Company registration number 12618347 (England and Wales)
MONTA CAPITAL PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MONTA CAPITAL PLC
COMPANY INFORMATION
Directors
Mr T G S Balashev
Balashev Investment Group Limited
Secretary
Mr T G S Balashev
Company number
12618347
Registered office
54 South Molton Street
London
W1K 5SG
Auditor
Sumer Audit
5 Peveril Court
6-8 London Road
Crawley
West Sussex
RH10 8JE
MONTA CAPITAL PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 18
MONTA CAPITAL PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
Monta Capital PLC is primarily engaged in the investment, development, and management of real estate assets across the United Kingdom. Our mission is to deliver long-term value to our investors through strategic acquisitions, high-quality design-led developments, and efficient investment management.
During the financial year ended 31 March 2023, the company reached several key milestones. Notably, we exchanged contracts on our first flagship development in Maida Vale, West London. In addition, we entered into a Joint Venture with a Swiss family office, securing dry powder funding to support a development pipeline with an anticipated Gross Development Value (GDV) of £45 million.
Principal risks and uncertainties
The primary risks facing the business include fluctuations in the London property market, regulatory developments in the UK, and construction cost volatility due to labour and material price changes.
We mitigate these risks through ongoing market analysis, compliance with regulatory frameworks, and robust project management. Our approach includes proactive value engineering throughout the development process to maintain efficiency and control costs.
Development and performance
Since the end of the reporting period, Monta Capital has completed the acquisition of a commercial property in Maida Vale, London, with existing planning consent for nine residential units.
Through a Special Purpose Vehicle (SPV), we have also exchanged contracts for a brownfield development site in Vauxhall, South London, with approved plans to construct a 10,000 sq ft office building.
Key performance indicators
Monta Capital PLC utilises a combination of financial instruments, including bond issuances and equity financing, to fund its operations and expansion. Our financial risk management policies are designed to safeguard against credit, liquidity, and broader market risks, ensuring stable and responsible growth.
Statement by the directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006
In accordance with section 172(1) of the Companies Act 2006, the directors confirm that they have acted in a manner they believe, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so, the directors have had regard to the likely long-term consequences of decisions, the interests of employees, the need to foster business relationships with suppliers and partners, and the impact of the company’s operations on the wider community and environment.
Mr T G S Balashev
Director
17 April 2025
MONTA CAPITAL PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company is that of a real estate investment management facilities.
Results and dividends
The results for the year are set out on page 7.
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:
Mr T G S Balashev
Balashev Investment Group Limited
Auditor
The auditor, Sumer Audit, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 section 414C(11) of the Companies Act 2006 to set out in the company’s strategic report information required by Schedule 7 of The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors’ report. It has done so in respect of future developments, financial instruments and financial risk management objectives and policies.
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.
Policy and practice on payment of creditors
The company policy is to settle invoices within 30 days of receipt, provided the goods or services have been supplied in accordance with the agreed terms and conditions and sufficient funds are available for settlement.
The Directors acknowledge that the company has not always met its target payment terms during the financial year, and efforts are being made to improve processes and payment timeliness. The company is actively reviewing its payment procedures to ensure greater efficiency and consistency in settling supplier invoices.
On behalf of the board
Mr T G S Balashev
Director
17 April 2025
MONTA CAPITAL PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
MONTA CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MONTA CAPITAL PLC
- 4 -
Opinion
We have audited the financial statements of Monta Capital Plc (the 'company') for the year ended 31 March 2023 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:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
We draw attention to note 1.2, which explains that the company is in the process of renegotiating the terms of its loans, including extending the maturity dates of bonds that matured after the balance sheet date but have not yet been repaid to the bondholders.
Our audit opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
MONTA CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MONTA CAPITAL PLC
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud;
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: health & safety, employment law and compliance with the UK Companies Act.
MONTA CAPITAL PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MONTA CAPITAL PLC
- 6 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
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.
Tony Summers BA FCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
17 April 2025
Chartered Accountants
Statutory Auditor
Crawley
Sumer Audit is the trading name of Sumer Auditco Limited
MONTA CAPITAL PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
Year
Year
ended
ended
31 March
31 March
2023
2022
Notes
£
£
Turnover
3
379,418
-
Administrative expenses
(592,089)
(83,653)
Operating loss
4
(212,671)
(83,653)
Interest receivable and similar income
7
3,626
1,875
Interest payable and similar expenses
8
(71,855)
(31,384)
Loss before taxation
(280,900)
(113,162)
Tax on loss
9
Loss for the financial year
(280,900)
(113,162)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MONTA CAPITAL PLC
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
1
Current assets
Debtors
12
1,040,915
486,362
Cash at bank and in hand
9,079
1,049,994
486,362
Creditors: amounts falling due within one year
13
(876,461)
(93,751)
Net current assets
173,533
392,611
Total assets less current liabilities
173,534
392,611
Creditors: amounts falling due after more than one year
14
(543,207)
(481,384)
Net liabilities
(369,673)
(88,773)
Capital and reserves
Called up share capital
16
50,000
50,000
Profit and loss reserves
(419,673)
(138,773)
Total equity
(369,673)
(88,773)
The financial statements were approved by the board of directors and authorised for issue on 17 April 2025 and are signed on its behalf by:
Mr T G S Balashev
Director
Company registration number 12618347 (England and Wales)
MONTA CAPITAL PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
50,000
(25,611)
24,389
Period ended 31 March 2022:
Loss and total comprehensive income
-
(113,162)
(113,162)
Balance at 31 March 2022
50,000
(138,773)
(88,773)
Period ended 31 March 2023:
Loss and total comprehensive income
-
(280,900)
(280,900)
Balance at 31 March 2023
50,000
(419,673)
(369,673)
MONTA CAPITAL PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
19
(289,632)
(450,226)
Interest paid
(1,063)
Net cash outflow from operating activities
(290,695)
(450,226)
Financing activities
Proceeds from borrowings
300,000
450,000
Repayment of borrowings
-
(100,000)
Net cash generated from financing activities
300,000
350,000
Net increase/(decrease) in cash and cash equivalents
9,305
(100,226)
Cash and cash equivalents at beginning of year
(226)
100,000
Cash and cash equivalents at end of year
9,079
(226)
Relating to:
Cash at bank and in hand
9,079
Bank overdrafts included in creditors payable within one year
(226)
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information
Monta Capital Plc is a public company limited by shares incorporated in England and Wales. The registered office is 54 South Molton Street, London, W1K 5SG.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
At the time of approving the financial statements, notwithstanding the net liability position, the directors have assessed the company's ability to continue operating as a going concern for the foreseeable future. In making this assessment, the directors have considered various factors, including existing and planned purchases of new properties within the group, including contracted revenue streams from the development management agreements and future investment funding. true
The directors have taken into account the financial performance of the company and have considered relevant information, including the company’s principal risks and uncertainties, forecast future cash flows and the impact of subsequent events in making their assessment.
