121 Finance Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Cardale Park, Beckwith Head Road, Harrogate, North Yorkshire, HG3 1RY.
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 company has net liabilities at the year end of £2,076,485, which includes loan notes in creditors of £3,029,763. Prior to MYA Clinics Ltd entering administration on 22 October 2024, these loan notes were guaranteed by MYA Clinics Ltd. A second guarantee exists on all third party loan notes by John Ryan, James Beresford and other individuals. John Ryan and James Beresford are ultimate shareholders of MYA Group Ltd, a group with whom 121 Finance Limited trades and which has related shareholders. The directors have adopted the going concern basis of preparation in preparing these financial statements and in making this assessment, the Directors have considered that they have entered into an Intercompany Settlement Deed with its trading partner, MYA Clinics Ltd, on 22 October 2024, which settled the amounts repayable to MYA Clinics Ltd for a sum of £200,000. Hence, once the debtors are collected, there would be sufficient funds available to repay the other loan notes.
In addition, the Directors expect that the company has sufficient cash to meet expected day to day trading obligations for a period of greater than 12 months from approval of the financial statements, with the ongoing support of the principal shareholders of MYA Group Limited.
The guarantees from the named individuals (John Ryan and James Beresford) as well as the Directors' view that the company has adequate cash to meet its day to day trading obligation for a period of greater than 12 months, has resulted in the Directors adopting the going concern basis of accounting.
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Equity instruments issued by the company 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 company.
In the application of the company’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.
The directors do not believe there to be any critical accounting judgements or estimates required in the preparation of these financial statements.
The average monthly number of persons (including directors) employed by the company during the year was:
Included within other creditors are loan notes of £1,548,148 (2022: £1,481,615 ) due to MYA Clinics Limited. As noted in note 1.2, the Directors have have entered into an Intercompany Settlement Deed with its trading partner, MYA Clinics Ltd, on 22 October 2024, which settled the amounts repayable to MYA Clinics Ltd for a sum of £200,000. A guarantee exists on all third party loan notes totalling £446,615 (2022: £446,615 ). These guarantees are provided personally by John Ryan, James Beresford and other individuals.
On 22 October 2024, a related party and trading partner, MYA Clinics Limited, went into administration. As noted in note 1.2, the Directors have have entered into an Intercompany Settlement Deed with its trading partner, MYA Clinics Ltd, on 22 October 2024, which settled the amounts repayable to MYA Clinics Ltd for a sum of £200,000.
At the year end £1,083,306 (2022: £500,855 ) was owed to MYA Clinics Ltd, a wholly owned subsidiary of MYA Group Ltd, a company in which Esta Rea was also a director and shareholder. In addition MYA Clinics Ltd had guaranteed loan notes in 121 Finance Limited. Certain shareholders of MYA Group Ltd (as set out in note 6) have given guarantees in respect of the third party loan notes. At the year end £341,300 (2022: £73,100 ) was owed to MYA Group Limited, a company in which Esta Rea was also a director and shareholder and Chloe Beresford is a director of MYA Group Limited.