Company Registration No. 09734101 (England and Wales)
Triple Point Advancr Leasing plc
Annual report and financial statements
for the year ended 31 March 2023
Triple Point Advancr Leasing plc
Company information
Directors
Neil Richards
Peter Alderson
Michael Bayer
Toby Furnivall
Secretary
Triple Point Investment Management LLP
Company number
09734101
Registered office
1 King William Street
London
EC4N 7AF
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Triple Point Advancr Leasing plc
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
Triple Point Advancr Leasing plc
Strategic report
For the year ended 31 March 2023
Page 1

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

Triple Point Advancr Leasing plc’s (the “Company” or “Advancr”) mission is to provide funding to UK based Small and Medium-sized Enterprises (‘SME’s), which is carefully structured to meet the specific needs of each business and delivered using thorough processes that are both responsive and responsible.

The Company continued to deploy funds into trading partnerships focussed on the provision of SME finance, whilst also growing levels of directly originated business written in its own name. The funds deployed into trading partnerships provide access to mature and diverse portfolios of loan agreements, generating income immediately from established and profitable partnerships.

As the Company grows business in its own name, it benefits from access to an experienced team recruited from the UK financial services sector, and supported by high quality credit, legal and operational teams. Over the year further resource has been added to all of these teams to support the growth ambitions of the Company. The team has developed a deep and broad introducer network, accessing good levels of lending opportunities. During the coming year the Company expects to continue its direct offering with a particular focus on providing finance to established and profitable SME businesses for growth and acquisition. The Company’s proposition encompasses a range of funding types including: small scale funding of up to £5,000; leasing; secured lending via both its established SME debt finance and property development finance teams. The SME debt finance proposition is an increasingly significant sector for the business, providing finance for both growth and acquisition to businesses who we have security over their cashflows and/or assets.

Advancr works with business partners whom it considers to be the leaders in their field, benefitting from their knowledge, expertise, licences and technology. It also selectively funds other privately-owned lenders operating in the non-bank market, where they too require funding which is more flexible and pragmatic than conventional bank finance, which in turn can help to fuel their own growth.

Advancr focusses on actively engaging with its borrower and origination partners. We have continued to grow our origination network, through additional resources, to access greater volumes of deal flow across all lending activities to continue increasing levels of deployment within the Company.

New transactions are assessed by a committee which considers the nature of the counterparty, asset type, sector risk and terms such as maturity, structure and return. In January 2023, Triple Point (the Operator) was accredited as a BCorp, a designation that the business meets high standards of verified social and environmental performance, accountability, and transparency. Core to Triple Point’s commitment to being a sustainable and responsible Operator is the integration of Environmental, Social and Governance “ESG” issues into all its analysis, acting as an additional risk assessment framework. We consider it important to act as a responsible lender and have worked pro-actively in helping borrowers through the challenging economic and trading environment of the last three years.

We are pleased to report that the Company’s profit before tax this year increased to £2,280,983 (2022: £645,343) resulting from an increase in profit share received from the Partnerships through which the Company accesses lending opportunities, and a material uplift in arrangement fees earned in the year. After taxation, the retained profit for the year was also up at £1,712,842 which has been transferred to the Company’s reserves (2022: £515,059). Over the period all bond holders were repaid in full and on time as has been the case since the Company’s inception.

Triple Point Advancr Leasing plc
Strategic report (continued)
For the year ended 31 March 2023
Page 2
Although the Company experienced some bad debts during the year, as borrowers were subject to the challenges of the wider economy with increasing interest rates and stubbornly high inflation these were within the business' expected tolerance levels and overall underlying profits increased. Additionally the impact of these have been materially reduced by security over assets owned by the borrowers and the CBILS government loan scheme. The Company continues to monitor the levels of bad debt provision on a monthly basis and increases provisions where specific concerns arise in relation to a borrower, sector or further economic deterioration.

During the period, Triple Point Advancr Leasing Plc successfully passed a Resolution proposed at the Bondholder meeting which took place on 25 April 2023, to allow further headroom to issue more bonds. Amending the Bond Deed allowed for an additional £800 million Bonds to be issued, which in addition to the previous limit, brings the maximum aggregate nominal amount which can be issued up to £1 billion. As at 3 April 2023, over £189 million of the existing Bonds have been issued, of which over £118 million have been repaid to Bondholders. The New Bonds will rank pari passu with all existing Bonds. The modifications to the Bond Deed enables the Company to increase the asset base and in turn the size of its loan book, enabling further diversification within the Company. However more importantly, it will allow the Company to continue supporting SMEs across the country which will be to the advantage of all Bondholders.

