Company registration number 09242415 (England and Wales)
QUERCUS REAL ASSETS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
QUERCUS REAL ASSETS LIMITED
COMPANY INFORMATION
Directors
Mr Diego Biasi
Mr John Troostwyck
(Appointed 2 March 2022)
Company number
09242415
Registered office
11 Albemarle Street
London
W1S 4HH
Auditor
PMK & Associates LLP
Lower Third Floor, Evelyn Suite
Quantum House, 22 - 24 Red Lion Court
London
EC4A 3EB
QUERCUS REAL ASSETS LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 29
QUERCUS REAL ASSETS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
Review of the business
During the year, the Company's main activity continued to be that of an investment advisor specialised in utility-scale renewable energy infrastructure investments in the European market.
Back in February 2020, it merged with Real Asset Group Limited, which resulted in the onboarding of specialist real estate investment advisory team to complement the Company’s core activity in Renewable Energy investment advisory specialism.In late 2020,the Company decided to return to its core activity and finished restructuring the business early in 2021.
In 2021, the company business picked up substantially on the back of the business development undertaken in the second half of 2020 in the renewable space.
Strategy
In 2021, the Company concentrated its efforts on renewables which proved to be a winning strategy.
The Company continues to source potentially attractive investment opportunities and is actively growing its business.
A change of permission with the FCA has been obtained, to reflect the charge of regulations and reduce costs and simplify administrative aspects of the business.
The Company is actively working with a view to raising a client base on renewable energy opportunities including power generation, distribution and storage, e-mobility and related services. Deal-by-deal type investment opportunities are also under consideration.
Business environment
It is considered that there are currently many renewable energy investment opportunities given the increasing focus on curbing climate change and that the Company is well placed in this regard. Aside from the environmental benefits from investing in renewable energy, such investments have the potential to provide an attractive long-term yield to investors.
The global pandemic of the last two years has only amplified the need and general appetite for investment.
Principal risks and uncertainties
Financial results and performances
The results of the Company for the period, as set out in the financial statements, show a greater than expected net profit after tax of £265,954 (2020: loss £2,832,825 ). Shareholders' equity totalled £518,373 (2020: £252,385 ) as at 31 December 2021.
The company has started afresh with new funding from the shareholders in 2020 and has been generating a reasonable level of income in 2021 which has brought the year end pre-tax result close to break even.
QUERCUS REAL ASSETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Development and performance
Principal risks and uncertainties
As at 31 December 2021, the director identified the following key risks and controls / actions taken by the Company to manage these risks:
Legal risk
The Company's in-house legal counsel works extensively with reputable external lawyers to ensure the business operates in compliance with all regulatory obligations.
Business continuity risk
The Company's systems are cloud-based and regularly backed up to minimize internal and external threats thus ensuring data protection and system integrity. The effectiveness of its business continuity plan has been demonstrated with the seamless switch to remote working with the onset of the Covid-19 lockdown.
Capital adequacy and financial risk
There are procedures in place to ensure that the Company has adequate financial resources in place at all times to meet regulatory and liquidity requirements to ensure that it continues to meet all liabilities as they fall due.
Concentration risk
As the Company looks to grow its client base, it will look to manage concentration risk by offering renewable energy investment opportunities and related services from a variety of different geographies.
Key performance indicators
Key performance indicators
The Board of Directors monitors the progress of the Company by reference to the following KPIs:
2021 Performance
Consulting and asset management fee: £2,111k (2020: £178k)
Payroll cost (including bonus): £885k (2020: £1,213k)
Total employee cost for the period (including recruitment cost): £885k (2020: £1,221k)
Payroll cost as a % of total expenses: 36% (2020: 59%)
Other performance indicators
Future developments
Expectations are that the Company will successfully continue to complete deals over twelve months. The Company has currently an attractive number of projects which are believed will be the source of fees being generated, leading to medium/long term profitable business.
QUERCUS REAL ASSETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Section 172 statement
This section describes how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 in exercising their duty to promote the success of the Company for the benefit of its members as a whole.
