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REGISTERED NUMBER: 05188971 (England and Wales)











Audited Financial Statements

for the Year Ended 31 March 2024

for

Coventry and Warwickshire Reinvestment
Trust Ltd

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Coventry and Warwickshire Reinvestment
Trust Ltd

Company Information
for the Year Ended 31 March 2024







DIRECTORS: A Bhabra
S P Byrne
C Humphrey
J S Farnell
S L Sulskis
L C Heeley
C K Balrey
T J Sawrey



SECRETARY: S L Sulskis



REGISTERED OFFICE: Enterprise Centre
Coventry University Technology Park
Puma Way
Coventry
West Midlands
CV1 2TX



REGISTERED NUMBER: 05188971 (England and Wales)



SENIOR STATUTORY AUDITOR: C A Christou FCCA MAE



INDEPENDENT AUDITORS: Leigh Christou Ltd
Chartered Certified Accountants and
Statutory Auditor
Leofric House
Binley Road
Coventry
CV3 1JN

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Balance Sheet
31 March 2024

31.3.24 31.3.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 7,367 10,200
Tangible assets 5 29,432 11,120
36,799 21,320

CURRENT ASSETS
Debtors 6 7,120,720 7,770,976
Cash at bank and in hand 1,814,842 2,340,989
8,935,562 10,111,965
CREDITORS
Amounts falling due within one year 7 1,887,262 2,567,025
NET CURRENT ASSETS 7,048,300 7,544,940
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,085,099

7,566,260

CREDITORS
Amounts falling due after more than one
year

8

5,703,759

6,167,710
NET ASSETS 1,381,340 1,398,550

RESERVES
Other reserves 12 1,016,515 1,105,489
Income and expenditure account 12 364,825 293,061
1,381,340 1,398,550

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2024 and were signed on its behalf by:




S P Byrne - Director



S L Sulskis - Director


Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. STATUTORY INFORMATION

Coventry and Warwickshire Reinvestment Trust Ltd is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
Excluding the £236,369 grant from Restricted Funds, the company would have reported a deficit for the year. Despite this, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including the current state of the balance sheet, future projections of profitability, cash flows and capital resources and the longer-term strategy of the business.

The directors note that at the Balance Sheet date, the Bank of England interest rate remained at a historic high of 5.25%. Loans to customers are at a fixed interest rate, whilst some of the borrowing is at a variable interest rate. While CWRT's margins have been reduced by higher interest rates, and the future path of interest rates remains a material uncertainty, the directors have taken appropriate action to ensure the company is adequately resourced.

After making enquiries, the Directors believe the company has sufficient resources to continue its activities for the 12 months from the reporting date.

Significant judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year are as follows:

Loan bad and doubtful debt provision
The calculation and measurement of expected credit losses requires significant judgement and represents a key source of estimation uncertainty. Details of the critical judgements and accounting estimates are set out below.

Deferred income
Loan arrangement fees are recognised on an accrual basis over the term of the loan. Deferred income reflects management expectation of fees over the remaining term of outstanding loans, where material.

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents loan interest receivable and loan arrangement fees derived from capital advanced to new and existing business and social enterprises and individuals. Loan interest and arrangement fees are recognised on an accruals basis over the term of the loan.

Turnover relating to fund management services is recognised as contractual obligations are performed, in accordance with the agreed payment terms.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - Straight line over 10 years
Motor vehicles - 25% on reducing balance
Computer equipment - 25% on cost

Financial instruments
Where acting as fund manager, and where the risks and rewards of lending belong to an external party, the associated assets and liabilities are not included on the balance sheet of the fund manager.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 taxation
Deferred tax is recognised in respect of all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Grants received
Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets.

Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Capital loan funding grants
Capital grants received for onward lending are credited to the commercial funding reserve account where the value is maintained according to the specific rules of each grant scheme.

Similarly, bad debt provision and write-off is offset against commercial funding reserves. When the age or the rules of the fund permit, a transfer to the income and expenditure account reserve is made to reflect any changes in what remains restricted.

In broad terms, the amount remaining in the funding reserves accounts are equal to the grant funded element of the performing loan book, net of specific bad debt provisions, write offs and released reserves.

Loan bad and doubtful debt provision
Understanding the appetite for risk inherent in the market sector in which the Company operates, the directors have made a provision for bad and doubtful loan debts on the following basis:

Commercial
Number of days value of loans in arrears loans %

1 - 10 days in arrears 0
11 - 30 days in arrears 10
31 - 60 days in arrears 25
61 - 90 days in arrears 50
91 - 120 days in arrears 75
121 plus days in arrears 100

The bad debt calculation is initially on a strict day basis. Management then review the level of bad and doubtful debt provision, updating the above basis to reflect other relevant factors such as communication with the customer, and any guarantees or security in place that would mitigate the expected credit losses.