Following the above, the Company has continued to issue bonds to raise finance for its business operations. During the year £53.5m (2022: £42.1m) was raised from new bond issues and the Company will continue to raise funding through further issues. All bonds are issued at fixed rates and for a fixed term.

The Company has remained resilient and achieved increased profits over the year and we believe the company remains well placed to continue growing.
Principal risks and uncertainties
The principal risks and uncertainties faced by the Company are liquidity, interest rate and credit risks.

Liquidity risk is the risk that the Company's assets will not generate sufficient liquidity – cash flow generated from loan interest and loan repayments, to meet its obligations to pay interest or capital to bond holders. The Company continually monitors bond maturities which are known in advance and is able to plan to ensure that sufficient liquidity is maintained to meet payment obligations.

Interest Rate risk is the risk of a mismatch of interest income from lending activities and interest expenditure on bonds issued.  All lending and funding interest rates are fixed rate, and this risk is therefore managed.
Triple Point Advancr Leasing plc
Strategic report (continued)
For the year ended 31 March 2023
Page 3
Credit risk is the risk of loss arising from defaults in the Company's lending portfolio. New business lines are assessed by the Company's Board and by its appointed Investment Committee, and performance is regularly monitored in order to mitigate this risk – which is at the heart of the Company's lending business. During the current challenging economic climate both liquidity and portfolio performance monitoring continue to be a real focus. The Company and the partnerships of which it is a member, continue to monitor lending portfolios carefully, and maintain regular communication with all borrowers. In some instances, loan forbearance to borrowers has been granted, in order to support businesses that may benefit from a longer period in which to service and repay loans. Provisions have been increased where the Company's monitoring committees have deemed it prudent to do so, and the Company's liquidity position and profitability remain satisfactory. The higher levels of provisioning provide an increased buffer against future defaults.

With rising inflation, costs of raw materials, labour shortages and Covid-19 still being a feature, the Directors continue to review and monitor the health, business continuity, liquidity, and credit risks.
Key Performance Indicators

Monthly management accounts including KPIs are reviewed to monitor financial and non-financial business performance.

The key performance indicators which the Directors monitor include

 

Currently the Company deploys all funds raised and expects levels of new business to match funds raised.

In the year to 31 March 2023 the average return on assets was 11.3% (2022: 8.6%) and net margin was 2.0% (2022: 1.0%).

Section 172(1) statement

The Company identifies its primary stakeholders as its customers, suppliers, and shareholders. During the year the Company has directly engaged with all primary stakeholders and has continued to build strong relationships. The Company looks to play an active part in the community and seeks always to minimise the environmental impact of its activities.

On behalf of the board

Toby Furnivall
Director
18 September 2023
Triple Point Advancr Leasing plc
Directors' report
For the year ended 31 March 2023
Page 4

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company is the provision of leasing and debt finance to Small and Medium-Sized Enterprises.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Neil Richards
Peter Alderson
Michael Bayer
Toby Furnivall
Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £800,000. The directors do not recommend payment of a further dividend.

Auditor

Saffery LLP have expressed their willingness to continue in office.

Triple Point Advancr Leasing plc
Directors' report (continued)
For the year ended 31 March 2023
Page 5
Statement of directors' responsibilities

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:

 

 

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.

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
Toby Furnivall
Director
18 September 2023
Triple Point Advancr Leasing plc
Independent auditor's report
To the member of Triple Point Advancr Leasing plc
Page 6
Opinion

We have audited the financial statements of Triple Point Advancr Leasing plc (the 'company') for the year ended 31 March 2023 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the 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.

Triple Point Advancr Leasing plc
Independent auditor's report (continued)
To the member of Triple Point Advancr Leasing plc
Page 7

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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 the audit:

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:

 

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.

Triple Point Advancr Leasing plc
Independent auditor's report (continued)
To the member of Triple Point Advancr Leasing plc
Page 8
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Triple Point Advancr Leasing plc
Independent auditor's report (continued)
To the member of Triple Point Advancr Leasing plc
Page 9

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Michael Di Leto
Senior Statutory Auditor
For and on behalf of Saffery LLP
21 September 2023
Chartered Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Triple Point Advancr Leasing plc
Statement of comprehensive income
For the year ended 31 March 2023
Page 10
2023
2022
Notes
£
£
Revenue
3
8,212,189
4,662,028
Cost of sales
(204,548)
(63,766)
Gross profit
8,007,641
4,598,262
Administrative expenses
(2,020,215)
(1,982,117)
Operating profit
4
5,987,426
2,616,145
Investment income
8
6,030
820,056
Finance costs
9
(3,712,473)
(2,790,858)
Profit before taxation
2,280,983
645,343
Taxation
10
(568,141)
(130,284)
Profit for the financial year
1,712,842
515,059

The income statement has been prepared on the basis that all operations are continuing operations.

