભ્વેન
Lease liability at end of period	897	1.533

Lease liabilities are measured at the present value of the remaining lease payments. discounted using the rate implicit in the lease.

The total cash outflow in the year in respect of lease contracts is £681,000: (2019 £1.117,000).

The amounts recognised in profit and loss are as follows:

	2020 £ : 000	2019 000. E
Depreciation on right-of-use assets	883	883
Impairment of right-of-use-assets	202
Interest expense on lease liabilities	ਕ ਵ	76
Total amounts recognised through profit and loss	1,130	હરે છે

9. Investments

Investments in subsidiary undertakings or fellow subsidiary undertakings comprise:

	Shares at cost £'000
At 1 January 2020	59,279
At 31 December 2020	59,279

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

9. Investments (continued)

Name of subsidiary or fellow subsidiary	Country of	Class of	Percentage
	incorporation	shares issued	holding
International Personal Finance Investments Limited	England	Ordinary £1	100%
IPF Financial Services Limited	England	Ordinary £ 1	100%

All UK subsidiaries are registered at the same office as the company, and this address is shown in note 16 on page 20.

In the opinion of the directors, the value of the company's investment in its subsidiary undertakings at the balance sheet date is not worth less than the amount at which it is stated in the balance sheet. Further information regarding the key assumptions applied by the directors in reaching this conclusion is included in Note 2.

Deferred taxation 1 0.

a) Deferred tax is recognised in the financial statements as follows:

	2020 £'000	2019 £'000
Accelerated capital allowances Other short-term temporary differences	62 38	67 34
	100	101
b) The movement in deferred tax during the year is as follows:		2020
		£³000
Deferred tax asset at 1 January 2020		101
Prior year adjustment
Charged to profit and loss account in the year (note 6(a))		(1)
Deferred tax asset at 31 December 2020		100
11. Debtors
Amounts falling due within one year:
	2020 £,000	2019 £ 000
Amounts owed by ultimate parent undertaking	11,286	169,228
Amounts owed by other Group undertakings Other debtors		ਹੇਤੇ 4
Prepayments and accrued income	98	32
	11,384	169.367

Amounts owed by the company's ultimate parent undertaking are unsecured and have no fixed date of repayment and include amounts where interest is credited at rates based on the cost of external finance. No interest is credited on amounts owed by other Group undertakings.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)

12. Creditors

Amounts falling due within one year:

	2020 £'000	2019 £³000
Trade creditors	85	35
Amounts owed to other Group undertakings	161	38
Accruals and deferred income	755	400
Lease liability	897	૪૯૫
	1,898	1.337

Amounts owed to other Group undertakings are unsecured, and no interest is charged on amounts owed to other Group undertakings.

1 3. Called-up share capital

	2020 £'000	2019 £ 000
Authorised
6,000,000 ordinary shares of £1 each	6,000	6.000
Allotted, called-up and fully paid
3,239.072 ordinary shares of £1 each	3,239	3.239

14. Related party disclosures

As a wholly owned subsidiary, the company has taken advantage of the exemption in FRS 101 "Related Party Disclosures" from disclosing related party transactions with other entities included in the consolidated financial statements of International Personal Finance plc.

15. Contingent liabilities

The company has a contingent liability for (i) guarantees given in respect of borrowings made by the company's ultimate parent undertaking and (ii) guarantees given jointly and severally with the company's ultimate parent undertaking in respect of borrowings made by certain of its fellow subsidiaries to a maximum of £609,062,000 (2019: £842,889,000). At 31 December 2020 the borrowings amounted to £499,150,000 (2019: £673,351,000). No loss is expected to arise.

16. Parent undertaking

The company, whose liability is limited to a maximum of the share capital issued, is registered and doniciled in the United Kingdom, the registered office of the company is located at Number Three, Leeds City Office Park, Meadow Lane, Leeds LSI 5BD. The immediate and ultimate parent undertaking and controlling party is International Personal Finance plc, which is the parent undertaking of the smallest and largest Group to consolidate these financial statements. Copies of that company's consolidated financial statements can be obtained from the Company Secretary, International Personal Finance plc, Number Three, Leeds City Office Park, Meadow Lane, Leeds LSI 5BD or on the Group's website at www.ipfin.co.uk.