Caseware UK (AP4) 2024.0.164 2024.0.164 2024-05-312025-05-302025-05-302024-05-312024-05-312025-05-30falsefalse2023-06-01Other business support service activities not elsware classified.11falsefalse 11918958 2023-06-01 2024-05-31 11918958 2022-06-01 2023-05-31 11918958 2024-05-31 11918958 2023-05-31 11918958 2022-06-01 11918958 1 2023-06-01 2024-05-31 11918958 d:Director1 2023-06-01 2024-05-31 11918958 d:Director2 2023-06-01 2024-05-31 11918958 d:Director2 2024-05-31 11918958 d:RegisteredOffice 2023-06-01 2024-05-31 11918958 c:CurrentFinancialInstruments c:WithinOneYear 2024-05-31 11918958 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-31 11918958 c:Non-currentFinancialInstruments c:AfterOneYear 2024-05-31 11918958 c:Non-currentFinancialInstruments c:AfterOneYear 2023-05-31 11918958 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2024-05-31 11918958 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-05-31 11918958 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2024-05-31 11918958 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-05-31 11918958 c:Non-currentFinancialInstruments c:MoreThanFiveYears 2024-05-31 11918958 c:Non-currentFinancialInstruments c:MoreThanFiveYears 2023-05-31 11918958 c:ShareCapital 2023-06-01 2024-05-31 11918958 c:ShareCapital 2024-05-31 11918958 c:ShareCapital 2022-06-01 2023-05-31 11918958 c:ShareCapital 2023-05-31 11918958 c:ShareCapital 2022-06-01 11918958 c:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 11918958 c:RetainedEarningsAccumulatedLosses 2024-05-31 11918958 c:RetainedEarningsAccumulatedLosses 2022-06-01 2023-05-31 11918958 c:RetainedEarningsAccumulatedLosses 2023-05-31 11918958 c:RetainedEarningsAccumulatedLosses 2022-06-01 11918958 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-05-31 11918958 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-05-31 11918958 d:OrdinaryShareClass1 2023-06-01 2024-05-31 11918958 d:OrdinaryShareClass1 2024-05-31 11918958 d:OrdinaryShareClass1 2023-05-31 11918958 d:FRS102 2023-06-01 2024-05-31 11918958 d:Audited 2023-06-01 2024-05-31 11918958 d:FullAccounts 2023-06-01 2024-05-31 11918958 d:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 11918958 c:Subsidiary1 2023-06-01 2024-05-31 11918958 c:Subsidiary1 1 2023-06-01 2024-05-31 11918958 c:Subsidiary2 2023-06-01 2024-05-31 11918958 c:Subsidiary2 1 2023-06-01 2024-05-31 11918958 c:Subsidiary3 2023-06-01 2024-05-31 11918958 c:Subsidiary3 1 2023-06-01 2024-05-31 11918958 d:Consolidated 2024-05-31 11918958 d:ConsolidatedGroupCompanyAccounts 2023-06-01 2024-05-31 11918958 2 2023-06-01 2024-05-31 11918958 6 2023-06-01 2024-05-31 11918958 e:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 11918958









BRYDG LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
BRYDG LTD
 
 
COMPANY INFORMATION


Directors
D D Bendavid 
P P Matthews (appointed 5 December 2024)




Registered number
11918958



Registered office
Third Floor Rear, 70-72 Jermyn Street
Nightingale House

London

England

SW1Y 6PF




Independent auditors
Harris & Trotter LLP
Chartered Accountants

101 New Cavendish Street

1st Floor South

London

W1W 6XH





 
BRYDG LTD
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Statement of Financial Position
10
Company Statement of Financial Position
11
Consolidated Statement of Changes in Equity
12
Company Statement of Changes in Equity
13
Consolidated Statement of Cash Flows
14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 31


 
BRYDG LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their Group Strategic Report for the year ended 30 May 2024. The Group comprises Brydg Ltd and its subsidiaries, Brydg Capital Ltd, Brydg Services Ltd, Brydg Finance No.1 Limited, Brydg Inc and Brydg Capital Americas LLC.

Business review
 
The directors report year on year improvements in turnover for the year ended 30 May 2024. Turnover has increased by 34%. The group made loss in the year in amount of £298,422 compared to the prior year profit after tax of £341,929.

Principal risks and uncertainties
 
The Group remains exposed to certain risks, primarily related to macroeconomic factors and the specific nature of its lending activities. While the Group has successfully navigated past challenges through proactive risk management, it is important to acknowledge the ongoing uncertainties.
The COVID-19 pandemic continues to have a global impact, affecting economic conditions and the real estate market. Rising interest rates and increased costs of development can pose challenges to borrowers and lenders alike. However, the Group's prudent lending practices, including careful assessment of loan-to-value ratios, help mitigate these risks.
Foreign exchange risk is minimal, as the majority of loans are denominated in British pounds sterling, aligning with the Group's funding sources. The one exception is a loan with a pre-agreed repayment currency, which presents a manageable risk.
The Group's primary funding remains a significant exposure. While the relationship is positive, the Group is actively exploring alternative funding sources to further diversify its funding base and reduce reliance on a single provider. The Group already has several existing relationships whose funding capacity exceeds our current minimum requirement. 
The Group's equity obligations are well-aligned with its strategic objectives, ensuring continued support and stability.

Financial key performance indicators
 
The Group's continued utilisation of newer funding lines alongside well-established funding lines has resulted in an overall more competitive cost of capital. We have had added £62.4m of net agreed funding to our loan book which includes both repeat customers as well as new. Loans that have redeemed during the period have met our profit expectations (average 5%). Collectively this has positively impacted the overall financial health of the business.

Other key performance indicators
 
The Group has made significant strides in rebuilding its broker network following the COVID-19 pandemic. This expansion has increased business volume and diversified the client base. Operational expenses have remained relatively stable, reflecting the Group's efficient cost management. The ongoing investment in research and development for the proprietary software aligns with the Group's strategic objectives and has resulted in successful feature launches

Page 1

 
BRYDG LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


This report was approved by the board on 30 May 2025 and signed on its behalf.



D D Bendavid
Director

Page 2

 
BRYDG LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £298,422 (2023 - profit £341,929).

No dividends have been declared or paid in the year.

Director

The director who served during the year was:

D D Bendavid 

Future developments

The Group is committed to continuous innovation and strategic growth. Future developments will focus on exploring new markets, funding lines, and technology development opportunities to enhance shareholder value and customer satisfaction. 

Page 3

 
BRYDG LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHarris & Trotter LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 May 2025 and signed on its behalf.
 





D D Bendavid
Director

Page 4

 
BRYDG LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG LTD
 

Opinion


We have audited the financial statements of Brydg Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 May 2024 and of the Group's 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.


Basis for opinion


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


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 Group's or the parent 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.


Page 5

 
BRYDG LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 set out on page 3, 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
BRYDG LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG LTD (CONTINUED)


Auditors' 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 Auditors' 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 Group 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:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that 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).
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:
• We obtained an understanding of the legal and regulatory frameworks applicable to the Grpup and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102 and the Companies Act 2006.
• We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management.
• We challenged assumptions and judgments made by management in its significant accounting estimates.
We did not identify any key audit matters relating to irregularities, including fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our 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 2006Our 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 Auditors' 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.


Page 7

 
BRYDG LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BRYDG LTD (CONTINUED)





Stephen Haffner (Senior Statutory Auditor)
  
for and on behalf of
Harris & Trotter LLP
 
Chartered Accountants
  
101 New Cavendish Street
1st Floor South
London
W1W 6XH

30 May 2025
Page 8

 
BRYDG LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 3 
31,255,450
23,240,809

Cost of sales
  
(29,166,338)
(20,508,665)

Gross profit
  
2,089,112
2,732,144

Administrative expenses
  
(2,608,783)
(3,274,600)

Other operating income
 4 
117,003
854,196

Operating (loss)/profit
 5 
(402,668)
311,740

Interest receivable and similar income
  
(104,246)
(30,189)

  
-
-

  

Total comprehensive income for the year
  
-
-

  

  

  

  

The notes on pages 16 to 31 form part of these financial statements.

Page 9

 
BRYDG LTD
REGISTERED NUMBER: 11918958

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 10 
755,604
669,011

  
755,604
669,011

Non-current assets
  

Debtors: amounts falling due more than one year
 12 
23,849,747
55,726,531

  
23,849,747
55,726,531

Current assets
  

Debtors: amounts falling due within one year
 12 
151,636,380
108,298,150

Cash at bank and in hand
 13 
13,154,862
6,060,240

  
164,791,242
114,358,390

Creditors: amounts falling due within one year
 14 
(156,607,649)
(145,846,348)

Net current assets/(liabilities)
  
 
 
8,183,593
 
 
(31,487,958)

Total assets less current liabilities
  
32,788,944
24,907,584

Creditors: amounts falling due after more than one year
 15 
(33,036,279)
(24,856,497)

  

Net (liabilities)/assets
  
(247,335)
51,087


Capital and reserves
  

Called up share capital 
 18 
102
102

Profit and loss account
 19 
(247,437)
50,985

  
(247,335)
51,087


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 May 2025.




