Company Registration No. 07914552 (England and Wales)
RQ CAPITAL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
RQ CAPITAL LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
RQ CAPITAL LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
5
1
1
Current assets
Debtors
7
12,639,130
11,770,499
Cash at bank and in hand
722,366
543,342
13,361,496
12,313,841
Creditors: amounts falling due within one year
8
(3,226,689)
(1,337,268)
Net current assets
10,134,807
10,976,573
Total assets less current liabilities
10,134,808
10,976,574
Creditors: amounts falling due after more than one year
10
(8,022,556)
(7,322,556)
Net assets
2,112,252
3,654,018
Capital and reserves
Called up share capital
11
46
106
Capital redemption reserve
63
3
Profit and loss reserves
2,112,143
3,653,909
Total equity
2,112,252
3,654,018

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 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 30 July 2024 and are signed on its behalf by:
R E Q Gurney
Director
Company Registration No. 07914552
RQ CAPITAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
97
3
2,290,119
2,290,219
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
2,113,790
2,113,790
Issue of share capital
11
9
-
-
9
Dividends
-
-
(750,000)
(750,000)
Balance at 31 January 2023
106
3
3,653,909
3,654,018
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
-
1,258,234
1,258,234
Redemption of shares
11
(60)
60
(2,800,000)
(2,800,000)
Balance at 31 January 2024
46
63
2,112,143
2,112,252
RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
1
Accounting policies
Company information

RQ Capital Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bawdeswell Hall, Bawdeswell, Dereham, Norfolk, NR20 4SA.

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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 on the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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
Turnover

Turnover comprises the interest receivable and net arrangement fees recognised on loans. Turnover is recognised as follows:

 

Interest income is recognised when it is earned and is accrued for in the period to which it relates.

 

Net arrangement fees are recognised at the point where they are applied to the loan, be that entry, exit or extension / amendment.  The calculation includes all fees charged to customers less direct and incremental transaction costs.

1.4
Fixed asset investments

Interests in subsidiaries are measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
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.

RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

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 and loans, 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.

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
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Bad debt provision

Included in the financial statements is an impairment assessment of trade debtors, which is based on the specific loan book values, where the recoverability is deemed to be doubtful at the year end.

3
Employees

There are no employees in the current or comparative period.

4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
91,744
75,702
Deferred tax
Origination and reversal of timing differences
-
0
8,942
Total tax charge
91,744
84,644
5
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
1
1

 

RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
5
Fixed asset investments
(Continued)
- 6 -
Movements in fixed asset investments
Shares in group undertakings
£
Cost
At 1 February 2023 & 31 January 2024
1
Carrying amount
At 31 January 2024
1
At 31 January 2023
1
6
Subsidiaries

 

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
RQ Capital Loans Limited
Bawdeswell Hall, Bawdeswell, Dereham, United Kingdom, NR20 4SA
Ordinary shares
100.00
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Gross trade debtors
2,457,670
-
Bad debt provision
(58,549)
-
2,399,121
-
Corporation tax recoverable
8,257
-
0
Amounts due from subsidiary undertakings
9,231,150
8,858,397
Other debtors
1,000,000
2,905,000
Prepayments and accrued income
602
7,102
12,639,130
11,770,499

The amounts due from subsidiary undertakings is secured by a fixed and floating charge over the assets of the subsidiary undertaking. A market rate of interest is charged on the amounts due from the subsidiary undertaking.

RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
8
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other loans
9
3,200,000
500,000
Trade creditors
-
0
3,066
Corporation tax
-
0
75,702
Dividends payable
-
0
750,000
Accruals and deferred income
26,689
8,500
3,226,689
1,337,268

 

9
Loans
2024
2023
£
£
Preference shares
500,000
500,000
Other loans
10,722,556
7,322,556
11,222,556
7,822,556
Payable within one year
3,200,000
500,000
Payable after one year
8,022,556
7,322,556

The redeemable preference shares are entitled to a fixed, cumulative, preferential dividend at an annual rate of 9.25% of the issue price per preferred shares. The preference shares may be redeemed subject to the company giving 30 days notice or the shareholder giving 90 days notice.

 

10
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other loans
9
8,022,556
7,322,556

Other loans are secured by a fixed and floating charge over the assets of the company. Other loans, totalling £8,022,556 (2023: £7,322,556), are due for repayment from 30 June 2024 to 30 June 2026.

RQ CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
11
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
360 Ordinary shares of 10p each
36
96
97 Ordinary B shares of 10p each
9
10
46
106

Ordinary B shares are not entitled to notices or attend meetings or vote (except where class rights are affected), are not entitled to a dividend and limited capital distribution (including on winding up) rights.

 

 

During the year the company bought back 606 Ordinary shares

12
Audit report information

As the profit and loss account 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 Russell Nathan.
The auditor was HW Fisher LLP.
13
Financial commitments, guarantees and contingent liabilities

The amounts owed by the company's subsidiary undertaking to Metro Bank PLC of £17,856,735 (2023: £15,794,576) is secured by a fixed charge over the assets of this company and a fixed and floating charge over the assets of the company's subsidiary undertaking.

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