REGISTERED NUMBER: 09820738 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
FOR |
AVAMORE CAPITAL LIMITED |
REGISTERED NUMBER: 09820738 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
FOR |
AVAMORE CAPITAL LIMITED |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Consolidated Income Statement | 4 |
Consolidated Balance Sheet | 5 |
Company Balance Sheet | 6 |
Consolidated Statement of Changes in Equity | 8 |
Company Statement of Changes in Equity | 9 |
Notes to the Consolidated Financial Statements | 10 |
AVAMORE CAPITAL LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
Chartered Certified Accountants |
Clarence Street Chambers |
32 Clarence Street |
Southend-on-Sea |
Essex |
SS1 1BD |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
GROUP STRATEGIC REPORT |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the period 1 January 2023 to 31 March 2024. |
REVIEW OF BUSINESS |
The principal activity of the group is the origination, funding and management of unregulated short-term development and bridging loans to property developers. The group generated an EBITDA of £2.3m in the financial period end 31st March 2024 (31 December 2022, £3.1m). The equity was £7.8m at 31st March 2024 (31 December 2022 £6.3m). The directors are satisfied with this performance in light of economic factors impacting inflation and consequential interest rate rises globally. |
STRATEGIC OVERVIEW |
The group's strategy remains focused on being a respected lender in the specialist finance sector, aiming for sustainable growth to become the leading provider for SME property developers in the UK. Strong financial performance has enabled significant reinvestment into the company's infrastructure, accelerating its maturity and enhancing operational structure and discipline. The group is committed to advancing technology, with several prototypes completed this fiscal year. Its expertise in credit management, combined with a highly skilled workforce, ensures reliability for third-party funders, while maintaining strong customer service and transparency for all stakeholders. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The core risks to the business are credit and inflation. Data indicates that inflation has peaked, suggesting possible economic stabilisation. Credit risk management is a crucial responsibility of the team, concentrating on ensuring that transactions meet high-quality and credit-compliant standards. Asset managers review all active loans, monitoring specific ratios and leverage to prevent potential capital losses for both the group and third-party funders. |
The group also faces uncertainties, including interest rate risk and operational risk. While interest rate risk does not directly impact the group's results, it does affect the profitability of counterparty schemes and planned exit strategies. Operational risk is managed through strong systems, processes, and controls, and the group has committed to significant investment in automating and enhancing these systems to further mitigate the risk. |
GOING CONCERN |
The directors are confident in the business's long-term sustainability, supported by ongoing system improvements and continued investment in automation across the group. They have conducted a thorough going concern assessment, paying particular attention to key and emerging risks, such as inflation and the effects of changes in interest rates. Management regularly monitors liquidity and ensures that the group is adequately capitalised, maintaining a conservative excess of working capital to meet its financial commitments. Based on this review, the directors believe that the group will remain a going concern. |
ON BEHALF OF THE BOARD: |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the period 1 January 2023 to 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
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: |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
Period |
1.1.23 |
to | Year Ended |
31.3.24 | 31.12.22 |
£ | £ |
TURNOVER | 7,812,769 | 8,346,622 |
Cost of sales | 1,179,066 | 1,744,942 |
GROSS PROFIT | 6,633,703 | 6,601,680 |
Administrative expenses | 4,575,911 | 3,484,589 |
2,057,792 | 3,117,091 |
Other operating income | 21,136 | 5,463 |
OPERATING PROFIT | 2,078,928 | 3,122,554 |
Interest receivable and similar income | 82,499 | 699 |
2,161,427 | 3,123,253 |
Interest payable and similar expenses | 668 | 2 |
PROFIT BEFORE TAXATION | 2,160,759 | 3,123,251 |
Tax on profit | 522,677 | 581,758 |
PROFIT FOR THE FINANCIAL PERIOD |
Profit attributable to: |
Owners of the parent | 1,638,082 | 2,541,493 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
31.3.24 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 5 | 12,766 | 84,222 |
Tangible assets | 6 | 28,519 | 33,010 |
Investments | 7 | - | - |
41,285 | 117,232 |
CURRENT ASSETS |
Debtors | 8 | 4,546,995 | 4,045,932 |
Investments | 9 | 3,024,421 | - |
Cash at bank | 483,614 | 2,925,637 |
8,055,030 | 6,971,569 |
CREDITORS |
Amounts falling due within one year | 10 | 401,935 | 708,503 |
NET CURRENT ASSETS | 7,653,095 | 6,263,066 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,694,380 |
6,380,298 |
CAPITAL AND RESERVES |
Called up share capital | 11 | 100 | 100 |
Retained earnings | 7,694,280 | 6,380,198 |
SHAREHOLDERS' FUNDS | 7,694,380 | 6,380,298 |
The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 March 2024. |
The members have not required the company and the group to obtain an audit of its financial statements for the period ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006. |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group. |
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 2 October 2024 and were signed on its behalf by: |
E E Barnett - Director |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
31.3.24 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 5 |
Tangible assets | 6 |
Investments | 7 |
CURRENT ASSETS |
Debtors | 8 |
Investments | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,221,586 | 875,564 |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
COMPANY BALANCE SHEET - continued |
