Company Registration No. 09173982 (England and Wales)
Blackwood Capital Group (UK) Limited
Unaudited financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Blackwood Capital Group (UK) Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Blackwood Capital Group (UK) Limited
Balance sheet
As at 31 December 2023
31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
12,246
4,462
Current assets
Debtors
5
1,664,770
1,022,058
Cash at bank and in hand
219
60,671
1,664,989
1,082,729
Creditors: amounts falling due within one year
6
(1,249,907)
(1,075,044)
Net current assets
415,082
7,685
Total assets less current liabilities
427,328
12,147
Creditors: amounts falling due after more than one year
7
(15,000)
(25,000)
Net assets/(liabilities)
412,328
(12,853)
Capital and reserves
Called up share capital
8
4,832,022
4,732,022
Share premium account
2,062,570
2,062,570
Other reserves
235,713
235,713
Profit and loss reserves
(6,717,977)
(7,043,158)
Total equity
412,328
(12,853)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Blackwood Capital Group (UK) Limited
Balance sheet (continued)
As at 31 December 2023
31 December 2023
2
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
Thomas Kardos
Director
Company Registration No. 09173982
Blackwood Capital Group (UK) Limited
Notes to the financial statements
For the year ended 31 December 2023
3
1
Accounting policies
Company information

Blackwood Capital Group (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Welbeck Street, London, W1G 9YQ.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The potential impacts upon the corporate finance and M&A advisory services sector from the ongoing economic challenges remain uncertain. The directors have considered as far as possible the impact of wider events such as the Russian invasion of Ukraine, the war in Israel and Gaza and the current cost of living crisis and have short term measures in place to control costs on an ongoing basis.

 

The company is reliant on key clients and winning new business to maintain its going concern position. Given the nature of the company trading activity the directors are unable to project with significant certainty the quantum and timing of revenue and cash receipts, however they are winning new mandates. The directors have carefully considered financial projections for 2024 and 2025, including review of costs and pipelines for potential revenues. The company is dependent on a percentage of deals and transactions finalising in the coming year to generate profits and positive cash flows.

 

In June 2024, the company received a significant success fee of c.£4.6 million. The directors have updated their review of cash flows and operational costs expected for the next twelve months and the foreseeable future, and they are confident that this influx of cash means it is appropriate to continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Intellectual property
Straight line basis over 25 years
Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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 and fittings
10% straight line
Computer equipment
33% straight line
Office furniture
20% 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.

1.6
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash at bank and in hand

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.

1.8
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, 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.

Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
5
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.

Basic financial liabilities

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest.

 

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. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

1.9
Equity instruments

Equity instruments, including preference shares that are classified as equity, issued by the company are recorded at the proceeds received, net of direct issue costs.

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
6
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.

2
Employees

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

2023
2022
Number
Number
Total
11
9
3
Intangible fixed assets
Intellectual property
£
Cost
At 1 January 2023 and 31 December 2023
1,680,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
1,680,000
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
7
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
208,196
Additions
12,663
At 31 December 2023
220,859
Depreciation and impairment
At 1 January 2023
203,734
Depreciation charged in the year
4,879
At 31 December 2023
208,613
Carrying amount
At 31 December 2023
12,246
At 31 December 2022
4,462
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
567,217
55,503
Corporation tax recoverable
171,295
191,259
Other debtors
926,258
686,736
1,664,770
933,498
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
-
0
88,560
Total debtors
1,664,770
1,022,058
Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
12,442
10,650
Trade creditors
506,511
174,162
Corporation tax
194,395
191,259
Other taxation and social security
339,613
492,032
Other creditors
196,946
206,941
1,249,907
1,075,044
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
15,000
25,000

During 2020, the company entered in to a fixed rate loan agreement for £50,000 with National Westminster Bank Plc attracting an annual interest of 2.5%, after one year from the date the loan was granted. The loan is due for repayment in monthly instalments and to be repaid in full by 15 June 2026. The balance at 31 December 2023 was £27,442 (2022: £35,650). This lending facility is supported by the Bounce Back Loan Scheme (BBLS), managed by the British Business Bank with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy.

8
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
490 Ordinary A Shares of £1 each
490
490
510 Ordinary B Shares of £1 each
510
510
1,000
1,000
The A and B shares rank pari passu.
Preference share capital
Issued and fully paid
Non-cumulative perpetual preference shares of £1 each
4,831,022
4,731,022

On 11 January 2023, £100,000 of non-cumulative perpetual preference shares (£50,000 to each director) were issued in return for the cancellation of £100,000 of shareholder loan notes (£50,000 owed to each director).


