R20 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor Leconfield House, Curzon Street, London, W1J 5JA.
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 £.
As at the balance sheet date, the company's liabilities exceeded its assets by £45,861,682 (2023: £45,860,676). Its liabilities included obligations to related parties of £71,617,813 (2021: £71,617,813) which are due on demand.
The directors are aware that the Trustees of the company's ultimate controlling party, the Tchenguiz Discretionary Trust (TDT), have been in litigation concerning the extent to which the TDT is liable is respect of loans due to certain creditors. A decision from the Judicial Committee of the Privy Council (the JCPC) has now been handed down in favour of the position advanced by the TDT Trustees, namely that all TDT creditors will be paid on a pari passu basis. Notwithstanding the decision of the JCPC however, some distribution have been made to these creditors but the process of proving the debts claimed by all creditors is not complete (the 'Guernsey Proof Proceedings').
In the view of the Directors, the assets of the TDT are sufficient to enable the TDT to satisfy the various claims brought by all unrelated third-party creditors. Negotiations and litigation in 2019 resulted in cash being ring fenced within the TDT that is available to pay the creditors once the quantum of their liability has been determined. As a result of this ring fencing arrangement, around December 2019, the Joint Receivers (appointed in 2019) returned the non-cash assets of the TDT to the Trustees, including the shares in the company.
The Directors consider that, at present, it would not be in the best interests of the company's creditors to demand repayment of the amounts due to them whilst the outcome of the Guernsey Proof Proceedings is unknown, as this may result in other companies within the TDT having to enter into insolvency arrangements by virtue of their debts to the company being called for repayment, which in turn may impact adversely on the realisable value of the amounts due to the company.
The financial statements have not been prepared on the going concern basis. Accordingly, provisions have been made against the company's assets to reduce them to their expected realisable value.
Basic financial assets, which include debtors and cash and bank balances, 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.
The average monthly number of persons (including directors) employed by the company during the year was:
The company provides funding to and receives funds from the Tchenguiz Discretionary Trust and certain companies controlled by the Tchenguiz Discretionary Trust. The company also provides funding to and receives funding from other Tchenguiz family trusts, of which the director, R Tchenguiz and family members are a beneficiary and certain companies controlled by those trusts.
As at balance sheet date, the company was owed from other companies which are owned by trusts of which R Tchenguiz or his family members are beneficiaries as follows,
| 2024 £ | 2023 £ |
R20 Advisory Limited | 3,810,624 | 3,780,183 |
Leconfield House Limited | 6,695,663 | 6,695,663 |
Beadtrek Limited | 108,594 | 108,594 |
Firleigh Limited | 173,689 | 173,689 |
Nadia Properties Limited | 7,977,325 | 7,977,325 |
Balmain Properties Ltd | 84,585 | 84,585 |
Edgeworth Capital Limited | 824 | 824 |
The following balance was owed by the company related through a common beneficiary of the Tchenguiz Family Trust,
| 2024 £ | 2023 £ |
Restgrove Limited | 10,957 | 10,957 |
As at balance sheet date, following balances were owed to companies which are under common control of R Tchenguiz or his family members are the common beneficiaries,
| 2024 £ | 2023 £ |
Tchenguiz Discretionary Trust | 11,888,687 | 11,888,687 |
Laudico Limited and its subsidiaries | 2,151,406 | 2,151,406 |
Rotch Property Group Limited | 2,560 | 2,560 |
Dunain Holdings Limited | 23,926,456 | 23,926,456 |
The following balance was owed to the company related through a common beneficiary of the Tchenguiz Family Trust,
| 2024 £ | 2023 £ |
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Tamevale Limited | 22,121,975 | 22,121,975 |
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The following balance was owed to the company related through a common beneficiary of the Tchenguiz Settlement,
| 2024 £ | 2023 £ |
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Valleytown Holdings Limited | 11,526,728 | 11,526,728 |