Annual Report and Accounts

About this update from Pollen Street Group Limited

[{"type":"text","content":"\n \n   \n 21 March 2024 \n   \n Pollen Street Group Limited - Annual Report and Accounts for Pollen Street Limited \n Strong Performance, Well Positioned for Further Growth \n   \n Pollen Street Group Limited today announces the publication of the Annual Report and Accounts of Pollen Street Limited for the year ended 31 December 2023.  Pollen Street Limited is a wholly owned subsidiary of Pollen Street Group Limited and was the ultimate parent company of the group prior to completion of the Scheme of Arrangement on 24 January 2024, as such the Annual Report and Accounts for Pollen Street Limited cover all activities of the group for the year ended 31 December 2023.  The Annual Report and Accounts for Pollen Street Group Limited will be published by the end of April 2024 in compliance with the Listing Rules. \n 2023 was a successful year for Pollen Street Group Limited with strong financial and strategic performance. During the year the group maintained its exceptional track record across its funds, made strong progress against fundraising targets and benefitted from attractive deployment opportunities in both Private Credit and Private Equity. This year's results demonstrate the benefits of the combination of Pollen Street Capital Holdings Limited and Honeycomb Investment Trust plc, with the Investment Company accelerating the growth of the Asset Manager. \n Financial Highlights for 2023 - Strong Fundraising and Returns \n ·      Total AuM has grown to £4.2 billion, up from £3.4 billion as at 31 December 2022, driven by fund raising in Private Equity and deployment in Private Credit \n ·      Fee-Paying AuM closed the year at £3.4 billion, growing 36% from 31 December 2022 \n ·      Significant step up in Fund Management Income to £49.2 million up from £37.4 million in 2022 \n ·      High operating leverage with Fund Management EBITDA increasing to £15.2 million in 2023, up 79 per cent from £8.5 million in 2022 , resulting in Fund Management EBITDA Margin or 31 per cent for 2023, up from 23 per cent \n ·      The Investment Company maintained its track record of income generation with Income on Net Investment Assets increasing to £30.2 million in 2023, up from £28.3 million in 2022 \n ·      Profit After Tax increased by 23 per cent to £40.4 million, up from £32.9m in 2022 \n ·      Dividends increased to £32 million in respect of 2023, up from £30 million for 2022 \n Capital Management Framework & Buyback Programme \n Pollen Street Group Limited announced a Capital Management Framework and Buyback Programme earlier today.  Details of this are available in a separate RNS. \n 2024 Outlook & Upgraded Financial Guidance \n Pollen Street Group Limited is in a strong position for growth in 2024 and we are upgrading our financial guidance. \n We had previously issued financial guidance that Fee-Paying AuM would be £4 to £5 billion within 2 to 3 years of the completion of the Combination on 30 September 2022. We expect to exceed the £4 billion threshold during 2024 and are now upgrading guidance to grow AuM to £10 billion within 4 to 5 years. \n We had previously issued financial guidance for the Return on Net Investment Assets to be c8% in the long-term. Given the performance over 2023 and the outlook for the portfolio, we are now upgrading the guidance for Return on Net Investment Assets to rise to low double digits within 2 to 3 years. \n Key priorities for 2024 are: \n ·      Final close of Private Equity Fund V \n ·      First close of Private Credit Fund IV, expected imminently \n ·      Continue to deploy the Balance Sheet to invest in Pollen Street Group Limited funds \n ·      Delivering operational leverage through our platform as we continue to grow AuM \n Commenting on the 2023 performance, Lindsey McMurray, Chief Executive Officer, said: \n \"2023 has been a strong year for Pollen Street and we are delivering against our ambitions. With strong foundations in place, our progress in 2023 is ahead of target and has positioned us well to drive long-term organic growth. Looking ahead in 2024 in both Private Credit and Private Equity, we are seeing strong asset performance, resilient fund-raising progress and an attractive pipeline of new opportunities\". \n Results presentation: \n Pollen Street Group Limited will host its results presentation for the Annual Report and Accounts for Pollen Street Limited at 8:30 AM on 21 March 2024. \n   \n Register for the webinar: https://pollencap.zoom.us/webinar/register/WN_x81y85WXSf-x_uNcRydtEw \n The full results presentation is available on the group's website www.pollenstreetgroup.com . \n About Pollen Street \n Pollen Street is an alternative asset manager dedicated to investing within the financial and business services sectors across both Private Equity and Private Credit strategies. The business was founded in 2013 and has consistently delivered top tier returns alongside growing AuM. \n Pollen Street benefits from a complementary set of asset management activities focused on managing third-party AuM (the \"Asset Manager\") together with on-balance sheet investments (the \"Investment Company\"). \n The Asset Manager raises capital from high quality investors and deploys it into its Private Equity and Private Credit strategies. The strong recurring revenues from this business enable delivery of scalable growth. \n The Investment Company invests in the strategies of the group delivering attractive risk adjusted returns and accelerating growth in third-party AuM of the Asset Manager through investing in Pollen Street funds, taking advantage of attractive investment opportunities and aligning interest with our investors to grow AuM. Today the portfolio is largely invested in credit assets with the allocation to Private Equity expect to increase to 30 per cent in the long term. The portfolio consists of both direct investments and investments in funds managed by Pollen Street. \n POLN is listed on the London Stock Exchange (ticker symbol: POLN). Further details are available at www.pollenstreetgroup.com . \n   \n   \n   \n For further information about this announcement please contact: \n Pollen Street - Corporate Development Director \n Shweta Chugh \n [email protected] \n +44 (0)7813581377 \n   \n FGS Global - Communications Advisor \n Chris Sibbald \n [email protected] \n +44 (0)7855955531 \n   \n Barclays Bank plc - Joint Broker \n Neal West / Stuart Muress \n +44 (0)20 7623 2323 \n   \n Investec Bank plc - Joint Broker \n Ben Griffiths / Bruce Garrow \n +44 (0)20 7597 4000 \n   \n Link Company Matters Limited - Company Secretary \n [email protected]  \n   \n Annual Report and Accounts \n The Annual Report and Accounts are available to view and download from the Company's website https://ir.pollenstreetgroup.com/investors/financial-information/ . Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into or forms part of this announcement. \n The information set out below does not constitute the Company's statutory accounts for the year ended 31 December 2023 but is derived from those accounts. Statutory accounts for the year ended 31 December 2023 will be delivered to the Registrar of Companies in due course. The group's auditors have reported on those accounts: their report was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. \n The following text are selected extracts from the Annual Report and Accounts. \n   \n   \n \n   \n Chair's Statement \n   \n Welcome to the Annual Report and Accounts for Pollen Street, which covers the year ended 31 December 2023. \n Delivering Consistent Performance & Sustainable Growth \n In 2023 we demonstrated clear progress in delivering on the strategy set out when we announced the Combination of Pollen Street Capital Holdings Limited and Honeycomb Investment Trust plc in February 2022. \n Over the year, the performance of Pollen Street has been strong, and we are delivering against our ambitions. Pollen Street continues to generate strong contracted income from funds under management, delivering attractive and low volatility returns within our funds to support further AuM growth as well as attractive income from our balance sheet investments. \n On the Asset Manager side, Pollen Street has demonstrated success in both growing AuM and continuing to deliver strong returns for our investors. We have focused on growing Private Equity AuM in 2023, building on the growth in Private Credit AuM in 2022. Pollen Street has increased Private Equity AuM to £2.6 billion - a 44 per cent increase on prior year - with capital raised in Private Equity Fund V and a new continuation vehicle that was oversubscribed. \n The Investment Company has continued to deliver strong performance, maintaining its historic track record. Income on Net Investment Assets was consistent and progressive at £30.2 million for the year ended 31 December 2023 growing from £28.3 million for the year ended 31 December 2022. \n The above success is reflected in the financial results for the Group with operating profit growing to £44.5 million for 2023, up from £27.3 million for 2022. Pollen Street declared dividends of £32 million in relation to 2023, an increase of £2 million from the prior year (2022: £30 million). This was in line with the Board's dividend targets. Pollen Street Group Limited's target for dividends in respect of 2024 is to declare dividends of no lower than £33 million and the Group aims to grow dividends progressively thereafter. \n Capital Allocation Framework & Buyback Programme \n The Board is mindful of the disconnect between the share price and the fundamental value of the Group. Pollen Street Group Limited announced a Capital Allocation Framework and Buyback Programme immediately prior to the publication of these Annual Report and Accounts. \n Under this framework, Pollen Street Group Limited will maintain sufficient balance sheet capital to: invest in funds managed by the Group to accelerate the growth of the Asset Manager; support the dividend policy, which is to declare dividends of no lower than £33 million in respect of 2024 and dividends growing progressively thereafter; and provide strategic flexibility for inorganic growth, should opportunities arise. Surplus capital will be returned to shareholders through share buybacks of approximately 2 to 5 per cent per annum of the outstanding share capital of the Group. \n We continue to focus on delivering substantial growth in the business and building on our shareholder engagement to improve the liquidity of the shares by diversifying our shareholder base. The Group has also completed its work to change the listing category of the shares to that of a commercial company from an investment company to support this. \n Focus on Corporate Governance \n On 15 January 2024, we announced the intention to appoint Lucy Tilley as the Group's next Chief Financial Officer (\"CFO\"). Lucy will join the Board as an Executive Director, succeeding Julian Dale, who will be stepping down as CFO. Lucy brings extensive experience including as CFO of Mortgage Advice Bureau (Holding) Plc and director in the corporate broking team at Canaccord Genuity Limited. \n Environmental, Social and Governance \n At Pollen Street, Environmental, Social and Governance (\"ESG\") is an important part of our approach to investing, portfolio monitoring, management and reporting. It is an embedded part of the culture and investment approach of the businesses, and our ESG framework aligns to the UN Sustainable Development Goals (\"SDGs\"). Over the year progress has been made across: \n ·      Our proprietary ESG scoring mechanism, which is used to benchmark investments and to assess progress in ESG performance, where we saw an average score improvement across our Private Equity portfolio, and an increasing uptake of ESG margin ratchets using the ESG score in