At 31 December 2023, the directors held £4,831,022 (2022: £4,731,022) of non-cumulative perpetual preference shares in the company.

Blackwood Capital Group (UK) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
9
9
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
£
£
Within one year
110,700
147,600
Between two and five years
-
0
110,700
110,700
258,300
10
Related party transactions

During the year, the company was recharged £nil for premises costs (2022: £nil) by Blackwood Capital Group Holding Limited, a company of which Thomas Kardos and Ronald Grosman are directors. During the year, the company paid £nil (2022: £nil) and as at the year end the balance owed by the company amounted to £7,680 (2022: £7,680).

 

During the year, the company provided services to Blackwood Fashion Investments Limited, an entity 100% owned by Thomas Kardos, a Director of the company. Revenue of £315,794 was recognised (2022: £239,504) and as at the year end the balance owed to the company amounted to £512,038 (2022: £239,504). During the year, approximately £42,000 was received. A bad debt provision of £197,487 (2022: £197,487) has been recognised in the accounts against this related party debtor balance as this was considered to be irrecoverable.

11
Directors' transactions

During the year advances were made by the company to Thomas Kardos. The company charges interest at HMRC's official rate of interest on balances owed, and during the year, the company charged the director £30,732 in interest (2022: £Nil). The largest amount owed to the company during the year in respect of advances was £743,052 (2022: £583,424). The amount payable at the year end was £743,052 (2022: £583,424). This balance is included within other debtors.

 

During the year Ronald Grosman provided the company with interest free loans. The largest amount owed by the company during the year in respect of this was £99,000 (2022: £Nil). The amount repayable at the year end was £99,000 (2022: £25,000 owed by Ronald Grosman to the company). This balance is included within other creditors.

12
Control

At the year end, the two directors are considered to be the ultimate controlling party.

2023-12-312023-01-01false23 August 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityRonald GrosmanThomas Kardosfalse091739822023-01-012023-12-31091739822023-12-31091739822022-12-3109173982core:OtherPropertyPlantEquipment2023-12-3109173982core:OtherPropertyPlantEquipment2022-12-3109173982core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109173982core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3109173982core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3109173982core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3109173982core:CurrentFinancialInstruments2023-12-3109173982core:CurrentFinancialInstruments2022-12-3109173982core:ShareCapital2023-12-3109173982core:ShareCapital2022-12-3109173982core:SharePremium2023-12-3109173982core:SharePremium2022-12-3109173982core:OtherMiscellaneousReserve2023-12-3109173982core:OtherMiscellaneousReserve2022-12-3109173982core:RetainedEarningsAccumulatedLosses2023-12-3109173982core:RetainedEarningsAccumulatedLosses2022-12-3109173982core:ShareCapitalOrdinaryShares2023-12-3109173982core:ShareCapitalOrdinaryShares2022-12-3109173982bus:Director22023-01-012023-12-3109173982core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3109173982core:FurnitureFittings2023-01-012023-12-3109173982core:ComputerEquipment2023-01-012023-12-3109173982core:MotorVehicles2023-01-012023-12-31091739822022-01-012022-12-3109173982core:IntangibleAssetsOtherThanGoodwill2022-12-3109173982core:IntangibleAssetsOtherThanGoodwill2023-12-3109173982core:IntangibleAssetsOtherThanGoodwill2022-12-3109173982core:OtherPropertyPlantEquipment2022-12-3109173982core:OtherPropertyPlantEquipment2023-01-012023-12-3109173982core:WithinOneYear2023-12-3109173982core:WithinOneYear2022-12-3109173982core:AfterOneYear2023-12-3109173982core:AfterOneYear2022-12-3109173982core:Non-currentFinancialInstruments2023-12-3109173982core:Non-currentFinancialInstruments2022-12-3109173982bus:OrdinaryShareClass12023-01-012023-12-3109173982bus:OrdinaryShareClass22023-01-012023-12-3109173982bus:OrdinaryShareClass12023-12-3109173982bus:OrdinaryShareClass22023-12-3109173982core:BetweenTwoFiveYears2023-12-3109173982core:BetweenTwoFiveYears2022-12-3109173982bus:PrivateLimitedCompanyLtd2023-01-012023-12-3109173982bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3109173982bus:FRS1022023-01-012023-12-3109173982bus:AuditExemptWithAccountantsReport2023-01-012023-12-3109173982bus:Director12023-01-012023-12-3109173982bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP