The directors present the strategic report for the year ended 30 June 2025.
The holding company earned dividends amounting to £296k for the year and (2024: £266k).
The Group delivered exceptional results for the year ended 30 June 2025. Consolidated revenues rose by 13% to £11.9m (2024: £10.5m), driven by sustained enrolment growth and optimized capacity utilization across all nurseries. Operating profit increased by 25% to £2.3m (2024: £1.8m), with operating margins improving to 20% (2024: 18%), reflecting disciplined cost management and operational efficiencies. This strong performance across the nursery portfolio has further strengthened the Group’s financial position and underlines its role as the primary driver of sustainable growth.
At the year-end, the company reported net assets of £9,937,231 (2024: £9,126,280) and had shareholders funds of £9,937,231.
The company's key financial indicators for the period were as follows;
|
| 2025 |
|
|
| 2024 |
Turnover |
| 11,903,214 |
|
|
| 10,515,854 |
EBITDA |
| 2,533,244 |
|
|
| 2,058,729 |
Principal risks and uncertainties
The principal risk and uncertainties facing the group include operating in a competitive market and compliance with all the regulated bodies.
Risks are reviewed by the board and appropriate strategies have been put in place to mitigate and monitor them.
Finance risk
The group's policy is to finance its operations on a medium-term basis from retained profits, and long term basis from inter-company borrowings and bank facilities. Additional uncommitted borrowing and overdraft facilities are utilised for short term financing requirements.
Business risk
The nurseries are regulated with various external bodies; The principal risks to which the nurseries are exposed are considered to be:
Adherence to the EYFS statutory framework: Ofsted’s policy for a registered early years and childcare provision.
Effective monitoring: under the Ofsted guidelines
Health and Safety, food hygiene and environmental health for children and staff
Parent Partnership: The relationship between the parents and the nursery staff
The recruitment, retention and development of staff of the highest calibre.
The reputation and identity of the nursery and Bright Little Stars Nursery brand.
Government policy on funding and free childcare.
The directors have a risk management strategy which comprises:
A risk management evaluation plan of the principal risks and uncertainties that the nurseries may face, which is reviewed annually.
The establishment of policies, systems, and procedures to mitigate those risks identified in the plan.
Internal and external training programmes for supporting and developing staff and for providing carer succession.
The implementation of procedures designed to minimise or manage any potential impact on the nurseries should those risks materialise.
Key controls include:
Vetting procedures, as required by law, for the protection of children.
Formal written procedures including for non-financial risks such as health and safety, environmental health and safeguarding of children and regular awareness training for all staff.
Established organisational structure and lines of reporting.
Regular reviews of policies and procedures to monitor and control risks.
Formal agendas for the Head Office Management Team, Nursery Management meetings, and Room Leader meetings.
Regular strategic planning, budgeting and management accounting and detailed budgetary presentation.
Clear authorisation and approval levels.
Engagement of external professional advisors as and when necessary.
Future Developments
The directors aim to continue with the management policies which have resulted in the group's steady growth in recent years. Performance has been robust which reflects the group's strengths and industry resilience. With all branches mature we expect that 2025/26 will show a comparable performance and the group will now require further expansion of sites to create continued growth.
The directors continue to develop and invest in the existing facilities to provide the highest quality of educational facilities. All branches are closed for renovation and development one week every June. Solar Panel Systems have been installed at half of all settings improving our long-term sustainability and reducing energy costs.
The directors continue to invest in technology and other efficiency gains. We have added many AI tools and processes to central management team function, introduced more sophisticated KPIs, and continuously upgrade our IT hardware.
The company also successfully launched the final phase of the government extended childcare scheme. In 2026 a key goal will be to revamp our learning program and curriculum.
By January 2026, Bright Little Stars will have fully migrated from offering Morning and Afternoon sessions to only Full Days due to changing parent needs and in order to provide a more consistent daily curriculum. This has driven party of the occupancy efficiency we have seen in our financial results.
Bright Little Stars Nursery considers its staff to be its’ biggest asset. We consider our staff benefits package to be market leading. Our internal temporary staff cover agency is an asset. Unlike external agency staff, these internal cover staff have completed our company induction, training and are familiar with our nurseries. Our Academy Program provides each employee with a clearer professional development journey supporting skill level across our workforce and staff loyalty. The company also continues to invest in its apprenticeship scheme.
The directors use both financial and non-financial performance indicators to monitor the group's position.
The key financial performance indicators within the business are dividends earned by the company and balance sheet with net investments in the year.
The key non-financial performance indicators are increased applications and increased waiting lists for each of the nurseries, and stakeholder relationships.
The directors are of the belief that the monitoring of the above-mentioned indicators is an effective aspect of business performance review.
Bright Little Stars Group Limited's turnover is reliant on it’s subsidiaries; Bright Little stars Ltd, Bright Little Stars Watford Ltd, Bright Little Stars Harrow Ltd, Bright Little Stars Stanmore Ltd, Bright Little Stars Stratford Ltd, Bright Little Stars Barnet Ltd and BLS Forest Hill Ltd which has improved in the year 2024/2025.
