Nucleus Commercial Holdings Limited
Annual Report and Financial Statements
For the year ended 31 March 2024
Company Registration No. 09646728 (England and Wales)
Nucleus Commercial Holdings Limited
Company Information
Directors
C Shah
M Goldman
D Winward
G Titley
S Willmett
Secretary
G May
Company number
09646728
Registered office
Mezzanine Floor
St Albans House
57-59 Haymarket
London
SW1Y 4QX
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Nucleus Commercial Holdings Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Profit and Loss Account
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Consolidated statement of cash flows
16
Notes to the financial statements
17 - 34
Nucleus Commercial Holdings Limited
Strategic Report
For the year ended 31 March 2024
Page 1

The directors present the Strategic Report of Nucleus Commercial Holdings Limited for the year ended 31 March 2024. In preparing this Strategic Report, the Directors have complied with section 414C of the Companies Act 2006.

Principal Activities

Nucleus Commercial Holdings Limited is the Holding Company for the Nucleus Group of companies, a leading commercial finance provider to the UK SME market offering fast decisioning on commercial loans via our award winning technology platform and underwriting system with the personal touch of our dedicated sales and operations team.

 

Following a period of strategic review the company offers two key products.

 

General Business Overview

 

Two new senior funding lines were completed during the financial year, the first, a £50m senior facility for short and medium term NBL loans was followed by a £200m senior facility in the third quarter for short, medium and long term loans.

 

The addition of these new funding lines enables us to continue to offer loans at competitive prices to UK SME’s in the medium and longer term.

 

The Group expects to see significant growth in loan origination over the next 12-18 months with direct benefits of increased take on fees and servicing fees leading to higher cash generation and bottomline profitability.

 

Principal Risk and Uncertainties

 

Liquidity

 

The ability to secure sufficient debt facilities at reasonable rates which allows us to be competitive in the market is a key risk faced by the Group. Over the course of the last year we have closed new facilities of £250m which provides access to sufficient funding for the short and medium term to achieve our goals.

 

We continue to work with a number of partners and expect further debt facilities to be in place which again will allow us to remain competitive in the market and to grow further over the coming years.

 

The liquidity of the Group so that it can meet its liabilities as and when they fall due is key to the ongoing business. The Group has sufficient reserves for the ongoing trading of the business and liquidity will continue to improve with ongoing higher originations driving higher origination fees and servicing revenue.

 

Loan Book Performance

 

A principal risk is the performance of the various portfolios across the Group and that borrowers default by not making their contractual payments. The Group looks to minimize these risks at the outset with stringent underwriting and credit assessment before funds are advanced along with ongoing monitoring on both a loan and portfolio level through various KPI’s.

 

Interest Rate Increases

 

The Group has a number of debt facilities with lenders, some of which are fixed interest rates and some of which are marked against SONIA. An increase in SONIA would have a direct impact on the cost of funding of the Group and impact cashflow. The Group mitigates this risk by ensuring that interest rates charged to clients can be adjusted where appropriate and can absorb any increase in the base level of interest.

Nucleus Commercial Holdings Limited
Strategic Report (Continued)
For the year ended 31 March 2024
Page 2

Key Performance Indicators - Results

A summary of the Key Performance Indicators is included below:

 

FY24

FY23

 

£m

£m

Total Income

41.0

38.7

 

 

 

Operating Profit

10.0

17.2

 

 

 

Exceptional Items / Disposals

0.0

15.1

 

 

 

Loss / Gain for the Financial Year

(7.1)

11.1

 

 

 

Total Loan Facilities

250.3

279.6

 

 

 

Loan Origination

50.0

61.5

 

The start of FY24 saw lower than originally forecast originations as we looked to finalise a new senior line, which was completed in the third quarter of FY24. Completion of the new funding line has seen both origination, deal volume and average size of deal increase on an ongoing basis and is forecast to continue to do so on an upward curve for the foreseeable future.

 

Overall total loan facilities have decreased during the year as loan origination have been below the amortization rate of the current two largest portfolios, RLS and CBILS, coupled with our exit of lending in both the ABL and Secured Lending market.

 

We expect FY25 to see a significant uplift in loan originations and a year on year growth in the overall portfolio through our main Nucleus Business Loan product and our Revenue Based Loan offering as we work towards sourcing a new senior funding facility.

 

Income for the financial year was £41.0m against £38.7m the previous year, due lower originations at the beginning of the year and reduced servicing fees on a smaller portfolio.

