Company Registration No. 08641995 (England and Wales)
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
COMPANY INFORMATION
Directors
T Gruber
P Luksan
Y M Tian
A L R Curcio
C Friedrich
L Bassett
(Appointed 14 October 2024)
K Moffat
(Appointed 14 October 2024)
G Williams
(Appointed 21 May 2025)
Secretary
S J Hobbs
Company number
08641995
Registered office
30 Churchill Place
London
E14 5RE
England
Auditor
HW Fisher Audit
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

Amplifi Capital (U.K.) Limited (‘Amplifi’) operates a consumer lending platform which offers unsecured personal loans to near prime consumers who may not otherwise have access to credit from traditional high street banks. Amplifi provides loans directly under its Reevo brand as well as providing platform brokerage services to two of the largest credit unions in the United Kingdom. The platform seeks to build a leading position in consumer finance, currently offering personal loans, with ambitions to launch a credit card operation in the future. The principal activities of the company include brokerage, credit and data analytics, technology services, and loan portfolio servicing.

Despite significant headwinds faced by the Company over the past 12 months impacting our customers and the markets we operate in, we remained resilient and focused on long-term priorities. While the results reflect these challenging conditions, with a loss before taxation of £0.1m (2023: £5.5m profit) the Company continued to make progress in key strategic areas. The results for the year are set out in the Company’s Statement of Comprehensive Income. No dividend is proposed (2023: £nil).

Principal risks and uncertainties

Risk management is overseen by Amplifi’s Risk Committee, which is responsible for the monitoring and oversight over legal, regulatory, financial and operational risks and requirements.

There are a number of potential risks and uncertainties which could have a material impact on the Company’s long-term performance:

Regulatory Risk - The Company defines this as the risk of failure to comply with regulatory requirements applying to business arrangements and activities.

Amplifi is regulated by the Financial Conduct Authority (FCA) (ref:718749) in relation to consumer credit origination and servicing operations. It is specifically authorised for credit broking and debt administration and trades under the names “Reevo”, “Reevo Money” and "My Community Finance” as well as its own name, Amplifi Capital.

Failure to comply with relevant regulations could result in regulatory censure leading to suspension or termination of the company’s ability to conduct business and could lead to financial loss. The long term on-going success of the business is supported by pro-actively monitoring compliance with the regulatory requirements, maintaining a pro-active and open relationship with the FCA and a commitment to strengthening the company’s governance and compliance framework.

On 31 July 2023 the FCA’s final rules and guidance on New Consumer Duty rule came in to force and the Company has undertaken a major review of all its policies and procedures during the period since the rules were published to ensure ongoing compliance.

Strategic Risk - The Company defines this as the risk that the Company does not devise and implement a business strategy that meets the objectives of its shareholders and other stakeholders.

The Company’s strategy is primarily based on the future provision of credit products to consumers, primarily in the near prime market. Changes in economic conditions could impact the ability of the Company to maintain and grow market demand as per its strategic plans. Also, competitors may develop new products which may disrupt the Company’s market share. The Company continually re-evaluates strategy based on periodic evaluation of consumer needs, market demand and the approach to strategy execution.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Reputational Risk - The Company defines this as the risk of a reduction in market share and customer demand due to reputational reasons.

In particular, as part of this strategy, Amplifi strives to maintain a high standard in customer service. Amplifi continually considers the needs and priorities of existing and potential customers in its decision making. The company remains committed to maintaining high standards of service to its customers through investment in its staff and processes. This is reflected in the 4.8 Trustpilot rating which the company holds across all its customer facing channels.

Credit Risk – The Company defines this as the risk of financial losses as a result of the non-recoverability of monies owed to it.

The Company’s core credit risk exposure arises from its outstanding loan book receivables from customers. Credit risk on the loan book is primarily managed and monitored by the Company’s loan decision systems and credit scoring tools. These rules and the lending strategies from which they are derived are continually re-evaluated.

Liquidity Risk - The Company defines this as the risk of failing to meet financial obligations as and when they fall due. The risk arises from unexpected cash outflows or expected inflows which fail to materialise. The Company operates a policy of prudent liquidity management to ensure it maintains sufficient cash reserves to facilitate its needs.

