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Registered number: 09034678









BRYDG CAPITAL LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2023

 
BRYDG CAPITAL LTD
 
 
COMPANY INFORMATION


Directors
D D Bendavid 
P P Matthews 
A P Ozel (resigned 1 October 2024)




Registered number
09034678



Registered office
Third Floor Rear
70-72 Jermyn Street

London

United Kingdom

SW1Y 6PF




Independent auditors
Harris & Trotter LLP
Chartered Accountants & Registered Auditors

101 New Cavendish Street

1st Floor South

London

W1W 6XH





 
BRYDG CAPITAL LTD
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Analysis of net debt
11
Notes to the financial statements
12 - 25


 
BRYDG CAPITAL LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The directors present the strategic report for the year ended 31 May 2023.

Business review
 
The Directors are pleased to report the following key financial highlights for the year:
The Company achieved a significant increase in turnover for the financial year ended 31 December 2023, reflecting a growth of 67.8% compared to 2022. Correspondingly, the cost of sales also rose by 68.9%. Despite this increase, the gross margin remained stable, consistent with the previous year, at approximately 14%-15%. This demonstrates the Company’s ability to manage costs effectively while scaling operations. 
The directors are satisfied with the overall performance of the company for the year.

Principal risks and uncertainties
 
The principal risk faced by the Company arises from its growth performance within the property financing and lending sector. This includes the level of demand for new loans from its existing customer base and the ability to attract new customers. To manage these risks effectively, the Company focuses on maintaining high levels of satisfaction among its existing customers while continuously exploring and implementing innovative strategies to attract new clients and expand its customer base.

Financial key performance indicators
 
One of the key financial performance indicators utilized by the Company is the growth in its loan portfolio, reflecting its capacity to expand operations and meet increasing customer demand effectively.

Other key performance indicators
 
Key non-financial performance indicators include measuring the number of new customers wins.


This report was approved by the board on 29 November 2024 and signed on its behalf.



D D Bendavid
Director

Page 1

 
BRYDG CAPITAL LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The directors present their report and the financial statements for the year ended 31 May 2023.

Directors

The directors who served during the year were:

D D Bendavid 
P P Matthews 
A P Ozel (resigned 1 October 2024)

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £116,134 (2022 - profit £642,372).

No ordinary dividends were declared or paid during the year, and the directors have resolved not to recommend the payment of a final dividend.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
BRYDG CAPITAL LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHarris & Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 November 2024 and signed on its behalf.
 





D D Bendavid
Director

Page 3

 
BRYDG CAPITAL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG CAPITAL LTD
 

Opinion


We have audited the financial statements of Brydg Capital Ltd (the 'Company') for the year ended 31 May 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 May 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
BRYDG CAPITAL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG CAPITAL LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 5

 
BRYDG CAPITAL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG CAPITAL LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
In identifying and assessing risks of  material  misstatement  in  respect  of irregularities, including fraud and  non compliance with laws and regulations, our procedures included the following:
• We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006.
• We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management.
• We challenged assumptions and judgments made by management in its significant accounting estimates.
We did not identify any key audit matters relating to irregularities, including fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 6

 
BRYDG CAPITAL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG CAPITAL LTD (CONTINUED)


Other matters 
 

The financial statements of the Company for the year ended 31 May 2022, were not audited. Accordingly, no audit opinion is expressed on the comparative figures presented in these financial statements.





Stephen Haffner (Senior statutory auditor)
  
for and on behalf of
Harris & Trotter LLP
 
Chartered Accountants
Registered Auditors
  
101 New Cavendish Street
1st Floor South
London
W1W 6XH

29 November 2024
Page 7

 
BRYDG CAPITAL LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
19,056,760
11,359,243

Cost of sales
  
(16,327,860)
(9,667,507)

Gross profit
  
2,728,900
1,691,736

Administrative expenses
  
(3,112,832)
(1,004,916)

Other operating income
 5 
237,609
83,741

Operating (loss)/profit
  
(146,323)
770,561

Interest receivable and similar income
 8 
30,189
557

(Loss)/profit before tax
  
(116,134)
771,118

Tax on (loss)/profit
 9 
-
(128,746)

(Loss)/profit for the financial year
  
(116,134)
642,372

Other comprehensive income for the year
  

Total comprehensive income for the year
  
(116,134)
642,372

The notes on pages 12 to 25 form part of these financial statements.