 

Whilst lower originations and a smaller loan portfolio have directly impacted income we have continued to invest significantly in our in house bespoke IT infrastructure, our people and new products such as Pulse.IO, our financial analysis software to assist UK SMEs.

 

Operating profit has fallen from £17.2in FY23 to £10.0m in FY24 whilst the Group made a net loss for the year of £7.1m.

 

Financing

 

The Group continues to seek new funding lines with new lenders who fit with our ethos and commitment to provide competitive funding options to our clients.

 

FY24 saw us close two senior facility for a total of £250m and we are currently in negotiations on two further facilities totalling £100m that will allow us greater scope to achieve higher originations across all of our product range at more competitive pricing than ever before.

 

We continue to benefit from the support of our existing lenders and new facilities were provided whilst others were extended or increased.

 

Nucleus Commercial Holdings Limited
Strategic Report (Continued)
For the year ended 31 March 2024
Page 3

Section 172 Statement

 

The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members, and in doing so have regard, amongst other matters. While the board accepts that not every decision it makes will result in a equally positive outcome for all of the Group’s stakeholders, by considering the Company’s purpose, mission and values together with its strategic objectives and having a process in place for decision making, the Directors aim to make sure that the Board’s decisions are consistent and do not create unexpected outcomes for stakeholders.

 

The Group’s key stakeholders are, but not limited to, its people, its customers, its lenders and, the communities in which it operates and the shareholders. The impact of any decisions made by the Directors take account off the impact on the Groups activities and on those actions on the Groups stakeholders.

 

The directors understand the importance of engagement with all of their stakeholders and regularly seek feedback whether formal or informal from them. Such an example would be the introduction regular staff surveys to understand firsthand what our employees feedback is. The results of this feedback is analyzed and shared with the wider firm and stakeholders. Feedback is then provided to staff on the results with actions plans where appropriate or explanations to why certain courses of action have been taken, or cannot be taken depending on the scenario / issue.

 

Brokers and Customers

 

The majority of our loans come through our wider broker network and a lot of the communication with our team initially is with them. Our team are in constant dialogue getting feedback on matters such as quality of customer service and this is feedback to the senior management and director group. The group works closely with its brokers and customers to achieve long term client satisfaction through bespoke service delivery and this has been evidenced by a number of awards and recognition in respect of our broker portal that was specially designed after listening to our brokers and customers.

 

Suppliers

 

The group works with a range of suppliers and remains committed to being fair and transparent in dealings with all suppliers. The group has, where relevant, procedures in place requiring due diligence of suppliers as to their internal governance, including for example, their anti-bribery and corruption practices, data protection policies and modern slavery matters. The group has systems and processes in place to ensure suppliers are paid in a timely manner.

 

Environmental, Social & Governance (ESG)

 

Environmental, Social & Governance is playing an ever increasing role in today’s world and Nucleus is committed to being a sustainable and responsible lender. Over the last 12 months we have reviewed our various policies and brought these together to have a comprehensive ESG policy.

 

We have a working dedicated ESG group who look at all aspects of the Group’s ESG undertaking who are responsible for looking at ways we can record, improve and communicate what we are doing in respect of ESG issues.

 

We have made steps to record, and then improve, key metrics relating to ESG issues across the firm including energy consumption, carbon emissions, females in senior positions within the firm (including the Board) and the gender pay gap.

 

This is an ongoing process and we will look to make continual improvements in our performance and the reporting of them to all of our stakeholders.

Nucleus Commercial Holdings Limited
Strategic Report (Continued)
For the year ended 31 March 2024
Page 4

Streamlined Energy and Carbon Reporting

 

The group and company are exempt from disclosing information relating to energy and carbon reporting on the basis that no individual subsidiary qualifies as large and the parent company has emissions under 40,000 kWh per year.

 

On behalf of the board

S Willmett
Director
30 September 2024
Nucleus Commercial Holdings Limited
Directors' Report
For the year ended 31 March 2024
Page 5

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The Group provides the financial expertise and credit facilities of a traditional high street lender with the flexibility and transparency of a peer to peer business lender.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid (2023: £2,000,000). The directors do not recommend payment of a further dividend.

