Company registration number 10257377 (England and Wales)
TUNGATE CAPITAL PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
TUNGATE CAPITAL PLC
COMPANY INFORMATION
Directors
M Yadegar
100Z Asset Management Limited
(Appointed 26 October 2023)
Secretary
M Yadegar
Company number
10257377
Registered office
16 Riverside
Omega Park
Alton
Hampshire
GU34 2UF
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
TUNGATE CAPITAL PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 18
TUNGATE CAPITAL PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their strategic report in respect of the year ended 31 March 2024.

Principal activities

 

The principal activity of the company continued to be that of commercial money lending to property developers via its subsidiary undertaking The Sycamore IV Mezzanine Finance Fund LLP.

Business review

 

The year ended 31 March 2024 was a year of limited activity. The Company continued to support existing loans during the year and did not make any further advances.

 

The results for the year are set out in the statement of comprehensive income on page 8. The Company is reporting a profit before tax for the year of £114,925 (2023: £1,490,234), as a result of the attributable profit generated by its LLP subsidiary. During the prior year, this subsidiary had notably higher profits arising from the reversal of previous loan provisions in that year. The profit generated has served to improve the net asset position of the Company which, at 31 March 2024 was £3,023,224 (2023: £2,938,013).

Key performance indicators

 

At this stage of the Company’s life cycle, with returns from lending activities yet to be realised, the directors do not consider there to be any key performance indicators at the year end.

Future developments

 

In line with the principal activity of the Company noted above, the aim of the Company over the short to medium term is to support and extend its commercial money lending activities with property developers.

Principal risks and uncertainties

 

The management of the business and the execution of the Company’s strategy are subject to a number of risks. The key business risks affecting the Company are set out below:

 

Competition

 

The Company operates in a highly competitive business sector. The Company competes with a number of similar investment companies of varying sizes. The Company seeks to maintain its competitive advantage by taking a long-term and patient approach to its lending and supporting its borrowers to help ensure that maximum returns are generated from funds advanced.

 

Financial risk management

 

The Company has no significant debt and considers that it has sufficient resources to fund current and future operations. It is therefore not subject to significant exposure to price risk, credit risk, interest rate risk or liquidity risk (save for the uncertainty highlighted in the going concern section of note 1 to the financial statements).

 

Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the Board. The policies set by the directors are implemented by those responsible for the Company’s finance function.

TUNGATE CAPITAL PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Section 172 statement

 

The directors have a duty under s172 of the Companies Act 2006 to promote the success of the Company for the benefit of its members as a whole. All decisions are made with this objective and the directors consider the long-term implications of their action.

 

 

 

The Company has a continuous stakeholder engagement in which directors participate to ensure the Board is aware of stakeholder interests.

 

 

 

Critical to the success of the Company is its long-term relationship with property developers and investors as they represent our suppliers and customers. The directors believe the decisions it has made have been appropriate both to support these stakeholders and to foster stronger, long-term relationships with them.

 

 

 

The Company is mindful of its role within its local communities and seeks to minimise the impact of its operations on the environment and to be a good neighbour.

 

 

 

Overall, in considering and taking decisions the directors seek to act in the best interests of the business and all its stakeholders, treating all members fairly.

On behalf of the board

M Yadegar
Director
27 December 2024
TUNGATE CAPITAL PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Results and dividends

 

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

 

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

M Yadegar
GFS Corporate Director Limited
(Resigned 26 October 2023)
100Z Asset Management Limited
(Appointed 26 October 2023)
Energy and carbon report

 

As the Company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Strategic report

 

The Company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the Company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, financial risk management objectives and policies and the Company’s exposure to price risk, credit risk, liquidity risk and cash flow risk.

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 Company’s auditor 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 Company’s auditor is aware of that information.

On behalf of the board
M Yadegar
Director
27 December 2024
TUNGATE CAPITAL PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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 Company and of the profit or loss of the Company 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 Company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TUNGATE CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUNGATE CAPITAL PLC
- 5 -
Opinion

We have audited the financial statements of Tungate Capital Plc (the 'Company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

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 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.

Material uncertainty relating to going concern

We draw attention to note 1 in the financial statements, which indicates that the company is dependent on receiving cash from its subsidiary The Sycamore IV Mezzanine Finance Fund LLP, which in turn is reliant on certain property transactions, to continue to meet its obligations as they fall due. The timing of these transactions occurring is uncertain and consequently the timing and amount of financial support to the Company is uncertain. These conditions indicate that a material uncertainty exists which may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter

 

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.

 

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.

Opinions on other matters prescribed by the Companies Act 2006

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

TUNGATE CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUNGATE CAPITAL PLC (CONTINUED)
- 6 -
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:

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 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.

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.

Extent to which 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.

 

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the Company.

The following laws and regulations were identified as being of significance to the Company:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of:

TUNGATE CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUNGATE CAPITAL PLC (CONTINUED)
- 7 -

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone 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.

Richard Thacker
Senior Statutory Auditor
For and on behalf of Beavis Morgan Audit Limited
27 December 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
TUNGATE CAPITAL PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
-
-
Administrative expenses
(185,669)
(233,318)
Other operating income
302,966
1,725,241
Operating profit
3
117,297
1,491,923
Interest payable and similar expenses
(2,372)
(1,689)
Profit before taxation
114,925
1,490,234
Tax on profit
6
(27,904)
(123,209)
Profit for the financial year
87,021
1,367,025

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

TUNGATE CAPITAL PLC
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
7
2,392,000
2,392,000
Current assets
Debtors
8
1,333,137
1,095,654
Cash at bank and in hand
142
72
1,333,279
1,095,726
Creditors: amounts falling due within one year
9
(702,055)
(549,713)
Net current assets
631,224
546,013
Net assets
3,023,224
2,938,013
Capital and reserves
Called up share capital
11
2,335,693
2,335,693
Share premium account
9,308
9,308
Capital redemption reserve
317,000
317,000
Profit and loss reserves
361,223
276,012
Total equity
3,023,224
2,938,013
The financial statements were approved by the board of directors and authorised for issue on 27 December 2024 and are signed on its behalf by:
M Yadegar
Director
Company registration number 10257377 (England and Wales)
TUNGATE CAPITAL PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
2,397,693
9,308
255,000
(1,019,651)
1,642,350
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,367,025
1,367,025
Repurchase of shares
11
(62,000)
-
0
62,000
(71,362)
(71,362)
Balance at 31 March 2023
2,335,693
9,308
317,000
276,012
2,938,013
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
87,021
87,021
Costs associated with the repurchase of shares
-
-
-
(1,810)
(1,810)
Balance at 31 March 2024
2,335,693
9,308
317,000
361,223
3,023,224
TUNGATE CAPITAL PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
13
2,442
72,391
Interest paid
(2,372)
(1,689)
Net cash inflow from operating activities
70
70,702
Financing activities
Redemption of shares
-
0
(71,362)
Net cash used in financing activities
-
(71,362)
Net increase/(decrease) in cash and cash equivalents
70
(660)
Cash and cash equivalents at beginning of year
72
732
Cash and cash equivalents at end of year
142
72
TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Tungate Capital Plc is a public company limited by shares and incorporated in England. Its registered office is 16 Riverside, Omega Park, Alton, Hampshire GU34 2UF.

 

The principal activity of the Company is commercial money lending to property developers via its subsidiary undertaking The Sycamore IV Mezzanine Finance Fund LLP.

1.1
Accounting convention

The financial statements have been prepared under the historical cost convention in accordance with FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the requirements of the Companies Act 2006, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

 

The entity has taken the exemption available from preparing group accounts under s399 of the Companies Act 2006 as it would be subject to the small companies regime but for being a public company.

1.2
Going concern

The truedirectors have considered the Company’s cash flows for the 12 month period from the date of approval of these accounts and are confident that sufficient cash resources will be received from its subsidiary, The Sycamore IV Mezzanine Finance Fund LLP, to enable the Company to meet its liabilities as they fall due. Accordingly, the directors have concluded that it is appropriate to adopt the going concern basis for the preparation of the financial statements.

 

The ability of the subsidiary to provide the necessary cash flow is however dependent on certain property transactions. The timing of these transactions occurring is uncertain and consequently the timing and amount of financial support to the Company is uncertain.

 

These factors represent a material uncertainty that may cast significant doubt on the ability of the Company to continue as a going concern and, therefore, to continue realising its assets and discharging its liabilities in the normal course of business. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

1.3
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

 

Interests in subsidiaries are assessed for impairment at each reporting date. Any impairments losses or reversals of impairment losses are recognised immediately in profit or loss.

 

For investments in LLPs, the Company recognises income when profits are allocated by the investee LLP in accordance with the terms of the member’s agreement, creating a liability in the underlying investee entity, with the Company recognising a corresponding receivable. If the LLP subsequently incurs a loss, the receivable is reduced by the share of the loss allocated to the Company.

1.4
Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 in full to all of its financial instruments.

 

Financial instruments are recognised in the Company's balance sheet 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.

TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

Trade, group and other debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

 

Where the arrangement with a debtor constitutes a financing transaction, the debtor is initially measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument and subsequently measured at amortised cost.

 

A provision for impairment of trade debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in profit or loss for the excess of the carrying value of the trade debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in profit or loss.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities and equity

Financial instruments are classified as liabilities and equity instruments 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 deducting all of its liabilities.

