IRIS Accounts Production v24.1.0.578 09707697 Board of Directors 1.8.22 31.7.23 31.7.23 Administration and management of securitised receivables. 0 1 false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh097076972022-07-31097076972023-07-31097076972022-08-012023-07-31097076972021-07-31097076972021-08-012022-07-31097076972022-07-3109707697ns15:EnglandWales2022-08-012023-07-3109707697ns14:PoundSterling2022-08-012023-07-3109707697ns10:Director12022-08-012023-07-3109707697ns10:PrivateLimitedCompanyLtd2022-08-012023-07-3109707697ns10:SmallEntities2022-08-012023-07-3109707697ns10:Audited2022-08-012023-07-3109707697ns10:SmallCompaniesRegimeForAccounts2022-08-012023-07-3109707697ns10:FullAccounts2022-08-012023-07-3109707697ns10:OrdinaryShareClass12022-08-012023-07-3109707697ns10:Director22022-08-012023-07-3109707697ns10:CompanySecretary12022-08-012023-07-3109707697ns10:RegisteredOffice2022-08-012023-07-3109707697ns5:CurrentFinancialInstruments2023-07-3109707697ns5:CurrentFinancialInstruments2022-07-3109707697ns5:ShareCapital2023-07-3109707697ns5:ShareCapital2022-07-3109707697ns5:RetainedEarningsAccumulatedLosses2023-07-3109707697ns5:RetainedEarningsAccumulatedLosses2022-07-3109707697ns5:ShareCapital2021-07-3109707697ns5:RetainedEarningsAccumulatedLosses2021-07-3109707697ns5:RetainedEarningsAccumulatedLosses2021-08-012022-07-3109707697ns5:RetainedEarningsAccumulatedLosses2022-08-012023-07-3109707697ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-07-3109707697ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-07-3109707697ns10:OrdinaryShareClass12023-07-3109707697ns5:RetainedEarningsAccumulatedLosses2022-07-31
REGISTERED NUMBER: 09707697 (England and Wales)















European Servicing Company Limited

Directors' Report and

Financial Statements

for the Year Ended 31 July 2023






European Servicing Company Limited (Registered number: 09707697)

Contents of the Financial Statements
for the year ended 31 July 2023










Page

Company Information 1

Directors' Report 2

Independent Auditors' Report 3

Income Statement 6

Other Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Notes to the Financial Statements 10


European Servicing Company Limited

Company Information
for the year ended 31 July 2023







Directors: V Bordignon
M Cordoni





Secretary: Forgate Secretaries Limited





Registered office: 17C Curzon Street
London
W1J 5HU





Registered number: 09707697 (England and Wales)





Auditors: Cooper Parry Group Limited
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

European Servicing Company Limited (Registered number: 09707697)

Directors' Report
for the year ended 31 July 2023


The directors present their report with the financial statements of the Company for the year ended 31 July 2023.

Dividends
The total distribution of dividends for the year ended 31 July 2023 was £Nil (2022 - £5,349,496).

Directors
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report.

V Bordignon
M Cordoni

Auditors
The audit business of Haines Watts London LLP was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts London LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

Statement of directors' responsibilities
The directors are responsible for preparing the Directors' 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;
-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.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors
The auditors, Cooper Parry Group Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





M Cordoni - Director


18 March 2024

Independent Auditors' Report to the Members of
European Servicing Company Limited


Opinion
We have audited the financial statements of European Servicing Company Limited (the 'Company') for the year ended 31 July 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 July 2023 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.

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 Auditors' 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Directors' Report, but does not include the financial statements and our Auditors' 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.

In connection with our audit of the financial statements, 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 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:
- the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors' Report has been prepared in accordance with applicable legal requirements.

Independent Auditors' Report to the Members of
European Servicing Company Limited


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 Directors' 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:
- 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report.
- the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities, 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 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.

Auditors' 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 Auditors' 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.

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We discussed with management the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquiries of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding the risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests include agreeing the financial statement disclosures to underlying supporting documentation.

Independent Auditors' Report to the Members of
European Servicing Company Limited


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. In assessing the potential risks of material misstatement we obtained an understanding of; the entities operations, including the nature of its revenue sources and services and of its objectives and strategies to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risks of material misstatement. We did not identify any matters relating to non-compliance with laws and regulations relating to fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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 Auditors' 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.




Chris Evans BSC FCA (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

18 March 2024

European Servicing Company Limited (Registered number: 09707697)

Income Statement
for the year ended 31 July 2023

2023 2022
Notes £ £

Turnover 297,645 1,007,224

Cost of sales - (118,848 )
Gross profit 297,645 888,376

Administrative expenses (150,880 ) (345,324 )
Operating profit 146,765 543,052

Interest receivable and similar income 7,914 32,016
Profit before taxation 4 154,679 575,068

Tax on profit (51,017 ) (109,263 )
Profit for the financial year 103,662 465,805

European Servicing Company Limited (Registered number: 09707697)

Other Comprehensive Income
for the year ended 31 July 2023

2023 2022
Notes £ £

Profit for the year 103,662 465,805


Other comprehensive income - -
Total comprehensive income for the year 103,662 465,805

European Servicing Company Limited (Registered number: 09707697)

Balance Sheet
31 July 2023

2023 2022
Notes £ £
Current assets
Debtors 5 1,020,380 802,760
Cash at bank 45,197 147,849
1,065,577 950,609
Creditors
Amounts falling due within one year 6 179,293 167,987
Net current assets 886,284 782,622
Total assets less current liabilities 886,284 782,622

Capital and reserves
Called up share capital 8 300,000 300,000
Retained earnings 9 586,284 482,622
Shareholders' funds 886,284 782,622

The financial statements have been prepared 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 18 March 2024 and were signed on its behalf by:





M Cordoni - Director


European Servicing Company Limited (Registered number: 09707697)

Statement of Changes in Equity
for the year ended 31 July 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 August 2021 300,000 5,366,313 5,666,313

Changes in equity
Total comprehensive income - 465,805 465,805
Dividends - (5,349,496 ) (5,349,496 )
Balance at 31 July 2022 300,000 482,622 782,622

Changes in equity
Total comprehensive income - 103,662 103,662
Balance at 31 July 2023 300,000 586,284 886,284

European Servicing Company Limited (Registered number: 09707697)

Notes to the Financial Statements
for the year ended 31 July 2023


1. Statutory information

European Servicing Company Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared under the historical cost convention.

The financial statements have not been prepared on going concern basis as explained within the 'basis other than going concern' paragraph of this note.

Set out below is a summary of the principal accounting policies, all of which have been applied consistently (except as otherwise stated). The financial statements are presented in British Pound Sterling (£).

Related party exemption
The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates
In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Critical judgements in applying the Company's accounting policies
The critical judgement that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below:

(i) Assessing indicators and impairment
In assessing whether there have been any indicators or impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience or recoverability. There have been no indicators or impairments identified during the current financial year.

Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

(i) Recoverability of receivables
The Company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the ageing of the receivables, past experience and recoverability, and the credit profile of individual or groups of customers.

European Servicing Company Limited (Registered number: 09707697)

Notes to the Financial Statements - continued
for the year ended 31 July 2023


2. Accounting policies - continued

Turnover
Turnover is derived from the provision of services to structured finance entities for the administration and management of securitised receivables, net of value added tax and trade discounts and is recognised when services are rendered.

Foreign currencies
Foreign currency transactions are translated into functional currency using the exchange rate prevailing at that date the transaction took place. Where this is not possible to determine, income and expense items are translated using an average exchange rate for the period.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are reported at the rates of exchange prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined. Non monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the reporting date of monetary assets and liabilities are reported in the income statement.

Provisions
Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that the obligation will be required to be settled, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period taking into account the risks and uncertainties surrounding the obligation. Provisions are discounted when the time value of money is material.

Equity
Equity instruments are classified in accordance with the substance of contractual agreement. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Equity instruments issued by the Company are recorded at the fair value of the cash or other resources received or receivable, net of direct costs of issuing the equity instruments.

Financial instruments
Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds basic financial instruments which comprise cash at bank, trade and other receivables, and trade and other payables. The Company has chosen to apply the provisions of Section 11 Basic Financial Instruments in full.

Financial assets - classified as basic financial instruments

(i) Cash at bank and in hand
Cash at bank and in hand include cash in hand, deposits held with banks, and other short-term highly liquid investments with original maturities of three months or less.

(ii) Trade and other receivables
Trade and other receivables are initially recognised at the transaction price, including any transaction costs. Amounts that are receivable within one year are measured at the undiscounted amount of the cash expected to be received, net of any impairment.

At the end of each reporting period, the Company assesses whether there is objective evidence that an receivable amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the effective interest rate. The amount of the provision is recognised immediately in profit or loss.

European Servicing Company Limited (Registered number: 09707697)

Notes to the Financial Statements - continued
for the year ended 31 July 2023


2. Accounting policies - continued

Financial Liabilities - classified as basic financial instruments

(iii) Trade and other payables and loans and borrowings
Trade and other payables and loans and borrowings are initially measured at the transaction price, including any transaction costs, and subsequently measured at amortised cost using the effective interest method. Amounts that are payable within one year are measured at the discounted amount of the cash expected to be paid.

Going concern
These financial statements have been prepared on a going concern basis.

The current economic conditions present increased risks for all businesses. The directors have reviewed and considered relevant information, including the annual budget in making their assessment. In response to such conditions, the directors have carefully considered these risks including an assessment on uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.

Based on assessment, the directors consider that the Company maintains an appropriate level of liquidity, including the ability to realise further assets, sufficient to meet the demands of the business including any capital and servicing obligations and external debt liabilities.

In addition, the Company's assets are assessed for recoverability on a regular basis, and the directors consider that the Company is not exposed to losses on these assets, which would affect their decision to adopt the going concern basis.

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubts upon the Company's ability to continue as a going concern. Thus, the directors have continued to adopt the going concern basis of accounting in preparing these financial statements.

3. Employees and directors

The average number of employees during the year was 0 (2022 - 1).

4. Profit before taxation

The profit is stated after charging/(crediting):

2023 2022
£ £
Auditors' remuneration 7,500 9,000
Foreign exchange differences 28,976 (6 )

5. Debtors: amounts falling due within one year
2023 2022
£ £
Trade debtors - 241,289
Amounts owed by group undertakings 934,539 543,089
Tax - 18,382
VAT 1,604 -
Accrued income 84,237 -
1,020,380 802,760

Amounts owed by group undertakings relates to a treasury agreement with the parent company to sweep excess cash, interest of 1% (2022: Euribor plus 2%) is received. The amount is repayable on demand.

European Servicing Company Limited (Registered number: 09707697)

Notes to the Financial Statements - continued
for the year ended 31 July 2023


6. Creditors: amounts falling due within one year
2023 2022
£ £
Trade creditors 153,153 153,152
Tax 14,640 -
Social security and other taxes - 4,396
VAT - 6
Accruals and deferred income 11,500 10,433
179,293 167,987

7. Financial instruments

The Company’s financial instruments may be analysed as follows:
2023 2022
£    £   
Financial assets

Financial assets that are measured at amortised cost 1,063,973 932,227

Financial liabilities

Financial liabilities measured at amortised cost 164,653 163,585


Financial assets measured at amortised cost comprise cash, trade debtors, amounts owed by group undertakings, other debtors and accrued income.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.

8. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
300,000 Ordinary £1 300,000 300,000

9. Reserves
Retained
earnings
£

At 1 August 2022 482,622
Profit for the year 103,662
At 31 July 2023 586,284

European Servicing Company Limited (Registered number: 09707697)

Notes to the Financial Statements - continued
for the year ended 31 July 2023


10. Ultimate controlling party

The ultimate controlling party is M Cordoni.

Ultimate parent company

The registered address is:

Corporation Financiére Européenne S.A.
32 Boulevard Royal
L-2449 Luxembourg

A copy of the group accounts can be requested from here.