 

No preference dividends were paid (2023: £318,369).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C Shah
M Goldman
D Winward
G Titley
S Willmett
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Nucleus Commercial Holdings Limited
Directors' Report (Continued)
For the year ended 31 March 2024
Page 6
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
S Willmett
Director
30 September 2024
Nucleus Commercial Holdings Limited
Independent Auditor's Report
To the Members of Nucleus Commercial Holdings Limited
Page 7
Opinion

We have audited the financial statements of Nucleus Commercial Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Group Profit And Loss Account, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 group's and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our 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.

Nucleus Commercial Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Nucleus Commercial Holdings Limited
Page 8

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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 group's and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

Nucleus Commercial Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Nucleus Commercial Holdings Limited
Page 9
Auditor's 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 auditor's 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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Nucleus Commercial Holdings Limited
Independent Auditor's Report (Continued)
To the Members of Nucleus Commercial Holdings Limited
Page 10

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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 in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Ryan Day (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
30 September 2024
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Nucleus Commercial Holdings Limited
Group Profit and Loss Account
For the year ended 31 March 2024
Page 11
2024
2023
Notes
£
£
Turnover
3
40,975,741
38,724,209
Cost of sales
(3,899,861)
(2,527,940)
Gross profit
37,075,880
36,196,269
Administrative expenses
(27,122,067)
(19,809,689)
Other operating income
-
823,557
Operating profit
5
9,953,813
17,210,137
Interest receivable and similar income
10
162,063
32,286
Interest payable and similar expenses
11
(17,210,955)
(20,463,959)
Amounts written off investments
9
9,056
14,286,291
(Loss)/profit before taxation
(7,086,023)
11,064,755
Tax on (loss)/profit
12
(100)
578
(Loss)/profit for the financial year
(7,086,123)
11,065,333
(Loss)/profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Nucleus Commercial Holdings Limited
Group Balance Sheet
As at 31 March 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
31,710
34,403
Current assets
Debtors
16
250,286,427
279,609,890
Cash at bank and in hand
21,222,607
20,094,704
271,509,034
299,704,594
Creditors: amounts falling due within one year
17
(54,172,608)
(64,966,156)
Net current assets
217,336,426
234,738,438
Total assets less current liabilities
217,368,136
234,772,841
Creditors: amounts falling due after more than one year
18
(210,306,300)
(220,624,882)
Net assets
7,061,836
14,147,959
Capital and reserves
Called up share capital
21
100
100
Share premium account
1,199,911
1,199,911
Profit and loss reserves
(4,538,175)
2,547,948
Equity attributable to owners of the parent company
(3,338,164)
3,747,959
Non-controlling interests
10,400,000
10,400,000
7,061,836
14,147,959
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
S Willmett
Director
Nucleus Commercial Holdings Limited
Company Balance Sheet
As at 31 March 2024
31 March 2024
Page 13
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
4,633,401
5,935,323
Current assets
Debtors
16
1,501,601
2,608,199
Cash at bank and in hand
1,178,712
100,111
2,680,313
2,708,310
Creditors: amounts falling due within one year
17
(15,200)
(10,917)
Net current assets
2,665,113
2,697,393
Total assets less current liabilities
7,298,514
8,632,716
Capital and reserves
Called up share capital
21
100
100
Share premium account
1,199,911
1,199,911
Profit and loss reserves
6,098,503
7,432,705
Total equity
7,298,514
8,632,716

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,334,202 (2023: £1,042,282 profit).

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
S Willmett
Director
Company Registration No. 09646728
Nucleus Commercial Holdings Limited
Group Statement of Changes in Equity
For the year ended 31 March 2024
Page 14
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 April 2022
100
1,199,911
(6,199,016)
(4,999,005)
10,400,000
5,400,995
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
11,065,333
11,065,333
-
11,065,333
Dividends
-
-
(2,318,369)
(2,318,369)
-
(2,318,369)
Balance at 31 March 2023
100
1,199,911
2,547,948
3,747,959
10,400,000
14,147,959
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(7,086,123)
(7,086,123)
-
(7,086,123)
Balance at 31 March 2024
100
1,199,911
(4,538,175)
(3,338,164)
10,400,000
7,061,836
Nucleus Commercial Holdings Limited
Company Statement of Changes in Equity
For the year ended 31 March 2024
Page 15
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
100
1,199,911
8,390,423
9,590,434
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,042,282
1,042,282
Dividends
-
-
(2,000,000)
(2,000,000)
Balance at 31 March 2023
100
1,199,911
7,432,705
8,632,716
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(1,334,202)
(1,334,202)
Balance at 31 March 2024
100
1,199,911
6,098,503
7,298,514
Nucleus Commercial Holdings Limited
Group Statement of Cash Flows
For the year ended 31 March 2024
Page 16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
17,941,207
19,951,432
Interest paid
(16,956,563)
(20,463,959)
Income taxes paid
(100)
-
Net cash inflow/(outflow) from operating activities
984,544
(512,527)
Investing activities
Purchase of tangible fixed assets
(18,338)
(10,061)
Proceeds from disposal of tangible fixed assets
(366)
-
Interest received
162,063
32,286
Net cash generated from investing activities
143,359
22,225
Financing activities
Dividends paid to equity shareholders
-
0
(2,318,369)
Net cash used in financing activities
-
(2,318,369)
Net increase/(decrease) in cash and cash equivalents
1,127,903
(2,808,671)
Cash and cash equivalents at beginning of year
20,094,704
22,903,375
Cash and cash equivalents at end of year
21,222,607
20,094,704
Nucleus Commercial Holdings Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 17
1
Accounting policies
Company information

