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COMPANY REGISTRATION NUMBER: 13619822
Funding52 Limited
Non-Statutory Audited Accounts
31 December 2023
Funding52 Limited
Statement of Financial Position
31 December 2023
31 Dec 23
30 Sep 22
Note
£
£
Current assets
Debtors
4
5,229,116
19,780,884
Cash at bank and in hand
66,246
34,730
------------
-------------
5,295,362
19,815,614
Creditors: amounts falling due within one year
5
3,748,343
1,999,212
------------
-------------
Net current assets
1,547,019
17,816,402
------------
-------------
Total assets less current liabilities
1,547,019
17,816,402
Creditors: amounts falling due after more than one year
6
18,186,675
18,186,675
-------------
-------------
Net liabilities
( 16,639,656)
( 370,273)
-------------
-------------
Capital and reserves
Called up share capital
10
10
Profit and loss account
( 16,639,666)
( 370,283)
-------------
---------
Shareholders deficit
( 16,639,656)
( 370,273)
-------------
---------
These accounts 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 period 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 accounts for the period 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 accounts .
Funding52 Limited
Statement of Financial Position (continued)
31 December 2023
These accounts were approved by the board of directors and authorised for issue on 23 August 2024 , and are signed on behalf of the board by:
Mr Thomas Ian Campbell-Gray
Director
Company registration number: 13619822
Funding52 Limited
Notes to the Accounts
Period from 1 October 2022 to 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 20 Dering Street, 3rd Floor, London, W1S 1AJ.
2. Statement of compliance
These accounts 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 accounts have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The accounts are prepared in sterling, which is the functional currency of the entity.
Going concern
The company has made a loss of £16,269,383 (2022: £370,283) for the year and has net liabilities of £16,639,656 (2022: £370,273). The directors consider the operations of the company to be ongoing, with a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. This is based on the assumption that the overseas funders will continue to provide support as required for the next 12 months from the date of signing the financial statements and will not request payment of the outstanding loan principal and accrued interest thereon until such time that the company is financially able to afford it. As stated in note 7 to the financial statements, the overseas funders have acknowledged that they will not receive the accrued interest payable by the company and have subsequent to the year-end, further written down the value of the loans payable by the Company to reflect the latest estimates provided. Accordingly, these financial statements have been prepared on a going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying small entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under section 1A of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Debtors
31 Dec 23
30 Sep 22
£
£
Other debtors
5,229,116
19,780,884
------------
-------------
5. Creditors: amounts falling due within one year
31 Dec 23
30 Sep 22
£
£
Other creditors
3,748,343
1,999,212
------------
------------
6. Creditors: amounts falling due after more than one year
31 Dec 23
30 Sep 22
£
£
Other creditors
18,186,675
18,186,675
-------------
-------------
7. Events after the end of the reporting period
On 09 January 2024, SSB Group Limited, the sole borrower of funds loaned by Funding52 Limited entered into formal insolvency proceedings and appointed FRP Advisory Trading Limited as administrators. It has been confirmed that SSB Group Limited were experiencing financial difficulties for some time prior to the commencement of insolvency proceedings and the directors of Funding52 Limited were aware that many of the Company's loans receivable would no longer be recoverable from SSB Group at the balance sheet date. The portfolio of legal cases that were funded on behalf SSB Group transferred to Cheval Legal Limited, another law firm, under an insurance policy in place at the balance sheet date but Cheval Legal have subsequently confirmed that most of the legal cases within the portfolio will no longer be settled and it will not be possible to retrieve funds from SSB Group in relation to those cases. Cheval legal estimate that approximately 70% of the funded portfolio is no longer recoverable, meaning that there will be no recovery of accrued interest receivable and there will be only partial recovery of the principal receivable. As Funding52 Limited is a funding intermediary, operating on behalf of the overseas entities who are the originators of all loan funding to the law firms, the consequence of the non-recoverability of loans and interest receivable from those law firms is that the Company in turn is no longer able to repay the loans and accrued interest payable to the overseas funders in full at the balance sheet date. The directors consider this to be an adjusting event because these conditions existed prior to the balance sheet date and were subsequently confirmed after the balance sheet date but before the reporting date. Therefore, the Company has accounted for the financial impact of the insolvency of SSB Group and adjusted the financial statements prepared to 31 December 2023. The following accounting transactions have been recorded: Loan principal receivable of £12,718,624 has been written off, with the financial impact being a loss recognised in the Statement of Comprehensive Income and a corresponding reduction to Other Debtors on the Statement of Financial Position. The overseas funders have acknowledged that they will not receive the accrued interest payable by the company and have subsequent to the year-end further written down the value of the loans payable by the Company to reflect the latest estimates provided by Cheval Legal. Interest payable of £3,937,853 and loan principal payable of £14,387,572 have been written off post year-end, with the financial impact being a gain recognised in the Statement of Comprehensive Income and a corresponding reduction to Other Creditors on the statement of Financial Position. The financial statements do not reflect the impact of the write down of the value of the loans and interest payable to the company on the basis that this was a non-adjusting post balance sheet event.
8. Controlling party
The controlling party is considered to be Swiss ALP Asset Management GMBH, of Bangarten 10, 9490 Vaduz, Liechtenstein.