our Private Credit portfolio, with eight ratchets now in place. \n ·      Our climate targets, with Pollen Street maintaining carbon neutral status for the year and two thirds of portfolio companies with net zero roadmaps/plans. \n Outlook: Building on our Positive Momentum \n Over the last year we have been deepening our existing investor relationships and continuing to develop new relationships to grow AuM. AuM in Private Equity has grown particularly well in the period as we completed the first close of Private Equity Fund V and also completed a continuation fund before the year-end. The Private Credit strategy continues to perform strongly with the deployment of Private Credit Fund III and we introduced further capital from new investors through Separately Managed Accounts (\"SMAs\"). The Investment Company assets are well positioned and structured to withstand significant macro stress. Current market conditions bring compelling investment opportunities, which we approach with care and selectivity. \n Our strategies have continued to demonstrate strength and resilience and Pollen Street Group Limited is well positioned for the year ahead. We are pleased with the progress we have made in 2023 and the financial results for the year. Along with the rest of the Board, I would like to thank the management team for their hard work over 2023 and I look forward to what more we can achieve in 2024. \n   \n Robert Sharpe Chair \n20 March 2024 \n   \n \n \n   \n CEO Report \n   \n   \n Delivering Strong Performance \n I am pleased to report that Pollen Street delivered strong performance in 2023. During the year the Group recorded continued strong performance across our funds, made progress against our fundraising targets and benefitted from attractive deployment opportunities in both Private Credit and Private Equity. We increased our AuM to £4.2 billion as at 31 December 2023, from £3.4 billion as at 31 December 2022. \n The above success is reflected in the financial results for the Group with operating profit growing to £44.5 million for 2023, up from £27.3 million for 2022. The primary growth driver was the Asset Manager where operating profit grew to £15.9 million, up from £2.9 million in 2022 on a statutory basis and £9.5 million on a proforma basis [1] . \n These results provide confidence for the year ahead, reflecting the strength of our strategies, the power of our market positioning and industry focus as well as the opportunity presented by our business model, to accelerate growth using our balance sheet. \n In the current macro environment, uncertainty has impacted the industry's deal flow both in realisations and deployment. Fundraising too has also been affected by uncertainty and shifting plans. It is against this backdrop that we deliver our results for the 12 months to 31 December 2023. With a successful year for our funds, our portfolio and our Investment Company, we are pleased to see the differentiated approach of Pollen Street serve us well and set us up to deliver long-term sustainable growth. \n Well-Placed Strategy \n Pollen Street was founded following the global financial crisis, our strategies are designed to thrive in times of change. We look to work with top-rate management teams to enable them to build great businesses that can win in their markets. Our strategies are designed and proven to perform through different macro environments to deliver consistent returns and our balance sheet serves to provide stable income and to accelerate the growth of our Asset Manager. \n Our Asset Manager Business \n Pollen Street is an alternative asset manager dedicated to financial and business services. We have built a wealth of expertise in the industry and a deep network of passionate people to enable us to deliver consistent and sustainable returns. \n A Private Equity Strategy Building Next Generation Market Leaders \n Our Private Equity strategy focusses on backing mid-market companies in the financial and business services sector. We typically take majority stakes in companies, whose headquarters are in Europe.  These companies are often founder led and we seek to apply deep sector specialist knowledge and a proven operational framework to accelerate revenue and profit growth with an objective to deliver top-tier returns overall with low variance of outcomes. \n A typical investment will benefit from the key growth trends, which form the basis of our investment themes, from the unbundling of services driven by demand for more convenient personalised experiences, to the wide-ranging impact of the digital transformation of the entire sector. We pinpoint these drivers of change and align our investment strategy to support businesses at the forefront of these opportunities. Our network of experts is brought together in The Hub, our powerful ecosystem that delivers deep expertise across digital transformation, technology innovation, ESG and Business Development. The Hub provides a systematic approach to building and growing businesses. The team are hands-on driving collaboration and knowledge sharing across the portfolio. \n The wider Pollen Street network has been built through years of experience across the industry and gives us access to deal flow, expertise and talent. \n The performance of our Private Equity strategy over 2023 is testament to the resilience of our approach and the relevance of our strategy in the current market landscape. Our portfolio has delivered strong revenue and profit growth and we continue to see attractive opportunities for deployment on a careful and selective basis. \n A Differentiated Credit Strategy \n In Private Credit, our strategy is to provide predominantly senior secured, asset-based lending to non-bank lenders, leasing businesses, technology companies, and other companies with diverse portfolios of financial or hard assets. Our credit facilities are typically senior secured with significant credit protection created through both asset security and transaction structuring. We take direct security over large and diverse pools of assets that generate revenue and cash flow of our borrowers, alongside full corporate guarantees with comprehensive covenants and our investments are designed to withstand significant stress in the macro environment to deliver low volatility returns. \n Following the global financial crisis, and the subsequent retrenchment of the banks from lending markets, Pollen Street identified opportunities to fill the funding gap in what is a large and growing market with a targeted and considered approach. We are experts in this large and growing market, with a deep network and experience that allows us to identify opportunities and target an underpenetrated part of the market. Our team focuses on the mid-market where our support and capital is most needed. \n Continued Momentum in Fundraising \n We are pleased to report a significant step up in AuM for the year, driven by our Private Equity Fund V raise as well as new capital raised in a continuation fund. \n Overall, we delivered 25 per cent AuM growth (31 December 2022: 13 per cent) over the course of the year. We are grateful for the strong support from our existing and new investors across our strategies. In 2024, we expect to complete our fund raising of Private Equity Fund V as well as completing the first close of Private Credit Fund IV - expected imminently. \n Growing Returns in our Investment Company \n In 2023 we continued to deliver consistent performance in the Investment Company, delivering Income on Net Investment Assets of £30.2 million (2022: 28.3 million). The Investment Company portfolio stands at £533 million (31 December 2022: £588 million). \n We highlighted at the time of the Combination, and in previous reporting, the intention to transition the Investment Company from predominantly holding direct investments sourced in our Private Credit strategy to holding investments in Pollen Street funds. This shift creates strong alignment and synergies where the balance sheet is able to benefit from the returns generated by a diverse portfolio of investments across Private Equity and Private Credit while supporting fundraising by demonstrating strong alignment with investors and providing a catalyst for raising additional third-party capital, in turn driving higher management fee income for the Group and Shareholders. \n As such, the Investment Company plays an important role in driving sustainable growth for Pollen Street as a whole. We believe that this approach will help to accelerate the growth in AuM as well as launch new strategies. To date the Investment Company has committed over £120 million across our vehicles. We expect fund investments to represent approximately half of the Investment Company assets with the allocation to higher yielding Equity Assets increasing to approximately 30 per cent over the medium term. \n Our Commitment to Sustainability & ESG Progress \n At Pollen Street we are committed to investing responsibly and developing and enhancing our focus on actions that generate a positive impact for our investors, people, portfolio and wider society. \n Over the year we have made excellent progress against our ESG targets. We have recorded improved ESG scores across our portfolio using our proprietary scoring mechanism with an average score improvement of 2.5 points across our Private Equity portfolio. In our Credit portfolio we have now introduced a total of eight ESG margin ratchets, providing accountability for our borrowers to improve ESG metrics. \n We continue to focus on portfolio companies where we see a potential for positive impact for both investors, people and planet. A recent example is our Private Equity investment Assessio, the leading talent assessment software platform in the Nordics. Assessio operates in an exciting and growing market solving current challenges such as talent shortages and development but its solutions also support companies in their Diversity Equity and Inclusion (\"DEI\") efforts. \n We are proud that the Group maintained carbon neutral status for 2023. To further progress our ambitions on climate, we are now using the Private Markets Decarbonisation Roadmap as a firm and across our funds portfolio to help accelerate our journey to Net Zero. \n Sustainability remains a core part of our investment strategy. We aim to help portfolio companies make Net Zero progress; set and measure diversity and inclusion targets; and operate to the highest possible governance standards. \n Alongside continuing to strengthen our ESG programme and foundations, our focus for ESG in 2024 includes the following areas: \n ·      Sustainable value creation: Aligning ESG criteria to strategic business drivers to drive engagement and performance \n ·      Climate & Net zero: Working across the portfolio to develop net zero commitments and strategies and strengthen processes to better understand the impacts of climate change, in line with the Task Force for Climate related Financial Disclosures (\"TCFD\"). \n ·      Data & reporting excellence: Using a reporting and scoring framework to rank and compare portfolio investments, and to identify improvements; continue to address evolving regulations on sustainability disclosures. \n Our Outlook: Accelerating Progress Towards Creating a Fast-Growing High-Performing Private Capital Asset Manager \n Our progress in 2023 has positioned us well to drive long-term organic growth. We had previously issued financial guidance that Fee-Paying AuM would be £4 to £5 billion between 30 September 2024 and 30 September 2025. We expect to exceed the £4 billion threshold during 2024 and are upgrading guidance to grow AuM to £10 billion in the longer term. This is discussed further in the CFO Report. \n Looking ahead in 2024 for Pollen Street Group Limited, in both Private Credit and Private Equity, we are seeing strong performance, resilience and an attractive pipeline of new opportunities. \n Our key priorities for 2024 are: \n ·      final close of Private Equity Fund V; \n ·      first close of Private Credit Fund IV; \n ·      building cross product relationships with strategic investors; \n ·      continuing to deploy the Investment Company capital in new Pollen Street funds and assets; and \n ·      delivering operational leverage through our platform as we continue to grow AuM. \n As I reflect on a successful year for Pollen Street, I would like to thank our investors and shareholders for their support; the whole Pollen Street team for their dedication and immense work over the year; and the Board for its support and guidance. I am energised by our progress in 2023 and look forward to the opportunities ahead in 2024. \n   \n Lindsey McMurray \nChief Executive Officer \n20 March 2024 \n   \n \n \n   \n Private Equity Strategy \n   \n This section gives insight into our Private Equity strategy. The Group earns management fees and carried interest from managing and advising funds investing in this strategy. \n Michael England - Partner \n Our Private Equity strategy focusses on backing mid-market companies in the financial and business services sector.  