Triple Point Advancr Leasing plc
Statement of financial position
As at 31 March 2023
Page 11
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
12
7,064
-
0
Investments
13
19,186,976
16,647,061
19,194,040
16,647,061
Current assets
Trade and other receivables
14
54,809,729
31,587,363
Cash and cash equivalents
6,629,716
16,304,987
61,439,445
47,892,350
Current liabilities
15
(51,082,728)
(38,758,763)
Net current assets
10,356,717
9,133,587
Total assets less current liabilities
29,550,757
25,780,648
Non-current liabilities
16
(24,891,900)
(22,104,993)
Provisions for liabilities
Deferred tax liability
18
231,144
160,784
(231,144)
(160,784)
Net assets
4,427,713
3,514,871
Equity
Called up share capital
19
50,000
50,000
Retained earnings
4,377,713
3,464,871
Total equity
4,427,713
3,514,871
The financial statements were approved by the board of directors and authorised for issue on 18 September 2023 and are signed on its behalf by:
Toby Furnivall
Director
Company Registration No. 09734101 (England and Wales)
Triple Point Advancr Leasing plc
Statement of changes in equity
For the year ended 31 March 2023
Page 12
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2021
50,000
2,949,812
2,999,812
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
515,059
515,059
Balance at 31 March 2022
50,000
3,464,871
3,514,871
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,712,842
1,712,842
Dividends
11
-
(800,000)
(800,000)
Balance at 31 March 2023
50,000
4,377,713
4,427,713
Triple Point Advancr Leasing plc
Statement of cash flows
For the year ended 31 March 2023
Page 13
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
4,750,363
4,788,516
Interest paid
(3,414,956)
(2,417,999)
Income taxes paid
(546,349)
(188,530)
Net cash inflow from operating activities
789,058
2,181,987
Investing activities
Purchase of intangible assets
(11,773)
-
0
Additions to partnership investments
(1,338,987)
(2,293,208)
Net loan (advances)/repayments
(21,957,773)
(7,807,788)
Net cash used in investing activities
(23,308,533)
(10,100,996)
Financing activities
Net proceeds/(repayments) of bonds
13,644,204
19,025,376
Dividends paid
(800,000)
-
0
Net cash generated from financing activities
12,844,204
19,025,376
Net (decrease)/increase in cash and cash equivalents
(9,675,271)
11,106,367
Cash and cash equivalents at beginning of year
16,304,987
5,198,620
Cash and cash equivalents at end of year
6,629,716
16,304,987
Triple Point Advancr Leasing plc
Notes to the financial statements
For the year ended 31 March 2023
Page 14
1
Accounting policies
Company information

Triple Point Advancr Leasing plc is a private company limited by shares incorporated in England and Wales. The registered office is 1 King William Street, London, EC4N 7AF.

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 functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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 the share of profits received from the LLPs in which the company is a member, income from assets leased to customers, interest earnings from loans and similar advances, and fee income.

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:

Software
Straight line over 5 years
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 15
1.5
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.

1.6
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.

1.7
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.

Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 16
Basic financial assets

Basic financial assets, which include trade and other receivables, 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.

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.

Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 17
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.

1.8
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.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 18
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.10
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.

Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 19
2
Critical accounting 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.

3
Revenue

An analysis of the company's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Profit share received from investments
1,194,898
1,145,435
Arrangement fees
2,670,597
1,094,888
Income from leased assets
29,423
22,455
Interest income from loans and similar advances
3,562,545
2,224,030
Other income
754,726
175,220
8,212,189
4,662,028
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Provision for bad and doubtful debts
352,972
1,558,420
Amortisation of intangible assets
4,709
-
0
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 20
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,450
15,000
For other services
Audit-related assurance services
17,000
15,000
Taxation compliance services
1,925
1,800
All other non-audit services
1,850
1,750
20,775
18,550
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
1
1

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
21,584
21,540
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
21,584
21,540
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 21
8
Investment income
2023
2022
£
£
Other income from investments
Gains on financial instruments measured at fair value through profit or loss
6,030
820,056
9
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable on bonds in issue
3,712,473
2,790,858
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
497,781
-
0
Adjustments in respect of prior periods
-
0
(30,500)
Total current tax
497,781
(30,500)
Deferred tax
Origination and reversal of timing differences
70,360
160,784
Total tax charge
568,141
130,284
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
10
Taxation (continued)
Page 22