Stakeholders and their interests
The Company’s key stakeholders during the 2021 financial year were its employees, clients and other business partners, regulators and shareholders. In a small organisation where Board members are actively involved in the day-to-day business, the Board was well able to understand the respective interests of such stakeholder groups and therefore to properly consider them in decision-making. Furthermore, Board members received regular reports and updates from management in direct engagement with such groups. Relevant stakeholder interests were also addressed in Board papers with regards to proposed courses of action.
Long-term consequences of decisions
The sale and exit in 2019 from a €1 billion fund platform represented the culmination of a ten year “phase one” strategy which necessarily involved critical understanding of the long-term consequences of decisions.
The same approach to decision-making was carried through into the second year of “phase two” of the Company’s history albeit in a context where a long-term outlook was suddenly forced to combine with flexibility in decision-making to respond and adapt to the unexpected challenges of a global pandemic. The former led to the Board’s decision to diversify into the real estate sector early in the year whereas the latter caused an exit from the same market due not only to slowing of the pandemic-affected real estate sector but also to an upswing in the renewable energy sector, particularly in the Company’s core Southern European markets.
Within the fast-moving renewable energy sector, the operational cycle is short and has become even shorter in recent years. Despite this, the Board remained mindful that its strategic decisions could have long term implications for the business and its stakeholders, and these implications were carefully assessed. Where necessary, the Board sought and obtained input from professional advisors to inform and support decision-making.
Company employees and their interests
The Board performed a high degree of personal oversight and engagement in the Company’s affairs regarding its employees. Both directors in the 2021 financial year had an active management role in the Company, who has served with the Company as an employee and director since the Company’s inception. Directors therefore had regular contact with senior and other employees in day-to-day business activities as well as for employee-focused purposes. Board meetings were regularly attended by two employees, including the head of human resources who acts as secretary for the Board and reported monthly to the Board on employee matters.
The Company had a number of effective workforce engagement mechanisms in place which enabled employees to be kept informed of performance and strategy through regular meetings (such as weekly team meetings) and updates from members of the Board. This allowed effective engagement and open discussion on the key business issues, policies and the working environment in different parts of the business, with actions agreed on issues raised.
This knowledge of the business and active style of engagement meant the Board maintained an acute insight into the mood, culture and views of the workforce. It also enabled the Board to ensure that the suggestions, views and interests of the workforce were captured and considered in decision-making. This proved particularly important in a year of lockdowns and other restrictions which required the Board to quickly adapt to the interests of a remote-working workforce.
The Board recognised that employees are key to the Company’s long-term success. Therefore, a key focus of the Board during the 2021 financial year was planning for creation of employee benefit schemes to incentivise long term employee engagement and commitment.
QUERCUS REAL ASSETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Fostering of the Company’s business relationships with suppliers, customers and others
As a small business in which “phase two” required start up in a challenging financial context, business development activities came to fruition in the second half of the 2021 financial year for a small client base. The Company’s shareholders were key as was a return to long-standing business partners. Other potential client relationships were commenced and developed through the year, with the investment team providing fortnightly updates to directors on their perceptions of consumer sentiment and the market view. The interests of clients and potential clients were instrumental in key decisions of the business relating to sectors, geographies, portfolios, asset types, implementation methodologies, partners, advisors and investment terms.
Throughout the year, the Board was briefed on contractual matters and strategy with regards to key suppliers, notably its IT providers, accountant and landlord. The Board sought to balance the benefits of maintaining strong partnering relationships with key suppliers alongside the need to obtain value for money for shareholders and the desired quality and service levels for clients and employees.
The Company is regulated by the Financial Conduct Authority. As always, the Board sought to cooperate and engage constructively with the FCA and to comply with its standards throughout the year. Each monthly Board meeting involved review and discussion of a compliance report, and regular support on compliance matters and the Company’s relationship with the FCA was obtained from an experienced external advisor. Having exited from its “phase one” revenue sources and entering “phase two” effectively in start-up mode once more, the Board carefully monitored and made considered decisions regarding the Company’s regulatory capital requirements throughout the year - balancing the need for capital to satisfy regulatory obligations with a desire to remain resilient to risks and present the best return on capital for shareholders.