Nucleus Commercial Holdings Limited (“the Company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Mezzanine Floor, St Albans House, 57-59 Haymarket, London SW1Y 4QX.

 

The Group consists of Nucleus Commercial Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 18
1.2
Basis of consolidation

The consolidated financial statements incorporate those of Nucleus Commercial Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

The consolidated financial statements also comprise the financial statements of the Company and special purpose entity, Atom Finance Ltd, in which the group has effective control. Control is achieved when the group has rights to the variable returns and is exposed to the related risks as a result of its involvement with the structured entities.

 

When assessing whether it has power over an investee and therefore controls the variability of its returns, the Group considers all relevant facts and circumstances, including:

 

 

In accordance with FRS 102, the group has effective control over the consolidated undertaking

(special purpose entity), as the group is exposed to and has rights to all of the variable returns from its

involvement in this entity and has ability to affect those returns through powers delegated to the

group over the entity.

 

The group does not have a contractual obligation to provide financial support to the SPE. Instead,

the Group is entitled to the residual income from the SPE, if applicable. Principal receipts from loans sold to the SPE are used to cover any shortfall in residual income.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 19
1.3
Going concern

The financial statements are prepared on a going concern basis as the Directors are satisfied that the Company and Group have the resources to continue for the foreseeable future (which has been taken at least 12 months from the date of approval of the financial statements). In making this assessment, the Directors have considered the performance of the Group, current reserves and the ongoing business prospects.

 

The Company faced a challenging start to FY24 but has seen significant improvement over a number of it’s key performance indicators such as deal origination, deal payouts by both volume and value. New funding lines that completed in FY24 and those which we hope to complete shortly put the Group in a good position to grow in both the short and long term.

 

The Company has a Group balance sheet at the end of the year of £7.1m, including loses and provisioning in SPV’s that are not cross guaranteed the Group and therefore not payable on a Group basis. The Company has unencumbered cash of £5.5m which is sufficient to meet its ongoing requirements along with further cash being generated.

 

The Company has plans in place to further reduce its cost base whilst new completed facilities, for a period far exceeding 12 months from the date of signing, will allow the company to originate its key NBL loans at a significantly higher level than over the preceding 12 months.

 

The Company prepares a detailed 5 year plan on a rolling basis which takes into account economic stress, new funding lines becoming available and higher originations of its loan products. Prudent provisioning in respect of ongoing defaults on new and historical loan products.

 

A downside scenario has also been forecast with lower origination forecasts, smaller loan facilities and higher default rates. Current cash reserves and ongoing servicing fees would allow the Group to continue to meet its liabilities as they fall due without the requirement for any significant restructuring of the firm or how it currently operates.

 

The Company does not rely on any borrowing facilities, drawn or undrawn to trade.

 

The directors have reviewed the financial covenants that they must adhere to under the terms of the various finance agreements such as unencumbered cash and group tangible net worth and any breach of these covenants under both scenarios is considered remote.

 

Having carefully reviewed the short, medium and long term prospect of the business in detail the Directors consider that the Group has the ability to remain in operation for the foreseeable future for a period not less than 12 from the date of approval of the Company financial statement and have therefore continued to adopt the going concern basis in preparing the financial statements.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 20
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Interest receivable is recognised on a monthly basis. Facility fee revenue is recognised monthly dependent on the agreed contractual terms relating to facility size, drawn balance and refactoring fees. Take on fees are accrued at the point of the start of the contract with the client and are then amortised over the life of the underlying loan. Commitment fees relate to preliminary work carried out to establish the risk profile of the client which are then recharged and are accrued as invoiced. Early exit fees are recognised upon the early termination of a contract. As such there is no material revenue which is subject to the stage of completion of a contract. Also included within turnover are servicing fees recognised monthly in relation to loan book services provided to third parties.

 

Where take on fees have been accrued on day one and that loan is then sold to Atom Finance Ltd, a special purpose entity listed in the Subsidiaries note, the performance obligations have been satisfied and the fees are then brought up front and recognised in full on the date of the loan sale.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the length of the lease
Plant and equipment
5 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 21
1.7
Cash and cash equivalents

Cash at bank and in hand 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 are shown within borrowings in current liabilities.

 

In accordance with FRS 102 the cash movements associated with the loan books and the associated borrowings have been included within operating activities in the preparation of the Consolidated Statement of Cash Flows and related notes.

1.8
Financial instruments

Basic financial instruments are measured at cost. The company has no other financial instruments or basic financial instruments measured at fair value.

1.9
Equity instruments

Equity instruments issued by the group 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 group.

1.10
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 profit and loss account 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 group’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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 22
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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 leased asset are consumed.

1.14
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.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 23
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Bad debt provision

The group makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers the likelihood of recoverability of the debt based on the risk factor of the customer and contractual position.

 

The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current valuation of the assets that the company has security on, the ageing profile of debtors, the overall performance of the loan book and historical experience. See note 16 for the net carrying amount of the debtors and associated impairment provision.

 

The group has a specific policy for the CBILS and RLS loan books. As these loans are backed by the BBB, when a loan requires a provision, 20% is recognised in the specific bad debt provision. The remaining 80% is claimed from the BBB. This 20% will be held as a provision until confirmation is made that no final dividend is payable.

 

Carrying Value of Investments

The company holds an investments in Nucleus Commercial Finance Limited of £nil (2023: £1,299,911) at 31 March 2024, which is included at cost less impairment. Management have assessed the carrying value of the investment by forecasting future cash flows the entity.

 

Management have made their assessment at 31 March 2024 based on the information available and have assessed that an full impairment of £1,299,911 (2023: £Nil) is required on the investment in Nucleus Commercial Finance Limited, an this assessment is not sensitive to reasonable movements in key assumptions.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 24
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Fees
7,179,969
5,133,667
Interest
33,795,772
33,590,542
40,975,741
38,724,209
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
40,975,741
38,724,209
2024
2023
£
£
Other revenue
Interest income
162,063
32,286
4
Exceptional item
2024
2023
£
£
Income
Exceptional item - Other operating income
-
823,557
-
823,557

The exceptional item in the profit and loss account in the prior year was in respect of the sale and subsequent write back of historical debt from Nucleus Cash Flow Finance Limited to Nucleus Property Finance1 Limited that was executed as part of a wider re-structuring of the Nucleus Group. The amount recognised above was the element of the write back that took place after Nucleus Property Finance1 Limited left the group.

5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
70,689
(100,557)
Depreciation of owned tangible fixed assets
20,835
22,463
Loss on disposal of tangible fixed assets
562
5,237
Operating lease charges
23,244
51,344
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 25
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,600
12,000
Audit of the financial statements of the company's subsidiaries
139,400
110,350
152,000
122,350
For other services
Other assurance services
4,000
3,600
Taxation compliance services
20,000
16,350
All other non-audit services
11,000
11,200
35,000
31,150
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Operations
24
27
-
-
Administration
15
10
-
-
39
37
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,741,027
2,421,549
-
0
-
0
Social security costs
291,380
290,624
-
-
Pension costs
101,948
97,416
-
0
-
0
3,134,355
2,809,589
-
0
-
0

 

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 26
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
331,634
335,403
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
160,000
155,000
Company pension contributions to defined contribution schemes
6,960
14,493
9
Amounts written off investments
2024
2023
£
£
Gain on disposal of financial assets held at cost
-
14,286,291
Amounts written back to financial liabilities
9,056
-
9,056
14,286,291

Included in gains on disposals of financial assets held at cost in the prior year was £14,286,291 relating to the disposal of Nucleus Property Finance1 Limited and Nucleus Business Cash Advance Limited. The gain was the equivalent value of the net liabilities of each former group entity at the dates of disposal.