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,280,983
645,343
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
433,387
122,615
Tax effect of income not taxable in determining taxable profit
(10,033)
(11,034)
Gains not taxable
(1,146)
(155,811)
Unutilised tax losses carried forward
-
0
44,230
Adjustments in respect of prior years
-
0
(30,500)
Permanent capital allowances in excess of depreciation
(22,343)
-
0
Amortisation on assets not qualifying for tax allowances
895
-
0
Deferred tax charge
70,360
160,784
Utilisation of tax losses
(36,999)
-
0
Tax effect of expenses that are not deductable
134,020
-
0
Taxation charge for the year
568,141
130,284
11
Dividends
2023
2022
£
£
Final paid
800,000
-
0
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 23
12
Intangible fixed assets
Software
£
Cost
Additions
11,773
At 31 March 2023
11,773
Amortisation and impairment
Amortisation charged for the year
4,709
At 31 March 2023
4,709
Carrying amount
At 31 March 2023
7,064
At 31 March 2022
-
0
13
Fixed asset investments
2023
2022
£
£
LLP interest
19,186,976
16,647,061
Movements in non-current investments
LLP interest
£
Cost or valuation
At 1 April 2022
16,647,061
Additions
4,419,076
Valuation changes
6,030
Profit share
1,194,899
Withdrawn in period
(3,080,090)
At 31 March 2023
19,186,976
Carrying amount
At 31 March 2023
19,186,976
At 31 March 2022
16,647,061
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 24
14
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
444,180
395,612
Other receivables
5,289,954
4,564,800
5,734,134
4,960,412
2023
2022
Amounts falling due after more than one year:
£
£
Other receivables
49,075,595
26,626,951
Total debtors
54,809,729
31,587,363
15
Current liabilities
2023
2022
Notes
£
£
Bonds
17
48,437,480
37,453,639
Other taxation and social security
217,433
126,455
Other payables
1,672,633
723,295
Accruals and deferred income
755,182
455,374
51,082,728
38,758,763
16
Non-current liabilities
2023
2022
Notes
£
£
Bonds
17
24,891,900
21,934,020
Other taxation and social security
-
0
170,973
24,891,900
22,104,993
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 25
17
Borrowings
2023
2022
£
£
Bonds
73,329,380
59,387,659
Payable within one year
48,437,480
37,453,639
Payable after one year
24,891,900
21,934,020

The bonds issued are secured. The interest rate on the bonds ranges between 4.5% and 6.25% per annum. The amounts above are inclusive of interest accrued, payable on maturity of the bonds.

 

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Tax losses
-
(44,230)
Revaluations
231,144
205,014
231,144
160,784
2023
Movements in the year:
£
Liability at 1 April 2022
160,784
Charge to profit or loss
70,360
Liability at 31 March 2023
231,144
Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 26
19
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
20
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption in FRS 102 from disclosing related party transactions with wholly owned members of the same group.

21
Ultimate controlling party

The parent undertaking is Triple Point LLP. The directors do not consider there to be any one ultimate controlling party.

22
Financial risk management

The company's activities are exposed to market risk, credit risk and liquidity risk.

 

Market risk

Market risk is the risk of financial loss to the company resulting from the poor performance of the markets in which the company operates. The company considers its market risk to be low. The trading partnership offers leasing and finance to Small and Medium-Sized Enterprises across a number of industries which mitigates the market risk. 

 

Credit risk

Credit risk is the risk of financial loss to the company resulting from counterparties failing to discharge their obligations to the company. The company considers its credit risk to be low. The trading partnership offers leasing and finance to a large number of Small and Medium-Sized Enterprises which are not individually material to the company.

Liquidity risk

Liquidity risk is the risk of the company being unable to meet its liabilities as they fall due. The company manages liquidity risk by maintaining sufficient cash reserves and planning bond repayments through forecasts and cash flow monitoring. The company is a cash generative business.

Triple Point Advancr Leasing plc
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 27
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,712,842
515,059
Adjustments for:
Profit share from LLP interest
(1,194,898)
(1,145,435)
Taxation charged
568,141
130,284
Finance costs
3,712,473
2,790,858
Investment income
(6,030)
(820,056)
Amortisation and impairment of intangible assets
4,709
-
0
(Decrease)/increase in provisions
(440,958)
1,376,556
Movements in working capital:
(Increase)/decrease in trade and other receivables
(775,067)
872,609
Increase in trade and other payables
1,169,151
1,068,641
Cash generated from operations
4,750,363
4,788,516
24
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
16,304,987
(9,675,271)
6,629,716
Borrowings excluding overdrafts
(59,387,659)
(13,941,721)
(73,329,380)
(43,082,672)
(23,616,992)
(66,699,664)
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