The Company continually monitors and reforecasts the liquidity position to ensure it has sufficient cash to meet its projected requirements.

Market Risk - The Company defines this as the risk of financial losses from changes in market factors such as foreign exchange rates and interest rate changes. The company has little exposure to foreign currency movement as its operations are solely based in the United Kingdom. The Company’s primary market risk exposure is to changes in interest rates. The Company, and its parent company, continually evaluate the need to formulate a mitigation strategy and implement hedging strategies from time to time.

Operational Risk - The Company defines this as the risk of losses from inadequate or failed processes, systems, people, or from external events. The Company manages this risk through management and Board oversight. There are a number of operating committees that regularly meet to monitor and take action to mitigate or address any risks.

Capital Management – The Company’s capital comprises its ordinary share capital and accumulated reserves. The objective of the directors of both the Company, and its parent, Amplifi Holding Limited, when managing capital is to safeguard the group’s ability to continue as a going concern in order to provide long-term returns for the shareholders. The company is not currently subject to any specific externally imposed capital requirements.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Development and performance

The results of the company for the year show an increase in revenue of 91% to £41.7m (2023: £21.8m), and a loss taken to equity of £1.0m (2023: £4.7m profit). The company's net assets have decreased by 14% to £5.7m (2023: £6.7m). The loss in the year and reduction in net assets reflect a non-cash impairment charge mentioned below.

 

During the year, the company drew amounts under its secured loan facility with a resultant increase in borrowing of £17.0m, resulting in a liability at 31st March 2024 of £47.0m (2023: £30.0m).

 

Amplifi continues to make significant investments in its technology, risk management, customer operations and compliance functions as well as providing capital to the credit union sector.

 

In particular, the Company has significantly increased its number of employees in the year. Amplifi understands that attracting, motivating and retaining talent at all levels is vital to the continuing success and growth of the business. The Company invests in its employees through various benefits schemes and wellbeing initiatives as well as providing opportunities for training and development.

 

Amplifi has continued its R&D efforts to develop an innovative platform aimed at automating and streamlining financial services processes for Credit Unions and Community Development Finance Institutions (CDFIs). Collaborating with Gojoko Marketing Ltd, the project incorporates cutting-edge technologies to improve data processing, operational efficiency, and system scalability. This ongoing R&D investment supports Amplifi’s commitment to delivering ethical, responsible financial products while driving long-term value and efficiency improvements.

 

As part of our commitment to prudent and transparent financial reporting, the Company has recognised a non-cash impairment charge in relation to its deferred share investments held with certain Credit Unions. This accounting adjustment, while reducing reported profit before tax to a loss of £0.1m for the year (from a pre-adjusted profit of £5.2m), reflects a forward-looking reassessment of the recoverable value of these investments in light of evolving market conditions. Importantly, this adjustment does not impact the Company’s strong underlying operational performance.

 

 

Key performance indicators

The Company uses key performance indicators. The performance of the main indicators in this reporting period were:

 

Outlook

Amplifi is committed to becoming a leading provider of accessible and affordable credit. We enable our customers to responsibly structure their personal finances by offering access to affordable fixed-rate finance. Amplifi remains confident in its long-term strategy and continues to actively support the Credit Union sector and its Reevo customers as a key part of its mission to deliver inclusive financial services.

On behalf of the board

T Gruber
Director
26 June 2025
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

Principal activities

The principal activities of the Company include the provision of financial intermediation services, as well as the provision of low value short-term loans to UK consumers. The Company is regulated by the Financial Conduct Authority.

Results and dividends

The results for the year are set out on page 10.

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:

T Gruber
P Luksan
Y M Tian
J Vicent-Peris
(Resigned 25 September 2024)
A L R Curcio
C Friedrich
S Pottay
(Resigned 1 October 2024)
S Rose-Innes
(Appointed 1 February 2024 and resigned 1 October 2024)
L Bassett
(Appointed 14 October 2024)
K Moffat
(Appointed 14 October 2024)
M Olaiz
(Appointed 27 September 2024 and resigned 10 April 2025)
G Williams
(Appointed 21 May 2025)
Research and development

The company has continued its R&D efforts to develop an innovative platform aimed at automating and streamlining financial service processes for Credit Unions and Community Development Finance Institutions (CDFIs). This ongoing R&D investment supports Amplifi’s commitment to delivering ethical, responsible financial products while driving long-term value and efficiency improvements.

Post reporting date events

Following the year end, the Company has drawn down £1.5m on the loan facility referred to in Note 17.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management and future developments.

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.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
On behalf of the board
T Gruber
Director
26 June 2025
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

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:

 

 

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.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
- 7 -
Opinion

We have audited the financial statements of Amplifi Capital (U.K.) Limited (also known as My Community Finance) (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 FRS 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:

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 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.

Material uncertainty relating to going concern

We draw attention to note 1.2 in the financial statements which indicates that the company is reliant on two significant undertakings for a significant proportion of its revenue. Since the year end, these significant undertakings have reported losses in their financial year ended 30 September 2024, which has resulted in a reduction in loan originations in the credit unions and therefore fee income earned by the company over the period.

 

These events or conditions, along with the other matters as set out in note 1.2, indicate that a material uncertainty exists which may cast significant doubt on the company's ability to continue as a going concern.

 

Our opinion is not modified in respect of this matter. 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.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

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

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
- 8 -
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 and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
- 9 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

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 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.

Mandy Janes (Senior Statutory Auditor)
For and on behalf of HW Fisher Audit
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
26 June 2025
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Revenue
3
41,680,886
21,813,724
Cost of sales
(14,632,965)
(9,707,184)
Gross profit
27,047,921
12,106,540
Administrative expenses
(16,784,436)
(6,648,475)
Other operating income
315,052
-
0
Operating profit
4
10,578,537
5,458,065
Investment income
7
6,978,513
3,543,391
Interest payable to group undertakings
8
(6,046,636)
-
Other finance costs
8
(6,317,731)
(3,468,650)
Other gains and losses
9
(5,291,411)
-
(Loss)/profit before taxation
(98,728)
5,532,806
Tax on (loss)/profit
10
(852,980)
(878,884)
(Loss)/profit for the financial year
(951,708)
4,653,922

The income statement has been prepared on the basis that all operations are continuing operations.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
-
0
197,897
Property, plant and equipment
12
-
0
3,807
Investments
13
42,029,370
24,367,700
42,029,370
24,569,404
Current assets
Trade and other receivables
15
74,785,703
12,117,501
Cash at bank and in hand
1,858,080
4,201,469
76,643,783
16,318,970
Current liabilities
16
(65,643,577)
(3,894,127)
Net current assets
11,000,206
12,424,843
Total assets less current liabilities
53,029,576
36,994,247
Non-current liabilities
17
(47,315,243)
(30,328,206)
Net assets
5,714,333
6,666,041
Equity
Called up share capital
20
1,750,000
1,750,000
Retained earnings
3,964,333
4,916,041
Total equity
5,714,333
6,666,041
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
T Gruber
Director
Company Registration No. 08641995
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2022
1,750,000
262,119
2,012,119
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
4,653,922
4,653,922
Balance at 31 March 2023
1,750,000
4,916,041
6,666,041
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(951,708)
(951,708)
Balance at 31 March 2024
1,750,000
3,964,333
5,714,333
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Amplifi Capital (U.K.) Limited (also known as My Community Finance) is a private company limited by shares incorporated in England and Wales. The registered office is 30 Churchill Place, London, E14 5RE, England.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Amplifi Holding Ltd. These consolidated financial statements are publicly available.

1.2
Going concern

Whilst the company has made an operating profit in the year and had net current assets of £5.7m as at 31 March 2024, it is reliant on two significant undertakings (Brent Shrine Credit Union Limited (t/a My Community Bank) and North Edinburgh and Castle Credit Union Limited (t/a Castle Community Bank)) for a significant proportion of its revenue. Since the year end, these significant undertakings have reported losses in their financial year ended 30 September 2024, which has resulted in a reduction in loan originations in the credit unions and therefore fee income earned by the company over the period. Additionally, the company has been providing support to the credit unions in the form of new deferred share capital investment and drawn from existing reserves to fund its own loan portfolio.

 

These factors have created some uncertainty over the funding requirements and forecast liquidity position of the company. In light of the challenging trading position of the company, the directors have been prioritising initiatives to deliver increased loan origination volumes across its channels whilst ensuring that new business is written in line with the company’s risk appetite. The directors have also taken actions to improve the operational efficiency of the company. Additionally, in January 2025, the company pro-actively entered into discussions with its senior lender to explore options to restructure its external debt obligations. As part of this process, the senior lender has agreed a period of forbearance in respect of its 31 March 2025 interest coupon.

 

Based on the above, the directors consider that there is a material uncertainty that may cast doubt on the company’s ability to continue as a going concern. Notwithstanding the uncertainty, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements and thus consider it appropriate to continue adopting the going concern basis in preparing the financial statements.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business.

 

Revenue is income in respect to sourced loans, paid to the entity as a percentage of the originated loan as an introduction fee. Revenue is recognised according to the period in which the loan was made.

 

Service fees includes underwriting placement fees being commission on investments in deferred shares made by the company, its immediate parent company and a company under common control. Servicing fees for a company under common control are accounted for on an accruals basis.

Interest and fee income on trade receivables is calculated on a straight-line method and this is not materially different from the effective interest method. Default fees and any interest are charged to customers when they fail to make a repayment within the agreed terms and such fees and interest are recognised as revenue when these amounts are expected to be recovered.

 

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.

 

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Software
20% straight line
Intangible assets under development
Not currently being amortised

The intangible assets under development relate to a credit card platform in development but not yet in use.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20% straight line
Computer equipment
50% 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
Non-current 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.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

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.

Investments in deferred shares are initially measured at cost and are assessed for impairment at each reporting date, and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.

1.7
Impairment of non-current 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand and current balances with banks and similar institutions.

1.9
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.

 

The Company classifies its financial assets into the following categories: cash and cash equivalents and trade and other receivables. The classification is determined by management upon recognition, and is based on the purpose for which the financial assets were acquired.

 

Financial assets are recognised in the Company’s Statement of financial position when the Company becomes a party to the contractual provisions of the instrument and are recognised as fair value.

 

Trade and other receivables are classified as loans and receivables and measured at amortised cost using the effective interest method (or straight line as a reasonable approximation thereof), less any impairment. At each balance sheet date, the Company assesses whether its financial assets are impaired. Impairment losses are recognised in the Statement of comprehensive loss where there is objective evidence of impairment.

 

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 receivables 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.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from fellow group companies 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 receipts 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.10
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 income statement 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 income statement, 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

1.14

Government grants

Government grants, which include amounts received from the Bounce Back Loan Scheme that cover interest and fees payable to the lender, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the period in which the associated costs are incurred, using the accrual model.

1.15

Sundry income

Sundry income represents the profit sweep from a company under common control received following the priority order of payments and some other income from a company under common control, which are accounted for on an accruals basis.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.16

Sale of loan receivables to a company under common control

During the year, the company sold a series of loan receivables to a company under common control. The sale is not deemed to have met the derecognition criteria as the company has retained significantly all the risks and rewards of ownership of the loans. As such, the company has recognised the loans on its balance sheet along with a liability to the purchaser in respect of the proceeds received.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of fixed asset investments

 

At the year-end, the company holds deferred shares in two significant undertakings with a coupon rate ranging from 13.5% to 18%. Management have assessed whether indicators of impairment existed at the year-end in relation to these investments, through review of the significant undertakings results for the period to 31 March 2024 and following the year-end. In assessing the recoverable amount of the investments, the directors have deemed that a net asset value as at 31 March 2024 approach is most appropriate. Management have relied upon the 31 March 2024 management accounts provided by the significant undertakings as a best estimate of the carrying value of the investments at that date. This has resulted in an impairment loss of £5,291,411 being recognised, with carrying value of the deferred share investments being £36,431,289.

Deferred remuneration due in more than one year

 

Included within other payables due in more than one year is deferred remuneration payable to key management personnel and staff. The amount has been deferred as it is due for payment in June 2025 on the basis that the individual is still employed by the company. The directors have made a judgement that it is probable the employees entitled to this remuneration will be employed by the company in June 2025 therefore the full amount should be provided for.