Loan debts deemed irrecoverable are written off in full as soon as it becomes clear that repayment will not be received.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2023 - 12 ) .

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

4. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 April 2023
and 31 March 2024 10,200
AMORTISATION
Amortisation for year 2,833
At 31 March 2024 2,833
NET BOOK VALUE
At 31 March 2024 7,367
At 31 March 2023 10,200

5. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2023 - - 19,601 19,601
Additions 8,000 12,498 4,430 24,928
At 31 March 2024 8,000 12,498 24,031 44,529
DEPRECIATION
At 1 April 2023 - - 8,481 8,481
Charge for year 200 1,562 4,854 6,616
At 31 March 2024 200 1,562 13,335 15,097
NET BOOK VALUE
At 31 March 2024 7,800 10,936 10,696 29,432
At 31 March 2023 - - 11,120 11,120

6. DEBTORS
31.3.24 31.3.23
£    £   
Amounts falling due within one year:
Loans outstanding 2,259,068 2,181,605
Other debtors 79,316 33,632
Directors' current accounts 6,969 15,142
Prepayments 35,624 32,677
2,380,977 2,263,056

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

6. DEBTORS - continued
31.3.24 31.3.23
£    £   
Amounts falling due after more than one year:
Loans outstanding 4,739,743 5,507,920

Aggregate amounts 7,120,720 7,770,976

Loans outstanding represent capital advanced to new and existing businesses, social enterprises and to individuals in order to fulfil the aims of the company. Loans are made within an agreed repayment schedule; they are however repayable on demand in certain circumstances. Accordingly, these have been disclosed within current debtors but if settled to terms, the repayment would be split as shown above.

These loans represent a mix of secured and unsecured lending at varying rates above the bank base rates fixed at the time the loans are advanced and are repayable in accordance with a payment schedule agreed at the commencement of the term. Generally, the loans are made over a 12 month to 60 month period.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.3.24 31.3.23
£    £   
Bank loans and overdrafts (see note 9) 285,820 21,270
Other loans (see note 9) 1,322,467 2,113,292
Trade creditors 4,991 21,162
Social security and other taxes 15,591 -
Other creditors 18,234 12,680
Accrued expenses 240,159 398,621
1,887,262 2,567,025

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.3.24 31.3.23
£    £   
Bank loans (see note 9) 787,500 1,170,000
Other loans (see note 9) 4,916,259 4,997,710
5,703,759 6,167,710

Amounts falling due in more than five years:

Repayable otherwise than by instalments
Other loans more 5yrs non-inst 4,000,000 2,770,000

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued

Included within other loans as detailed at note 10 and 11, is a loan of £Nil (2023: £38,400) from Warwickshire County Council which is to support the work of the company's small business lending scheme. The repayment of this loan is made in bi-annual instalments to the Council based upon the amount repaid by the relevant businesses to the CWRT.

Included within other loans as detailed at note 10 and 11, are loans of £2,000,000 (2023: £770,000) from Coventry City Council, and £2,000,000 (2023: £2,000,000) from Warwickshire County Council which are to support the work of the company's Duplex lending scheme to businesses in the Coventry and Warwickshire area. Interest is payable quarterly in arrears, with capital repayments commencing June 2029.

Included within other loans as detailed at note 10 and 11 are loans from local Councils, for the purposes of CWRT providing loans under the Coronavirus Business Interruption Loan Scheme (CBILS), and the follow up Recovery Loan Scheme (RLS). Interest is payable quarterly in arrears, with capital repayments made in bi-annual instalments following an agreed repayment schedule.

20242023
CBILS/RLS Lender££
Coventry City Council834,4792,008,794
Warwickshire County Council1,169,2841,934,026
Nuneaton & Bedworth Borough Council104,428179,891
Warwick District Council130,535179,891
2,238,7264,302,602

9. LOANS

An analysis of the maturity of loans is given below:

31.3.24 31.3.23
£    £   
Amounts falling due within one year or on demand:
Bank loans 285,820 21,270
Other loans 1,322,467 2,113,292
1,608,287 2,134,562

Amounts falling due between one and two years:
Bank loans - 1-2 years 262,500 300,000
Other loans - 1-2 years 789,790 1,311,448
1,052,290 1,611,448

Amounts falling due between two and five years:
Bank loans - 2-5 years 525,000 870,000
Other loans - 2-5 years 126,469 916,262
651,469 1,786,262

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. LOANS - continued
31.3.24 31.3.23
£    £   
Amounts falling due in more than five years:
Repayable otherwise than by instalments
Other loans more 5yrs non-inst 4,000,000 2,770,000

10. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.3.24 31.3.23
£    £   
Within one year 35,154 8,534
Between one and five years 6,300 -
41,454 8,534

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

11. SECURED DEBTS

The following secured debts are included within creditors:

31.3.24 31.3.23
£    £   
Bank loans 1,073,320 1,191,270
Other loans, within one year 1,322,467 2,087,692
Other loans, over one year 4,916,259 4,984,910
7,312,046 8,263,872

Duplex loans:
Funds have been provided by Warwickshire County Council, and Coventry City Council.

