Year Ended
Registration number:
SWIG Finance Limited
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Statement of Income and Retained Earnings |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Notes to the Financial Statements |
SWIG Finance Limited
Company Information
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Directors |
J W Peters D M Bullen R L Pritchard - Chair D I Brown N J Parker |
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Company secretary |
D M Bullen |
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Registered office |
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Auditors |
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SWIG Finance Limited
Directors' Report
Year Ended 31 March 2025
The directors present their report and the for the year ended 31 March 2025.
Fair review of the business
SWIG Finance Limited is a wholly-owned subsidiary of South West Investment Group Limited. The company is a Community Development Finance Institution (CDFI) which undertakes lending, fund management and related services in providing loan finance to micro/SME businesses in the South and West Country of England. We are a cashflow lender to viable businesses providing up to £250,000 into markets that are underserved by traditional and collateral-based lenders. We are authorised and regulated by the Financial Conduct Authority in relation to our consumer credit regulated activities, fund management activities and are a Small Authorised UK AIFM due to the contract to deliver the South West Investment Fund (SWIF - see below).
The financial year 24/25 was broadly consistent with the prior year, in which we deployed 501 loans worth £14.8m (23/24 - £14m) to SMEs and start-ups, resulting in the creation or safeguarding of 1,272 jobs. As an impact lender we are proud to have generated £75.7m (23/24 - £71.5m) in economic impact (value calculated by using the CDFI Economic Impact Tool, developed by Responsible Finance and supported by Citi). We seek to lend into all communities in all corners of our region across the South and West Country of England.
During 24/25, 35% of lending was made to women-led businesses and 13% to ethnic minority-led businesses. We remain very aware of our economic, social and environmental impacts and remain focussed on their delivery. Full details of the impact of our activities during the year can be found in our 2024/25 Impact Report at:
https://www.swigfinance.co.uk/wp-content/uploads/2025/06/SWIG-Finance-IR24.25-Digital.pdf.
The group continued to be an accredited provider of the British Business Bank’s guarantee schemes. In the year we remained a Growth Guarantee Scheme (GGS) provider, and our funding remains contingent on the cover provided by this scheme. This accreditation has been successfully retained for 2025/26.
This was the seventh year of lending from our own balance sheet, utilising Group cash resources supplemented by loans from major UK banks/institutions. Demand for this lending has remained strong, and we accessed further funding from two sources during the year.
1. Unity Trust bank - Leveraged our legacy Regional Growth Fund (RGF) money transferred from our sister company South West Investment Group (Capital) Ltd (SWIG Capital) to create a small fund.
2. Community Investment Enterprise Fund (CIEF) - Accreditation to the second iteration of this fund, managed by Social Investment Scotland (SIS), was facilitated by loans from Triodos Bank and Better Society Capital (BSC) alongside our own cash stake.
Two new subsidiaries were created to operate these funds, but this was due to the requirements of the Investor. They are essentially on-balance sheet funds as the ultimate benefit lies with SWIG Finance Ltd. and is why consolidated financial statements are now presented.
Accessing these funds enabled us to continue lending up to £250k in our region to viable SMEs. The access and accreditation took longer than originally forecast which had a direct impact on our delivery capacity and financial results. Nonetheless, at the year-end our total loan book stood at £8.3m (23/24 - £9.4m).
SWIG Finance Limited
Directors' Report
Year Ended 31 March 2025
We also repaid our second facility raised from Triodos Bank (in 2019). This means two of the six facilities raised to date from this source have now been successfully completed.
We have continued to successfully manage the South West Loans Fund II (SWLFII) contract for our sister company SWIG Capital. This is a £5.7m facility for the South West region (outside Cornwall and Isles of Scilly). As at the year end this fund was almost fully invested.
The group continued its participation in the British Business Bank’s Start Up Loans scheme (SULs), and continued as the region’s designated Business Support Partner, under the longer-term government funding plan. This provides up to £25,000 to entrepreneurs for business purposes and we delivered 485 loans this year.
We continued to be the appointed Fund Manager for SWIF, which is a £200m fund from the British Business Bank focussed on the South West region. By the year end, 90 loans totalling £5.37m had been provided. The Fund is developing well and proving to be a stable source of liquidity in the £25k-100k layer of our lending portfolio. The investment phase lasts until 2028, by which time we are contracted to deliver £20m. As part of this contract, the group formed two new subsidiaries for the operation of the Fund.
It has continued to be challenging times for many smaller businesses, and we have continued to invest in our systems and people to ensure that we make responsible lending decisions and manage our loan portfolios efficiently and effectively.
During the year we experienced staff changes that impacted our capacity at various points. Recruitment of new team members has been successful and towards the year end we were almost at full capacity again. Overall, the changes and additions have continued to further enhance our delivery capacity.
The entrepreneurial spirit in the South and West of England remains buoyant, but the strong inflationary pressures and a General Election (and resultant change in government) had direct impacts on our clients and their confidence to invest in their businesses. We are aware of their challenges and understand the implications. We have strong credit risk monitoring procedures and seek to ensure strong communications with our clients - we recognise that the economic circumstances of a small business can be volatile and we manage our exposures with clarity, speed, sensitivity and transparency.
We continue to develop our routes to market. A key factor in helping us find appropriate clients has been our membership of the NACFB, which we joined in May 2022. Membership as an accredited lender has helped us improve our engagement with the commercial broker networks, which now accounts for over 30% of all business.
