Growth Lending 2020 Limited
Annual Report and Financial Statements
For the year ended 31 December 2022
Company Registration No. 12677351 (England and Wales)
Growth Lending 2020 Limited
Company Information
Director
Mr L M Mysyrowicz
Secretary
Mr E Hatfield
Company number
12677351
Registered office
1 Vicarage Lane
Stratford
London
United Kingdom
E15 4HF
Auditor
Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP
Business address
1 Vicarage Lane
Stratford
London
United Kingdom
E15 4HF
Growth Lending 2020 Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 16
Growth Lending 2020 Limited
Strategic Report
For the year ended 31 December 2022
Page 1

The director presents the strategic report for the year ended 31 December 2022.

Fair review of the business

The principal activity of the company is to provide growth debt finance to UK SMEs pursuant to the Coronavirus Business Interruption Loan Scheme ("CBILS").

Principal risks and uncertainties

 

Credit extended to customers

The Company extends credit terms to its customers, the Company advances credit to customers based on its own assessment of credit risks where in the opinion of the Company's internal credit committee and investment committee it is reasonable to do so. The company’s credit risk is mitigated as the UK government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

 

Exchange rate risk

Brexit has caused regional uncertainty, management does not perceive these as significant risks to the business and there has been no notable negative impact.

Development and performance

Turnover and expenditure have decreased during the year as the scheme closed to new applications on 31 March 2021.

Key performance indicators

The turnover for the period covered by this strategic report and financial statements was £13.02m (2021:£16.63m) .

By order of the board

Mr L M Mysyrowicz
Director
10 August 2023
Growth Lending 2020 Limited
Director's Report
For the year ended 31 December 2022
Page 2

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company for the year has continued to be that of operating as a special purpose vehicle for the origination of loans to UK SMEs pursuant to the Coronavirus Business Interruption Loan Scheme ("CBILS").

Director

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

Mr L M Mysyrowicz
Auditor

The auditors Moore Kingston Smith LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 L M Mysyrowicz
Director
10 August 2023
Growth Lending 2020 Limited
Director's Responsibilities Statement
For the year ended 31 December 2022
Page 3

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

Growth Lending 2020 Limited
Independent Auditor's Report
To the Members of Growth Lending 2020 Limited
Page 4
Opinion

We have audited the financial statements of Growth Lending 2020 Limited (the 'company') for the year ended 31 December 2022 which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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 FRS 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The director is 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.

Growth Lending 2020 Limited
Independent Auditor's Report (Continued)
To the Members of Growth Lending 2020 Limited
Page 5

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our 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 and the Director's Report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Growth Lending 2020 Limited
Independent Auditor's Report (Continued)
To the Members of Growth Lending 2020 Limited
Page 6
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Use of our report

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

Rebecca Shields (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
29 September 2023
Chartered Accountants
Statutory Auditor
Growth Lending 2020 Limited
Profit and Loss Account
For the year ended 31 December 2022
Page 7
2022
2021
£
£
Turnover
13,017,645
16,634,620
Cost of sales
(1,243,501)
(1,480,578)
Gross profit
11,774,144
15,154,042
Administrative expenses
(11,774,144)
(15,154,042)
Profit before taxation
-
0
-
0
Tax on profit
-
0
-
0
Profit for the financial year
-
-
Growth Lending 2020 Limited
Statement of Comprehensive Income
For the year ended 31 December 2022
Page 8
2022
2021
£
£
Loss for the year
-
-
Other comprehensive income
-
-
Total comprehensive income for the year
-
0
-
0
Growth Lending 2020 Limited
Balance Sheet
As at 31 December 2022
Page 9
2022
2021
Notes
£
£
£
£
Current assets
Debtors
4
93,663,842
148,464,171
Cash at bank and in hand
4,294,606
6,645,617
97,958,448
155,109,788
Creditors: amounts falling due within one year
5
(29,847,422)
(30,201,412)
Net current assets
68,111,026
124,908,376
Creditors: amounts falling due after more than one year
6
(68,110,926)
(124,908,276)
Net assets
100
100
Capital and reserves
Called up share capital
7
100
100
The financial statements were approved and signed by the director and authorised for issue on 10 August 2023
Mr L M Mysyrowicz
Director
Company Registration No. 12677351
Growth Lending 2020 Limited
Statement of Changes in Equity
For the year ended 31 December 2022
Page 10
Share capital
£
Balance at 1 January 2021
100
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
Balance at 31 December 2021
100
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
Balance at 31 December 2022
100
Growth Lending 2020 Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 11
1
Accounting policies
Company information

Growth Lending 2020 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Vicarage Lane, Stratford, London, United Kingdom, E15 4HF.

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 as applicable to companies subject to the small companies regime.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Growth Lending Group Limited. These consolidated financial statements are available from its registered office. 1 Vicarage Lane, Stratford, E15 4HF.

1.2
Going concern

The Director hatrues prepared the financial statements on the going concern basis which assumes that the Company will continue in operational existence for the foreseeable future and will have adequate funds available to meet its obligations as they fall due. The Director is satisfied that the financial statements are prepared on a going concern basis due to the ongoing performance of the CBILS loans.

 

The management and Director do not believe, given the current operational level and liquidity resources and cash outflows over the coming 12 months, that there is material uncertainty that casts a significant doubt over the Company’s ability to continue as a going concern in the next 12 months after the date of signing the financial statements. An analysis has been carried out on the performance of the CBILs loans and as at the date of approving these financial statements there is no evidence to suggest that the loans should be further impaired.

 

Growth Lending 2020 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 12
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover comprises the company's share of interest due from secured loans made to borrowers on the basis of agreements in place between the company and the borrowers and the company.

 

Revenue is recognised on a time apportioned basis after taking into account the amount outstanding and the loan rate applicable. Interest is calculated daily and it is recognised in arrears at the end of the month.

1.4
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.

1.5
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 balance sheet 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 debtors 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.

Growth Lending 2020 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 13
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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Growth Lending 2020 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 14
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.

1.6
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.

1.7
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
Employees

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

2022
2021
Number
Number
Total
-
0
-
0
Growth Lending 2020 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 15
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
30,988,488
32,088,818
Other debtors
4,081
20,080
30,992,569
32,108,898
2022
2021
Amounts falling due after more than one year:
£
£
Trade debtors
62,671,273
116,355,273
62,671,273
116,355,273
Total debtors
93,663,842
148,464,171

The company was incorporated on 17 June 2020 as a special purpose vehicle for the origination of loans with UK SMEs pursuant to the Coronavirus Business Interruption Loan Scheme ("CBILS"). During 2020 and 2021 the company advanced loans totalling £189,190,490.

 

The company is scheduled to receive capital repayments totalling £29,227,224 (2021 £29,009,857) during the year ended 31 December 2022 with £62,671,273 (2021: £116,355,273) repayable in greater than one year.

5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
251,490
420,288
Other creditors
29,595,932
29,781,124
29,847,422
30,201,412
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
68,110,926
124,908,276
Growth Lending 2020 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 16
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
8
Parent company

The parent company of Growth Lending 2020 Limited is Growth Lending Group Limited and its registered office is:

1 Vicarage Lane

Stratford

London

E15 4HF

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