With the current performance of the group entities and the parent’s support, the directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so continue to prepare these financial statements on the going concern basis.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2025.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £296,068. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
We have audited the financial statements of Bright Little Stars Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 and 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.However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the parent company & group through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and
we focused on specific laws and regulations which we considered may have a direct material effect on the operations of the parent company & group's financial statements or the operations of the parent company & group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.
The Company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation or the loss of the Company’s license to operate. We identified the following areas as those most likely to have such an effect: UK Company law that regulates corporations formed under the Companies Act 2006 and HMRC laws and regulations relating to submissions of applicable taxes and documents. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £296,068 (2024 - £266,050 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Bright Little Stars Group Ltd (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Kinetic Business Centre, Theobald Street, Elstree, Hertfordshire, WD6 4PJ.
The group consists of Bright Little Stars Group Ltd and all of its subsidiaries listed in note 14. The principal activities of the company and its subsidiaries (the group) are set out in the directors' report.
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 and the group. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Bright Little Stars Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The financial performance of the company is set out in the strategic report and in the statement of profit or loss and the other comprehensive income. The financial position of the company is set out in the statement of financial position.
In addition, the directors are not aware of any likely events, conditions or business risks beyond this period that may cast significant doubt on the company's ability to continue as a going concern. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Income represents the value, net of value added tax and discounts, of the following streams:
- Government funding, which is recognised as income when the company becomes entitled to the fund.
- Contract services, including nursery fees and child care vouchers are recognised as income when the service is provided and invoice raised.
- Rent receivable from rents charged to a third party and invoiced net of value added tax. Rents received prior to the period to which they relate are accounted for as deferred income and released to the profit and loss account in the period to which the rent relates.
- Interest income is recognised on an accruals basis using the effective interest method, in the period to which it relates.
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 recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
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 fixed 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instruments.
Comparatives
There were no changes in comparative figures during the year.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Management reviews the useful lives, depreciation methods and residual values of the items of tangible assets and investment property on a regular basis. During the financial year, the directors have evaluated that the residual value of the freehold land and buildings in the group companies equals to the fair value of the properties. The properties have also been maintained at a high standard and their market value continues to appreciate over the years. Therefore there is no depreciation charge for the current year. The carrying amounts of tangible assets and investment property are disclosed in note 11 and 12 respectively.
Freehold properties are carried at fair value based on valuations performed by external independent valuers or the directors. Fair value is ascertained through review of a number of factors and information flows, including market knowledge, recent market movements, recent sales of similar properties and historical experience. There is an inevitable degree of judgement involved and the value can only be reliably tested ultimately in the market itself.
The directors review other debtors on an annual basis. In determining whether receivables are impaired, the directors make judgement as to whether there is any evidence indicating that there is a measurable decrease in the estimate future cash flows expected.
An analysis of the group's turnover is as follows:
All turnover arose in the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Emolument of the highest paid director, excluding pension contributions, amounted to £58,061 (2024: £61,355). The total remuneration paid to key management personnel during the year was £244,996 (2024: £245,181)
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
During the financial year, the directors have evaluated that the residual value of the freehold land and buildings in the group companies equals to the fair value of the properties. The properties have also been maintained at a high standard and their market value continues to appreciate over the years. Therefore there is no depreciation charge for the current year.
The freehold land and buildings at Bright Little Stars Limited was revalued at fair value on 27 June 2024 by Gerald Eve LLP at £3,500,000. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
The longterm leasehold land and buildings at Bright Little Stars Watford Limited was revalued at fair value on 27 June 2024 by Gerald Eve LLP at £2,446,880. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
The freehold property at Bright Little Stars Stanmore Limited was valued at £3,940,000 by Gerald Eve LLP on 05 June 2020 on a fair value basis. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
The freehold land and buildings at Bright Little Stars Harrow Limited was revalued at fair value on 24 May 2023 by Gerald Eve LLP Registered valuer at £3,556,000. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
The freehold property at Bright Little Stars Barnet Limited was valued at £3,924,193 by Gerald Eve LLP on 20 March 2024 on a fair value basis. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
The freehold land and buildings (Including plant & machinery) at Bright Little Stars Stratford Limited was revalued at fair value on 09 February 2022 by Morgan Allen MRICS, RICS Registered Valuer at Gerald Eve LLP acting on behalf HSBC UK Bank plc at £3,710,000. In the opinion of the directors, the valuation at the balance sheet date represents the fair value.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Investment property comprises of ground floor premises at 1 Lilly House, Waldram Crescent, London SE23 3LW. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 25th July 2024 by RICS Registered Valuer on behalf of Knight Frank LLP who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
Details of the company's subsidiaries at 30 June 2025 are as follows:
The bank loans are secured by the first charge over the freehold properties of the group and by the personal guarantee from the directors. The loans are subject to monthly repayments and commercial rates of interest.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year the group entered into the following transactions with related parties:
The company has taken advantage of the exemption available in FRS 102 (s33 "Related Party Disclosure"), whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
At the balance sheet date, loans receivable from the directors amounted to £282k (2024: £25k) and amount due from related companies by virtue of common control amounted to £1.4m (2024: £1.2m). The loans are due after stated loan duration, interest rate charge is as per HMRC lending rate and is due each quarter.
The loans are secured by personal guarantee from the directors.