We typically take majority stakes in companies whose headquarters are in Europe.  These companies are often founder led and we seek to apply deep sector specialist knowledge and a proven operational framework to accelerate revenue and profit growth with an objective to deliver top-tier returns overall with low variance of outcome. \n A typical investment will benefit from the key growth trends which form the basis of our investment themes, from the unbundling of services driven by demand for more convenient personalised experiences, to the wide-ranging impact of the digital transformation of the entire sector. We pinpoint these drivers of change and align our investment strategy to support businesses at the forefront of these opportunities. \n Our strategy has been in place since 2008 and has been tested through many market events and cycles. Throughout this period, we have developed a robust and disciplined approach to investing as evidenced by our strong track record over time. We identify companies that have high potential for digital adoption and a loyal customer base that can thrive in times of structural change. This experience has given us valuable skills and a keen understanding of risks and opportunities in the market. \n How it Works: Clear Opportunity Set and Established Investment Strategy \n Our investment strategy focuses on a rich opportunity set within five diverse sub-sectors, where we seek to identify the key themes that drive growth: \n ·      Payments; \n ·      Wealth; \n ·      Insurance; \n ·      Technology-enabled services; and \n ·      Lending. \n Our thematic origination populates a pipeline of fast-growing, technology-enabled businesses with solid foundations for us to help create customer-centric, data-driven organisations who can become market leaders. \n Within these investment theses, we seek to drive growth through our established operational framework, which is built upon four key pillars: \n ·      Technology innovation and digital transformation; \n ·      Buy, build and consolidation; \n ·      Globalisation and product development; and \n ·      ESG embedding. \n   \n 2023 - Delivering Growth and Building Momentum \n We have seen strong performance in our Private Equity funds, with impressive revenue and EBITDA growth, continued deployment activity in Private Equity Fund IV and progress on exits. \n Six new investments were completed in the year, including Finsolutia, a leading technology driven credit and real estate platform; Wide Group S.P.A, one of the leading innovative insurance brokers in Italy was acquired in May 2023; Assessio, the Nordic's leading talent assessment software platform and Niio, in the European wealth and asset management software market. Alongside this, there have been exits from both the Fund III and Fund IV portfolios. \n Private Equity Fund V has been our core focus for fundraising in the year, as we continue to develop new relationships with investors and deepen existing ones. In addition to fundraising in Fund V, there was a step up in AuM due to the raising of our second continuation fund, reflecting the particularly strong performance of two of our existing assets and the potential for future growth. \n With the good progress made in 2023 - and our focus on delivery, deployment and exits in 2024 - our funds remain well positioned for growth and to provide top-tier returns for our investors and shareholders. \n   \n Michael England \nPartner \n20 March 2024 \n \n \n   \n Private Credit Strategy \n   \n This section gives insight into our Private Credit strategy The Group earns management fees, performance fees and carried interest from managing and advising funds investing in this strategy. \n Matthew Potter - Partner \n   \n Asset-based finance is the funding behind the everyday credit that powers our economy and society. We provide funding to support everything from building homes, funding SMEs & corporates and vehicle financing. We do this by providing predominantly senior secured loans to non-bank lenders, banks, leasing businesses and technology companies that are serving these end markets taking security over their diverse portfolios of cash flow producing assets, such as loans, leases and vehicles, alongside corporate guarantees. \n We are experts in this large and growing market, with a deep network and experience that allows us to identify opportunities and target an underpenetrated part of the market. Our team focuses on the mid-market where we believe the greatest opportunity and largest financing gap exists meaning we can create the most favourable risk reward profile. \n Following the global financial crisis, and the subsequent retrenchment of the banks from lending markets, Pollen Street identified opportunities to fill the funding gap in what is a large and growing market with a targeted and considered approach. Our asset-backed lending aims to deliver uncorrelated returns to other private debt strategies with a through the cycle approach designed to withstand significant stress. Direct asset-backing combined with seniority, comprehensive covenants and bespoke structuring delivers significant downside protection whilst Pollen Street's ability to access a hard to reach market through our large, dedicated team means we consistently generate premium returns versus other private and public debt strategies. \n We are also passionate about the potential for positive impact through the financing that we provide whether by funding new mass market homes, driving regional economic growth, funding green alternatives to transport and levelling up. Our capital facilitates this impact by enabling our borrowers to build and grow their businesses whether building homes, leasing electric vehicles or lending to regional small businesses. \n How it Works: Structuring for Protection \n The investment strategy seeks to combine the benefits of the asset-backed and corporate lending markets following a tested and a structured investment approach that has delivered strong returns and low volatility. Significant credit protection is created through both asset security and transaction structuring with senior loans secured directly against large and diverse pools of assets that generate the revenue and cash flow of the borrowers as well as securing a full corporate guarantee with comprehensive covenants. \n We seek to follow a structured investment approach that focuses on: \n ·      Diverse asset-backing: predominantly senior loans secured on highly diverse tangible assets to maintain credit protection; \n ·      Bespoke structuring: highly structured investments that seek to create strong downside protection and align incentives with our borrowers; \n ·      Conservative leverage on assets with tangible value: substantial credit protection from borrower cash equity, asset pool profits and corporate guarantees; \n ·      Robust cash generation: lending against highly cash generative, short duration, granular assets; \n ·      Covenants: structured to create alignment with our borrowers. \n 2023 - Consistent Performance and Preparing for Future Growth \n In 2023 the Private Credit business has been focused on deploying Private Credit Fund III and the SMAs and capitalising on an investor friendly market with higher returns. This strategy has paid dividends with Private Credit Fund III almost fully deployed with fundraising started for Private Credit Fund IV with first close expected imminently. We also won a sizeable new SMA mandate from a UK public pension plan, which closed in early 2024 building upon the fundraising momentum and increased investor awareness of Pollen Street's Private Credit business. \n The portfolio has performed well in the year with the higher interest rate environment driving increased deal returns and new investments being completed at higher spreads as we faced a less competitive investment environment. There were 14 new transactions or upsizes (2022: 25) that were completed during the year totalling £0.7 billion (2022: £0.5 billion) of investment commitments with new deals incorporating sustainability linked factors including ESG margin ratchets to incentivise our borrowers to improve their impact. \n We continue to develop and review a strong pipeline of new opportunities alongside fundraising for Private Credit Fund IV. The market trends that drove opportunities in 2023 are set to continue to contribute to a less competitive environment on the lending side. On the fundraising side asset-based lending is gaining traction with an increased awareness of the benefits it can offer investors as they build out a private debt portfolio. We are capitalising on our leading position in this market and expect to continue to win new relationships in 2024 and beyond. \n   \n Matthew Potter \nPartner \n20 March 2024 \n   \n \n \n CFO Report \n Momentum Towards our Targets \n I am pleased to present Pollen Street's financial results for 2023. It has been a successful year, with strong fundraising performance, growth in our financial performance and progress towards our medium-term targets. \n We completed the first close of Private Equity Fund V with further closes completed throughout the second half of the year. The fee rates on this fund are in line with our historic rates and we have clear visibility over additional closes. First close sets the date from which the Group charges fees for all investors, including in subsequent closes and so this gives us a line of sight to future revenue growth. \n We launched a new continuation fund in November 2023 to acquire two high-performing companies from our existing funds to enable us to continue to support the growth of both businesses. It is expected to generate £5 million per annum of revenue for the Group over 2024 and beyond. \n We also completed final close of Private Credit Fund III in April 2023 and closed a new £0.2 billion SMA in February 2024. \n Fundraising across both strategies brings total AuM to £4.2 billion as at 31 December 2023 (31 December 2022: £3.4 billion). We are pleased with the strong support from new and existing investors in both Private Equity and Private Credit. We expect to substantially complete the fundraising of Private Equity Fund V during the year and first close of Private Credit Fund IV - expected imminently. We remain confident in delivering total commitments in line with our targets. \n Income on Net Investment Assets within the Investment Company was £30.2 million (2022: £28.3 million). This increase in income reflects the impact of increased interest rates together with resilient credit performance. \n The total income for the Group was £103.2 million (2022: £63.7 million) and the