Of the loans classified within current and long-term liabilities, totalling £890,883, £750,000 (net of interest payable) have exceeded their maturity date and are now technically due for repayment at the date of signing these financial statements. This situation could significantly affect the company's ability to continue as a going concern. The director is currently confidently engaged in discussions regarding the issuance of new loans and extending the maturity and repayment terms of the existing liabilities.
Based on this, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
1.4
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 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.
Basic financial assets
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.
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.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
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.
1.8
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 leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
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 director is under the opinion that there are no judgements or key estimations within the financial statements.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Turnover derived form the company's principal activity
379,418
-
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 14 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
379,418
-
2023
2022
£
£
Other revenue
Interest income
3,626
1,875
4
Operating loss
2023
2022
Operating loss for the period is stated after charging:
£
£
Operating lease charges
14,397
16,288
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,250
6,000
For other services
Taxation compliance services
750
500
All other non-audit services
3,250
2,500
4,000
3,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
1
2
Total
1
2
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1
Other interest income
3,625
1,875
Total income
3,626
1,875
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
71,855
31,384
9
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(280,900)
(113,162)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(53,371)
(21,501)
Unrecognised deferred tax
53,371
21,501
Taxation charge for the period
-
-
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
1
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Fixed asset investments
(Continued)
- 16 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
-
Additions
1
At 31 March 2023
1
Carrying amount
At 31 March 2023
1
At 31 March 2022
-
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Monta Capital London Holdings Limited
1)
Ordinary
100.00
-
MC Salamanca Street Limited
1)
Ordinary
0
100.00
MC Shirland Road Limited
1)
Ordinary
0
100.00
Registered office addresses at the date of signing of financial statements:
1)
54 South Molton Street, London, England. W1K 5SG
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Unpaid share capital and accrued interest
57,167
53,542
Other debtors
983,748
430,320
Prepayments and accrued income
2,500
1,040,915
486,362
Unpaid share capital of £50,000 attracts interest at a rate of 3% above Bank of England Base Rate.
Included in other debtors is £646,484 (2022 - £430,321) due from connected companies, which have no terms and are therefore repayable on demand. Whilst the classification as current assets reflects the contractual nature of the loans, the company does not seek repayment of these loans until the connected company is financially able to do so. This may be more than 12 months from the reporting date, as part of the company's ongoing financial support of its connected companies.
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
226
Other borrowings
15
347,676
38,707
Trade creditors
497,072
38,518
Taxation and social security
1,286
Other creditors
17,100
300
Accruals and deferred income
13,327
16,000
876,461
93,751
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
543,207
481,384
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
226
Other loans
890,883
520,091
890,883
520,317
Payable within one year
347,676
38,933
Payable after one year
543,207
481,384
The other loans are secured by a fixed and floating charge over the assets of the company, and accrue interest at rates between 7% and 12% per annum.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
The company has one class of ordinary shares which carries one vote, and full rights to dividends and capital distribution, including on winding up.
50,000 Ordinary shares of £1 each are unpaid at the balance sheet date.
MONTA CAPITAL PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
17
Ultimate controlling party
The immediate parent company is Balashev Investment Group Limited, and the ultimate controlling party is Mr Thomas George Balashev, by virtue of his indirect majority shareholding.
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company helped fund 6 entities under common control, totalling £629,385 (2022: £430,320). As at 31 March 2023 £646.484 (2022: £430,320) was outstanding within other debtors.
19
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(280,900)
(113,162)
Adjustments for:
Finance costs
71,855
31,384
Investment income
(3,626)
(1,875)
Movements in working capital:
Increase in debtors
(550,928)
(427,820)
Increase in creditors
473,967
61,247
Cash absorbed by operations
(289,632)
(450,226)
20
Analysis of changes in net debt
1 April 2022
Cash flows
Other non-cash changes
31 March 2023
£
£
£
£
Cash at bank and in hand
-
9,079
-
9,079
Bank overdrafts
(226)
226
-
(226)
9,305
-
9,079
Borrowings excluding overdrafts
(520,091)
(298,937)
(71,855)
(890,883)
(520,317)
(289,632)
(71,855)
(881,804)
Other non-cash changes represents accrued interest.
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