D D Bendavid
Director

The notes on pages 16 to 31 form part of these financial statements.

Page 10

 
BRYDG LTD
REGISTERED NUMBER: 11918958

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 11 
101
101

  
101
101

Current assets
  

Debtors
 12 
1,455,077
1,455,077

Cash at bank and in hand
 13 
102
102

  
1,455,179
1,455,179

Creditors: amounts falling due within one year
 14 
(1,055,178)
(1,055,178)

Net current assets
  
 
 
400,001
 
 
400,001

Total assets less current liabilities
  
400,102
400,102

  

Creditors: amounts falling due after more than one year
 15 
(400,000)
(400,000)

  

Net assets excluding pension asset
  
102
102

Net assets
  
102
102


Capital and reserves
  

Called up share capital 
 18 
102
102

  
102
102


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 May 2025.


D D Bendavid
Director

The notes on pages 16 to 31 form part of these financial statements.

Page 11

 
BRYDG LTD
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 June 2022
102
(290,944)
(290,842)
(290,842)


Comprehensive income for the year

Profit for the year
-
341,929
341,929
341,929
Total comprehensive income for the year
-
341,929
341,929
341,929



At 1 June 2023
102
50,985
51,087
51,087


Comprehensive income for the year

Loss for the year
-
(298,422)
(298,422)
(298,422)


At 31 May 2024
102
(247,437)
(247,335)
(247,335)


The notes on pages 16 to 31 form part of these financial statements.

Page 12

 
BRYDG LTD
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2022
102
-
102

Profit for the year

-
-
-


Other comprehensive income for the year
-
-
-



At 1 June 2023
102
-
102

Profit for the year

-
-
-


Other comprehensive income for the year
-
-
-


At 31 May 2024
102
-
102


The notes on pages 16 to 31 form part of these financial statements.

Page 13

 
BRYDG LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(298,422)
341,929

Adjustments for:

Amortisation of intangible assets
320,907
250,071

Interest received
(104,246)
(30,189)

(Increase) in debtors
(12,261,668)
(48,836,497)

Decrease/(increase) in amounts owed by groups
784,628
(677,407)

Increase in creditors
13,327,126
12,435,417

(Decrease)/increase in amounts owed to groups
(941,063)
658,842

Corporation tax (paid)/received
(128,746)
-

Foreign exchange and other costs
15,595
(29,950)

Net cash generated from operating activities

714,111
(35,887,784)


Cash flows from investing activities

Purchase of intangible fixed assets
(407,500)
(395,000)

Interest received
104,246
30,189

Net cash from investing activities

(303,254)
(364,811)

Cash flows from financing activities

Other new loans
6,683,730
29,130,755

Net cash used in financing activities
6,683,730
29,130,755

Net increase/(decrease) in cash and cash equivalents
7,094,587
(7,121,840)

Cash and cash equivalents at beginning of year
6,060,240
13,182,080

Cash and cash equivalents at the end of year
13,154,827
6,060,240


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
13,154,862
6,060,240

Bank overdrafts
(35)
-

13,154,827
6,060,240


The notes on pages 16 to 31 form part of these financial statements.

Page 14

 
BRYDG LTD
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

6,060,240

7,094,622

13,154,862

Bank overdrafts

-

(35)

(35)

Debt due after 1 year

(24,140,999)

(8,252,991)

(32,393,990)

Debt due within 1 year

(121,398,765)

1,569,262

(119,829,503)


(139,479,524)
410,858
(139,068,666)

The notes on pages 16 to 31 form part of these financial statements.

Page 15

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Brydg Ltd (the "Company") is a private company incorporated, domiciled and registered in England and Wales in the UK. The registered number is 11918958 and the registered address is Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF.
The principal activity of the company is that of property financing and lending.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 June 2022.

The Group has two subsidiaries, Brydg Inc. and Brydg Capital Americas LLC that are not included in the consolidation as they are not yet trading and are not considered material to the Group’s financial statements.

Page 16

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 17

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Interest income
Revenue from loans advanced to customers is recognised over the period of the agreement.
Exit & Extension fees
For loans issued in the current period and going forward, revenue from these fees is recognized over the loan term in line with the associated service period. Previously, such fees were recognized in full at loan inception. The revised treatment has not been applied retrospectively to prior-period loans due to the complexity of restating historical transactions.
Arrangement and administration fees
Revenue from arrangements and administration fees are recognised in accordance with the terms and conditions of each loan agreement.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 18

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 19

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
Page 20

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Page 21

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.