 

Trade and other creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.5
Taxation

Taxation represents the sum of tax currently payable and deferred tax.

Current tax

The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on all timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the accounting period.

TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The directors have reviewed the Company's investment and the current loan book of both the Company and its subsidiary LLP. They are in regular communication with the borrowers regarding the underlying projects. Following a detailed project review in the prior year, the LLP carried forward a provision of £330,331 against its loan receivables. The directors do not consider any adjustment to this provision is required at the current time and that at least the carrying value of all loans will be repaid in full in due course. All loans will continue to be reviewed using the current processes and, where necessary, should impairment provision adjustments be required, they will be raised or reversed during the year in which they are identified.

3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,200
13,500
Fees payable to the company's auditor for tax compliance services
1,050
1,000
Fees payable to the company's auditor for other non-audit services
2,150
-
0

Other operating income is the profit from the subsidiary undertaking that has been allocated to the Company.

4
Employees

There were no staff employed by the Company during the year. The cost of a director's salary as disclosed in note 5 was borne by a related party and recharged to the Company.

5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
123,500
110,979

No benefits are accruing under defined benefit pensions schemes in this entity.

6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
27,904
123,209
TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Taxation
(Continued)
- 16 -

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

2024
2023
£
£
Profit before taxation
114,925
1,490,234
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
28,731
283,144
Tax effect of expenses that are not deductible in determining taxable profit
1,125
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(159,922)
Tax at marginal rate
(1,958)
-
0
Timing difference relating to subsidiary's income / expense allocation
6
(13)
Taxation charge for the year
27,904
123,209
7
Fixed asset investments
2024
2023
£
£
Cost
Investments in subsidiaries
2,392,000
2,392,000

Subsidiary undertaking

The Company acquired a 100% interest in The Sycamore IV Mezzanine Finance Fund LLP in exchange for Tungate Capital Plc shares being issued to the LLP's previous owners. The Sycamore IV Mezzanine Finance Fund LLP operates in the UK and is a commercial money lender to property developers. Its registered address is 16 Riverside, Omega Park, Alton, Hampshire GU34 2UF.

 

The accounting reference date of The Sycamore IV Mezzanine Finance Fund LLP is 5 April 2024. At 5 April 2024, the aggregate of members' capital and current accounts in the LLP amounted to £3,692,476 (2023: £3,454,972) and the profit for the year to that date was £302,987 (2023: £1,725,172).

8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Unpaid share capital
37,500
37,500
Amounts owed by group undertakings
1,295,636
1,058,153
Other debtors
1
1
1,333,137
1,095,654
TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
408,200
290,756
Corporation tax
151,113
123,209
Other creditors
300
-
0
Accruals and deferred income
142,442
135,748
702,055
549,713
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Measured at amortised cost
1,333,279
1,095,726
Carrying amount of financial liabilities
Measured at amortised cost
550,942
426,504
11
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
2,335,693
2,335,693
2,335,693
2,335,693

Ordinary share rights            

The Company‘s ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the Company.

 

Repurchase of shares

62,000 Ordinary shares of £1 each were repurchased by the Company in the year ended 31 March 2023. There were no repurchases in the current year although the Company did provide for £1,810 of additional costs associated with previous repurchases.

 

Unpaid shares

At 31 March 2024, 37,500 (2023: 37,500) Ordinary shares of £1 each were allotted and issued but not fully paid.

 

Nature of reserves

 

Share premium

Consideration received for shares issued above their nominal value net of transaction costs.

 

Capital redemption reserve

The nominal value of shares repurchased.

 

Profit and loss account

Cumulative profit and loss net of share repurchases and distributions to owners.

 

TUNGATE CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
12
Related party transactions

The total remuneration of the director who is considered to be the key management personnel of the Company, was £123,500 (2023: £110,979). The Company has amounts due from the director of £37,500 (2023: £37,500) at the year end in respect of unpaid share capital as noted in note 8, and amounts due to the director of £1,317 (2023: £1,317) included in trade creditors in note 9.

            

Included within trade and other creditors in note 9 are amounts totalling £383,035 (2023: £286,195) due to 100Z Asset Management Limited, a corporate director of the Company. During the year, amounts totalling £160,122 (2023: £147,382) were payable by the Company to this entity, which included the directors' remuneration referred to above.    

 

The Company is not controlled by any one individual or entity.        

13
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
87,021
1,367,025
Adjustments for:
Taxation charged
27,904
123,209
Finance costs
2,372
1,689
Movements in working capital:
Increase in debtors
(237,483)
(1,058,153)
Increase/(decrease) in creditors
122,628
(361,379)
Cash generated from operations
2,442
72,391
14
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
72
70
142
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