operating profit for the Group was £44.5 million for 2023 (2022: £27.3 million). This represents a material increase with the main driver being growth in the Asset Manager segment from the date that it was acquired, 30 September 2022, as part of the Combination. \n Basis of Preparation \n In addition to the statutory results, we also present proforma results for the Group for the year ended 31 December 2022 that incorporate the earnings from the Asset Manager, as if the Combination had completed prior to the start of 2022. This basis explains the performance of the combined entity more fully because it includes a full history of Pollen Street Capital Holdings Limited and its subsidiaries. These are referred to as \"Proforma 2022\". The statutory results for the year ended 31 December 2023 are referred to as \"2023\" and the year ended 31 December 2022, \"Statutory 2022\". \n On 24 January 2024, the Group completed a scheme of arrangement to effectively change the listing category of the Company's shares to that of a commercial company from an investment company and to introduce a Guernsey incorporated holding company, named Pollen Street Group Limited, as the new parent of the Group. The purpose of the Scheme is to better reflect the Group's operations as a commercial enterprise, broaden the universe of potential investors, improve the marketability and liquidity of Pollen Street shares and bring the listing classification in line with our quoted peer group. The Company has therefore ceased to be classified as an investment trust during 2024 and will incur corporation tax in its Investment Company for the year ended 31 December 2024 and subsequently. \n On 14 February 2024, the Company distributed the entire issued share capital in Pollen Street Capital Holdings Limited to its new parent, Pollen Street Group Limited, following shareholder approval received on 11 October 2023. This is referred to as the Distribution. Pollen Street Limited and its current subsidiaries have therefore ceased all asset management activities, however they continue their operations of investing in Credit Assets and Equity Assets. Pollen Street Capital Holdings Limited and its subsidiaries have been classified as \"For Distribution\" and presented in a separate column in the financial statements. Whilst the Distribution changes the activities of the entities within Pollen Street's overall business and therefore affects the presentation of the financial results for the Company and Group, it does not change the activities of the overall business from a shareholder's perspective. Further information on the Combination and the Reorganisation is provided in Note 1 to the Financial Statements. \n Asset Manager Growth \n Assets under management are tracked on a total AuM and fee-paying basis. Total AuM broadly tracks the commitments that investors have made into funds managed by the Asset Manager, whereas the Average Fee-Paying AuM tracks the basis on which the Group earns management fees, with the average calculated from the opening and closing positions. For Private Equity, the Fee-Paying AuM is the committed capital in the funds, moving to invested capital at the point when the subsequent fund holds its first close. Co-investment vehicles are typically non-fee paying. Fee-Paying AuM for Private Credit is the net invested amount. See Annual Report and Accounts for full definitions. \n Total AuM grew to £4.2 billion as at 31 December 2023 (31 December 2022: £3.4 billion), driven by fundraising under the Private Equity strategy. Fundraising has increased Average Fee-Paying AuM for the Private Equity strategy to £1.5 billion (Statutory 2022: £1.1 billion; Proforma 2022: £1.1 billion). \n \n \n \n \n Average Fee-Paying AuM \n \n \n 2023 \n (£ billion) \n \n \n Statutory 2022 \n (£ billion) \n \n \n Proforma 2022 (£ billion) \n \n \n \n \n Private Equity \n \n \n 1.5 \n \n \n 1.1 \n \n \n 1.1 \n \n \n \n \n Private Credit \n \n \n 1.4 \n \n \n 1.3 \n \n \n 1.2 \n \n \n \n \n Total \n \n \n 2.9 \n \n \n 2.4 \n \n \n 2.3 \n \n \n \n \n   \n The Asset Manager segment delivered £15.9 million of operating profit over 2023 (Statutory 2022: £2.9 million; Proforma 2022: £9.5 million). The Group tracks the performance of this segment using Fund Management EBITDA, which is the operating profit less the depreciation of the office lease [2] . The Fund Management EBITDA for 2023 was £15.2 million, which has grown by 79 per cent from £8.5 million for Proforma 2022. \n The EBITDA growth of the Asset Manager is driven by Fund Management Income growing at 32 per cent to £49.2 million for 2023 (Statutory 2022: £10.2 million; Proforma 2022: £37.4 million). Fund Management Income comprises management fees, performance fees and income from carried interest. Revenue growth has been driven by increases in the Group's Average Fee-Paying AuM and income from carried interest. \n Administration Costs together with the depreciation of the lease asset was a charge of £34.0 million for 2023 (Statutory 2022: £7.5 million; Proforma 2022: £28.9 million). This represents an increase of 18 per cent, driven predominantly by incremental headcount growth. This moderate increase reflects a well-invested cost base, leading to a high drop through from incremental revenue to profitability. We have invested in headcount principally in the Investor Relations team to support capital raising across the Group and to internalise some capital raising costs. This has increased the fundraising capacity of the Group and improved the efficiency of capital raising in the longer term. \n   \n \n \n \n \n Asset Manager Profitability \n \n \n 2023 (£ million) \n \n \n Statutory 2022 (£ million) \n \n \n Proforma 2022 (£ million) \n \n \n \n \n Fund Management Income \n \n \n 49.2 \n \n \n 10.2 \n \n \n 37.4 \n \n \n \n \n Administration Costs [3] \n \n \n (33.3) \n \n \n (7.3) \n \n \n (27.9) \n \n \n \n \n Operating Profit \n \n \n 15.9 \n \n \n 2.9 \n \n \n 9.5 \n \n \n \n \n Depreciation of Lease Asset \n \n \n (0. 7) \n \n \n (0.2) \n \n \n (1.0) \n \n \n \n \n Fund Management EBITDA \n \n \n 15.2 \n \n \n 2.7 \n \n \n 8.5 \n \n \n \n \n   \n The Management Fee Rate for 2023 excluding the incremental income and AuM from Accelerator II would have been 1.36 per cent demonstrating growth in management rate driven by funding raising under the Private Equity strategy. Including Accelerator II, the Management Fee Rate was 1.17 per cent (Statutory 2022: 1.28 per cent; Proforma 2022: 1.27 per cent). The change in rate is driven by an 18 per cent year on year increase in the Management Fee Income offset by a 33 per cent increase in Average Fee-Paying AuM.  The ratio is expected to stabilise over time to fall within 1.25 per cent to 1.5 per cent medium-term guidance range as the impact of Accelerator II is diluted across the Group's other AuM. \n Performance fees and carried interest for 2023 were 30 per cent of Fund Management Income for the period (Statutory 2022: 24 per cent; Proforma 2022: 23 per cent). This is in excess of the medium-term guidance range of 15 to 25 per cent and reflects strong performance across the portfolios as portfolio companies continued to grow revenue and profits. \n The Fund Management EBITDA Margin increased to 31 per cent for 2023 (Statutory 2022: 26 per cent; Proforma 2022: 23 per cent). We expect EBITDA margin to continue to grow as the Group increases its revenue by raising additional funds under the Private Equity and Private Credit strategies. We are targeting a Fund Management EBITDA Margin above 50 per cent in the long term. \n   \n \n \n \n \n Asset Manager Financial Ratios \n \n \n 2023 \n \n \n Statutory 2022 \n \n \n Proforma 2022 \n \n \n \n \n Management Fee Rate \n (% of Average Fee-Paying AuM) \n \n \n 1.17% \n \n \n 1.28% \n \n \n 1.27% \n \n \n \n \n Performance Fee \n (% of Fund Management Income) \n \n \n 30% \n \n \n 24% \n \n \n 23% \n \n \n \n \n Fund Management EBITDA Margin \n (%of Fund Management Income) \n \n \n 31% \n \n \n 26% \n \n \n 23% \n \n \n \n \n   \n Investment Company Growing Returns \n The Group's £533 million (31 December 2022: £588 million) investment portfolio is well diversified across deals and borrowers. The Investment Company has committed over £120 million into funds managed by Pollen Street to date. This reflects our plans to steadily grow Investment Company commitments in the Asset Manager to help accelerate growth. We expect fund investments to represent approximately half of the Investment Company assets with the allocation to higher yielding Equity Assets increasing to approximately 30 per cent over the medium term. \n Our Investment Asset portfolio maintained its track record of performance throughout the year and delivered Income on Net Investment Assets of £30.2 million. This return is up from £28.3 million in 2022. The step-up was driven by higher returns on new investments as capital is recycled from investments made and hedged in a different interest rate environment. The Group has reduced its Investment Asset portfolio slightly to create capacity for the Investment Company to make commitments to Pollen Street managed funds, with the net debt-to-tangible-equity ratio reducing to 54 per cent as at 31 December 2023 (31 December 2022: 69 per cent).  Returns are expected to increase as leverage normalises and the allocation to higher yielding Equity Assets increases. \n \n \n \n \n Investment Asset Segment \n \n \n 2023 \n \n \n 2022 \n \n \n \n \n Investment Assets \n \n \n £533 million \n \n \n £588 million \n \n \n \n \n Average Net Investment Assets \n \n \n £344 million \n \n \n £355 million \n \n \n \n \n Income on Net Investment Assets \n \n \n £30.2 million \n \n \n £28.3 million \n \n \n \n \n Return on Net Investment Assets \n \n \n 8.8% \n \n \n 8.0% \n \n \n \n \n   \n   \n Profit After Tax \n The profit for the year for the Group was £40.4 million for 2023 (Statutory 2022: £26.4 million; Proforma 2022: £32.9 million). This represents a material increase in profits compared to both a statutory and proforma basis. The main drivers of increase were the operating profit from Asset Manager segment of £15.9 million (Statutory 2022: £2.9 million; Proforma 2022: £9.5 million) and growth in the operating profit of the Investment Company to £30.2 million from £28.3 million, reflecting the impact of increasing interest rates. \n The operating loss of the Central segment was £1.6 million (Statutory 2022: £3.9 million loss [4] ; Proforma 2022: £2.0 million loss). This relates to ongoing start-up losses of the US asset management business in addition to certain exceptional costs incurred in the first half of 2023. \n The charge for depreciation and amortisation was £1.4 million (Statutory 2022: £0.5 million; Proforma 2022: £1.4 million). This principally relates to a charge of £0.7 million of depreciation of the lease asset (Statutory 2022: £0.3 million; Proforma 2022: £1.0 million) and £0.5 million (Statutory 2022: £0.2 million; Proforma 2022: £0.2 million) associated with the amortisation of the intangible assets. \n The Investment Company has not incurred corporation tax to date, because it is an investment trust. However, the Group has incurred corporation tax in its Asset Manager business, which is not an investment trust. The effective tax rate for 2023 was 18 per cent of Fund Management EBITDA (Statutory 2022: 15 per cent; Proforma 2022: 18 per cent). \n \n \n \n \n   \n \n \n 2023 (£ million) \n \n \n Statutory 2022 (£ million) \n \n \n Proforma 2022 (£ million) \n \n \n \n \n Operating profit of Asset Manager \n \n \n 15.9 \n \n \n 2.9 \n \n \n 9.5 \n \n \n \n \n Operating profit of Investment Company \n \n \n 30.2 \n \n \n 28.3 \n \n \n 28.3 \n \n \n \n \n Operating loss of Central segment \n \n \n (1.6) \n \n \n (3.9) \n \n \n (2.0) \n \n \n \n \n Operating profit of Group \n \n \n 44.5 \n \n \n 27.3 \n \n \n 35.8 \n \n \n \n \n Depreciation and amortisation \n \n \n (1.4) \n \n \n (0.5) \n \n \n (1.4) \n \n \n \n \n Profit before tax \n \n \n 43.1 \n \n \n 26.8 \n \n \n 34.4 \n \n \n \n \n Corporation tax \n \n \n (2.7) \n \n \n (0.4) \n \n \n (1.5) \n \n \n \n \n Profit after tax \n \n \n 40.4 \n \n \n 26.4 \n \n \n 32.9 \n \n \n \n \n   \n Profit for the year on continuing operations was £38.9 million (2022: 30.6 million) and profit for the year from assets held for distribution to the new parent was £1.5 million (2022: Loss of £4.3 million) as reported in the Consolidated Statement of Comprehensive Income. \n Leverage \n The Group uses leverage in the Investment Company. As at 31 December 2023 the Group had £210.8 million of leverage (2022: £263.6 million) and £19.7 million of cash (2022: £23.3 million). This is equivalent to a net debt-to-tangible equity ratio of 54 per cent (2022: 69 per cent). It is less than the borrowing limit set by the Board of 100 per cent. \n Dividends \n Pollen Street declared dividends of £32 million for 2023, an increase of £2 million from the prior year (2022: £30 million). This was in line with the dividend targets previously issued by the Board. This reflects a quarterly dividend of 16.0p per share in relation to the first three quarters of the year and 13.0p per share for the last quarter of the year. As part of the terms of the Combination, former Pollen Street Capital Holdings Limited shareholders waived dividends paid to them in 2022 and 2023 on approximately 50 per cent of the shares issued to them by the Group. \n Future dividends are expected to be declared by the new parent, Pollen Street Group Limited, on a semi-annual basis.  