The Company managed its tax affairs responsibly and proactively to comply with tax legislation. The Company engages with HMRC constructively, honestly and in a timely and professional manner. The finance team provided regular updates to the Board on tax matters.
Impact of the Company’s operations on the community and the environment
The Board supported the Company’s goals and initiatives with regards to reducing adverse impacts on the environment and supporting the communities that it touches. Such an approach is inherent in the Company’s core business strategy which is to place long-term environmental and social capital through sustainable developments.
In the 2021 financial year the Company engaged a leading sustainability consultant and evolved its EMS Manual. Progress was reported to monthly Board meetings. This is expected to accelerate further in 2022 following global recovery from the pandemic.
Maintaining a reputation for high standards of business conduct
The Board recognised the importance of operating a robust corporate governance framework, with monthly and quarterly board meetings taking place and keen attention paid to corporate record keeping. The Company takes its regulated status seriously and compliance monitoring was regular and detailed. The Board was kept abreast of developments and any issues in both areas.
Fairness between members of the Company
The Company had a sole shareholder for many years until the early in the 2021 financial year when it joined with the Real Asset Group Ltd as a new shareholder. Despite unexpected economic circumstances and a restructure to their holdings in early 2021, shareholder relationships remained strong throughout the year. Representatives of both shareholders attends Board meetings and are regularly involved in, and informed of, day-to-day business decisions. Adherence to a detailed shareholders agreement, including a set of matters reserved for shareholder decision, supports the Board’s natural inclination to involve shareholders in key decision-making and to fairly accommodate each shareholder’s interests.
QUERCUS REAL ASSETS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Mr Diego Biasi
Director
13 July 2022
QUERCUS REAL ASSETS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
The directors present their report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company is as an investment advisor and arranger.
Results and dividends
The results for the year are set out on page 11.
The directors do not recommend payment of an ordinary dividend.
No preference dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Diego Biasi
Mr John Troostwyck
(Appointed 2 March 2022)
Auditor
The auditor, PMK & Associates LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr Diego Biasi
Director
13 July 2022
QUERCUS REAL ASSETS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
QUERCUS REAL ASSETS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUERCUS REAL ASSETS LIMITED
- 8 -
Opinion
We have audited the financial statements of Quercus Real Assets Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
QUERCUS REAL ASSETS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUERCUS REAL ASSETS LIMITED
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Our approach to identifying and assessing the susceptibility of the entity’s financial statements to material misstatements including non-compliance with laws and regulations and how fraud might occur and how these were address on the audit are:
The engagement partner ensured that the audit team has appropriate competence, skills and experience to identify risk of non-compliance with applicable laws and regulations.
We discussed with informed management regarding the applicable laws and regulations and how these are being complied with.
We considered that there are specific laws and regulations, which have a direct material effect on the operation of the company, which include Companies Act 2006, FCA regulations, employment and bribery act, anti-money laundering regulations.
We assessed the compliance with the laws and regulations identified above through making enquiries with management and company in house legal counsel.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by
Making enquiries with informed management to confirm where they consider the company was susceptible to fraud and if they have knowledge of actual or suspected fraud.
Enquire with management and obtain information regarding the internal controls and policies in place to mitigate the risk of fraud.
QUERCUS REAL ASSETS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUERCUS REAL ASSETS LIMITED
- 10 -
To address the risk of fraud through management bias and override of controls, we:
Perform analytical review to identify unusual trends.
Tested journal entries to identify unusual transactions.
Investigate where applicable, the rationale behind the identified unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures, which included but were not limited to:
Agreeing financial statement disclosures to underlying supporting documentation;
Enquiring of management as to actual and potential litigation and claims; and
Enquiring with legal counsel regarding any breach of laws and regulations.
