Company registration number: 09079980
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
These are the audited accounts of Redress Solutions plc ("the Company") for the year ended 30 June 2025. The business of the Company is specialist litigation funding.
During the year, the Company has continued to identify live cases whilst at the same time continuing effectively to contain operating costs whilst it continues efforts to raise capital from outside sources in order to fund its growing pipeline of strong leads. At the year end the company has net assets of £486,696 (2024: £758,905) and cash of £525,525 (2024: £787,742). The performance of the business during the year resulted in a loss of £272,209 (2024: £225,880).
Future Developments
It is the intention of the Company to raise additional funds from outside investors to make further investments in the funding of high-quality commercial litigation and arbitration. The Company will continue to refer cases to other funders for introductory commission and to enter into joint ventures with other funders.
It is the intention of the Company to raise additional funds from outside investors to make further investments in the funding of high-quality commercial litigation and arbitration. The Company will continue to refer cases to other funders for introductory commission and to enter into joint ventures with other funders.
An imminent risk to the Company is ensuring sufficient working capital is maintained to fund investments into legal cases. The Company has mitigated this risk through the novation of a case in 2020 which it formerly funded in exchange for the amount invested as well as a commission. Also, in 2021, introducing another claim to Legis Finance LLC for a commission. The Company also continues to constrain its ongoing operating costs.
The directors consider realised gains on funded cases to be the main key financial performance indicator.
The board of the Company monitors closely expenditure on overheads and is satisfied that these are kept to a reasonable level.
The board of the Company monitors closely expenditure on overheads and is satisfied that these are kept to a reasonable level.
The Company's financial instruments typically comprise cash and liquid resources as well as various items such as investments in cases in progress and trade creditors that arise directly from its operations. The main risks arising from the Company's financial instruments are cash flow risk and liquidity risk. The Company has formal procedures for managing these risks including cash flow forecasting and budgeting. The Company continually reviews these risks and takes action as deemed necessary.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the company for the benefits of its members as a whole. In doing this s.172 requires a director to have regard, amongst other matters, to the:
• Likely consequences of any decisions in the long term;
• Interests of the company's employees;
• Need to foster the company's business relationships with suppliers, customers and others;
• Impact of the company's operations on the community and environment;
• Desirability of the company maintaining a reputation for high standards of business conduct; and
• Need to act fairly as between members of the company.
Board papers are prepared with section 172 duties in mind, to ensure Directors have all the relevant information required to enable them properly to reflect and consider the factors set out above in their decision making. The Board recognises that each decision made will not always reflect in positive outcomes for each of the Company's stakeholders.
However, by having good governance procedures in place for decision making, the Board does aim to make sure that its decisions maintain a high standard of business conduct.
• Likely consequences of any decisions in the long term;
• Interests of the company's employees;
• Need to foster the company's business relationships with suppliers, customers and others;
• Impact of the company's operations on the community and environment;
• Desirability of the company maintaining a reputation for high standards of business conduct; and
• Need to act fairly as between members of the company.
Board papers are prepared with section 172 duties in mind, to ensure Directors have all the relevant information required to enable them properly to reflect and consider the factors set out above in their decision making. The Board recognises that each decision made will not always reflect in positive outcomes for each of the Company's stakeholders.
However, by having good governance procedures in place for decision making, the Board does aim to make sure that its decisions maintain a high standard of business conduct.
This report was approved by the board and signed on its behalf.
Page 2
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The Directors present their report and the financial statements for the year ended 30 June 2025.
The Directors who served during the year were:
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The loss for the year, after taxation, amounted to £272,209 (2024 - loss £225,880).
No ordinary dividend were paid. The directors do not recommend payment of a final dividend.
It is the intention of the Company to raise additional funds from outside investors to make further investments in the funding of high-quality commercial litigation and arbitration. The Company will continue to refer cases to other funders for introductory commission and to enter into joint ventures with other funders.
Page 3
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
The Company's energy consumption in the United Kingdom for the year is 40,000KWh or lower and therefore is a low energy user, and so is not required to make energy disclosures. Therefore no disclosures are require in relation to green house Gas Emission, Energy consumption and energy efficiency action.
Post year end there has been a change in shareholding, with the £20,000 preference shares being converted into ordinary shares.
There have been no other significant events affecting the Company since the year end.
There have been no other significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 4
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REDRESS SOLUTIONS PLC
We have audited the financial statements of Redress Solutions plc (the 'Company') for the year ended 30 June 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of 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).
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 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.
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.
Page 5
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REDRESS SOLUTIONS PLC (CONTINUED)
In our opinion, based on the work undertaken in the course of the 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.