Following the conversion to a commercial company, these dividends will no longer be designated as interest distributions. The Board of Pollen Street Group Limited has stated its dividend target for 2024 is to declare dividends of no lower than £33 million and is aiming to grow dividends progressively thereafter.  These targets are the same as the targets previously issued by Pollen Street Limited. \n Outlook \n Pollen Street Limited remains in a strong position for growth in 2024.  The portfolio of Investment Assets are performing well with Income and Returns on Net Investment Assets increasing. We had previously issued financial guidance for the Return on Net Investment Assets to be c8% in the long-term. Given the performance over 2023 and the outlook for the portfolio, we are now revising up the guidance for Return on Net Investment Assets to rise to low double digits within 2 to 3 years. \n We had previously issued financial guidance that Fee-Paying AuM would be £4 to £5 billion within 2 to 3 years of the completion of the Combination on 30 September 2022. Fee Paying AuM was £3.4 billion as at 31 December 2023 and we expect to exceed the £4 billion threshold during 2024. We are therefore upgrading guidance to grow AuM to £10 billion within 4 to 5 years. \n The outlook for Pollen Street Group Limited and its subsidiaries is also strong. Fund Management Income is expected to step up further following fundraising in Private Equity Fund V, which will benefit from catch-up fees for closes occurring in 2024, and Private Credit Fund IV. The balance sheet assets have strong downside protection from credit risk and are positioned to benefit from rising interest rates. \n Pollen Street Group Limited announced a Capital Allocation Framework and Buyback Programme immediately prior to the publication of these Annual Report and Accounts.  Under this framework, surplus capital will be returned to shareholders through share buybacks that are expected to constitute approximately 2 to 5 per cent per annum of the outstanding share capital of the Group. \n \n \n \n \n   \n \n \n Financial Guidance \n \n \n \n \n AuM \n \n \n Upgraded: £10 billion of Total AuM within 4 to 5 years \n \n \n \n \n Management Fee Rates \n \n \n Maintained: c.1.25%-1.50% Average Fee-Paying AuM over the long term \n \n \n \n \n Performance Fees and Carry \n \n \n Maintained: c.15%-25% of total Fund Management Income on average over the long term \n \n \n \n \n Fund Management EBITDA Margin \n \n \n Maintained: Long-term fund management adjusted EBITDA margin in excess of 50 per cent \n \n \n \n \n Return on Net Investment Assets \n \n \n Upgraded: rise to low double digits within 2 to 3 years [5] \n \n \n \n \n Dividend \n \n \n Maintained: Targeted at no lower than £33 million in 2024 and progressive thereafter \n \n \n \n \n   \n   \n \n   \n   \n Julian Dale \nChief Financial Officer \n20 March 2024 \n   \n   \n   \n \n Risk Management \n Effective risk management underpins the successful delivery of our strategy and longer-term sustainability of the business, and offers an integrated approach to the evaluation, control and monitoring of the risks that the Group faces. A clear organisational structure with well defined, transparent, and consistent lines of responsibility exists, and effective processes to identify, manage, monitor, and report the risks the Group is or might be exposed to, or the Group poses or might pose to others, have been implemented. The risks arising from the pursuit of the business' strategy, as well as the risks to achieving the Group's strategy have been analysed carefully and arrangements in place are appropriate and proportionate to the nature, scale and complexity of the risks inherent in the business model and the activities of the Group . The Board is responsible for oversight of the Group's risk management systems and processes, and oversees the management of the key risks across the organisation. \n The Group's culture is expressed through the record of good conduct of its personnel, the dedicated governance arrangements that it has embedded within all areas of the business, as well as staff that are sensitive to the need to maintain appropriate management and control of the business. As well as the adoption of a robust governance structure, the Group demonstrates a strong control culture with clear oversight of responsibilities, with the adoption of a tailored set of systems and controls together with ongoing compliance monitoring. The monitoring and control of risk is a fundamental part of the management process within the Group. \n The Group's governance structure is by way of committees, designed to ensure that the Board has adequate oversight and control of the Group's activities. The effectiveness of the governance framework is considered by senior management on an ongoing basis such that in the event that a material deficiency in control environment or risk management framework of the Group is identified, it shall be addressed without undue delay. The Group's Investment Committees are responsible for all investment decisions across all funds including setting investment objectives, consideration and approval of new investments, divestments , ESG risks and opportunities, and material matters in relation to current investments, ensuring that risks are considered consistently across our portfolios. \n The Group has established the Risk Committee as a Board-level Committee with responsibility for risk oversight. The Group has also established the Risk and Operation Committee as a management level Committee to provide stewardship of the risk framework of the Group, promote the risk awareness culture for all employees, and review the key risk together with the management approach to each risk. More details of the Risk Committee are set out in the full Annual Report and Accounts. \n Risk Management Framework \n   \n The Group has developed a comprehensive risk management framework to ensure that all risks are being managed within the Board's risk appetite. All areas of the business are engaged in the risk management work and the Group has a strong risk culture. All staff actively manage risk and build mitigants into their processes, and risk issues are escalated promptly and dealt with transparently.  \n The risk management framework can be split into three main areas. \n   \n \n   \n The Group's risk management framework includes risk identification, risk appetite, accountability, risk limits, controls and reporting. These components, when used together, enable effective oversight of risk across the Group. \n The Group has established a three lines of defence model for managing risk. The first line of defence is the staff that have primary responsibility for managing a particular risk on a day-to-day basis. First line staff are responsible for understanding and implementing effective internal controls; they should identify, assess, control and mitigate risks, guiding the development and implementation of internal policies and procedures and ensuring that activities are consistent with goals and objectives. \n The second line of defence is the Risk and Compliance teams. They are responsible for oversight and challenge of the first line's management of risk. The second line provides regular challenge as part of its quality assurance of first line activity, monitoring the operation of first line controls, ensuring that the first line is operating within the Group's defined policies, procedures, and risk appetite and tolerance parameters. A compliance monitoring programme is in place and a risk-based suite of tests are undertaken on a quarterly basis. The second line also regularly reviews and reports on the status of the risks recorded within the Group's risk registers. \n The third line of defence is the internal audit function. It is responsible for providing assurance to the Board and senior management that the first and second lines of defence are operating in line with policy and in compliance with the requisite laws and regulations. The internal audit function is provided by Deloitte, ensuring that the function remains truly independent, has access to the latest industry development and has increased flexibility of service. The internal audit programme includes the review of the effectiveness of risk management processes and recommendations to improve the internal control environment. \n Risk Environment 2023 \n Global events throughout 2023 resulted in geopolitical tension with knock on macroeconomic ramifications. Carbon emissions climbed during the year adding pressure in an ever-shrinking window for transition to a 1.5°C world. Food and energy costs continued to be affected by global unrest, tepid growth impacted on markets, and volatility remained. Despite the global challenges witnessed throughout 2023, the Group's overall risk profile has remained relatively stable. \n The risk management function will continue to ensure preparedness where possible and consider both current and emerging risks and update our risk profile accordingly. As we enter 2024, we remain confident that we are best placed to learn from the challenges presented to us and emerge stronger. \n Principal Risks & Uncertainties \n The Group's assessment of risk has identified a broad range of internal and external factors which it believes could adversely impact the Group. The following summary of key risks has been identified as having the potential to be material; it is not exhaustive of those faced by the Group. It includes emerging risks and has been reviewed by the Risk and Operations Committee and the Risk Committee on a regular basis and recorded on the Group's risk register. \n \n \n   \n Economic & Market Conditions \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n Economic and market factors may affect the Group's investments, track record or ability to raise new capital. \n \n \n Pollen Street operates closed ended funds without redemption rights for investors, allowing a greater degree of freedom to pursue investment objectives throughout macroeconomic cycles. \n   \n Regular investment reviews are undertaken. The Investment Committees focus on investment strategy, exit processes and refinancing strategies throughout the