 

Recoverability of other receivables

 

At the year end the company was owed £12,573,076 (2023: £3,678,888) included in other receivables due from a company under common control. The directors assess the recoverability of these debts based on the actual and forecast financial results of the company under common control. At the year end the directors consider the amounts included in other receivables to be recoverable. Following the year end, the balance has been recovered.

 

Bad debt provision

 

At the year end a bad debt provision of £4,124,534 (2023: £225,176) was included within trade receivables against short term loans made to consumers. Management have assessed the recoverability of the loans on a line by line basis with reference to arrears information at the balance sheet date and following the year end. This is achieved by categorising each loan into a risk band which varies depending on the number of days that payments are in arrears. As there are no historic trends available for reference due to the scaling up of the consumer lending business, and due to the nature of the loans, the provision involves a high degree of uncertainty.

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Service fees
1,635,250
696,565
Brokerage fees
32,003,586
20,516,428
Loan book income
7,014,981
600,731
Servicing fees from company under common control
1,027,069
-
41,680,886
21,813,724
2024
2023
£
£
Other significant revenue
Interest income
6,978,513
3,543,391
2024
2023
£
£
Revenue analysed by geographical market
UK
41,680,886
21,813,724
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
1,000
(26)
Fees payable to the company's auditor for the audit of the company's financial statements
29,054
29,648
Depreciation of owned property, plant and equipment
54,376
1,357
Amortisation of intangible assets
61,471
66,729
Loss on disposal of intangible assets
96,803
-
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Customer Operations
141
65
Corporate Functions
16
8
Total
157
73
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,874,011
4,498,492
Social security costs
1,068,639
567,976
Pension costs
120,599
64,183
10,063,249
5,130,651
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
452,432
637,828
Company pension contributions to defined contribution schemes
1,321
11,191
453,753
649,019

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
200,317
211,833
Company pension contributions to defined contribution schemes
-
9,870
7
Investment income
2024
2023
£
£
Interest income
Other interest income
6,978,513
3,543,391
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
699
613
Interest payable to group undertakings
6,046,636
-
0
Other interest on financial liabilities
6,317,032
3,468,037
12,364,367
3,468,650
Disclosed on the income statement as follows:
Interest payable to group undertakings
6,046,636
-
Other finance costs
6,317,731
3,468,650
9
Other gains and losses
2024
2023
£
£
Impairment losses
(5,291,411)
-
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,310,413
903,638
Adjustments in respect of prior periods
(457,433)
(24,754)
Total current tax
852,980
878,884

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(98,728)
5,532,806
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(24,682)
1,051,233
Tax effect of expenses that are not deductible in determining taxable profit
1,336,503
3,446
Change in unrecognised deferred tax assets
(35)
(147,065)
Adjustments in respect of prior years
(457,433)
(24,754)
Group relief
-
0
(3,694)
Fixed asset differences
-
0
(282)
Other tax adjustments, reliefs and transfers
(1,373)
-
0
Tax expense for the year
852,980
878,884
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
11
Intangible fixed assets
Software
Intangible assets under development
Total
£
£
£
Cost
At 1 April 2023
337,862
39,623
377,485
Additions
-
0
120,071
120,071
Disposals
(337,862)
-
0
(337,862)
Transfers
-
0
(159,694)
(159,694)
At 31 March 2024
-
0
-
0
-
0
Amortisation and impairment
At 1 April 2023
179,588
-
0
179,588
Amortisation charged for the year
61,471
-
0
61,471
Disposals
(241,059)
-
0
(241,059)
At 31 March 2024
-
0
-
0
-
0
Carrying amount
At 31 March 2024
-
0
-
0
-
0
At 31 March 2023
158,274
39,623
197,897

During the year, £159,694 of intangible assets under development were transferred to a company under common control.

12
Property, plant and equipment
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 April 2023
10,505
-
0
10,505
Additions
2,540
48,029
50,569
Transfers
(13,045)
(48,029)
(61,074)
At 31 March 2024
-
0
-
0
-
0
Depreciation and impairment
At 1 April 2023
6,698
-
0
6,698
Depreciation charged in the year
6,347
48,029
54,376
Transfers
(13,045)
(48,029)
(61,074)
At 31 March 2024
-
0
-
0
-
0
Carrying amount
At 31 March 2024
-
0
-
0
-
0
At 31 March 2023
3,807
-
0
3,807
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Property, plant and equipment
(Continued)
- 24 -

During the year, tangible fixed assets with cost and accumulated depreciation of £61,074 were transferred to a company under common control.

