Fenchurch Legal Ltd
Financial Statements
For the year ended 31 May 2024
Pages for Filing with Registrar
Company Registration No. 12547045 (England and Wales)
Fenchurch Legal Ltd
Company Information
Directors
L Klouda
J Yannover
(Appointed 27 November 2023)
Company number
12547045
Registered office
Room 343, Linen Hall
162-168 Regent Street
London
W1B 5TB
Auditor
Moore Kingston Smith
6th Floor
9 Appold Street
London
EC2A 2AP
Fenchurch Legal Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Fenchurch Legal Ltd
Balance Sheet
As at 31 May 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
93,684
127,868
Tangible assets
4
6,581
5,309
Investments
5
102
100
100,367
133,277
Current assets
Debtors
7
16,900,444
15,402,403
Cash at bank and in hand
241,207
123,159
17,141,651
15,525,562
Creditors: amounts falling due within one year
8
(12,517,557)
(15,032,178)
Net current assets
4,624,094
493,384
Total assets less current liabilities
4,724,461
626,661
Creditors: amounts falling due after more than one year
9
(5,290,125)
(281,511)
Provisions for liabilities
(173)
(173)
Net (liabilities)/assets
(565,837)
344,977
Capital and reserves
Called up share capital
10
100
100
Capital contribution reserve
711,018
711,018
Profit and loss reserves
(1,276,955)
(366,141)
Total equity
(565,837)
344,977
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Fenchurch Legal Ltd
Balance Sheet (Continued)
As at 31 May 2024
Page 2
The financial statements were approved by the board of directors and authorised for issue on 23 May 2025 and are signed on its behalf by:
L Klouda
Director
Company Registration No. 12547045
Fenchurch Legal Ltd
Notes to the Financial Statements
For the year ended 31 May 2024
Page 3
1
Accounting policies
Company information
Fenchurch Legal Ltd is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Room 343, Linen Hall, 162-168 Regent Street, London W1B 5TB.
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 as applicable to companies subject to the small companies regime.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
As at the year-end, the company has net liabilities of £565,837 (2023: £344,977 net assets), net current assets of £4,624,094 (2023: £493,384) and a cash balance of £241,207 (2023: £123,159). The company reported a loss in the year of £910,814 (2023: £2,305,449 profit) after the deduction of an exceptional item of £1,010,543 (2023: £1,283,516 credit).true
The directors have drawn up cash flow forecasts to assess the group's ability to continue as a going concern and extend to 12 months from the date of approval of these financial statements. The cash flow forecasts include assumptions over expected revenue growth as well as likely costs and committed cash outflows. The forecasts show a net cash inflow from operations over the going concern assessment period. The directors also believe that the exceptional costs incurred in the current year are not likely to be repeated in future periods.
Based on their assessment the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future and consider the going concern basis of accounting to be appropriate and, thus, they continue to adopt the going concern basis of accounting in preparing these financial statements.
1.3
Turnover
Turnover represents interest charged on loans provided. Interest is recognised evenly over the course of the loans provided.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33.3% straight line
Development costs
33.3% straight line
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 4
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
33.3% straight line
Computers
33.3% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.10
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.
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
1
Accounting policies
(Continued)
Page 5
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 6
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
3
Intangible fixed assets
Development costs
£
Cost
At 1 June 2023
164,112
Additions
20,520
At 31 May 2024
184,632
Amortisation and impairment
At 1 June 2023
36,244
Amortisation charged for the year
54,704
At 31 May 2024
90,948
Carrying amount
At 31 May 2024
93,684
At 31 May 2023
127,868
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 7
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2023
7,635
Additions
3,744
At 31 May 2024
11,379
Depreciation and impairment
At 1 June 2023
2,326
Depreciation charged in the year
2,472
At 31 May 2024
4,798
Carrying amount
At 31 May 2024
6,581
At 31 May 2023
5,309
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
102
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
100
Additions
2
At 31 May 2024
102
Carrying amount
At 31 May 2024
102
At 31 May 2023
100
6
Subsidiaries
Details of the company's subsidiaries at 31 May 2024 are as follows:
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
6
Subsidiaries
(Continued)
Page 8
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Fenchurch Capital SPV Limited
England and Wales
Ordinary
100.00
Fenchurch SPV 2 Limited
England and Wales
Ordinary
100.00
Fenchurch SPV 3 Limited
England and Wales
Ordinary
100.00
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
12,183,640
13,006,036
Amounts owed by group undertakings
2,470,344
1,414,645
Other debtors
1,091,752
165,996
Prepayments and accrued income
1,154,708
815,726
16,900,444
15,402,403
A bad debt provision of £5,355,272 (2023: £4,344,729) is included within trade debtors.
8
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
156,421
42,577
Corporation tax
86,906
Other taxation and social security
134
2,416
Other creditors
10,544,083
14,548,009
Accruals
1,179,290
95,304
Deferred income
550,723
343,872
12,517,557
15,032,178
Balances within other creditors due within one year totalling £4,923,432 (2023: £7,175,223) are secured by a fixed charge over the company's bank accounts and floating charge over the assets of the company.
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
3,229,884
Other creditors
2,060,241
281,511
5,290,125
281,511
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
Page 9
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
590,325
590,325
590,325
590,325
Preference shares classified as liabilities
590,325
590,325
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Jamie Seaford
Statutory Auditor:
Moore Kingston Smith LLP
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
108,000
162,000
13
Related party transactions
Other information
Fenchurch Legal Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 May 2024
13
Related party transactions
(Continued)
Page 10
In accordance with FRS 102 section 33 paragraph 33.1A, the company has not disclosed transactions within the wholly owned group.
At the year end, the company owed £2,251,032 (2023: £3,056,941) to a company with a former participating interest in the company. Interest of £237,177 (2023: £377,533) has been charged in the year.
Redeemable preference shares have been issued to a company under common control, which have been classified as liabilities. At the year end, the company owed £887,729 (2023: £771,471) to the company under common control which has been included in other creditors due within one year. Redeemable preference shares dividends of £106,258 (2023: £106,258) were payable this year which have been disclosed as interest. At the year end, the company under common control also owed £425,211 (2023: £145,845) to the company which has been included in other debtors.
At the year end, the company owed £49,900 (2023: £49,900) to companies under common control which is included within trade creditors due within one year. Loan finance introductions fees and interest of £12,500 (2023: £41,454) have been charged in the year, as well as IT and consumable costs of £938 (2023: £nil).
Professional fees paid to a Director of this company totalled £90,000 (2023: £80,000).
Loan amounts and interest waived by participating interests resulted in a credit to the capital contribution reserve of £nil (2023: £711,018) during the year.
14
Events after the reporting date
After the balance sheet date, two of the loan creditors went into administration. The directors expect this to result in a credit to the profit and loss account after the reporting date however the amount is uncertain at the date of approval of these financial statements.
15
Ultimate controlling party
The ultimate controlling party is L Klouda by virtue of her majority shareholding.