South West Investment Group (Capital) Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 9

South West Investment Group (Capital) Limited

Balance Sheet

31 March 2025

	Note	2025 £	2024 £
Fixed assets
Tangible assets	4	-	-
Current assets
Debtors	5	28,816	35,335
Loans advanced	6	5,389,054	5,421,753
Cash at bank and in hand		1,780,228	1,877,778
		7,198,098	7,334,866
Creditors: Amounts falling due within one year	7	(69,168)	(78,139)
Net current assets		7,128,930	7,256,727
Net assets		7,128,930	7,256,727
Capital and reserves
Called up share capital		263,000	263,000
Other reserves	8	6,321,100	6,270,280
Profit and loss account		544,830	723,447
Shareholders' funds		7,128,930	7,256,727

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 2 December 2025 and signed on its behalf by:
 

......................................... N L Pooley Director

Company Registration Number: 02360656

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Lowena House
Glenthorne Court
Truro Business Park
Truro
Cornwall
TR4 9NY

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The preparation of financial statements in conformity with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements are outlined within this note.

Revenue recognition

Turnover comprises of fees and loan interest receivable on loans advanced by the company, and grants recognised in accordance with its policy as stated below. Loan interest is recognised on an accruals basis.

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Government grants

Capital grants received in advance of investment are carried forward on the balance sheet as deferred income.

Capital grants relating to loan investments in SMEs are recognised at the point at which loans are made and are released to the income and expenditure account. At the same time provisions for impairment are reflected as an expense.

For other older investments, grants received (and then provided as loans) are accounted for on a 'net' basis whereby the profit and loss on grants received under lending arrangements made are only recognised when repayments are subsequently received from the loanee repaying the grant element of the loan. In the case of these funds, the directors believe this is to be the most appropriate accounting treatment to give a true and fair view given the nature of the investments.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense
recognised as other comprehensive income is also recognised directly in other comprehensive
income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been
enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

In the current year the company's current tax charge is £Nil due to utilising brought forward losses. As at 31st March 2025 there is a deferred tax asset of £1,387k (2024: £1,845k), in relation to brought forward losses, which management have elected not to recognise in the financial statements.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	15% straight line
Computer equipment	33% straight line

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Loans advanced and loan provisioning

Loan balances are reviewed regularly and those that are no longer considered to be recoverable are written off.

Where there is any doubt about the recoverability of a loan, an assessment is made of the amount that is considered to be at risk, and of the probability that a default will occur in order to arrive at a provision for doubtful debts.

Loan receivable provisions are made in the profit and loss account where there is objective evidence of an event giving rise to impairment under an incurred loss model (rather than an expected loss model whereby the basis is that a loss may occur in future) in accordance with FRS 102 11.21 to 23.
 

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Current asset investments arising on the issuing of funds to third parties;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Accounting estimates and judgements

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The areas where management have made significant judgements are as follows:

Provisioning of loans advanced
Management incorporate specific provisions against certain loan balances, based on the advice provided to them by their fund managers.

Provisions against loan receivables are recognised when management judge there is sufficient objective evidence of an impairment event.

Provisions are reviewed on a regular meeting by management as part of their quarterly board meetings.

Given the economic uncertainty and downturn following the pandemic together with the current cost of living, inflation, supply chain and wage challenges, it is anticipated that this will impact on the recoverability of loans in the future. However, it is not possible to estimate the full impact at this point in time. This is partly due to the government support available to businesses. This has allowed businesses to minimise their losses whilst not defaulting on their loans. As a result there have been no significant changes at the time these accounts are approved that have been observed which would result in a significant loan impairment. However, as government support packages cease, businesses may face financial difficulties.
 

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Going concern

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2024 - 4).

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 April 2024	2,938	2,938
At 31 March 2025	2,938	2,938
Depreciation
At 1 April 2024	2,938	2,938
At 31 March 2025	2,938	2,938
Carrying amount
At 31 March 2025	-	-

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

5

Debtors

	2025 £	2024 £
Other debtors	28,716	35,028
Prepayments	100	307
	28,816	35,335

6	Loans advanced

	Loans advanced £	Total £
Cost or valuation
At 1 April 2024	5,789,854	5,789,854
Loan book advances	1,763,150	1,763,150
Repayments	(1,623,087)	(1,623,087)
At 31 March 2025	5,929,917	5,929,917
Provision
At 1 April 2024	368,101	368,101
Movement in provision	172,762	172,762
At 31 March 2025	540,863	540,863
Carrying amount
At 31 March 2025	5,389,054	5,389,054
At 31 March 2024	5,421,753	5,421,753

Of total loans advanced above £3,553,064 (2024: £3,657,653) is recoverable in more than one year.

South West Investment Group (Capital) Limited

Notes to the Financial Statements

Year Ended 31 March 2025

7

Creditors

	2025  £	2024  £
Due within one year
Trade creditors	21,312	13,262
Amounts due to group undertakings	35,616	47,948
Social security and other taxes	158	680
Other creditors	12,082	16,249
	69,168	78,139