Page 8

 
BRYDG CAPITAL LTD
REGISTERED NUMBER: 09034678

STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 10 
664,627
506,182

  
664,627
506,182

Current assets
  

Debtors
 11 
133,361,791
57,841,347

Cash at bank and in hand
 12 
5,987,990
10,720,481

  
139,349,781
68,561,828

Creditors: amounts falling due within one year
 13 
(115,370,726)
(58,354,485)

Net current assets
  
 
 
23,979,055
 
 
10,207,343

Total assets less current liabilities
  
24,643,682
10,713,525

Creditors: amounts falling due after more than one year
 14 
(23,902,019)
(9,855,728)

  

Net assets
  
741,663
857,797


Capital and reserves
  

Called up share capital 
 16 
1
1

Profit and loss account
 17 
741,662
857,796

  
741,663
857,797


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 November 2024.




D D Bendavid
Director

The notes on pages 12 to 25 form part of these financial statements.

Page 9

 
BRYDG CAPITAL LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2021
1
215,424
215,425


Comprehensive income for the year

Profit for the year
-
642,372
642,372
Total comprehensive income for the year
-
642,372
642,372



At 1 June 2022
1
857,796
857,797


Comprehensive income for the year

Loss for the year
-
(116,134)
(116,134)
Total comprehensive income for the year
-
(116,134)
(116,134)


At 31 May 2023
1
741,662
741,663


The notes on pages 12 to 25 form part of these financial statements.

Page 10

 
BRYDG CAPITAL LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2023




At 1 June 2022
Cash flows
At 31 May 2023
£

£

£

Cash at bank and in hand

10,720,481

(4,732,491)

5,987,990

Debt due after 1 year

(9,574,877)

(14,046,293)

(23,621,170)

Debt due within 1 year

(47,500,493)

(46,465,418)

(93,965,911)


(46,354,889)
(65,244,202)
(111,599,091)

The notes on pages 12 to 25 form part of these financial statements.

Page 11

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Brydg Capital Limited is a private company, limited by shares incorporated in England and Wales (registered number: 09034678). The registered office address and principal place of business of the company is Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF.
The principal activity of the company is that of property financing and lending.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

 
2.3

Going concern

In assessing the ability of the company to operate as a going concern, management have evaluated current and forecasted operational results, and the solvency of the company. As a result, the directors consider it appropriate to prepare the financial statements on a going concern basis.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Interest income
Revenue from loans advanced to customers is recognised over the period of the agreement.
Exit & extension fees
Revenue from these sources are recognised from the inception of the loan agreement.
Arrangement and administration fees
Revenue from arrangement and administration fees are recognised in accordance with the terms and conditions of each loan agreement.

Page 12

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.5

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.


Page 13

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Page 14

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 15

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)


Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, management is required to make judgments and assumptions about the carrying values of assets and the liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revisions affect only that period, or in the period of the revisions and future periods if the revision affects both current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
Recoverability and impairment of current assets.
The determination of whether there are indicators of impairment of the company's current assets and determination of the recoverability of amounts owed by third party and intercompany requires judgement in order to consider the fair value and any need for impairment.

Page 16

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


As restated
2023
2022
£
£

Interest from borrowers
14,170,905
7,527,701

Exit fees
835,810
673,150

Arrangement and administration fees
2,617,174
2,023,461

Extension fees
499,221
358,402

Valuation fees
933,650
732,529

Management charges receivable
-
44,000

19,056,760
11,359,243


Analysis of turnover by country of destination:

As restated
2023
2022
£
£

United Kingdom
19,056,760
11,359,243

19,056,760
11,359,243



5.


Other operating income

2023
2022
£
£

Reversal of aged liabilities
211,291
-

Government grants receivable
-
61,826

Foreign exchange difference - gain
26,318
21,915

237,609
83,741


Page 17

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
40,000
-


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
33,863
104,929

Social security costs
-
832

Pension costs
798
1,601

34,661
107,362


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
3
8


8.