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 or the Directors' Report.
Page 6
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REDRESS SOLUTIONS PLC (CONTINUED)
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:
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including:
∙The Companies Act 2006;
∙Financial Reporting Standard 102;
∙UK Employment legislation;
∙UK Health and Safety Legislation; and
∙General Data Protection Regulations.
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.
We assessed the susceptibility of the parent company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
∙Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud;
∙Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
∙Challenging assumptions and judgements made by management in its significant accounting estimates; and
∙Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙Posting of journals to the accounting software which are of a non-routine nature in terms of timing and amount; and
∙The use of management override of controls to manipulate results.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Page 7
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF REDRESS SOLUTIONS PLC (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
2nd Floor, Midas House
62 Goldsworth Road
Surrey
GU21 6LQ
Page 8
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
Page 9
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 26 form part of these financial statements.
Page 10
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
Page 11
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
Page 12
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2025
Page 13
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Redress Solutions plc is a public limited company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The registered office and principal place of business is shown on the company information page. The principal activity of the Company is disclosed in the Strategic Report.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has not consolidated with its subsidiaries, Redress Solutions Investments Limited and Redress Solutions Assessment Limited, due to the subsidiary remaining dormant throughout the period as permitted by the Companies Act S405.2. There is £200 share capital in aggregate and the companies has been excluded from consolidation, as their inclusion would not be material for the purposes of giving a true and fair view.
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. At the year end the Company has net assets of £486,696 (2024: £758,905) and cash of £525,525 (2024: £787,742). The directors have a reasonable expectation the Company has sufficient cash to continue to adopt the going concern basis of accounting in preparing the financial statements.
Where a loss is made on settlement, through the amount realised on settlement being lower than the amount invested, this is recognised within cost of sales.
Page 14
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 15
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Investments in cases in progress represent amounts advanced in respect of funded litigation cases. These are categorised as fair value through profit or loss and are initially measured as the cash sum invested. Attributable due diligence and closing costs are expensed when incurred. Fair value is determined based on the directors expectation, at the balance sheet date, of the likely outcome of each case and their best estimate of the return on each investment. Where a reliable measure of fair value is not available, the asset is held at cost less any impairments. The cost is the amount invested or the carrying amount at the last date the fair value of the asset was reliably measurable.
Movements in fair value are included within revenue or costs of sales in the Statement of Income and Retained Earnings. Where the carrying value of the investment exceeds the return to the Company the deficit against the carrying value is recognised as an impairment charge.
Upon the favourable settlement of a case the difference between the return to the company and the carrying value of the relevant investment is recognised within revenue in the Statement of Income and Retained Earnings, unless the carrying value of the investment exceeds the return to the company. Where there is an unfavourable conclusion of a case the amount by which the historic cost of the investment exceeds the return to the Company is recognised as an impairment charge in cost of sales.
Movements in fair value are included within revenue or costs of sales in the Statement of Income and Retained Earnings. Where the carrying value of the investment exceeds the return to the Company the deficit against the carrying value is recognised as an impairment charge.
Upon the favourable settlement of a case the difference between the return to the company and the carrying value of the relevant investment is recognised within revenue in the Statement of Income and Retained Earnings, unless the carrying value of the investment exceeds the return to the company. Where there is an unfavourable conclusion of a case the amount by which the historic cost of the investment exceeds the return to the Company is recognised as an impairment charge in cost of sales.
Investments in settled cases represent funded cases which have successfully concluded, have fixed and determinable amounts to be received and receipt of those amounts in due course is anticipated by the Company, however, the judgement or settlement amount has yet to be received by the funded party and the relevant amount paid to the Company.
Investments in settled cases are measured at amortised cost using the effective interest method, less any impairment.
Investments in settled cases are measured at amortised cost using the effective interest method, less any impairment.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash
Page 16
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 17
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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.
Fair value of liabilities payable to shareholders
The company entered into an agreement with former shareholders to repurchase their shares. As part of this agreement the company may make payments depending on the outcome of two ongoing cases. Both of these cases have now settled. The Fair values of the amounts payable to shareholders as part of the Shareholder Purchase Agreement are assessed on the specific cases. At the end of the current year £nil has been assessed as payable.
Page 18
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
11.Taxation (continued)
A deferred tax asset of £825,167 (2024: £761,144) has not been recognised in the accounts as it is uncertain whether the Company will make sufficient future taxable profits to utilise this asset. The asset arises due to losses generated by the Company, which may be offset against future taxable profits.
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
||||
|
|
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Page 23
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 24
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Capital contribution reserve
Profit and loss account
Page 25
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Page 26