 

Included in amounts written back to financial liabilities this year is £9,056 relating to intercompany amounts written off after Nucleus Property Finance2 Limited was dissolved post year end.

10
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
162,063
32,286

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
162,063
32,286
11
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
17,210,955
20,463,959
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 27
12
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
100
(578)

The actual charge/(credit) for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(7,086,023)
11,064,755
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(1,771,506)
2,102,303
Tax effect of expenses that are not deductible in determining taxable profit
10,767
(175,066)
Tax effect of income not taxable in determining taxable profit
(10,404)
-
0
Gains not taxable
-
(2,708,886)
Tax effect of utilisation of tax losses not previously recognised
(317,215)
(250,965)
Unutilised tax losses carried forward
2,227,101
1,363,924
Adjustments in respect of prior years
-
0
(578)
Effect of change in corporation tax rate
-
(327,341)
Group relief
(5,818)
-
0
SPE income and expenses not taxable
(126,601)
-
Capital allowances
(6,224)
(3,969)
Taxation charge/(credit)
100
(578)
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 28
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Total
£
£
£
Cost
At 1 April 2023
28,732
83,316
112,048
Additions
-
0
18,338
18,338
Disposals
-
0
(5,707)
(5,707)
At 31 March 2024
28,732
95,947
124,679
Depreciation and impairment
At 1 April 2023
16,658
60,987
77,645
Depreciation charged in the year
7,245
13,590
20,835
Eliminated in respect of disposals
-
0
(5,511)
(5,511)
At 31 March 2024
23,903
69,066
92,969
Carrying amount
At 31 March 2024
4,829
26,881
31,710
At 31 March 2023
12,074
22,329
34,403
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 29
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
23
-
0
-
0
4,633,401
5,935,323
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
5,935,323
Disposals
(1,000)
At 31 March 2024
5,934,323
Impairment
At 1 April 2023
-
Impairment losses
1,300,922
At 31 March 2024
1,300,922
Carrying amount
At 31 March 2024
4,633,401
At 31 March 2023
5,935,323
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
248,652,967
278,510,190
1,501,601
2,608,199
Carrying amount of financial liabilities
Measured at amortised cost
264,264,559
285,447,589
15,200
10,917
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 30
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
242,561,512
271,352,010
-
0
-
0
Amounts due from group undertakings
-
-
1,501,499
2,608,099
Other debtors
6,096,798
7,165,984
102
100
Prepayments and accrued income
1,628,117
1,091,896
-
0
-
0
250,286,427
279,609,890
1,501,601
2,608,199

Included within trade debtors is a balance of £145,371,038 (2023: £217,040,900) due in more than one year, net of the bad debt provision.

 

Included within other debtors is a balance of £15,525,000 (2023: £nil) due in more than one year.

 

Included within trade debtors are SME loans with a carrying value of £39,610,600 (2023: £nil) at the year end, which relate to loans where the legal title has been sold from Nucleus Cash Flow Finance2 Limited to Atom Finance Ltd, a special purpose entity controlled by the group, in the year. The loans remain on the group balance sheet as the derecognition criteria has not been met.

17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
19
-
0
28,178,063
-
0
-
0
Trade creditors
816,035
128,292
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
200
645
Other taxation and social security
214,349
143,449
-
-
Other creditors
49,204,660
31,596,433
-
0
200
Accruals and deferred income
3,937,564
4,919,919
15,000
10,072
54,172,608
64,966,156
15,200
10,917
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
19
210,306,300
220,624,882
-
0
-
0

 

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 31
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
210,306,300
248,802,945
-
0
-
0
Payable within one year
-
0
28,178,063
-
0
-
0
Payable after one year
210,306,300
220,624,882
-
0
-
0

The short and long-term loans are secured by fixed and floating charges over the group's current assets in their respective entities.

 

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,948
97,416

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension creditor at the year end amounted to £21,126 (2023: £16,253).