These loans are secured by debentures dated 30 September 2019.


CBILS loans:
Funds have been provided by Warwickshire County Council, Coventry City Council, Nuneaton & Bedworth Borough Council, and Warwick District Council.

These loans are secured by debentures dated between 24 August 2020 and 25 February 2021.


Recovery Loan Scheme (RLS) loans:
Funds have been provided by Coventry City Council and Unity Trust Bank Plc.

The Coventry City Council loan is secured by debentures listed above (CBILS). The Unity Trust Bank Plc loan is secured by a debenture dated 31 December 2021.


Warwickshire Recovery and Investment Fund (WRIF) loans:
Warwickshire County Council have a fixed charge over the property and undertakings of the company, as security for loan facilities made available under the WRIF Local Communities and Enterprise (LCE) fund.

As disclosed in Note 3, the company acts only as fund manager, and the risks and rewards of loans advanced lie with Warwickshire County Council. Accordingly, the associated assets and liabilities are not included on the balance sheet of the company.

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

12. RESERVES


Reserves consist of the following:

Income andCommercialDuplexAccess/Total
ExpenditureFundingGrantSDCC Grant
AccountReserveReserveReserve
£££££
At 1 April 2023293,061631,693473,7961,398,550
Grant receipts400,000205,000605,000
Grants paid out(309,035)(140,000(449,035)
Grant of restricted funds to CWRT(236,369)(236,369)
Surplus/deficit for year71,76471,764
Movement in provisions(8,570)(8,570)

364,825386,754564,76165,0001,381,340


Commercial Funding Reserve, Duplex Grant Reserve and Access Grant Reserve relate to Restricted Funds. These funds relate to grant funding received, to be utilised in line with the funding restrictions in place.

Duplex Grant Reserve relates to grant funds held in partnership with Coventry City Council, Warwickshire County Council, and Coventry and Warwickshire Local Enterprise Partnership.

Reserve transfer relates to the two remaining ERDF funds (European Regional Development Fund) and the CUSE fund (Coventry University Enterprises student business loan fund) being released in full. Funds have been released to unrestricted funds, taken through the income statement.

13. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

C A Christou FCCA MAE (Senior Statutory Auditor)
for and on behalf of Leigh Christou Ltd

14. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2024 and 31 March 2023:

31.3.24 31.3.23
£    £   
S L Sulskis
Balance outstanding at start of year 15,142 23,115
Amounts repaid (8,174 ) (7,973 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 6,968 15,142

Interest is charged at an agreed rate over the 48 month duration of the agreement. The loan is repayable in full on the director ceasing to be employed by the company.

Coventry and Warwickshire Reinvestment
Trust Ltd (Registered number: 05188971)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

15. RELATED PARTY DISCLOSURES

ADECS Limited
Common directorship

The company received goods and services from ADECS Limited, a company in which Mr A Bhabra is a director. The total value of goods and services provided during the year amounted to £7,401 (2023: £6,152). At the balance sheet date £0 (2023: £0) was owed to ADECS Limited.



Coventry & Warwickshire Chamber of Commerce
Common directorship

The company received goods and services from Coventry & Warwickshire Chamber of Commerce, a company in which Mr A Bhabra is a director. The total value of goods and services provided during the year amounted to £467 (2023: £414).
The value of revenue grant received during the year amounted to £32,000 (2023: £35,761), and contribution towards costs was £10,800 (2023: £1,040).
At the balance sheet date £30,400 (2023: £0) was owed from Coventry & Warwickshire Chamber of Commerce.



Coventry and Warwickshire Growth Hub Limited
Common directorship

The company received goods and services from Coventry and Warwickshire Growth Hub Limited, that has a subsidiary company Growth Hub Business Solutions Ltd, a company in which Mr C Humphrey and Mr J S W Farnell are directors. The total value of goods and services provided during the year amounted to £20,874 (2023: £18,782). At the balance sheet date £0 (2023: £0) was owed to Coventry and Warwickshire Growth Hub Limited.

16. AUDITOR LIABILITY LIMITATION AGREEMENT

Auditors Liability is limited to a maximum of twenty-five times the fee relating to the audit engagement.

The director approved the agreement on 2 April 2024.

17. ULTIMATE CONTROLLING PARTY

Throughout the current and previous period the company was controlled by the directors.

18. SHARE CAPITAL

The company is limited by guarantee and has no share capital.