Reviewing FCA register to check if there are any indication of any breaches.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Malcolm Kauder (Senior Statutory Auditor)
For and on behalf of PMK & Associates LLP
13 July 2022
Chartered Certified Accountants
Statutory Auditor
Lower Third Floor, Evelyn Suite
Quantum House, 22 - 24 Red Lion Court
London
EC4A 3EB
QUERCUS REAL ASSETS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
Year
Year
ended
ended
31 December
31 December
2021
2020
as restated
Notes
£
£
Revenue
4
2,181,017
369,371
Cost of sales
(725,164)
(24,568)
Gross profit
1,455,853
344,803
Administrative expenses
(1,694,988)
(2,025,546)
Other operating income
9,591
30,368
Operating loss
5
(229,544)
(1,650,375)
Investment income
9
262
Other gains and losses
10
(1,140,034)
Loss before taxation
(229,282)
(2,790,409)
Tax on loss
11
495,236
(42,416)
Profit/(loss) for the financial year
265,954
(2,832,825)
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
QUERCUS REAL ASSETS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
31 December 2021
- 12 -
2021
2020
as restated
Notes
£
£
£
£
Non-current assets
Intangible assets
12
3,555
4,540
Property, plant and equipment
13
51,427
89,073
Investments
14
100
100
55,082
93,713
Current assets
Trade and other receivables
16
1,430,010
478,267
Cash and cash equivalents
79,823
25,961
1,509,833
504,228
Current liabilities
17
(1,046,542)
(327,416)
Net current assets
463,291
176,812
Total assets less current liabilities
518,373
270,525
Provisions for liabilities
Deferred tax liability
19
18,140
-
(18,140)
Net assets
518,373
252,385
Equity
Called up share capital
21
1,868,661
1,868,627
Share premium account
44,860
44,860
Other reserves
405,526
405,526
Retained earnings
(1,800,674)
(2,066,628)
Total equity
518,373
252,385
The financial statements were approved by the board of directors and authorised for issue on 13 July 2022 and are signed on its behalf by:
Mr Diego Biasi
Director
Company Registration No. 09242415
QUERCUS REAL ASSETS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
Share capital
Share premium account
Other reserves
Retained earnings
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2020:
Balance at 1 January 2020
1,178,452
-
12,459
993,080
2,183,991
Effect of change in accounting policy
-
-
(226,883)
(226,883)
As restated
1,178,452
12,459
766,197
1,957,108
Period ended 31 December 2020:
Loss and total comprehensive income for the period
-
-
-
(2,832,825)
(2,832,825)
Issue of share capital
21
800,000
44,860
-
-
844,860
Conversion of loan to shares
21
300,000
-
-
300,000
Transfers
-
-
393,067
393,067
Other movements
(409,825)
-
-
-
(409,825)
Balance at 31 December 2020
1,868,627
44,860
405,526
(2,066,628)
252,385
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
-
-
265,954
265,954
Issue of share capital
21
34
-
-
34
Balance at 31 December 2021
1,868,661
44,860
405,526
(1,800,674)
518,373
QUERCUS REAL ASSETS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2021
2020
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
41,918
(1,371,770)
Income taxes (paid)/refunded
11,589
Net cash inflow/(outflow) from operating activities
41,918
(1,360,181)
Investing activities
Purchase of intangible assets
(4,961)
Purchase of property, plant and equipment
(1,198)
(17,464)
Proceeds on disposal of property, plant and equipment
1,504
Proceeds on disposal of subsidiaries
-
(100)
Loan written off
(1,140,034)
Interest received
263
Net cash generated from/(used in) investing activities
569
(1,162,559)
Financing activities
Proceeds from issue of shares
34
1,036,844
Net cash generated from financing activities
34
1,036,844
Net increase/(decrease) in cash and cash equivalents
42,521
(1,485,896)
Cash and cash equivalents at beginning of year
25,961
1,511,857
Cash and cash equivalents at end of year
68,482
25,961
Relating to:
Cash at bank and in hand
79,823
25,961
Bank overdrafts included in creditors payable within one year
(11,341)
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
1
Accounting policies
Company information
Quercus Real Assets Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Albemarle Street, London, W1S 4HH.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the presentation currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The company's functional currency is the euro. The company has adopted sterling as its presentation currency for ease of administration and because the company is legally resident in the sterling area.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group. Quercus Real Assets Limited is a subsidiary of Quercus Investment Holding Limited and the results of Quercus Real Assets Limited are included in the consolidated financial statements of Quercus Investment Holding Limited, which are available from the parent company's registered office address.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Turnover represents amounts receivable for fees raised upon the completion of contractual obligations and for ongoing asset management services, net of VAT.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks
20% straight line
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
10% straight line
Computer equipment
25% straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 19 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Monetary assets and liabilities denominated in other currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in other currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
2
Change in accounting policy
The company now presents its results in sterling with effect from 1 January 2021.