Interest receivable

2023
2022
£
£


Bank commissions and interest
30,189
557

30,189
557

Page 18

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
128,746


-
128,746


Total current tax
-
128,746

Deferred tax

Total deferred tax
-
-


Tax on (loss)/profit
-
128,746

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - the same as) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(116,134)
771,118


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(22,065)
146,512

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
84,788
23,465

Group relief
(22,880)
(17,766)

Charitable donations relief
(39,843)
(23,465)

Total tax charge for the year
-
128,746


Factors that may affect future tax charges

In October 2022, the UK government confirmed that the UK Corporation Tax rate will increase to 25% from 1st April 2023. As the current year straddled this date, profits were apportioned and charged at differing rates of corporation tax. These changes will impact the future tax liabilities of the company.

Page 19

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

10.


Intangible assets




Computer software

£



Cost


At 1 June 2022
787,777


Additions
395,000



At 31 May 2023

1,182,777



Amortisation


At 1 June 2022
281,595


Charge for the year on owned assets
236,555



At 31 May 2023

518,150



Net book value



At 31 May 2023
664,627



At 31 May 2022
506,182



Page 20

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

11.


Debtors

As restated
2023
2022
£
£

Due after more than one year

Amounts owed by group undertakings
515,745
461,543

Other debtors
52,203,061
9,419,550

Prepayments and accrued income
2,915,701
1,819,450

55,634,507
11,700,543

Due within one year

Trade debtors
33
-

Amounts owed by group undertakings
892,677
5,780,042

Other debtors
61,070,929
34,508,157

Prepayments and accrued income
15,763,645
5,852,605

133,361,791
57,841,347



12.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
5,987,990
10,720,481

5,987,990
10,720,481



13.


Creditors: Amounts falling due within one year

As restated
2023
2022
£
£

Borrowings
93,965,798
47,500,030

Accrued interest and other payables
18,970,001
8,532,398

Amounts owed to group undertakings
1,375,780
1,375,780

Trade creditors
714,453
52,627

Other creditors
213,022
761,978

Corporation tax
128,746
128,746

Other taxation and social security
2,926
2,926

115,370,726
58,354,485


Page 21

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

14.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Borrowings
23,621,169
9,574,878

Amounts owed to group undertakings
280,850
280,850

23,902,019
9,855,728


Amounts owed to group udertakings include the following convertible loan notes:  
1. £100,000 8.00% Convertible Loan Notes issued to Diagonal.  
2. £25,000 2.5% Convertible Loan Notes issued to Spiral.  
These loan notes are convertible, at the Company's sole discretion, either in part or in full, into fully paid conversion shares.

The aggregate amount of liabilities repayable wholly or in part more than a year after the reporting date is:

2023
2022
£
£


Amounts owed to group undertakings
280,850
280,850

Other loans
23,621,170
9,574,877

23,902,020
9,855,727



Page 22

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
5,987,990
10,720,481

Financial assets that are debt instruments measured at amortised cost
133,361,791
57,163,735

139,349,781
67,884,216


Financial liabilities


Financial liabilities measured at amortised cost
(139,272,745)
(68,210,213)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets measured at amortised cost comprise of trade and other debtors.


Financial liabilities measured at amortised cost comprise of trade and other creditors,accruals and other loans.

Page 23

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1



17.


Reserves

Profit and loss account

The profit and loss reserve contains the cumulative balances of retained profit and losses since the company started trading. It is a distributable reserve.


18.


Prior year adjustment

In the prior financial year 2022, the Company omitted to recognise an accrued income for interest iamounting to £677,612. During the current financial year, as a result of this correction, the previously reported profit before tax for the year ended 31 May 2022, which was £93,507, has been restated to a profit before tax of £771,118.
 
Furthermore, as a result of the restatement of the profit for the year ended 31 May 2022, a tax expense of £128,746, has been recognised.
 
The overall impact of the restatement has resulted in a change in the reported net profit for the year ended 31 May 2022 of £548,865.
These adjustments have been reflected in the current year's comparative financial statements.


19.


Pension commitments

The Company operates a defined contributions pension scheme. 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 £798 (2022 - £1,601).


20.


Related party transactions

FRS 102 does not require disclosure of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


21.


Post balance sheet events

There were no significant events after the reporting period.

Page 24

 
BRYDG CAPITAL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

22.


Controlling party

The immediate parent company is Brydg Ltd. The registered office and principal place of business is Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF. The ultimate controlling party is Opera Ventures AG, incorporated in Liechtenstein.
A copy of the group accounts prepared by the immediate parent company may be obtained from that company's registered office.

Page 25