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

There is a single class of shares with no restrictions on distribution of dividends and the repayment of capital. The ordinary share capital has full rights in the company with respect to voting, dividends and distributions.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 32
22
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
70,355
35,080
-
-
Between two and five years
112,566
2,692
-
-
182,921
37,772
-
-
The company had no operating lease liabilities at 31 March 2023 or 31 March 2022.
23
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Class of
% Held
office
shares held
Direct
Indirect
Nucleus Cash Flow Finance Limited
England and Wales
Ordinary
100.00
-
Nucleus Commercial Finance Limited
England and Wales
Ordinary
100.00
-
Nucleus Commercial Finance1 Limited
England and Wales
Ordinary
100.00
-
Nucleus Commercial Finance2 Limited
England and Wales
Ordinary
100.00
-
Nucleus Property Finance Limited
England and Wales
Ordinary
100.00
-
Nucleus Services Limited
England and Wales
Ordinary
100.00
-
Trafalgar Auditors Limited
England and Wales
Ordinary
-
100.00
Nucleus Cash Flow Finance1 Limited
England and Wales
Ordinary
-
100.00
Nucleus Property Finance2 Limited
England and Wales
Ordinary
100.00
-
Nucleus Cash Flow Finance2 Limited
England and Wales
Ordinary
100.00
-
Nucleus Cash Flow Finance4 Limited
England and Wales
Ordinary
-
100.00
Nucleus Cash Flow Finance3 Limited
England and Wales
Ordinary
-
100.00
Nucleus Cash Flow Finance5 Limited
England and Wales
Ordinary
100.00
-
Nucleus Cash Flow Finance6 Limited
England and Wales
Ordinary
100.00
-
Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
23
Subsidiaries
(Continued)
Page 33

The registered office for all subsidiaries above is Mezzanine Floor, St Albans House, 57-59 Haymarket,

London, SW1Y 4QX.

 

The group also has effective control over Atom Finance Ltd, a special purpose entity incorporated in England and Wales. Control is achieved when the company has rights to the variable returns and is exposed to the related risks as a result of its involvement with the structured entities.

 

The registered office is 10th Floor 5 Churchill Place, London, London, United Kingdom, E14 5HU.

24
Events after the reporting date

Subsequent to the balance sheet date, Nucleus Property Finance2 Limited and Nucleus Commercial Finance2 Limited were placed into liquidation by the directors and was dissolved on 21 May 2024. Also, Nucleus Commercial Finance1 Limited was placed into liquidation by the directors and was dissolved on 16 July 2024.

25
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related Party Disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group with which it is party to the transactions.

 

Key management personnel is deemed to be the directors. Aggregate remuneration is disclosed in note 9. At the balance sheet date there is an amount of £nil owed to a director by the company (2023: £4,540).

 

During the year, the company incurred costs totalling £2,187,714 (2023: £1,427,845) in respect of management recharges and recharged contractor salaries, rent and other overheads from MyPulse.io Private Limited (formerly Quantility Business Solutions PVT Ltd), a company registered in India under the control of C Shah's father. At the balance sheet date there is an amount of £473,802 (2023: £71,516) owed to MyPulse.io Private Limited.

 

During the year the group received income of £nil (2023: £32,864) in respect of servicing fees and incurred expenditure of £nil (2023: £162,814) from Infinity Funding Limited, a company wholly owned by a director.

 

During the year the company received income of £142,443 (2023: £nil) in respect of servicing fees from Nucleus Property Finance1 Limited, a company under common directorship. At the balance sheet date an amount of £142,443 (2023: £Nil) was owed by Nucleus Property Finance1 Limited.

 

During the year the company received income of £73,928 (2023: £nil) in respect of servicing fees from Nucleus Business Cash Advance Limited, a company under common directorship. At the balance sheet date an amount of £73,928 (2023: £Nil) was owed by Nucleus Business Cash Advance Limited.

 

During the year the group received income of £202,024 (2023: £nil) in respect of servicing fees from Atom Finance Ltd, a company controlled by the Nucleus Commercial Holdings Limited group. At the balance sheet date an amount of £Nil (2023: £Nil) was due from Atom Finance Ltd in respect of these servicing fees.

 

During the year the group made payments on behalf of Atom Finance Ltd totalling £383,101 (2023: £Nil) in respect of legal and professional fees. At the balance sheet date an amount of £383,101 (2023: £Nil) was due from Atom Finance Ltd in respect of these fees.

Nucleus Commercial Holdings Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 34
26
Control

The ultimate parent company of Nucleus Commercial Holdings Limited is Nucleus Holdings Limited, a company incorporated in The Isle of Man.