life of an investment. \n   \n Early involvement of Investment Committees as new investment ideas are identified ensures that the Group can capitalise from downturns in markets in certain conditions. \n   \n Periods of market volatility may allow the Group to make investments at attractive prices and terms. \n   \n \n \n The portfolios remained resilient throughout 2023. AuM continued to grow and performance remained in line with expectations. The year ended with a strong pipeline of opportunities in place. \n   \n We continue to monitor performance and act accordingly when required . \n \n \n \n \n   \n Fundraising \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n The inability to secure new fund mandates or raise capital under existing mandates in an ever increasingly competitive market affecting the Group's revenue and cash flows. \n \n \n The Group has a consistent track record of fundraising and delivering strong returns to investors. The Group has invested in its Investor Relations team to support capital raising across the Group and to internalise some capital raising costs. \n   \n The investment team has sector specialist knowledge of and expertise in the industries that it invests in, and the investment team has an extensive network and investment experience to enable it to identify opportunities attractive to potential investors. \n \n \n The risk at the end of 2023 was somewhat elevated given recent market volatility. Management and the in-house Investor Relations team continue to be actively focused on fundraising across the business. \n   \n The Group is making efforts to broaden its investor base and is targeting new geographies and investors as part of its ongoing fundraising activities. \n   \n We remain confident that the target size for future funds expected in 2024 remains on track. \n \n \n \n \n   \n \n \n Management Fee Rates and Other Fund Terms \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n The management fee rates, and other terms that the Group receives to manage new funds could be reduced, affecting the Group's ability to generate revenue. \n \n \n The Board believes that management fee rates generated are supported by the Company's track record and the growing allocations to alternative investment market investments. \n \n \n Pollen Street's management fee revenue is long term and contractual in nature. Management fees on funds raised during 2023 were in line with comparable funds raised in prior years. \n \n \n \n \n   \n On-Balance Sheet Investment Underperformance \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n Our Investment Assets are exposed to credit and market risks. They may be impacted by adverse economic and market conditions, including through higher impairment charges or reduced valuations. \n In addition, credit risk, market risk (such as interest rate risk, currency risk & price risk), capital management risks and liquidity risk exists. \n \n \n The Group has a clear track record of delivering investment returns that are resilient to market conditions and in line with published guidance. \n Investments are monitored closely as part of the Group's ongoing investment monitoring programmes, adhering to the funds' investment strategy. Input is given by all Investment Committee members to ensure return objectives are met, and to anticipate and discuss any underperformance. \n \n \n The Group has a diversified, granular portfolio of assets. Loans are subject to stringent underwriting and stress testing. \n Investment performance remains strong.  Further information is set out in more detail in Note 22. \n \n \n \n \n   \n \n \n   \n ESG and Sustainability Performance \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n Risks associated with the physical effects of climate change, the risks that arise as economies transition towards greener solutions, and the risk of a regulatory breach associated with SFDR, TCFD, FCA, SEC reporting. \n Poor or insufficient management of ESG risks or adverse developments may impact the Group's reputation as an investor. \n Risks of an anti-ESG legislation leading to unintended consequences for the Group \n \n \n The ESG Committee oversees Pollen Street's ESG matters, including ESG-related risks. The Risk and Operations Committee as well as the Board Risk Committee has responsibility for oversight of ESG risk matters. \n ESG is considered as an evolving risk given the nature of the Group's investments. The Group is strengthening its approach to climate-related risk identification and mitigation, including the TCFD framework and disclosing accordingly. \n The Group has a set of minimum standards to ensure ESG risks are assessed and measured, which are incorporated into initial deal team investment assessments and ongoing portfolio management. This includes reviewing counterparty approach to environmental factors and collecting metrics to identify the environmental impacts of their operations. \n \n \n Pollen Street has recently undertaken a project to identify and assess climate-related risks and opportunities at the Group level, providing recommendations to strengthen climate considerations in business processes and decision-making. \n Anti-ESG legislation, predominantly in the United States, has emerged recently with the potential impacts hard to assess. \n Pollen Street acknowledges that the Group has an important role to play in manging ESG risks for society. No material ESG risks related to the financial statements were identified during 2023. \n \n \n \n \n   \n Talent and Retention \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n Failure to attract, retain and develop talented individuals to ensure that the Group is able to deliver key performance objectives, an inclusive and diverse workforce to ensure the right skills are in the right place at the right time to deliver the Group's strategy. \n Inadequate succession planning for key individuals. \n \n \n The Group has reward and retention schemes in place for all employees, aligning individual, team, and organisational goals, driving value for the Group. \n The Group invests in both leadership development and ongoing development opportunities for all employees and has introduced a comprehensive induction programme for all new hires. \n Pollen Street is committed to raising awareness and encouraging diversity amongst the workforce and the ESG Committee spends significant time and effort progressing Pollen Streets DEI agenda. \n \n \n The business has continued to strengthen its team throughout 2023. In addition, there is a well-considered approach to resourcing and succession. \n   \n \n \n \n \n   \n \n \n   \n Information Security & Resilience \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Description \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Risk Management \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 2023 Summary \n \n \n \n Risks associated with information security and resilience, including: \n -       failure to invest and successfully implement appropriate technology; \n -       financial loss, data loss, business disruption or damage to reputation from failure of IT systems; \n -       data protection & information security; \n -       business continuity, disaster recovery and operational resilience; and \n -       financial or reputation losses arising from a cyber attack. \n \n \n The Group maintains strong technical and operational controls against identified cyber and information security threats. \n Staff awareness, being key to any modern defence plans, is enhanced through new joiner and ongoing training, and regular communications to staff about relevant threats observed across the industry. \n Redundant and resilient systems are deployed to protect the Group's assets and are validated through regular testing and simulations. \n The Group holds a defined incident response plan as a set of guideline procedures to be followed in the event of an information security attack or breach. The primary aim of any response is to protect the Group's assets, remediate any issues and minimise the impact of the breach as quickly as possible. The plan sets out communication, oversight and other considerations to be undertaken. \n \n \n The Group invests annually in detailed external security reviews and penetration tests. All technology and security policies have been reviewed and updated during the year. \n The technology team is appropriately sized to manage the various security demands and utilises industry standard tooling to ensure monitoring and response management is efficient and thorough. \n The Group tested its Disaster Recovery Plan and Business Continuity Plans in 2023 with no material findings. \n \n \n \n \n   \n Emerging Risk Identification \n   \n The Risk Management Function continually scans the horizon to identify and communicate emerging risks facing the Group, which are expected to have a significant impact within 1 to 10 years. Emerging risks are those which may arise, or ones that already exist but have evolved. They are characterised by a high degree of uncertainty in terms of impact and likelihood and may have a substantial impact on the operations of the Group. \n The Group monitors its emerging risks, supporting organisational readiness for external volatility, incorporating input and insight from both a top-down and bottom-up perspective: \n ·      Top-down: Emerging risks identified by the Risk Committee and the Board, helping to define the overall attitude of the Group to risk. \n ·      Bottom-up: Emerging risks identified at a business level and escalated where appropriate by the Risk and Operations Committee. \n Geopolitical, macro and climate risk continued to dominate the headlines during 2023 and look set to continue. Technology risk, data ethics and AI continue to challenge companies, with both the emergence of new technologies whose effects have yet to be understood, and information reliability is becoming an area of concern. Skills shortages are set to become increasingly common given a competitive labour market and new business areas. \n Emerging risks have been incorporated in the description of risks in the table above. The Risk Committee will continue to monitor these risks and respond to the evolving risk landscape. \n   \n   \n   \n Viability Statement \n In accordance with provision 31 of the UK Corporate Governance Code, including revisions published in 2023, and the corresponding provision 36 of the Association of Investment Companies Code of the UK Corporate Governance Code (the \"AIC Code\"), the Directors have assessed the prospects of the Group over the three-year period to Pollen Street Group Limited's AGM in 2027. The Board believes this period to be appropriate, taking into account the current trading position and the potential impact of the principal risks that could affect the viability of the Group. \n At the year-end, the Group had cash balances of £19.7 million and £585.8 million of net assets. This strong financial position supports the ongoing viability of the Group. \n To prepare the viability statement, the Board has considered the prospects of the Group in light of its current position and has considered each of the Group's principal risks, uncertainties and mitigating factors, to develop a comprehensive scenario analysis for viability. These projections consider the Group's income, net asset value and the cash flows over the three-year period under a range of scenarios. The scenarios are not a business plan in itself, but rather a prudent view of how the Group may evolve, based principally upon its growth to date, in order to demonstrate its viability. Analysis to assess viability focused on the risks of delivery of the growth of the business and a series of projections have been considered, including changing new business volumes and the performance of the Investment Assets. As part of