Vanquis Banking : Moneybarn Limited Annual Report and Financial Statements for the year ended 31 December 2022

MONEYBARN LIMITED

(Company Number 02766324)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

MONEYBARN LIMITED

(Company Number 02766324)

CONTENTS

	Page
Directors' report	1
Strategic report	3
Statement of directors' responsibilities	12
Independent auditor's report to the members of Moneybarn Limited	13
Statement of comprehensive income	16
Balance sheet	17
Statement of changes in shareholders' equity	18
Statement of cash flows	19
Statement of accounting policies	20
Financial and capital risk management	25
Notes to the financial statements	27

MONEYBARN LIMITED

(Company Number 02766324)

DIRECTORS' REPORT

Moneybarn Limited (the 'Company') is a subsidiary of Vanquis Banking Group plc (formerly Provident Financial plc). Vanquis Banking Group plc is a public limited company, listed on the London Stock Exchange, which, together with its subsidiaries, forms the Vanquis Banking Group (the 'Group'). The immediate parent of the Company is Moneybarn Group Limited.

The following provisions, which the directors are required to report in the Directors' report, have been included in the Strategic report:

• how the directors have engaged with colleagues, how they have had regard to colleague interests and the effect of that regard, including on the principal decision taken by the Company in the financial year (page 6); and,
• how the directors have had regard to the need to foster the Company's business relationship with suppliers, customers and others, and the effect of that regard, including on the principal decision taken by the Company in the financial year (pages 4 to 10).

Principal activities

The principal activity of the Company is to provide customer account management services to other companies in the Group, principally Moneybarn No.1 Limited.

Results

The Statement of comprehensive income for the year is set out on page 16. The profit for the year of £1,500,000 (2021: £1,653,000) has been added to Retained earnings. The Company has net assets of £23,459,000 as at 31 December 2021 (2021: £21,631,000).

Dividends

The directors do not propose the payment of a dividend in respect of the year ended 31 December 2022 (2021: £nil).

Directors

The directors of the Company during the year ended 31 December 2022, all of whom were directors for the whole year then ended and to the date of this report, were:

M J Le May (Chairman)

• V Shrimpton-Davis N Kapur
  C G Anderson

Financial risk management

The financial and capital risk management reports of the Company are set out on pages 25 to 26.

Employee involvement

The Company regularly provides staff and colleagues with business updates, consulting with them regularly so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the Company and the wider Group is encouraged as achieving a common awareness of the financial and economic factors affecting the Company plays a major role in maintaining its competitive position. The Company encourages the involvement of employees by way of weekly staff updates, monthly performance updates and regular management team briefings. The Company also carries out regular employee engagement surveys.

1

MONEYBARN LIMITED

(Company Number 02766324)

DIRECTORS' REPORT (CONTINUED)

Equal opportunities

The Company is committed to employment policies which follow best practice based on equal opportunities for all employees irrespective of gender, pregnancy, race, colour, nationality, ethnic or national origin, disability, sexual orientation, age, marital or civil partner status, gender reassignment, religion or belief. The Company gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the Company including making reasonable adjustments where required. If members of staff become disabled, every effort is made by the Company to ensure their continued employment, either in the same or an alternative position, with appropriate retraining being given if necessary.

Climate change

Disclosures are made in the Group's Annual Report and Financial Statements 2022 in respect of the Group's:

• scope 1 and 2 greenhouse gas emissions in tonnes of carbon dioxide equivalent;
• scope 3 carbon emissions in the supply chain;
• compliance with Taskforce on climate related financial disclosures ("TCFD") recommendations;
• a relevant intensity ratio (i.e. kilograms of carbon dioxide equivalent per customer); and
• information on underlying energy use for 2022.

The disclosures are produced in accordance with the UK Government's Streamlined Energy and Carbon Reporting (SECR) policy that has been implemented through the Companies (Directors' Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018. This disclosure covers the greenhouse gas emissions and energy use for the Group and its operating divisions incorporating the Company.

Auditor information

In accordance with section 418 of the Companies Act 2006, each person who is a director at the date of this report confirmed that:

1. so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
2. the directors have taken all reasonable steps that he 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 aware of that information.

Auditor

Deloitte LLP will continue as auditor to the Company for the next financial year.

Approved by the Board and signed on behalf of the Board by:

C G Anderson

Director

26 April 2023

2

MONEYBARN LIMITED

(Company Number 02766324)

STRATEGIC REPORT

Business review

The following are considered the Company's Key Performance Indicators:

	2022	2021
Key Performance Indicators (KPIs)	£'000	£'000
Profit before taxation	1,928	1,689

During the year, the Company serviced, on behalf of other Group companies, 42,000 new contracts (2021: 37,000), as well as maintaining the servicing of a portfolio of loan contracts which increased from 93,900 to 100,000 in the year. This growth was achieved through investment in technology and staff to support the growth of the other group companies which the Company services.

Revenue grew by 26% to £41,640,000 (2021: £32,978,000), primarily as a result of the receivables growth within Moneybarn No.1 Limited which resulted in an increased intra-group revenue for the Company.

Administrative and operating costs increased by 27% to £39,648,000 (2021: £31,222,000) in line with the increase in Revenue.

Regulation

The Company is regulated and authorised by the Financial Conduct Authority.

Principal risks and uncertainties and financial risk management

The Management Committee of Moneybarn (consisting of Duncton Group Limited and its subsidiaries) is responsible for managing the day-to-day strategic risks of the Moneybarn group. Moneybarn is managed as a consolidated business, and the committees and risk management policies operate across Moneybarn. The Management Committee delegates some of its responsibilities to sub-committees as appropriate.

The Board approves detailed budgets and forecasts for the year ahead. It also approves outline projections for the subsequent four years. An update to the budget is approved each year. Actual performance against these budgets is monitored in detail within the Company's management accounts and this is supplemented with a rolling forecast of the full-year outturn. The Moneybarn Management Committee meets each month to review the prior month performance of the Company. This includes the management accounts and key financial and non-financial performance indicators. The Company's management accounts also form part of the papers for each Board meeting.

The following committees all report to the Management Committee, which in turn reports to the Board:

• Credit Committee which reviews credit performance, approves underwriting rule changes, assesses new products or product changes and approves pricing changes.
• Policy Committee which meets every other month and reviews and approves the Company policies and reviews and acts upon the feedback from internal audits.
• Technology and Change Committee which meets monthly to review the programme, prioritisation and progress of projects.
• Complaints Committee which reviews complaints examples, trends and root causes.
• Audit, Risk and Compliance Committee which meets every quarter to review progress of actions raised and the performance of 3 lines of defence, regulatory matters and risk management including:
• • Consideration and monitoring of the ongoing effectiveness of the Company's risk management framework, including business systems and controls, risk policies and risk appetite;
  • Review the risk measures, risk dashboard and risk appetites; and
  • Consideration of the appropriateness of risk specific classifications and proposed mitigants as set out in the risk dashboard.

The Audit, Risk and Compliance Committee is a committee of the Board and reports to the Board.

Information on the management of specific financial risks, including credit, market, liquidity, interest rate, and capital risks, is provided on pages 25 and 26.

3