REGISTERED NUMBER: 01925556 (England and Wales) |
Finance For Enterprise Limited |
Report of the Directors and |
Consolidated Financial Statements For The Year Ended 31 March 2024 |
REGISTERED NUMBER: 01925556 (England and Wales) |
Finance For Enterprise Limited |
Report of the Directors and |
Consolidated Financial Statements For The Year Ended 31 March 2024 |
Finance For Enterprise Limited (Registered number: 01925556) |
Contents of the Consolidated Financial Statements |
For The Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 3 |
Consolidated Income Statement | 5 |
Consolidated Balance Sheet | 6 |
Company Balance Sheet | 7 |
Notes to the Consolidated Financial Statements | 8 |
Finance For Enterprise Limited |
Company Information |
For The Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Finance For Enterprise Limited (Registered number: 01925556) |
Report of the Directors |
For The Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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 the group and of the surplus or deficit of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Kingswood Allotts Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Finance For Enterprise Limited |
Opinion |
We have audited the financial statements of Finance For Enterprise Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Balance Sheet, Company Balance Sheet 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 group's and of the parent company affairs as at 31 March 2024 and of the group's surplus 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 group 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 group's and the parent 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Group Strategic Report or in preparing the Report of the Directors. |
Report of the Independent Auditors to the Members of |
Finance For Enterprise Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 group's and the parent 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 group or the parent 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management, those charged with governance around actual and potential litigation and claims; |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
- Review of minutes of directors' meetings. |
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 regulation. 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. |
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 Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Sidings Court |
Lakeside |
Doncaster |
South Yorkshire |
DN4 5NU |
Finance For Enterprise Limited (Registered number: 01925556) |
Consolidated |
Income Statement |
For The Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3,137,851 | 2,933,015 |
Cost of sales | 518,988 | 597,054 |
GROSS SURPLUS | 2,618,863 | 2,335,961 |
Administrative expenses | 1,420,501 | 1,375,006 |
1,198,362 | 960,955 |
Other operating income | 13,200 | 13,200 |
OPERATING SURPLUS | 1,211,562 | 974,155 |
Interest receivable and similar income | 129,876 | 41,702 |
1,341,438 | 1,015,857 |
Interest payable and similar expenses | 1,170,636 | 793,564 |
SURPLUS BEFORE TAXATION | 170,802 | 222,293 |
Tax on surplus | 5 | 44,530 | 50,157 |
SURPLUS FOR THE FINANCIAL YEAR |
Surplus attributable to: |
Owners of the parent | 126,272 | 172,136 |
Finance For Enterprise Limited (Registered number: 01925556) |
Consolidated Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 | 662,807 | 702,142 |
Investments | 8 | 1 | 1 |
662,808 | 702,143 |
CURRENT ASSETS |
Debtors | 9 | 19,133,040 | 19,072,792 |
Cash at bank and in hand | 7,580,525 | 10,890,999 |
26,713,565 | 29,963,791 |
CREDITORS |
Amounts falling due within one year | 10 | 2,429,766 | 3,226,666 |
NET CURRENT ASSETS | 24,283,799 | 26,737,125 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 24,946,607 | 27,439,268 |
CREDITORS |
Amounts falling due after more than one year | 11 | (13,713,939 | ) | (16,271,000 | ) |
PROVISIONS FOR LIABILITIES | 14 | (10,355 | ) | (18,360 | ) |
NET ASSETS | 11,222,313 | 11,149,908 |
RESERVES |
Grant Reserve | 15 | 6,921,706 | 6,975,573 |
Income and expenditure account | 15 | 4,300,607 | 4,174,335 |
11,222,313 | 11,149,908 |
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 22 August 2024 and were signed on its behalf by: |
A D Austwick - Director |
E M Shepherd - Director |
Finance For Enterprise Limited (Registered number: 01925556) |
Company Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
Investments | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 11 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
RESERVES |
Grant Reserve | 15 |
Income and expenditure account | 15 |
Company's loss for the financial year | (45,899 | ) | (92,696 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements |
For The Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Finance For Enterprise Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
Subsidiaries are included in the financial statements from the date control commences until the date control ceases. Intra-group balances, and any unrealised gains and losses or income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements. |
Turnover |
Turnover comprises fees and interest recognised by the group in respect of finance provided to third parties. |
Loan arrangement fee income reflects the income received by the company in relation to the arrangement and provision of loan funding. The performance obligation for such fee income is the considered to be the funding of the loan itself, and therefore such fees are recognised immediately once the loan funding is provided. |
Loan arrangement fees payable by the company on its own loan funding received follows this same treatment and is recognised in full in the period in which the loan funding it relates to is received. |
The group has received grant funds on certain contracts to advance loans to qualifying entitles. Any initial repayments of the original grant advance were transferred to the grant reserve once the relevant conditions within the contract were met and the group had a right to re-cycle the loans. |
The group recognises as income an appropriate portion of the grant reserve to cover related administration costs and bad debts of relevant loans. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Long leasehold buildings | - 2% on cost |
Long leasehold land | - not provided |
Improvements to buildings | - 10% on cost |
Plant and machinery | - 25% on cost |
Fixtures, fittings & equipment | - 25% on cost |
Computer software | - 33% on cost |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. |
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. |
The company's policies for its major classes of financial assets and financial liabilities are set out below. |
Financial assets |
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. |
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Financial liabilities |
Basic financial liabilities, including trade and other creditors and bank 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Impairment of financial assets |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
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. |
Derecognition of financial assets and financial liabilities |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Offsetting of financial assets and financial liabilities |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Fixed asset investments are carried at cost less provision for any diminution in value which is expected to be permanent. |
Third party loans |
Loans to customers made on behalf of third parties, and bank accounts relating to such loans, where the group has no right to benefit from the income and bears no risk in relation to advances made are not recognised in the financial statements. Charges to these third parties for the management of such loans are included in turnover. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company's accounting policies, the directors are required to make judgements, estimations and assumptions about the carrying value 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 the current and future periods. |
Carrying value of debtors |
Allowances for doubtful debt are largely made on a specific basis, based on estimates of recoverability determined by market knowledge, knowledge of loanees and past experience. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the surplus for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 52,535 | 46,557 |
Deferred tax | (8,005 | ) | 3,600 |
Tax on surplus | 44,530 | 50,157 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
6. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
7. | TANGIBLE FIXED ASSETS |
Group |
Long | Long | Improvements |
leasehold | leasehold | to |
buildings | land | buildings |
£ | £ | £ |
COST |
At 1 April 2023 | 542,318 | 100,000 | 55,854 |
Additions | - | - | - |
Disposals | - | - | - |
At 31 March 2024 | 542,318 | 100,000 | 55,854 |
DEPRECIATION |
At 1 April 2023 | 38,850 | - | 19,082 |
Charge for year | 10,841 | - | 5,586 |
Eliminated on disposal | - | - | - |
At 31 March 2024 | 49,691 | - | 24,668 |
NET BOOK VALUE |
At 31 March 2024 | 492,627 | 100,000 | 31,186 |
At 31 March 2023 | 503,468 | 100,000 | 36,772 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
7. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures, |
Plant and | fittings | Computer |
machinery | & equipment | software | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 | 78,009 | 182,006 | 1,788 | 959,975 |
Additions | - | 4,375 | - | 4,375 |
Disposals | - | (1,822 | ) | - | (1,822 | ) |
At 31 March 2024 | 78,009 | 184,559 | 1,788 | 962,528 |
DEPRECIATION |
At 1 April 2023 | 40,433 | 157,680 | 1,788 | 257,833 |
Charge for year | 8,928 | 17,318 | - | 42,673 |
Eliminated on disposal | - | (785 | ) | - | (785 | ) |
At 31 March 2024 | 49,361 | 174,213 | 1,788 | 299,721 |
NET BOOK VALUE |
At 31 March 2024 | 28,648 | 10,346 | - | 662,807 |
At 31 March 2023 | 37,576 | 24,326 | - | 702,142 |
Company |
Long | Long | Improvements |
leasehold | leasehold | to |
buildings | land | buildings |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
7. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures, |
Plant and | fittings | Computer |
machinery | & equipment | software | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
8. | FIXED ASSET INVESTMENTS |
Group |
Other |
investments |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 14,000 |
PROVISIONS |
At 1 April 2023 |
and 31 March 2024 | 13,999 |
NET BOOK VALUE |
At 31 March 2024 | 1 |
At 31 March 2023 | 1 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
8. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group | Other |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 14,501 |
Additions | 1 |
At 31 March 2024 | 14,502 |
PROVISIONS |
At 1 April 2023 |
and 31 March 2024 | 500 | 13,999 | 14,499 |
NET BOOK VALUE |
At 31 March 2024 | 3 |
At 31 March 2023 | 2 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
FFE SPV Limited |
Registered office: Oak House, Heavens Walk, Doncaster, England, DN4 5HZ |
Nature of business: Alternative finance provider |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Donbac Limited |
Registered office: Oak House, Heavens Walk, Doncaster, England, DN4 5HZ |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
FFE SPV 2 Limited |
Registered office: Oak House, Heavens Walk, Doncaster, England, D4 5HZ |
Nature of business: Alternative finance provider |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
9. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,305,288 | 4,341,074 |
Amounts owed by group undertakings | - | - |
Other debtors | 211,336 | - |
Corporation tax recoverable | 463 | 463 |
Prepayments and accrued income | 514,325 | 162,355 |
4,031,412 | 4,503,892 |
Amounts falling due after more than one year: |
Trade debtors | 15,101,628 | 14,568,900 |
Aggregate amounts | 19,133,040 | 19,072,792 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts | 1,369,156 | 1,049,109 |
Other loans | 773,427 | 1,889,284 |
Trade creditors | 16,359 | 23,091 |
Amounts owed to group undertakings | - | - |
Taxation | 52,535 | 46,557 |
Social security and other taxes | 20,670 | 20,981 |
Other creditors | 137,175 | 131,653 |
Accruals and deferred income | 60,444 | 65,991 |
2,429,766 | 3,226,666 |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans - 1-2 years | 1,430,547 | 1,121,833 |
Bank loans - 2-5 years | 7,406,819 | 10,425,951 | 3,346,819 | 3,200,951 |
Other loans - 2-5 years | 4,876,573 | 4,723,216 |
13,713,939 | 16,271,000 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
12. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 10,206,522 | 12,596,893 |
Other loans | 5,650,000 | 6,612,500 | - | - |
15,856,522 | 19,209,393 |
The above loans are secured by way of fixed and floating charges over the company's assets. |
13. | FINANCIAL INSTRUMENTS |
As a financial institution, financial instruments, via the use of business loans, are the mainstay of the group's business and represent the core activity, and thus is of great significance to the group. |
The group has a robust lending policy which is tried and tested. The group is vastly experienced in the practice of fund management: In respect of impairment and fair value disclosures the group endeavours at all times to be transparent and open on its loan book performance, and to ensure realistic and appropriate provisioning and write offs. |
The group has a business loan fund to support businesses unable to attract mainstream finance. Its prime objectives are to create economic and social impacts in the communities in which it operates, whilst at the same time, achieving sustainability to ensure continued operational capability in the long term. The aim is to help address the market failure arising from the risk averse lending policies adopted by the banks since the financial crisis of 2009. By implication, the group has to be astute at establishing its own appetite to risk in order to maintain a presence in this market whilst remaining sustainable, and to ensure sufficient long-term capital and short-term liquidity to facilitate this. |
The group has sought to maximize its impact by increasing year on year capacity and securing additional capital via a number of sources, including loans, grants and 3rd party fund management, in order to meet the high level of demand arising from the market failure created by mainstream lenders. The ability to attract an appropriate mix of capital sources, and demonstrate the group's capability by way of excellent fund performance, has enabled the group to meet its objectives and to maintain a supply of capital. |
14. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 10,355 | 18,360 | 10,355 | 18,360 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 18,360 |
Movement in year | (8,005 | ) |
Balance at 31 March 2024 | 10,355 |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
14. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Movement in year | (8,005 | ) |
Balance at 31 March 2024 |
15. | RESERVES |
Group |
Income |
and |
expenditure | Grant |
account | Reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 4,174,335 | 6,975,573 | 11,149,908 |
Surplus for the year | 126,272 | 126,272 |
Movement in the year | - | (53,867 | ) | (53,867 | ) |
At 31 March 2024 | 4,300,607 | 6,921,706 | 11,222,313 |
Company |
Income |
and |
expenditure | Grant |
account | Reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 9,790,065 |
Deficit for the year | ( |
) | ( |
) |
Movement in the year | - | (53,867 | ) | (53,867 | ) |
At 31 March 2024 | 9,690,299 |
16. | OTHER FINANCIAL COMMITMENTS |
1.The parent undertaking has given a guarantee in the sum of £375,000 in respect of the subsidiary undertaking. |
2. At the year end, the group had total commitments under non cancellable operating leases totalling £16,779 (2023: £17,560). |
17. | RELATED PARTY DISCLOSURES |
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 entities within the group. At the year end, the company was owed £31,348 (2023: Nil) by fellow group members and owed Nil (2023: £237,030) to fellow group members. |
Finance For Enterprise Limited (Registered number: 01925556) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 March 2024 |
18. | SHARE CAPITAL |
The company is a private limited company by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation. The company is also recognised by the Department for Business Innovation & Skills as an approved Enterprise Agency under the provisions of S48(4) of the Finance Act 1982. |
19. | ENVIRONMENTAL SOCIAL AND CORPORATE GOVERNANCE |
Good environmental, social, and corporate governance is important to Finance For Enterprise and it seeks sustainable business practises for the organisation and that of our SME borrower loan portfolio. |
As we look to the future, growing and better measuring our impact, whilst protecting the environment and supporting the just transition to a low carbon future, will be core to our activity. |
The board has authorised expenditure to reduce the company's carbon footprint and is seeking advice to find effective ways of developing a net zero carbon strategy. |
20. | PARTNERSHIP INVESTMENT FUND LEGACY GRANT |
Finance For Enterprise Limited received a Partnership Investment Fund (PIF) legacy grant totalling £699,429 to which the following applies: |
- Number of PIF loans made by the period end: 4 |
- Cumulative value of PIF loans made by the period end: £135,000 |
- Number of PIF loans outstanding at the period end: 4 |
- Remaining PIF capital left to defray: £564,429 |
- Finance for Enterprise match capital used towards the 4 PIF loans: 4 loans totalling £135,000 |