31 MARCH 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 4,097,505 | 4,097,605 |
Changes in equity |
Dividends | - | (258,800 | ) | (258,800 | ) |
Total comprehensive income | - | 2,541,493 | 2,541,493 |
Balance at 31 December 2022 | 100 | 6,380,198 | 6,380,298 |
Changes in equity |
Dividends | - | (324,000 | ) | (324,000 | ) |
Total comprehensive income | - | 1,638,082 | 1,638,082 |
Balance at 31 March 2024 | 100 | 7,694,280 | 7,694,380 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Avamore Capital Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The directors have agreed the financial period end for all group companies will be 31 March. This accounting period has been extended by three months and the comparatives are not therefore comparable. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements consolidate the financial statements of Avamore Capital Limited and all of its subsidiary undertakings. The financial year end of all subsidiary undertakings matches the parent company. The results of any subsidiaries formed during the year are included from the date of incorporation. |
Related party exemption |
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 wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover consists of fees and interest due on the commercial loans the group arranges and is accounted for as it accrues under the terms of each agreement. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and and accumulated impairment loss. |
The computer software came into use during the period and is being amortised over 5 years. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Taxation |
Taxation for the period 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. |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
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 period 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the period was |
4. | 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. |
5. | INTANGIBLE FIXED ASSETS |
Group |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2023 | 84,222 |
Additions | 58,800 |
Disposals | (126,000 | ) |
At 31 March 2024 | 17,022 |
AMORTISATION |
Charge for period | 4,256 |
At 31 March 2024 | 4,256 |
NET BOOK VALUE |
At 31 March 2024 | 12,766 |
At 31 December 2022 | 84,222 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
5. | INTANGIBLE FIXED ASSETS - continued |
Company |
Other |
intangible |
assets |
£ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) |
At 31 March 2024 |
AMORTISATION |
Charge for period |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 December 2022 |
6. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 2,790 | 1,693 | 61,246 | 65,729 |
Additions | - | - | 7,724 | 7,724 |
Disposals | (2,790 | ) | - | - | (2,790 | ) |
At 31 March 2024 | - | 1,693 | 68,970 | 70,663 |
DEPRECIATION |
At 1 January 2023 | 1,011 | 1,158 | 30,550 | 32,719 |
Charge for period | 556 | 167 | 10,269 | 10,992 |
Eliminated on disposal | (1,567 | ) | - | - | (1,567 | ) |
At 31 March 2024 | - | 1,325 | 40,819 | 42,144 |
NET BOOK VALUE |
At 31 March 2024 | - | 368 | 28,151 | 28,519 |
At 31 December 2022 | 1,779 | 535 | 30,696 | 33,010 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
6. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 January 2023 |
Charge for period |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 December 2022 |
7. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Avamore Capital Bridging Ltd |
Registered office: 32 Clarence Street, Southend-on-Sea, Essex SS1 1BD |
Nature of business: Providing specialist finance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
7. | FIXED ASSET INVESTMENTS - continued |
Avamore Finance 1 Limited |
Registered office: 32 Clarence Street, Southend-on-Sea, Essex SS1 1BD |
Nature of business: Providing specialist finance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Avamore Development Finance 1 Limited |
Registered office: 78 Cannon Street, London, EC4N 6HL |
Nature of business: Providing specialist finance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Avamore Specialist Finance 1 Ltd |
Registered office: 78 Cannon Street, London, EC4N 6HL |
Nature of business: Providing specialist finance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Avamore Construction Finance Limited |
Registered office: 78 Cannon Street, London, EC4N 6HL |
Nature of business: Providing specialist finance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.24 | 31.12.22 | 31.3.24 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 4,137,463 | 3,558,947 |
Amounts owed by group undertakings | - | - |
Other debtors | 409,532 | 486,985 |
4,546,995 | 4,045,932 |
9. | CURRENT ASSET INVESTMENTS |
Group | Company |
31.3.24 | 31.12.22 | 31.3.24 | 31.12.22 |
£ | £ | £ | £ |
Other | 3,024,421 | - |
AVAMORE CAPITAL LIMITED (REGISTERED NUMBER: 09820738) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 JANUARY 2023 TO 31 MARCH 2024 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.3.24 | 31.12.22 | 31.3.24 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 76,531 | 70,584 |
Amounts owed to group undertakings | - | - |
Taxation and social security | 110,001 | 574,320 |
Other creditors | 215,403 | 63,599 |
401,935 | 708,503 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.12.22 |
value: | £ | £ |
A Ordinary | £1 | 45 | 45 |
B Ordinary | £1 | 45 | 45 |
C Ordinary | £1 | 10 | 10 |
100 | 100 |
12. | OTHER FINANCIAL COMMITMENTS |
Total financial commitments, guarantees and contingencies which are not included in the balance sheet amount to £153,426, being £86,400 for the rent payable on the parent company's premises for the remainder of the lease period to August 2024 and £67,026 for the vehicle lease over the next 3 years. |
13. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the period ended 31 March 2024 and the year ended 31 December 2022: |
31.3.24 | 31.12.22 |
£ | £ |
D J Zaprzala |
Balance outstanding at start of period | 107,920 | 120,520 |
Amounts advanced | - | 2,400 |
Amounts repaid | (107,920 | ) | (15,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | - | 107,920 |
The loan was interest free and repaid in full on 2 August 2023. |