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COMPANY REGISTRATION NUMBER: 12165991
LionFish Litigation Finance Limited
Filleted Unaudited Financial Statements
31 December 2023
LionFish Litigation Finance Limited
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Chartered certified accountants report to the board of directors on the preparation of the unaudited statutory financial statements
2
Statement of financial position
3
Notes to the financial statements
5
LionFish Litigation Finance Limited
Officers and Professional Advisers
The board of directors
T Ishikawa
O J Bates
T K Lansky
G M Wells
Registered office
c/o Foresight Group LLP
The Shard
32 London Bridge Street
London
SE1 9SG
Accountants
Complete Accounting Solutions
Chartered Certified Accountants
727-729 High Road
London
N12 0BP
LionFish Litigation Finance Limited
Chartered Certified Accountants Report to the Board of Directors on the Preparation of the Unaudited Statutory Financial Statements of LionFish Litigation Finance Limited
Year ended 31 December 2023
As described on the statement of financial position, the directors of the company are responsible for the preparation of the financial statements for the year ended 31 December 2023, which comprise the statement of financial position and the related notes. You consider that the company is exempt from an audit under the Companies Act 2006. In accordance with your instructions we have compiled these financial statements in order to assist you to fulfil your statutory responsibilities, from the accounting records and from information and explanations supplied to us.
Complete Accounting Solutions Chartered Certified Accountants
727-729 High Road London N12 0BP
LionFish Litigation Finance Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Non-current assets
Intangible assets
5
2,032,346
Property, plant and equipment
6
1,158
2,769
Investments
7
4,376,352
5,331,699
------------
------------
6,409,856
5,334,468
Current assets
Debtors: due within one year
8
1,382
1,243
Debtors: due after more than one year
8
2,000,000
Cash at bank and in hand
41,080
11,405
------------
--------
2,042,462
12,648
Creditors: amounts falling due within one year
9
( 76,339)
( 5,712,367)
------------
------------
Net current assets/(liabilities)
1,966,123
( 5,699,719)
------------
------------
Total assets less current liabilities
8,375,979
( 365,251)
Creditors: amounts falling due after more than one year
10
( 9,089,223)
( 750,000)
Provisions
( 220)
( 693)
------------
------------
Net liabilities
( 713,464)
( 1,115,944)
------------
------------
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss account
( 714,464)
( 1,116,944)
---------
------------
Shareholders deficit
( 713,464)
( 1,115,944)
---------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
For the year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- 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 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
LionFish Litigation Finance Limited
Statement of Financial Position (continued)
31 December 2023
These financial statements were approved by the board of directors and authorised for issue on 19 September 2024 , and are signed on behalf of the board by:
T Ishikawa
Director
Company registration number: 12165991
LionFish Litigation Finance Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
LionFish Litigation Finance Limited is a private company limited by shares, incorporated in England and Wales, registration number 12165991 . The address of its principal place of business is 6th Floor, 165 Fleet Street, London EC4A 2DY. The financial statements have been prepared for the year ended 31 December 2023, with comparatives for year ended 31 December 2022.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Financial assets
Litigation assets relate to the provision of funding to litigation matters for a return when the case comes to a successful conclusion. Investments are measured at the sum invested. Litigation assets are reviewed for impairment where events or circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of the litigation assets exceeds its recoverable amount, the asset is written down accordingly.
When the Company disposes of its investment in a case to a third party under an uninsured (“naked”) contract, the difference between the disposal proceeds and the cost of investment disposed gives rise to a profit on disposal which is recognised through the profit and loss when the sale is agreed. These sales are non-recourse and, if the case is successful, the relevant % of the settlement received is paid to the third party.
For insured cases, when the Company disposes of a proportion of its participation share in the settlement of the case to a third party, where the third party return is calculated as a fixed percentage daily rate irrespective of the settlement value of a successful litigation outcome, the derecognition requirements under FRS 102 para 11.36 are not met and no sale or profit on disposal arise. The Company retains the full litigation asset and the proceeds of disposal under the third party contract are included as litigation liabilities.
Other assets arise principally from the provision of goods and services to customers (e.g. trade receivables), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment.
Going concern
At 31 December 2023, the Company has net liabilities of £624,551 (2022: £1,115,944). The directors believe that the assumption of going concern is appropriate due to the continued support of Blackmead Infrastructure Limited.
Financial liabilities
The Company classifies its financial liabilities depending on the purpose for which the liability was acquired.
Other financial liabilities
All the Company's financial liabilities are classified as other financial liabilities, which include the following items:
- Loans, Trade payables and other monetary liabilities, which are initially recognised at fair value and subsequently carried at amortised cost using the effective interest method.
Dividends
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.
Consolidation
The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.
Judgements and key sources of estimation uncertainty
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires the Company’s directors to exercise judgement in applying the company’s accounting policies. The areas where significant judgements and estimates have been made in preparing the financial statements and their effect are disclosed in Note 3.
Revenue recognition
Revenue is recognised to the extent that is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of consideration receivable, inclusive of recoverable expenses incurred but excluding value added tax.
Deferred taxation
Deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the statement of financial position differs from its tax base, except for differences arising on: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of the deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which the difference can be utilised. The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply when the deferred tax liabilities/assets are settled/recovered .
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable costs and the estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding liability is recognised within provisions.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Computer Equipment
-
33% straight line
Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
Critical estimates and judgements
The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on actual experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.
Litigation assets are reviewed for impairment where events or circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of the litigation assets exceeds its recoverable amount, the asset is written down accordingly.
Defined contribution plans
Contributions to defined contribution pension schemes are charged to the statement of comprehensive income in the year to which they relate.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 4 (2022: 3 ).
5. Intangible assets
Goodwill
£
Cost
Additions
Transfers
2,032,346
------------
At 31 December 2023
2,032,346
------------
Amortisation
At 1 January 2023 and 31 December 2023
------------
Carrying amount
At 31 December 2023
2,032,346
------------
At 31 December 2022
------------
6. Property, plant and equipment
Computer equipment
£
Cost
At 1 January 2023
12,359
Additions
1,562
--------
At 31 December 2023
13,921
--------
Depreciation
At 1 January 2023
9,589
Charge for the year
3,174
--------
At 31 December 2023
12,763
--------
Carrying amount
At 31 December 2023
1,158
--------
At 31 December 2022
2,770
--------
7. Investments
Shares in group undertakings
Litigation investments
Total
£
£
£
Cost
At 1 January 2023
1
5,331,698
5,331,699
Additions
5,210,823
5,210,823
Realisations
( 1,871,401)
( 1,871,401)
Transfer to goodwill
(2,032,346)
(2,032,346)
Fair value movement
( 2,262,423)
( 2,262,423)
----
------------
------------
At 31 December 2023
1
4,376,351
4,376,352
----
------------
------------
Impairment
At 1 January 2023 and 31 December 2023
----
------------
------------
Carrying amount
At 31 December 2023
1
4,376,351
4,376,352
----
------------
------------
At 31 December 2022
1
5,331,698
5,331,699
----
------------
------------
Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name - Islero Assignments Limited
Registered office address - c/o Foresight Group LLP, The Shard, 32 London Bridge Street, London, SE1 9SG Class of share - Ordinary
Holding - 100%
8. Debtors
Debtors falling due within one year are as follows:
2023
2022
£
£
Other debtors
1,382
1,243
-------
-------
Debtors falling due after one year are as follows:
2023
2022
£
£
Other debtors
2,000,000
------------
----
9. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
12,913
249
Related Party Loans
4,766,625
Corporation tax
411,858
Social security and other taxes
15,997
Other creditors
47,429
533,635
--------
------------
76,339
5,712,367
--------
------------
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Related Party Loans
6,339,223
Other loans
2,000,000
Other creditors
750,000
750,000
------------
---------
9,089,223
750,000
------------
---------
The Related Party Loans are due for repayment, unless previously paid or repaid, on 11 July 2033, together with accrued but unpaid interest. All Related Party Loan notes attract interest at base rate + 7% and interest accrues daily and compounds monthly. Of the Related Party Loans, £6,286,239 are secured by fixed charges and floating charges and £52,984 are unsecured. The Other Loans are due for repayment only if the Company receives certain cashflows based on the performance of certain litigation assets. The Other Loans are interest free and unsecured.
11. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023
2022
£
£
Included in provisions
220
693
----
----
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
220
693
----
----
12. Pension commitments
The Company operates a defined contribution pension scheme for its employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £14,133 (2022: £11,831). Contributions totalling £10,283 (2022: £Nil) were payable to the fund at the balance sheet date and are included in creditors.
13. Controlling party
The immediate parent undertaking is Blackmead Infrastructure Limited. The ultimate parent company is Averon Park Limited. The address of the registered office for both entities is c/o Foresight Group LLP, The Shard, 32 London Bridge Street, London, SE1 9SG. Copies of accounts can be obtained from Companies House.