27
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(7,086,123)
11,065,333
Adjustments for:
Taxation charged
100
-
Finance costs
16,956,563
20,463,959
Investment income
(162,063)
(32,286)
Loss on disposal of tangible fixed assets
562
5,237
Depreciation and impairment of tangible fixed assets
20,835
22,463
Movements in working capital:
Decrease in debtors
29,323,463
16,470,849
Decrease in creditors
(21,112,130)
(28,108,640)
Cash generated from operations
17,941,207
19,886,915
28
Analysis of changes in net debt - group
1 April 2023
Cash flows
Other non-cash changes
31 March 2024
£
£
£
£
Cash at bank and in hand
20,094,704
1,127,903
-
21,222,607
Borrowings excluding overdrafts
(248,802,945)
38,487,589
9,056
(210,306,300)
(228,708,241)
39,615,492
9,056
(189,083,693)
2024-03-312023-04-01falsefalseCCH SoftwareCCH Accounts Production 2024.301C ShahM GoldmanD WinwardG TitleyS WillmettG Mayfalse096467282023-04-012024-03-3109646728bus:Director12023-04-012024-03-3109646728bus:Director22023-04-012024-03-3109646728bus:Director32023-04-012024-03-3109646728bus:Director42023-04-012024-03-3109646728bus:Director52023-04-012024-03-3109646728bus:CompanySecretary12023-04-012024-03-3109646728bus:Consolidated2024-03-31096467282024-03-3109646728bus:Consolidated2023-04-012024-03-3109646728bus:Consolidated2022-04-012023-03-31096467282022-04-012023-03-3109646728bus:Consolidated2023-03-3109646728core:LeaseholdImprovementsbus:Consolidated2024-03-3109646728core:PlantMachinerybus:Consolidated2024-03-3109646728core:LeaseholdImprovementsbus:Consolidated2023-03-3109646728core:PlantMachinerybus:Consolidated2023-03-3109646728core:ShareCapitalbus:Consolidated2024-03-3109646728core:ShareCapitalbus:Consolidated2023-03-3109646728core:SharePremiumbus:Consolidated2024-03-3109646728core:SharePremiumbus:Consolidated2023-03-3109646728core:ShareCapital2024-03-3109646728core:ShareCapital2023-03-3109646728core:SharePremium2024-03-3109646728core:SharePremium2023-03-3109646728core:RetainedEarningsAccumulatedLosses2024-03-3109646728core:RetainedEarningsAccumulatedLosses2023-03-31096467282023-03-3109646728core:ShareCapitalbus:Consolidated2022-03-3109646728core:SharePremiumbus:Consolidated2022-03-3109646728core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-03-3109646728core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3109646728core:Non-controllingInterestsbus:Consolidated2023-03-3109646728core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-03-3109646728core:Non-controllingInterestsbus:Consolidated2024-03-3109646728core:ShareCapital2022-03-3109646728core:SharePremium2022-03-3109646728core:RetainedEarningsAccumulatedLosses2022-03-3109646728core:CurrentFinancialInstruments2024-03-3109646728core:CurrentFinancialInstruments2023-03-3109646728bus:Consolidated2022-03-3109646728core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2023-04-012024-03-3109646728core:PlantMachinery2023-04-012024-03-3109646728core:OwnedAssetsbus:Consolidated2023-04-012024-03-3109646728core:OwnedAssetsbus:Consolidated2022-04-012023-03-3109646728core:UKTaxbus:Consolidated2023-04-012024-03-3109646728core:UKTaxbus:Consolidated2022-04-012023-03-3109646728core:LeaseholdImprovementsbus:Consolidated2023-03-3109646728core:PlantMachinerybus:Consolidated2023-03-3109646728bus:Consolidated2023-03-3109646728core:LeaseholdImprovementsbus:Consolidated2023-04-012024-03-3109646728core:PlantMachinerybus:Consolidated2023-04-012024-03-3109646728core:CurrentFinancialInstrumentsbus:Consolidated2024-03-3109646728core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3109646728core:Non-currentFinancialInstrumentsbus:Consolidated2024-03-3109646728core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3109646728core:Non-currentFinancialInstruments2024-03-3109646728core:Non-currentFinancialInstruments2023-03-3109646728core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-03-3109646728core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3109646728core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3109646728core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3109646728core:WithinOneYearbus:Consolidated2024-03-3109646728core:WithinOneYearbus:Consolidated2023-03-3109646728core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-03-3109646728core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3109646728core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3109646728core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3109646728bus:PrivateLimitedCompanyLtd2023-04-012024-03-3109646728bus:FRS1022023-04-012024-03-3109646728bus:Audited2023-04-012024-03-3109646728bus:ConsolidatedGroupCompanyAccounts2023-04-012024-03-3109646728bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP