Company Registration No. 07739337 (England and Wales)
Funding Options Limited
Financial statements
for the year ended 31 December 2023
Pages for filing with the registrar
Funding Options Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
Funding Options Limited
Statement of financial position
As at 31 December 2023
1
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
5
85
Current assets
Debtors
6
372,869
350,521
Cash at bank and in hand
42,427
2,773,954
415,296
3,124,475
Creditors: amounts falling due within one year
7
(790,557)
(5,920,513)
Net current liabilities
(375,261)
(2,796,038)
Total assets less current liabilities
(375,261)
(2,795,953)
Creditors: amounts falling due after more than one year
8
(5,090,220)
Net liabilities
(5,465,481)
(2,795,953)
Capital and reserves
Called up share capital
10
9,650
9,650
Share premium account
19,888,367
19,888,367
Profit and loss account
(25,363,498)
(22,693,970)
Total equity
(5,465,481)
(2,795,953)
The income statement has been prepared on the basis that all operations are continuing operations.
There were no items of other comprehensive income or losses for the current or prior year other than those included in the Profit and Loss Account, accordingly no Statement of Comprehensive Income is presented.
The directors of the company have elected not to include a copy of the income statement 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 25 September 2024 and are signed on its behalf by:
Simon Cureton
Director
Company Registration No. 07739337
Funding Options Limited
Notes to the financial statements
For the year ended 31 December 2023
2
1
Accounting policies
Company information
Funding Options Limited (the Company) is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The Company's registered office is 4th Floor The Featherstone Building, 66 City Road, London, England, United Kingdom, EC1Y 2AL.
1.1
Accounting convention
Funding Options Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is 4th Floor The Featherstone Building, 66 City Road, London, EC1Y 2AL, United Kingdom.
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 (FRS 102) applicable in the UK and Republic of Ireland issued by the Financial Reporting Council and the requirements of the Companies Act 2006.
The functional currency of Funding Options Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the Company operates.
Funding Options Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it. Exemptions have been taken in relation to financial instruments, presentation of a Cash Flow Statement, related party transactions and remuneration of key management personnel. The Company's financial statements are consolidated into the financial statements of Tide Holdings Limited, a company incorporated in the United Kingdom and copies of the financial statements can be obtained from the address disclosed in note 16.
1.2
Going concern
In adopting the going concern basis of preparing the financial statements, the directors have considered the business activities and outlook, as well as the Company’s principal risks and uncertainties. Based on cash flow forecasts and financial projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from when the financial statements are authorised for issue. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.true
The directors continue to monitor key risk metrics as well as the situation regarding the economic environment. The Directors do not consider there to be any geopolitical or climate risks that will have a material impact on the entity.
1.3
Turnover
Turnover represents commissions earned on introducing customers to lenders and is recognised when the loan is paid from the lender to the borrower. Turnover is recognised at the fair value of the consideration received or receivable services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
1.4
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.
1.5
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 creditors: amounts falling due within one year.
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
3
1.6
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 statement of financial position 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.
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, 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 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.
1.7
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.
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
4
1.8
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 income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.9
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.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
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.
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
5
2
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, 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.
Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilised.
No deferred tax asset has been recognised at 31 December 2023 to the extent that it is not considered probable that a deferred tax asset would be recovered against future profits. The Company has not recognised deferred tax assets of £4,928,059 in respect of losses amounting to £19,712,236 that can be carried forward against future taxable income.
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
31,000
20,500
For other services
All other non-audit services
4,550
The 2022 fees were paid to Saffery LLP and 2023 fees were paid to Deloitte LLP. The figures shown are net of VAT.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
10
68
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings
85
Movements in fixed asset investments
2023
2022
£
£
Cost or valuation
At 1 January
85
86
Disposals
(85)
(1)
At 31 December
-
85
Carrying amount
At 31 December
-
85
During the year the subsidiary, Funding Options Netherlands B.V., registered office address: 4th Floor The Featherstone Building, 66 City Road, London, England, EC1Y 2AL, was liquidated and the investment has now been derecognised from the financial statements. The company was engaged in credit brokerage activities in the Netherlands.
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
234,586
214,743
Other debtors
138,283
135,778
372,869
350,521
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
155,427
86,762
Corporation tax
447,609
Other taxation and social security
78,916
497,970
Other creditors
556,214
4,888,172
790,557
5,920,513
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
7
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
5,090,220
Other creditors due after one year consist of an inter-company loan payable to the parent company, Tide Holdings Limited. Interest is accruing on the loan at a fixed rate of 20% per annum becoming payable each November. The loan principle is repayable in November 2026, with the option of partial or full repayment at any time at the company's discretion.
9
Share-based payment transactions
In 2021 the company granted equity-settled share options under an Enterprise Management Incentive Plan and a Share Incentive Plan:
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 31 December
70,812
13.40
Exercisable at 31 December
35,815
13.40
Funding Options Limited was acquired by Tide Holdings Limited on 1 February 2023 and subsequently all share options lapsed on acquisition.
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
965,017
124,004
9,650
1,240
A Ordinary shares of 1p each
-
76,511
-
765
C Ordinary shares of 1p each
-
660,817
-
6,609
D Ordinary shares of 1p each
-
103,685
-
1,036
965,017
965,017
9,650
9,650
Following the entire share capital purchase by Tide Holdings Limited on 1 February 2023, the A, C and D shares have been redesignated as ordinary shares.
Funding Options Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
8
11
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:
David Rozier
Statutory Auditors:
Deloitte LLP
12
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
£
£
1,894
13
Related party transactions
As detailed further in note 10 of these accounts, the company owed £5,090,220 (2022: £nil), to its parent company, Tide Holdings Limited, as at 31 December 2023.
14
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' loan
-
367
164
(367)
164
367
164
(367)
164
Loans are interest free and repayable on demand.
15
Parent company
The ultimate parent company and the ultimate controlling party is Tide Holdings Limited. The parent undertaking of the smallest and largest group, which includes the Company and for which group financial statements are prepared, is Tide Holdings Limted, a company incorporated in the United Kingdom and registered at 4th Floor The Featherstone Building, 66 City Road, London, EC1Y 2AL