Company registration number:
for the Year Ended
Funding52 Limited
(Registration number: 13619822)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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( |
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Net liabilities |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
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Funding52 Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
These financial statements are presented in Sterling (£).
Going concern
The company has made a loss of £3,399,615 (2023 restated loss: £19,202,841) for the year and has net liabilities of £26,755,635 (2023 restated: £23,356,020). The director considers the operations of the company to be ongoing, with a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. This is based on the assumption that the overseas funders will continue to provide support as required for at least the next 12 months from the date of signing the financial statements and will not request payment of the outstanding loan principal and accrued interest thereon until such time that the company is financially able to afford it. The funds have provided written representations to this effect.
Accordingly, these financial statements have been prepared on a going concern basis.
Funding52 Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
Prior period adjustments
There is a contractual agreement in place which sets out that the company has the right to receive amounts from a third party upon the court settlement of Plevin claims. In the prior year an estimate of amounts expected to be realised was recognised as a debtor of £5,229,116. The director has reconsidered the treatment of the agreement and concluded that this was an error. These amounts should not have been recognised on the basis that it cannot be concluded that it is probable that future economic benefit will flow to the entity, and such amounts cannot be measured reliably.
The company has loans from the three funds set out in Note 7. These amounts are denominated in foreign currencies and should be translated at rates prevailing on the reporting period date. This translation was not performed in the prior year, resulting in an understatement of the creditor balance and corresponding foreign currency gain amounting to £1,487,258. The director considers that this was an error and has therefore restated these balances.
2023 | 2023 | 2023 | |
Other Debtors | 5,229,116 | (5,229,116) | - |
Other Creditors: amounts falling due after more than one year | (18,186,675) | (1,487,258) | (19,673,933) |
Retained Earnings (Profit or Loss Account) | (16,639,666) | (6,716,364) | (23,356,030) |
Turnover
The company has an agreement in place with Cheval Legal Limited for the settlement of a portfolio of Plevin insurance claims. Settlements are recognised in turnover when payment is received by Cheval from a defendant following a successful outcome. The settlements received will repay the loan balance payable to the funds. The settlement of the claim portfolio is of uncertain timing and amount and therefore no asset has been recognised on the balance sheet in relation to this.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Funding52 Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
Debtors
Other debtors are recognised at cost. They are subsequently measured at cost, less provision for impairment.
A provision for the impairment of trade and other debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Creditors
Other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.
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Staff numbers |
The average number of persons employed by the company (including the director) during the year was
The director's remuneration is recharged to the creditor funds within the period it is paid, as set out in Note 6.
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Debtors |
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Current |
2024 |
2023 |
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Other debtors |
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Funding52 Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
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Creditors |
Creditors: amounts falling due within one year
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2024 |
2023 |
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Due within one year |
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Accruals |
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Interest payable |
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Creditors: amounts falling due after more than one year
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2024 |
2023 |
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Due after one year |
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Other creditors |
19,790,865 |
19,673,933 |
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Interest payable |
7,121,794 |
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Off-balance sheet arrangements |
The company holds an arrangement with a law firm, Cheval Legal Ltd, which gives the company the right to receive income from a tranche of Plevin cases as they are settled through the courts. The director estimates that this arrangement will generate net cash inflows of appoximately £4 million, over the next 5 years. This estimate is based on information provided by Cheval Legal Ltd. Income is wholly used to repay the loans and interest from the funds set out in Note 7.
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Related party transactions |
Summary of transactions with other related parties
Loans due to:
Solid Income II Limited £12,687,016 (2023 restated: £10,955,635).
Swiss Alp Factoring AG £3,096,756 (2023 restated: £2,869,587).
MT1 Ltd £11,128,887 (2023 restated: £9,581,453).
Included in the above is interest accruing on the loans at a rate between 6%-14%.
Legal and professional fees of £36,973, accounting fees of £8,000, and director remuneration of £150,000 were recharged to the funds in the year.
Funding52 Limited
Notes to the Financial Statements
for the Year Ended 31 December 2024
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Audit Report |