BRIDGING FINANCE SOLUTIONS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Company Registration No. 05684772 (England and Wales)
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
5
100
100
Current assets
Debtors
7
16,207,381
15,269,085
Cash at bank and in hand
1,224,414
241,031
17,431,795
15,510,116
Creditors: amounts falling due within one year
6
(15,090,855)
(13,262,980)
Net current assets
2,340,940
2,247,136
Total assets less current liabilities
2,341,040
2,247,236
Creditors: amounts falling due after more than one year
8
(158,918)
(165,000)
Net assets
2,182,122
2,082,236
Capital and reserves
Called up share capital
9
1,000
1,000
Profit and loss reserves
2,181,122
2,081,236
Total equity
2,182,122
2,082,236
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 8 May 2024 and are signed on its behalf by:
Mr S A Barber
Director
Company Registration No. 05684772
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Bridging Finance Solutions Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Cottages, 86-88 Wallasey Road, Wallasey, CH44 2AE.
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 under 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
The directors have considered the impact of the Coronavirus which is prevalent at the time of approval of these accounts and are confident that they have adequate resources to continue in business having taken account of current and future lending and expenditure commitments. As such, the accounts are prepared on a going concern basis. true
1.3
Turnover
Turnover represents fees receivable for services delivered and interest charged to clients. The fees are incurred on the date the funds are advanced. Interest is recognised on a monthly basis over the period of loan. The company is exempt from VAT registration due to the nature of its trade.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.
Depreciation 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:
Fixtures, fittings & equipment
33% straight line
Computer equipment
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently 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.
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.
1.8
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.
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
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 fixed 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.
1.11
Retirement benefits
The company makes personal pension payments for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
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.
1.14
Cost of sales
Cost of sales represents interest and other costs incurred in connection with obtaining and servicing finance to advance to clients.
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
21
19
4
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
23,425
55,405
78,830
Depreciation and impairment
At 1 January 2023 and 31 December 2023
23,425
55,405
78,830
Carrying amount
At 31 December 2023
At 31 December 2022
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
100
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
31,250
Trade creditors
86,286
97,295
Amounts owed to group undertakings
1,605,776
481,604
Taxation and social security
24,618
23,491
Other creditors
13,374,175
12,629,340
15,090,855
13,262,980
Included within Other creditors is secured creditors amounting to £12,477,216 (2022: £12,073,022).
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
15,466,472
14,667,324
Corporation tax recoverable
55,280
6,105
Amounts owed by group undertakings
97,750
78,310
Other debtors
587,879
517,346
16,207,381
15,269,085
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
158,918
165,000
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
276 Ordinary 'A' shares of £1 each
276
276
214 Ordinary 'B' shares of £1 each
214
214
510 Ordinary 'C' shares of £1 each
510
510
1,000
1,000
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Called up share capital
(Continued)
- 8 -
The 'A' Ordinary Shares, 'B' Ordinary shares and 'C' Ordinary Shares shall be treated pari passu and as if they constituted one class of share in respect of voting and dividends, but shall have the following different rights in relation to return on capital and in respect of consideration on an Exit.
On return of capital and in respect of consideration on an Exit the following shall be applied as follows:
(a) firstly, any dividends which have been declared but are unpaid,
(b) secondly, in making a distribution of the issue price amongst the holders of 'A' Ordinary Shares, 'B' Ordinary Shares and 'C' Ordinary Shares in proportion to the amount paid up in respect of such shares,
(c) thirdly, the aggregate sum of £1,680,000 (or, if less, such part thereof as can be paid to the holders of shares if the total balance of surplus assets were divided as to 40% to the holders of the 'B' Ordinary Shares and as to 60% to the holders of the 'C' Ordinary Shares), and;
(d) in distributing the balance of such assets amongst the holders of the 'A' Ordinary Shares, 'B' Ordinary Shares and 'C' Ordinary Shares (pari passu as if they constituted one class of share) in proportion to the numbers of the 'A' Ordinary Shares, 'B' Ordinary Shares and C Ordinary Shares held by them respectively.
The company shall not declare dividends on the B Ordinary Shares and the C Ordinary Shares in aggregate in excess of £200,000 in respect of any financial year.
10
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.
Senior Statutory Auditor:
Andrew Moss BA FCA
Statutory Auditor:
DSG
Date of audit report:
8 May 2024
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
21,000
42,000
BRIDGING FINANCE SOLUTIONS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
12
Related party transactions
Amounts owed to/by related parties
The following amounts were outstanding at the reporting end date:
Amount owed to
Amounts owed by
2023
2022
2023
2022
£
£
£
£
Close family of the director
158,918
165,000
-
-
Companies with common directors
-
455,459
449,281
The company is exempt from disclosing transactions with group companies that are wholly owned within the same group.
13
Directors' transactions
An amount of £123,165 (2022: £51,665) was owed to the company by a director at the year end.
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