In order to satisfy the requirements of FRS 102 with respect to a change in presentation currency, the statutory financial information as reported in the company's Annual Reports for the previous years has been restated from euros into sterling using the procedures outlined below:
• Assets and liabilities where the functional currency is other than sterling were translated into sterling at the relevant closing rates of exchange.
• Non-sterling trading results were translated into sterling at the relevant average rates of exchange.
• Differences arising from the retranslation of the opening net assets and the results for the year have been taken to the foreign currency translation reserve.
3
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
4
Revenue
An analysis of the company's revenue is as follows:
2021
2020
£
£
Revenue analysed by class of business
Asset management fee
2,111,390
177,777
Other
69,627
191,594
2,181,017
369,371
2021
2020
£
£
Other significant revenue
Interest income
262
-
Grants received
9,591
30,368
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
4
Revenue
(Continued)
- 21 -
2021
2020
£
£
Revenue analysed by geographical market
United Kingdom
12,000
191,594
Europe
2,123,520
177,777
Rest of the world
45,497
-
2,181,017
369,371
5
Operating loss
2021
2020
Operating loss for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
26,692
(76,449)
Government grants
(9,591)
(30,368)
Depreciation of owned property, plant and equipment
37,339
38,444
Amortisation of intangible assets
985
662
6
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the company's financial statements
6,104
5,896
Other services
3,975
48,125
10,079
54,021
For other services
All other non-audit services
3,975
48,125
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Administration
1
2
Investment
4
6
Finance & Legal
-
1
5
9
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
754,386
1,003,646
Social security costs
99,595
136,878
Pension costs
30,835
70,624
884,816
1,211,148
8
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
3,947
9
Investment income
2021
2020
£
£
Interest income
Other interest income
262
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
10
Other gains and losses
Fixed asset investments
2021
2020
£
£
Amounts written back to/(written off) current loans
-
(1,140,034)
Other gains and losses represent the loan balance £1,140,034 from the parent company, Quercus Investment Holdings Ltd, written off during the preceding year.
11
Taxation
2021
2020
£
£
Deferred tax
Origination and reversal of timing differences
(495,236)
42,416
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Loss before taxation
(229,282)
(2,790,409)
Expected tax credit based on the standard rate of corporation tax in the UK of 019% (2020: 19.00%)
(43,564)
(530,178)
Tax effect of expenses that are not deductible in determining taxable profit
321
304
Unutilised tax losses carried forward
(459,212)
309,319
Permanent capital allowances in excess of depreciation
3,948
Amortisation on assets not qualifying for tax allowances
187
Adjustments in respect of financial assets
7,032
Other permanent differences
42,417
Trading loan write off
216,606
Taxation (credit)/charge for the period
(495,236)
42,416
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
12
Intangible fixed assets
Trademarks
£
Cost
At 1 January 2021 and 31 December 2021
5,202
Amortisation and impairment
At 1 January 2021
662
Amortisation charged for the year
985
At 31 December 2021
1,647
Carrying amount
At 31 December 2021
3,555
At 31 December 2020
4,540
13
Property, plant and equipment
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2021
164,899
95,898
260,796
Additions
1,198
1,198
Disposals
(1,834)
(1,834)
At 31 December 2021
164,899
95,262
260,160
Depreciation and impairment
At 1 January 2021
106,395
65,329
171,724
Depreciation charged in the year
22,399
14,940
37,339
Eliminated in respect of disposals
(330)
(330)
At 31 December 2021
128,795
79,938
208,733
Carrying amount
At 31 December 2021
36,103
15,324
51,427
At 31 December 2020
58,504
30,569
89,073
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
14
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
15
100
100
15
Subsidiaries
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Quercus Real Assets (Southern Europe)
Limited
England & Wales
Dormant
Ordinary
100.00
0
The draft aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Quercus Real Assets (Southern Europe)
Limited
(331)
16
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
33,902
4,773
Other receivables
31,501
117,274
Prepayments and accrued income
887,511
356,220
952,914
478,267
2021
2020
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
477,096
Total debtors
1,430,010
478,267
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
17
Current liabilities
2021
2020
Notes
£
£
Bank loans and overdrafts
18
11,341
Trade payables
228,652
178,904
Amounts owed to group undertakings
261,732
873
Taxation and social security
8,312
44,664
Other payables
6,026
14,912
Accruals and deferred income
530,479
88,063
1,046,542
327,416
18
Borrowings
2021
2020
£
£
Bank overdrafts
11,341
Payable within one year
11,341
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2021
2020
2021
2020
Balances:
£
£
£
£
Accelerated capital allowances
-
18,140
(9,771)
-
Tax losses
-
-
486,867
-
-
18,140
477,096
-
2021
Movements in the year:
£
Liability at 1 January 2021
18,140
Credit to profit or loss
(495,233)
Credit to other comprehensive income
(3)
Asset at 31 December 2021
(477,096)
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 27 -
20
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,835
70,624
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
1,868,627 Ordinary shares of £1 each
1,868,627
1,868,627
140 (2020: 0) Growth shares of 10p each
14
-
1,868,641
1,868,627
Preference share capital
Issued and fully paid
20 (2020: 0) Preference shares of £1 each
20
-
Preference shares classified as equity
20
-
Total equity share capital
1,868,661
1,868,627
Growth shares with a nominal value of £0.10 were issued for the first time during the current year, with a view to encouraging Employee engagement with and alignment to the business aims and objectives of the Company. It was also considered that employee loyalty and employee retention would be enhanced by offering a participation in Company Equity.
During the year, the company issued 20 preference shares of £1 each and 140 growth shares of £0.10 each for cash.
Preference and growth shares rights to receive dividends and distributions only, and do not carry voting rights.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 28 -
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
174,930
174,930
Between two and five years
72,337
232,580
247,267
407,510
23
Events after the reporting date
After the year end the company passed board resolutions to reduce its ordinary share capital to £100,000. The capital reduction of £1,768,627 was transferred to reserves.
After the balance sheet date the company paid a dividend of £2,463,000 to its parent, Quercus Investment Holdings Ltd ("QIH"). The company also repaid its loan to QIH Ltd after the year end.
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2021
2020
£
£
Aggregate compensation
4,440
During the year, the company received an amount of £260,858 from the parent company, Quercus Investment Holding Ltd. At the reporting date, the balance due to Quercus Investment Holding Ltd was £261,732 (2020: £873).
During the year, the company paid net expenses of £77,187 (2020: £110,183) on behalf of Quercus Investment Partners Limited (Dubai), a representative office of Quercus Real Assets Limited.
During the year, the company paid net expenses of £100 (2020: £390) on behalf of Quercus Real Assets (Southern Europe) Ltd, a subsidiary of the company. At the reporting date, the balance due from Quercus Real Assets (Southern Europe) Ltd is £490 (2020: £390).
During the year, the company paid £81,000 to QRA Capital Ltd in respect of professional services. At the reporting date, the balance due to QRA Capital Ltd was £nil (2020: £nil).
Included under other creditors is an amount of £nil (2020: £4,663) due to the director.
QUERCUS REAL ASSETS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 29 -
25
Ultimate controlling party
The ultimate parent company is Quercus Investment Holding Limited.
The ultimate controlling party is Mr Diego Biasi.
26
Cash generated from/(absorbed by) operations
2021
2020
£
£
Profit/(loss) for the year after tax
265,954
(2,832,825)
Adjustments for:
Taxation (credited)/charged
(495,236)
42,416
Investment income
(262)
Amortisation and impairment of intangible assets
985
662
Depreciation and impairment of property, plant and equipment
37,339
38,444
Other gains and losses
-
1,140,034
Movements in working capital:
(Increase)/decrease in trade and other receivables
(474,647)
216,327
Increase in trade and other payables
707,785
23,172
Cash generated from/(absorbed by) operations
41,918
(1,371,770)
27
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
25,961
53,862
79,823
Bank overdrafts
(11,341)
(11,341)
25,961
42,521
68,482
28
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
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