these scenarios, the Directors have considered the Reorganisation, which is described in the Corporate Background & Basis of Preparation section of the Strategic Report, and reviewed financial and non-financial covenants in place for all debt facilities with no breaches anticipated. \n The recent geopolitical and macroeconomic disruption has also been considered in these scenarios. \n All the analysis indicates that due to the stability and cash-generating nature of the Investment Asset portfolio, as well as the long-term debt facilities in place, the Group would be able to withstand the impact of the risks identified. Based on the robust assessment of the principal risks, prospects and viability of the Group, the Board confirms that they have reasonable expectation that the Group will be able to continue operation and meet its liabilities as they fall due over the three-year period to Pollen Street Group Limited's AGM in 2027. The Board also continuously monitors the financial performance of the Group against key financial metrics and ratios, ensuring a strict discipline in the financial management of the business. \n Going Concern \n The Directors have reviewed the financial projections of the Group, which show that the Group will be able to generate sufficient cash flows in order to meet its liabilities as they fall due within 12 months from the date of this Annual Report and Accounts. These financial projections have been performed for the Group under various new business volumes and stressed scenarios, and in all cases the Group is able to meet its liabilities as they fall due. The stressed scenarios included halting future Investment Asset originations, late repayments of the largest structured facility and individual exposures experiences ongoing performance at the worst monthly impact experienced throughout 2022 and 2023. The Directors consider these scenarios to be the most relevant risks to the Group's operations. As part of these projections, the Directors have considered the Reorganisation and tested the effect of this on the continuing Group by assuming no further cash flows received from Pollen Street Capital Holdings Limited.  Finally, the Directors reviewed financial and non-financial covenants in place for all debt facilities with no breaches anticipated, even in the stressed scenario. \n The Directors are satisfied that the going concern basis remains appropriate for the preparation of the financial statements. The Group also has detailed policies and processes for managing the risk, set out in the Strategic Report. \n   \n   \n \n   \n Financial Statements \n Consolidated Statement of Comprehensive income \n \n \n \n \n   \n \n \n   \n \n \n For the year ended 31 December 2023 \n \n \n For the year ended 31 December 2022 \n \n \n   \n \n \n \n \n   \n \n \n Notes \n \n \n   \n \n \n Analysis of Items for Distribution \n \n \n Non GAAP Total \n \n \n   \n \n \n Analysis of Items for Distribution \n \n \n Non GAAP Total \n \n \n \n \n \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Management fee income \n \n \n 7 \n \n \n - \n \n \n 28,912 \n \n \n 28,912 \n \n \n - \n \n \n 6,212 \n \n \n 6,212 \n \n \n \n \n Carried interest and performance fee income \n \n \n 7, 10 \n \n \n - \n \n \n 11,480 \n \n \n 11,480 \n \n \n - \n \n \n 1,578 \n \n \n 1,578 \n \n \n \n \n Interest income on Credit Assets held at amortised cost \n \n \n 7 \n \n \n 57,668 \n \n \n - \n \n \n 57,668 \n \n \n 51,986 \n \n \n - \n \n \n 51,986 \n \n \n \n \n Gains on Investment Assets held at fair value through profit or loss \n \n \n \n \n \n 5,102 \n \n \n - \n \n \n 5,102 \n \n \n 3,909 \n \n \n - \n \n \n 3,909 \n \n \n \n \n Total income \n \n \n \n \n \n 62,770 \n \n \n 40,392 \n \n \n 103,162 \n \n \n 55,895 \n \n \n 7,790 \n \n \n 63,685 \n \n \n \n \n Credit impairment release \n \n \n 12 \n \n \n 970 \n \n \n - \n \n \n 970 \n \n \n 206 \n \n \n - \n \n \n 206 \n \n \n \n \n Third-party servicing costs \n \n \n \n \n \n (2,374) \n \n \n - \n \n \n (2,374) \n \n \n (2,511) \n \n \n - \n \n \n (2,511) \n \n \n \n \n Net operating income \n \n \n \n \n \n 61,366 \n \n \n 40,392 \n \n \n 101,758 \n \n \n 53,590 \n \n \n 7,790 \n \n \n 61,380 \n \n \n \n \n Administration costs \n \n \n 7 \n \n \n (2,065) \n \n \n (34,626 ) \n \n \n (36,691 ) \n \n \n (8,450 ) \n \n \n (11,135 ) \n \n \n (19,585) \n \n \n \n \n Finance costs \n \n \n 7 \n \n \n (20,360) \n \n \n (230 ) \n \n \n (20,590 ) \n \n \n (14,517) \n \n \n - \n \n \n (14,517) \n \n \n \n \n Operating profit \n \n \n \n \n \n 38,941 \n \n \n 5,536 \n \n \n 44,477 \n \n \n 30,623 \n \n \n (3,345) \n \n \n 27,278 \n \n \n \n \n Depreciation \n \n \n 7 \n \n \n - \n \n \n (927) \n \n \n (927) \n \n \n - \n \n \n (322) \n \n \n (322) \n \n \n \n \n Amortisation \n \n \n 6, 7 \n \n \n - \n \n \n (480) \n \n \n (480) \n \n \n - \n \n \n (160) \n \n \n (160) \n \n \n \n \n Profit before tax \n \n \n \n \n \n 38,941 \n \n \n 4,129 \n \n \n 43,070 \n \n \n 30,623 \n \n \n (3,827) \n \n \n 26,796 \n \n \n \n \n Tax \n \n \n \n \n \n - \n \n \n (2,664) \n \n \n (2,664) \n \n \n - \n \n \n (435) \n \n \n (435) \n \n \n \n \n \n \n \n \n \n \n 38,941 \n \n \n 1,465 \n \n \n 40,406 \n \n \n 30,623 \n \n \n (4,262) \n \n \n 26,361 \n \n \n \n \n \n \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Profit after tax from continuing operations \n \n \n \n \n \n 38,941 \n \n \n   \n \n \n   \n \n \n 30,623 \n \n \n (4,262) \n \n \n 26,361 \n \n \n \n \n Transfer of profit after tax from items for distribution \n \n \n \n \n \n 1,465 \n \n \n   \n \n \n \n \n \n (4,262) \n \n \n \n \n \n   \n \n \n \n \n Profit for the year \n \n \n \n \n \n 40,406 \n \n \n   \n \n \n   \n \n \n 26,361 \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Other comprehensive income \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Foreign currency translation reserve from assets held for distribution \n \n \n \n \n \n (453)  \n \n \n \n \n \n \n \n \n - \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Total comprehensive income \n \n \n \n \n \n 39,953 \n \n \n   \n \n \n   \n \n \n 26,361 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Basic and diluted earnings per share (pence) from continuing operations \n \n \n 14 \n \n \n 60.6 p \n \n \n \n \n \n \n \n \n 72.2 p \n \n \n \n \n \n \n \n \n \n \n Basic and diluted earnings per share (pence) \n \n \n 14 \n \n \n 62.9 p \n \n \n \n \n \n \n \n \n 62.1 p \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n The notes to the accounts form an integral part of the financial statements. \n On 14 February 2024, the Company distributed the entire issued share capital in Pollen Street Capital Holdings Limited to its new parent, Pollen Street Group Limited as part of the Reorganisation described in Note 1. As such the Group has classified the activities of Pollen Street Capital Holdings Limited as held for distribution to owners in accordance with IFRS 5. The income from these activities is disclosed in the 'Analysis of Item for Distribution' columns of this statement.  Further disclosure is presented in Note 5. \n \n \n   \n Consolidated Statement of Financial Position \n \n \n \n \n   \n \n \n   \n \n \n As at 31 December 2023 \n \n \n As at 31 December 2022 \n \n \n   \n \n \n \n \n   \n \n \n Notes \n \n \n   \n \n \n Analysis of items for Distribution \n \n \n Non-GAAP Total \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n   \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Credit Assets at amortised cost \n \n \n 12 \n \n \n 444,490 \n \n \n - \n \n \n 444,490 \n \n \n 523,877 \n \n \n   \n \n \n \n \n Investment Assets held at fair value through profit or loss \n \n \n 9 \n \n \n 88,220 \n \n \n - \n \n \n 88,220 \n \n \n 64,506 \n \n \n   \n \n \n \n \n Fixed assets \n \n \n 15 \n \n \n - \n \n \n - \n \n \n - \n \n \n 1,414 \n \n \n   \n \n \n \n \n Goodwill and intangible assets \n \n \n 6 \n \n \n - \n \n \n - \n \n \n - \n \n \n 231,031 \n \n \n   \n \n \n \n \n Lease assets \n \n \n 16 \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,776 \n \n \n   \n \n \n \n \n Carried interest \n \n \n 10 \n \n \n - \n \n \n - \n \n \n - \n \n \n 7,052 \n \n \n   \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 532,710 \n \n \n - \n \n \n 532,710 \n \n \n 832,656 \n \n \n   \n \n \n \n \n   \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Cash and cash equivalents \n \n \n 5, 24 \n \n \n 18,550 \n \n \n 1,196 \n \n \n 19,746 \n \n \n 23,303 \n \n \n   \n \n \n \n \n Receivables \n \n \n 5, 17 \n \n \n 4,003 \n \n \n 13,939 \n \n \n 17,942 \n \n \n 12,870 \n \n \n   \n \n \n \n \n Fixed assets \n \n \n 5, 1 5 \n \n \n - \n \n \n 1,344 \n \n \n 1,344 \n \n \n - \n \n \n   \n \n \n \n \n Goodwill and intangible assets \n \n \n 5, 6 \n \n \n - \n \n \n 230,551 \n \n \n 230,551 \n \n \n \n \n \n   \n \n \n \n \n Lease assets \n \n \n 5, 16 \n \n \n - \n \n \n 4,056 \n \n \n 4,056 \n \n \n - \n \n \n   \n \n \n \n \n Carried interest \n \n \n 5, 10 \n \n \n - \n \n \n 17,332 \n \n \n 17,332 \n \n \n - \n \n \n   \n \n \n \n \n Assets for distribution \n \n \n 5 \n \n \n 268,418 \n \n \n - \n \n \n - \n \n \n - \n \n \n   \n \n \n \n \n Total current assets \n \n \n \n \n \n 290,971 \n \n \n 268,418 \n \n \n 290,971 \n \n \n 36,173 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Total assets \n \n \n \n \n \n 823,681 \n \n \n 268,418 \n \n \n 823,681 \n \n \n 868,829 \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Payables \n \n \n 5, 18 \n \n \n 1,567 \n \n \n 17,582 \n \n \n 19,149 \n \n \n 19,221 \n \n \n   \n \n \n \n \n Lease payables \n \n \n 5, 16 \n \n \n - \n \n \n 4,152 \n \n \n 4,152 \n \n \n 1,201 \n \n \n   \n \n \n \n \n Current tax payable \n \n \n 5 \n \n \n - \n \n \n 981 \n \n \n 981 \n \n \n 2,158 \n \n \n   \n \n \n \n \n Deferred tax liability \n \n \n 5,13 \n \n \n - \n \n \n 2,628 \n \n \n 2,628 \n \n \n - \n \n \n   \n \n \n \n \n Derivative liabilities held at fair value through profit or loss \n \n \n 5, 20 \n \n \n 179 \n \n \n - \n \n \n 179 \n \n \n 916 \n \n \n   \n \n \n \n \n Interest-bearing borrowings \n \n \n 11 \n \n \n 132,738 \n \n \n - \n \n \n 132,738 \n \n \n 60,598 \n \n \n   \n \n \n \n \n Liabilities for distribution \n \n \n 58 \n \n \n 25,343 \n \n \n - \n \n \n - \n \n \n - \n \n \n   \n \n \n \n \n Total current liabilities \n \n \n \n \n \n 159,827 \n \n \n 25,343 \n \n \n 159,827 \n \n \n 84,094 \n \n \n   \n \n \n \n \n   \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n \n \n Total assets less current liabilities \n \n \n \n \n \n 663,854 \n \n \n 243,075 \n \n \n 663,854 \n \n \n 784,735 \n \n \n   \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n \n \n \n \n Lease payables \n \n \n 16 \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,067 \n \n \n   \n \n \n \n \n Deferred tax liability \n \n \n \n \n \n - \n \n \n - \n \n \n - \n \n \n 94 \n \n \n   \n \n \n \n \n Interest-bearing borrowings \n \n \n 11 \n \n \n 78,026 \n \n \n - \n \n \n 78,026 \n \n \n 203,035 \n \n \n   \n \n \n \n \n Total non-current liabilities \n   \n \n \n \n \n \n 78,026 \n \n \n - \n \n \n 78,026 \n \n \n 207,196 \n \n \n   \n \n \n \n \n Net assets \n \n \n \n \n \n 585,828 \n \n \n 243,075 \n \n \n 585,828 \n \n \n 577,539 \n \n \n - \n \n \n \n \n Shareholders' funds \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Ordinary share capital \n \n \n 26 \n \n \n 642 \n \n \n \n \n \n 642 \n \n \n 689 \n \n \n \n \n \n \n \n Share premium \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n 299,599 \n \n \n \n \n \n \n \n Retained earnings \n \n \n \n \n \n 8,560 \n \n \n \n \n \n 8,560 \n \n \n - \n \n \n \n \n \n \n \n Revenue reserves \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n 2,363 \n \n \n \n \n \n \n \n Capital reserves \n \n \n \n \n \n - \n \n \n \n \n \n - \n \n \n (2,361) \n \n \n \n \n \n \n \n Other reserves \n \n \n \n \n \n 576,626 \n \n \n \n \n \n 576,626 \n \n \n 277,249 \n \n \n \n \n \n \n \n Total shareholders' funds \n \n \n \n \n \n 585,828 \n \n \n \n \n \n 585,828 \n \n \n 577,539 \n \n \n   \n \n \n \n \n Net asset value per share (pence) \n \n \n 28 \n \n \n 912.4p \n \n \n \n \n \n 912.4p \n \n \n 899.5p \n \n \n   \n \n \n \n \n   \n On 14 February 2024, the Company distributed the entire issued share capital in Pollen Street Capital Holdings Limited to its new parent, Pollen Street Group Limited as part of the Reorganisation described in Note 1. As such the Group has classified the activities of Pollen Street Capital Holdings Limited as held for distribution to owners in accordance with IFRS 5. The assets and liabilities related to these activities are disclosed in the 'Analysis of Items for Distribution' column of this statement.  