3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Interest from borrowers
23,394,852
17,340,209

Exit fees
2,729,638
1,288,521

Arrangement fees and administration fee
3,841,601
2,799,856

Valuation fees
299,097
499,221

Extension fees
881,881
1,313,002

Management charges receivable
108,381
-

31,255,450
23,240,809


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
31,255,450
23,240,809

31,255,450
23,240,809



4.


Other operating income

2024
2023
£
£

Other operating income
131,970
827,878

Foreign exchange difference - gain
(14,967)
26,318

117,003
854,196


Page 22

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2024
2023
£
£

Exchange differences
14,865
(26,318)


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
10,000
10,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£

Cost of defined contribution scheme
713
798

713
798


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
2
1
1
1


8.


Interest receivable

2024
2023
£
£


Other interest receivable
104,246
30,189

104,246
30,189

Page 23

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

9.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Tax on (loss)/profit
-
-

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 25%) as set out below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(298,422)
341,929


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(74,606)
85,482

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
39,713
87,367

Utilisation of tax losses
-
(155,176)

Other timing differences leading to an increase (decrease) in taxation
-
45,049

Unrelieved tax losses carried forward
34,893
-

Other tax charge (relief) on exceptional items
-
(39,843)

Other differences leading to an increase (decrease) in the tax charge
-
(22,879)

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Intangible assets

Group and Company





Computer software

£



Cost


At 1 June 2023
1,257,307


Additions
407,500



At 31 May 2024

1,664,807



Amortisation


At 1 June 2023
588,296


Charge for the year on owned assets
320,907



At 31 May 2024

909,203



Net book value



At 31 May 2024
755,604



At 31 May 2023
669,011



Page 25

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
101



At 31 May 2024
101





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Brydg Services Limited
Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF
Ordinary
100%
Brydg Finance No.1 Limited
Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF
Ordinary
 100%
Brydg Capital Limited
Third Floor Rear, 70-72 Jermyn Street, London, United Kingdom, SW1Y 6PF
Ordinary
 100%

Page 26

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 May 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Brydg Services Limited
(553,205)
(99,899)

Brydg Finance No.1 Limited
(230,517)
6,349

Brydg Capital Limited
532,769
(208,893)

Page 27

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Debtors

2024
2023
£
£

Due after more than one year

Amounts owed by group undertakings
1,694
211

Other debtors
23,089,402
52,780,550

Prepayments and accrued income
758,651
2,945,770

23,849,747
55,726,531


2024
2023
£
£

Due within one year

Trade debtors
31,759
16,753

Amounts owed by group undertakings
-
786,111

Other debtors
116,622,292
86,135,488

Prepayments and accrued income
34,982,329
21,359,798

151,636,380
108,298,150



13.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
13,154,862
6,060,240
102
102

Less: bank overdrafts
(35)
-
-
-

13,154,827
6,060,240
102
102


Page 28

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
35
-

Other loans
119,829,390
121,398,651

Trade creditors
604,595
746,915

Amounts owed to group undertakings
1
678,214

Corporation tax
-
128,746

Other taxation and social security
2,926
3,283

Other creditors
1,006,807
214,836

Accruals and deferred income
35,163,895
22,675,703

156,607,649
145,846,348



15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other loans
32,393,989
24,140,999

Amounts owed to group undertakings
18,001
280,850

Other creditors
400,000
400,000

Accruals and deferred income
224,289
34,648

33,036,279
24,856,497


Page 29

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Amounts falling due within one year

Other loans
119,829,390
121,398,651
1,055,178
1,055,178


119,829,390
121,398,651
1,055,178
1,055,178

Amounts falling due 1-2 years

Other loans
30,150,631
23,621,169
-
-


30,150,631
23,621,169
-
-

Amounts falling due 2-5 years

Other loans
1,214,811
519,830
-
-


1,214,811
519,830
-
-

Amounts falling due after more than 5 years

Other loans
1,028,548
-
-
-

152,223,380
145,539,650
1,055,178
1,055,178



17.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
13,154,862
6,060,240
102
102




Financial assets measured at fair value through profit or loss comprise cash at bank.

Page 30

 
BRYDG LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



102 (2023 - 102) Ordinary shares of £1.00 each
102
102



19.


Reserves

Profit and loss account

The profit and loss reserve comprises of the current and previous years retained profits and losses. This is a fully distributable reserve.


20.


Pension commitments

The Group operats a defined contribution scheme. The pension cost charge for the period represents contributions payable by the Group to the scheme and amounted to £713 (2023: £798)


21.


Related party transactions

FRS 102 does not require disclosure of transactions entered into between two or more members of a
group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


22.


Post balance sheet events

There were no significant events after the reporting period. 


23.


Controlling party

The ultimate controlling party of the group is Qismat Trust, a charity incorporated in England. 

Page 31