13
Fixed asset investments
2024
2023
£
£
Participating interests - Deferred shares
36,431,289
24,367,700
Other investments
5,598,081
-
0
42,029,370
24,367,700
Movements in non-current investments
Deferred shares
Other
Total
£
£
£
Cost or valuation
At 1 April 2023
24,367,700
-
24,367,700
Additions
17,355,000
5,598,081
22,953,081
At 31 March 2024
41,722,700
5,598,081
47,320,781
Impairment
At 1 April 2023
-
-
-
Impairment losses
5,291,411
-
5,291,411
At 31 March 2024
5,291,411
-
0
5,291,411
Carrying amount
At 31 March 2024
36,431,289
5,598,081
42,029,370
At 31 March 2023
24,367,700
-
0
24,367,700

The company holds £41,722,700 of deferred shares at the year-end date (2023: £24,367,000) with a coupon rate ranging from 13.5% to 18%. During the year, impairment losses of £5,291,411 have been recognised.

 

Following the year-end, the company has acquired £6,349,738 deferred shares with a coupon rate ranging from 6% to 18.47%.

 

Included in other investments is £4,998,081 relating to a subordinated note investment in a company under common control. This investment would be net off against amounts due to companies under common control within other payables on a winding down of the investment vehicle.

 

Following the year-end the company have increased the subordinated note investment in a company under common control by £7,100,000.

 

Also included in other investments is a £600,000 subordinated investment in a significant undertaking. The subordinated debt has a coupon rate ranging between 13% and 24% and is due for repayment on 21 March 2029. Following the year-end, the £600,000 subordinated investment was redeemed.

 

AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
14
Significant undertakings

The company also has significant holdings in undertakings which are not consolidated.

 

The investments in the below significant undertakings do not give the company control over voting rights. Furthermore, this assists the undertakings to facilitate their activities, which in turn assists the company with its operations.

 

The direct shareholdings noted below relate to the deferred share class of the significant undertakings and the company has one voting share for each entity:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Brent Shrine Credit Union Limited (t/a My Community Bank)
30 Churchill Place, London, E14 5RE
Deferred Shares
72.00
North Edinburgh and Castle Credit Union Limited (t/a Castle Community Bank)
49 Great Junction Street, Edinburgh, EH6 5HX
Deferred Shares
82.00
The aggregate capital and reserves and the result for the year of significant undertakings noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Brent Shrine Credit Union Limited (t/a My Community Bank)
(7,597,508)
258,387,392
North Edinburgh and Castle Credit Union Limited (t/a Castle Community Bank)
(724,474)
405,172,915

The above financial results are for the year ended 30 September 2024 and shareholding percentages are as at 31 March 2024 for both entities.

15
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
63,243,379
6,635,449
Bad debt provision
(4,124,534)
(225,176)
Corporation tax recoverable
457,433
-
0
Other receivables
12,574,076
3,678,888
Prepayments and accrued income
2,635,349
2,028,340
74,785,703
12,117,501
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
16
Current liabilities
2024
2023
Notes
£
£
Bank loans
18
10,648
10,648
Trade payables
998,872
681,770
Amounts owed to group undertakings
59,138
-
0
Corporation tax
691,724
903,638
Other taxation and social security
327,364
181,477
Other payables
61,275,248
14,526
Accruals and deferred income
2,280,583
2,102,068
65,643,577
3,894,127

During the year, the company sold a series of loan receivables to a company under common control. The sale is not judged to have met the derecognition criteria and the company was deemed to have retain the risks and rewards of ownership of the loans. As such, the company has recognised a liability to the purchaser, representing the purchasers rights to cash flows of the loans. Included in other payables are amounts owed to the company under common control of £61,265,668 in respect of these loans.

17
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
18
11,791
21,741
Other borrowings
18
47,000,000
30,025,001
Accruals and deferred income
303,452
281,464
47,315,243
30,328,206

Other borrowings relate to a loan facility of up to £50,000,000 which comprises of a £30,000,000 fixed rate facility at 14.5% and a £20,000,000 accordian facility at a variable rate of 10.5% + SONIA. At the year-end, £47,000,000 has been drawn down on this facility. There are loan arrangement fees of £664,202 included within prepayments and accrued income.

 

During the year a fixed and floating charge over the assets of the company in favour of a shareholder of the parent company was satisfied. Three new charges were registered in favour of agent and trustee on behalf of a lender containing a fixed charge, floating charge and negative pledge.

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
21,300,001
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
18
Borrowings
2024
2023
£
£
Bank loans
22,439
32,389
Loans from related parties
47,000,000
30,025,001
47,022,439
30,057,390
Payable within one year
10,648
10,648
Payable after one year
47,011,791
30,046,742
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
120,599
64,183

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,750,000
1,750,000
1,750,000
1,750,000
21
Operating lease commitments
Lessee

 

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
29,987
-
0
Between two and five years
29,987
-
0
59,974
-
0
AMPLIFI CAPITAL (U.K.) LIMITED (ALSO KNOWN AS MY COMMUNITY FINANCE)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
22
Related party transactions

At the year-end, the company was owed £12,573,076 (2023: £3,678,888) from Gojoko Marketing Limited, which is included in other receivables. This balance was recovered following the year end. The company received interest of £553,627 (2023: £259,866) during the year on the amounts owed from Gojoko Marketing Limited at an interest rate of 6.25% per annum.

 

As described in the fixed asset investments and significant undertakings notes above, the company holds deferred share investments in Brent Shrine Credit Union Limited (t/a My Community Bank) and North Edinburgh and Castle Credit Union Limited (t/a Castle Community Bank) with 72% (2023: 76%) and 82% (2023: 74%) direct ownership of the deferred shares in issue at the year-end, respectively. The company holds deferred share investments with a carrying value of £36,431,289 (2023: £24,367,700) at the year-end with coupon rates ranging from 13.5% to 18%. During the year, the company received deferred share interest receivable of £5,907,924 (2023: £3,283,525) and underwriting fees of £300,000 (2023: £478,750) on the deferred share investments held. Furthermore, the company received upfront and base brokerage fee income of £31,908,603 (2023: £19,935,305) and enhanced fee income of £nil (2023: £529,883) from the credit unions in accordance with the service agreements.

 

During the year, the company paid gross salary of £97,167 (2023: £67,837) to a shareholder and spouse of one of the directors.

 

During the year, the company sold a portfolio of loan receivables to a special purpose entity, Castor Financing Ltd, which is considered to be a company under common control. As the company has retained the substantial risks and rewards of ownership of the loans, they are not derecognised in the balance sheet.

 

At the year end, the company owed £61,265,668 (2023: £nil) to a company under common control, which is included within other payables.

 

During the year, the company incurred software costs of £5,760,000 (2023: £4,758,000), recruitment fees and recharged staff expenses of £nil (2023: £87,628) which were paid to Gojoko Marketing Ltd, a company under common control.

 

During the year, the company recognised £1,027,069 (2023: £nil) as servicing fees from company under common control in revenue.

During the year, the company recognised £515,822 (2023: £nil) within investment income relating to subordinated note interest received from an investment in a company under common control.

 

During the year, the company recognised £515,822 (2023: £nil) within finance costs relating to interest paid on the closure of the bridging loan relating to the transaction with a company under common control.

 

During the year, the company recognised £315,052 (2023: £nil) within other operating income for sundry income associated with the transaction with a company under common control.

 

During the year, the company recognised £6,046,637 (2023: £nil) in finance costs for non bank interest on loans relating to the amount owed to a company under common control included in other payables.

23
Events after the reporting date

Following the year end, the Company has drawn down £1.5m on the loan facility referred to in Note 17.

24
Ultimate controlling party

The immediate parent company is Amplifi Holding Ltd, a company incorporated in the United Kingdom with registered office at 30 Churchill Place, London, E14 5RE, England.

 

The ultimate controlling party is CL V Ventures Offshore LLC, a limited liability company registered in Delaware, USA.

 

The results the company are included in the consolidated financial statements of Amplifi Holding Ltd, which are publicly available from Companies House.

 

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