Growth Lending 2021 Limited
Financial Statements
For the year ended 31 December 2022
For Filing with Registrar
Company Registration No. 13128349 (England and Wales)
Growth Lending 2021 Limited
Company Information
Directors
Mr L M Mysyrowicz
Ms D Ansems
Secretary
Mr E Hatfield
Company number
13128349
Registered office
1 Vicarage Lane
United Kingdom
E15 4HF
Auditor
Moore Kingston Smith LLP
9 Appold Street
London
EC2A 2AP
Business address
1 Vicarage Lane
London
United Kingdom
E15 4HF
Growth Lending 2021 Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 6
Growth Lending 2021 Limited
Balance Sheet
As at 31 December 2022
31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Current assets
Debtors
4
120,811,856
45,875,239
Cash at bank and in hand
977,641
21,506,956
121,789,497
67,382,195
Creditors: amounts falling due within one year
5
(28,665,072)
(453,095)
Net current assets
93,124,425
66,929,100
Creditors: amounts falling due after more than one year
6
(93,124,325)
(66,929,000)
Net assets
100
100
Capital and reserves
Called up share capital
7
100
100
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
Mr L M Mysyrowicz
Director
Company Registration No. 13128349
Growth Lending 2021 Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 2
1
Accounting policies
Company information
Growth Lending 2021 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Vicarage Lane, 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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 Directortrues have 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 Directors are satisfied that the financial statements are prepared on a going concern basis due to the ongoing performance of the RLS loans.
The management and Directors do not believe, given the current operational level and liquidity resources and cash outflows over the coming 12 months, that a 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 RLS loans and as at the date of approving these financial statements there is no evidence to suggest that the loans should be impaired.
Growth Lending 2021 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 3
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.
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.
Growth Lending 2021 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 4
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.
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 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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
Growth Lending 2021 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 5
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
28,329,141
2,624,438
Other debtors
1,638,646
62,350
29,967,787
2,686,788
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
90,844,069
43,188,451
90,844,069
43,188,451
Total debtors
120,811,856
45,875,239
The company was incorporated on 12 January 2021 as a special purpose vehicle for the origination of loans with UK SMEs pursuant to the Recovery Loan Scheme ("RLS"). During the year the company advanced loans totalling £88,003,487 (2021: £45,873,000).
The company is scheduled to receive capital repayments totalling £28,025,969 (2021: £2,624,438) during the year ended 31 December 2022 with £90,844,069 (2021: £43,188,451) repayable in greater than one year.
5
Creditors: amounts falling due within one year
2022
2021
£
£
Other creditors
28,665,072
453,095
6
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
93,124,325
66,929,000
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
Growth Lending 2021 Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
7
Called up share capital
(Continued)
Page 6
On incorporation the company issued 100 £1 Ordinary shares at par.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Rebecca Shields and the auditor was Moore Kingston Smith LLP.
9
Parent company
The parent company of Growth Lending 2021 Limited is Growth Lending Group Limited and its registered office is:
1 Vicarage Lane
Stratford
London
E15 4HF