Further disclosure is presented in Note 5. \n The financial statements of Pollen Street Limited (company number 09899024), which includes the notes, were approved and authorised by the Board of Directors on 20 March 2024 and were signed on its behalf by: \n Robert Sharpe, Chairman \n \n \n   \n Company Statement of Financial Position \n \n \n \n \n   \n \n \n Notes \n \n \n As at 31 December 2023 \n \n \n As at 31 December 2022 \n \n \n \n \n   \n \n \n \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Non-current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Credit Assets at amortised cost \n \n \n 12 \n \n \n 444,490 \n \n \n 523,877 \n \n \n \n \n Investment Assets held at fair value through profit or loss \n \n \n 9 \n \n \n 88,220 \n \n \n 62,853 \n \n \n \n \n Investments in subsidiaries \n \n \n \n \n \n - \n \n \n 239,027 \n \n \n \n \n Total non-current assets \n \n \n \n \n \n 532,710 \n \n \n 825,757 \n \n \n \n \n   \n Current assets \n \n \n \n \n \n \n \n \n \n \n \n \n \n Cash and cash equivalents \n \n \n 5, 24 \n \n \n 14,402 \n \n \n 18,229 \n \n \n \n \n Receivables \n \n \n 5, 17 \n \n \n 4,775 \n \n \n 3,831 \n \n \n \n \n Assets held for distribution - investments in subsidiaries \n \n \n \n \n \n 239,027 \n \n \n - \n \n \n \n \n Total current assets \n \n \n \n \n \n 258,204 \n \n \n 22,060 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Total assets \n \n \n \n \n \n 790,914 \n \n \n 847,817 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Payables \n \n \n 5, 18 \n \n \n 4,182 \n \n \n 5,174 \n \n \n \n \n Derivative liabilities held at fair value through profit or loss \n \n \n 20 \n \n \n 179 \n \n \n 916 \n \n \n \n \n Deemed loan \n \n \n 25 \n \n \n 60,412 \n \n \n 29,227 \n \n \n \n \n Interest-bearing borrowings \n \n \n 11 \n \n \n 70,282 \n \n \n 30,141 \n \n \n \n \n Total current liabilities \n \n \n \n \n \n 135,055 \n \n \n 65,458 \n \n \n \n \n   \n \n \n \n \n \n   \n \n \n   \n \n \n \n \n Total assets less current liabilities \n \n \n \n \n \n 655,859 \n \n \n 782,359 \n \n \n \n \n Non-current liabilities \n \n \n \n \n \n \n \n \n \n \n \n \n \n Deemed loan \n \n \n 25 \n \n \n 3,114 \n \n \n 63,809 \n \n \n \n \n Interest-bearing borrowings \n \n \n 11 \n \n \n 74,912 \n \n \n 139,226 \n \n \n \n \n Total non-current liabilities \n   \n \n \n \n \n \n 78,026 \n \n \n 203,035 \n \n \n \n \n Net assets \n \n \n \n \n \n 577,833 \n \n \n 579,324 \n \n \n \n \n Shareholders' funds \n \n \n \n \n \n \n \n \n \n \n \n \n \n Ordinary share capital \n \n \n 26 \n \n \n 642 \n \n \n 689 \n \n \n \n \n Share premium \n \n \n \n \n \n - \n \n \n 299,599 \n \n \n \n \n Retained earnings \n \n \n \n \n \n 296 \n \n \n - \n \n \n \n \n Revenue reserves \n \n \n \n \n \n - \n \n \n 4,148 \n \n \n \n \n Capital reserves \n \n \n \n \n \n - \n \n \n (2,361) \n \n \n \n \n Other reserves \n \n \n \n \n \n 576,895 \n \n \n 277,249 \n \n \n \n \n Total shareholders' funds \n \n \n \n \n \n 577,833 \n \n \n 579,324 \n \n \n \n \n Net asset value per share (pence) \n \n \n 28 \n \n \n 899.5 \n \n \n 902.2 \n \n \n \n \n The notes to the accounts form an integral part of the financial statements. \n On 14 February 2024, the Company distributed the entire issued share capital in Pollen Street Capital Holdings Limited to its new parent, Pollen Street Group Limited as part of the Reorganisation described in Note 1. As such the Group has classified the activities of Pollen Street Capital Holdings Limited as held for distribution to owners in accordance with IFRS 5. The assets and liabilities related to these activities are disclosed in the 'Assets held for distribution - investments in subsidiaries' line item of this statement.  Further disclosure is presented in Note 5. \n Advantage has been taken of the exemption under Section 408 of the Companies Act 2006 and accordingly the Company has not presented a statement of comprehensive income for the Company alone. The profit on ordinary activities after taxation of the Company for continuing operations was £30.2 million (2022: £28.1 million) for the year ended 31 December 2023 and there were no profits from assets held for distribution to the new parent within the Company (2022: nil). \n The financial statements of Pollen Street Limited (company number 09899024), which includes the notes, were approved and authorised by the Board of Directors on 20 March 2024 and were signed on its behalf by: \n Robert Sharpe, Chairman \n \n \n   \n Consolidated Statement of Changes in Shareholders' Funds \n For the year ended 31 December 2023 \n \n \n \n \n   \n \n \n Ordinary \nShare \nCapital \n \n \n Share \nPremium \n \n \n Retained Earnings \n \n \n Revenue \nReserves \n \n \n Capital \nReserves \n \n \n Special \nDistributable \nReserves \n \n \n Merger Reserves \n \n \n Foreign Currency Translation Reserve \n \n \n Total \nEquity \n \n \n \n \n   \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Shareholders' funds as at \n1 January 2023 \n \n \n 689 \n \n \n 299,599 \n \n \n - \n \n \n 2,363 \n \n \n ( 2,361) \n \n \n 51,979 \n \n \n 225,270 \n \n \n - \n \n \n 577,539 \n \n \n \n \n Profit after taxation \n \n \n - \n \n \n - \n \n \n - \n \n \n 40,406 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 40,406 \n \n \n \n \n Foreign currency translation reserve \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (453) \n \n \n (453) \n \n \n \n \n Dividends paid in the year \n \n \n - \n \n \n - \n \n \n - \n \n \n (31,664) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (31,664) \n \n \n \n \n Cancellation of treasury shares \n \n \n (47) \n \n \n 47 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n \n \n \n \n - \n \n \n \n \n Cancellation of share premium reserve \n \n \n - \n \n \n (299,646) \n \n \n - \n \n \n - \n \n \n - \n \n \n 299,646 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Reallocation of revenue and capital reserves to retained earnings [6] \n \n \n - \n \n \n - \n \n \n 8,560 \n \n \n (11,105) \n \n \n 2,361 \n \n \n - \n \n \n - \n \n \n 184 \n \n \n - \n \n \n \n \n Shareholders' funds as at \n31 December 2023 \n \n \n 642 \n \n \n - \n \n \n 8,560 \n \n \n - \n \n \n - \n \n \n 351,625 \n \n \n 225,270 \n \n \n (269) \n \n \n 585,828 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n For the year ended 31 December 2022 \n \n \n \n \n   \n \n \n Ordinary \nShare \nCapita [7] l \n£'000 \n \n \n Share \nPremium \n£'000 \n \n \n Revenue \nReserves \n£'000 \n \n \n Capital \nReserves \n£'000 \n \n \n Special \nDistributable \nReserves \n£'000 \n \n \n Merger \n Reserves \n £'000 \n \n \n Total \nEquity \n£'000 \n \n \n \n \n Shareholders' funds as at \n1 January 2022 \n \n \n 352 \n \n \n 299,599 \n \n \n 4,790 \n \n \n (2,244) \n \n \n 56,845 \n \n \n - \n \n \n 359,342 \n \n \n \n \n Ordinary shares issued \n \n \n 295 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 235,486 \n \n \n 235,781 \n \n \n \n \n Transaction costs for share issuance \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (10,216) \n \n \n (10,216) \n \n \n \n \n Ordinary shares bought back \n \n \n 42 \n \n \n - \n \n \n - \n \n \n - \n \n \n (4,866) \n \n \n - \n \n \n (4,824) \n \n \n \n \n Profit after taxation \n \n \n - \n \n \n - \n \n \n 26,478 \n \n \n (117) \n \n \n - \n \n \n - \n \n \n 26,361 \n \n \n \n \n Dividends paid in the year \n \n \n - \n \n \n - \n \n \n (28,905) \n \n \n - \n \n \n - \n \n \n - \n \n \n (28,905) \n \n \n \n \n Shareholders' funds as at 31 December 2022 \n \n \n 689 \n \n \n 299,599 \n \n \n 2,363 \n \n \n (2,361) \n \n \n 51,979 \n \n \n   \n 225,270 \n \n \n 577,539 \n \n \n \n \n The notes to the accounts form an integral part of the financial statements. \n Company Statement of Changes in Shareholders' Funds \n For the year ended 31 December 2023 \n \n \n \n \n   \n \n \n Ordinary \nShare \nCapital \n \n \n Share \nPremium \n \n \n Retained \nEarnings \n \n \n Revenue \nReserves \n \n \n Capital \nReserves \n \n \n Special \nDistributable \nReserves \n \n \n Merger Reserves \n \n \n   \n   \n Total \n \n \n \n \n   \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Shareholders' funds as at \n1 January 2023 \n \n \n 689 \n \n \n 299,599 \n \n \n - \n \n \n 4,148 \n \n \n (2,361) \n \n \n 51,979 \n \n \n 225,270 \n \n \n 579,324 \n \n \n \n \n Profit after taxation \n \n \n - \n \n \n - \n \n \n - \n \n \n 30,173 \n \n \n - \n \n \n - \n \n \n - \n \n \n 30,173 \n \n \n \n \n Dividends paid in the year \n \n \n - \n \n \n - \n \n \n - \n \n \n (31,664) \n \n \n - \n \n \n - \n \n \n - \n \n \n (31,664) \n \n \n \n \n Cancellation of treasury shares \n \n \n (47) \n \n \n 47 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Cancellation of share premium reserve \n \n \n - \n \n \n (299,646) \n \n \n - \n \n \n - \n \n \n - \n \n \n 299,646 \n \n \n - \n \n \n - \n \n \n \n \n Reallocation of revenue and capital reserves to retained earnings \n \n \n - \n \n \n \n \n \n 296 \n \n \n (2,657) \n \n \n 2,361 \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Shareholders' funds as at \n31 December 2023 \n \n \n 642 \n \n \n - \n \n \n 296 \n \n \n - \n \n \n - \n \n \n 351,625 \n \n \n 225,270 \n \n \n 577,833 \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n   \n For the year ended 31 December 2022 \n \n \n \n \n   \n \n \n Ordinary \nShare \nCapital \n \n \n Share \nPremium \n \n \n Revenue \nReserves \n \n \n Capital \nReserves \n \n \n Special \nDistributable \nReserves \n \n \n Merger \nReserves \n \n \n Total \nEquity \n \n \n \n \n   \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n £'000 \n \n \n \n \n Shareholders' funds as at \n1 January 2022 \n \n \n 352 \n \n \n 299,599 \n \n \n 4,790 \n \n \n (2,244) \n \n \n 56,845 \n \n \n - \n \n \n 359,342 \n \n \n \n \n Ordinary shares issued \n \n \n 295 \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n 235,486 \n \n \n 235,781 \n \n \n \n \n Transaction costs for share issuance \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (10,216) \n \n \n (10,216) \n \n \n \n \n Ordinary shares bought back \n \n \n 42 \n \n \n - \n \n \n - \n \n \n - \n \n \n (4,866) \n \n \n - \n \n \n (4,824) \n \n \n \n \n Profit / (Loss) after taxation \n \n \n - \n \n \n - \n \n \n 28,263 \n \n \n (117) \n \n \n - \n \n \n - \n \n \n 28,146 \n \n \n \n \n Dividends paid in the year \n \n \n - \n \n \n - \n \n \n (28,905) \n \n \n - \n \n \n - \n \n \n - \n \n \n (28,905) \n \n \n \n \n Shareholders' funds as at \n31 December 2022 \n \n \n 689 \n \n \n 299,599 \n \n \n 4,148 \n \n \n (2,361) \n \n \n 51,979 \n \n \n 225,270 \n \n \n 579, 324 \n \n \n \n \n   \n   \n There may be factors that restrict the value of the reserves that can be distributed and these factors may be complex to determine. Distributable reserves may therefore not be the total of retained earnings and the special distributable reserve. \n   \n The notes to the accounts form an integral part of the financial statements. \n   \n \n \n   \n Consolidated Statement of Cash Flows \n \n \n \n \n   \n \n ...

View stock analysis, news, and events for Pollen Street Group Limited