Through the continuing development of a portfolio of funds which provide lending from £500 to £250,000 to viable SMEs, we are confident of our future as one of the UK's leading CDFI lenders and our ability to make a positive and growing contribution to the financial ecosystem of the South and West Country.
SWIG Finance Limited
Directors' Report
Year Ended 31 March 2025
Directors of the group
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Principal activity
The principal activity of the group is providing small business loans to SMEs and start-ups as well as fund management in the South West of England.
Going concern
The group, in context, has performed well in 24/25 and the outlook for operations in 25/26 remains positive. Demand remains across our sector for affordable loan facilities despite some macro-economic challenges. In preparing and approving these financial statements the directors have given due consideration to all economic factors that can impact our business model.
The group has strong net assets, £3,516k (2024 - £3,007k). Whilst trade fell to a loss-making position of (£59k) (2024 - £70k) this was primarily due to the timing of onboarding funds and macro-economic factors (e.g. General Election). Our lending capacity outlook gives cause for optimism that our budgets and plans can be achieved. The contracted funds (SWLFII, SWIF and SULs) retained not only lending facilities but also consistent income levels. They play an important role in the anticipated financial performance and further diversifies the portfolio of lending sources. It should also be noted that one of these contracted funds is held with our fellow subsidiary SWIG Capital. Therefore, effectively this is on-balance sheet lending for the SWIG Ltd Group and the true trading performance is determined at this level, which remains profitable.
The group utilises the Government-backed GGS loan guarantee scheme and will ensure a continued focus on our loan portfolios to ensure losses are minimised as far as possible. We recognise the present economic situation is challenging but we remain optimistic that loan-losses will be within anticipated and risk-mitigated criteria.
The Board considers it is appropriate for the accounts to be prepared on a going concern basis for the reasons set out above and especially given the Group’s strong balance sheet and cash reserves outlined which provides sufficient headroom to deal with any potential loan write offs that may occur in the next 12 months from the date of approval of the financial statements.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
SWIG Finance Limited
Directors' Report
Year Ended 31 March 2025
Small companies provision statement
This report has been prepared 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
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SWIG Finance Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SWIG Finance Limited
Independent Auditor's Report to the Members of SWIG Finance Limited
Opinion
We have audited the financial statements of SWIG Finance Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, and Notes to the Financial Statements, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
SWIG Finance Limited
Independent Auditor's Report to the Members of SWIG Finance Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
SWIG Finance Limited
Independent Auditor's Report to the Members of SWIG Finance Limited
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 audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the group. We gained an understanding of the group and the industry in which the group operates as part of this assessment to identify the key laws and regulations affecting the group. As part of this, we reviewed the group’s website for indication of any regulations and certification in place and discussed these with the relevant individuals responsible for compliance.
Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the group which were contrary to applicable laws and regulations, including fraud. The key regulations we identified were compliance with the rules and guidance set out by; the Financial Conduct Authority (FCA), the European Regional Development Fund (ERDF), the British Business Bank, Triodos and HM Government. There are also specifc reporting requirements in relation to the Ministry of Housing, Communities & Local Government (MHCLG) as part of the SWLF II contract. The group is also a member of the Responsible Finance Providers and is governed by their code of practice. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS102) and the Companies Act 2006.
Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations, review of board minutes, review of the financial conduct authority's register and review of compliance with corporation tax regulations. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
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. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
SWIG Finance Limited
Independent Auditor's Report to the Members of SWIG Finance Limited
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.
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Lowin House
Tregolls Road
Cornwall
TR1 2NA
SWIG Finance Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 31 March 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
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Administrative expenses |
( |
( |
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Other operating income |
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- |
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Operating profit |
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|
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Other interest receivable and similar income |
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|
|
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Interest payable and similar charges |
( |
( |
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(783,467) |
(820,074) |
||
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(Loss)/profit before tax |
( |
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|
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Taxation |
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|
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(Loss)/profit for the financial year |
( |
|
|
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Profit/(loss) attributable to: |
|||
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Owners of the company |
( |
|
|
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Retained earnings brought forward |
22,611 |
(47,552) |
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Retained earnings carried forward |
(36,746) |
22,611 |
SWIG Finance Limited
Consolidated Balance Sheet
31 March 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Loans advanced |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital contribution reserve |
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- |
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Profit and loss account |
( |
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Equity attributable to owners of the company |
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Shareholders' funds |
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These financial statements have been prepared and delivered in accordance with the provisions applicable to small companies subject to the small companies regime.
Approved and authorised by the
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Company Registration Number: 02688108
SWIG Finance Limited
Balance Sheet
31 March 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Loans advanced |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
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Shareholders' funds |
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The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £104,941 (2024 - profit of £70,163).
Approved and authorised by the
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Company Registration Number: 02688108
SWIG Finance Limited
Consolidated Statement of Changes in Equity
Year Ended 31 March 2025
|
Share capital |
Capital contribution reserve |
Profit and loss account |
Total |
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At 1 April 2024 |
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- |
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Loss for the year |
- |
- |
( |
( |
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New share capital subscribed |
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- |
- |
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Other capital contribution reserve movements |
- |
368,000 |
- |
368,000 |
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At 31 March 2025 |
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|
( |
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The £368,000 arose as a result of a capital contribution from a fellow group company.
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Share capital |
Profit and loss account |
Total |
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At 1 April 2023 |
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( |
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Profit for the year |
- |
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New share capital subscribed |
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- |
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At 31 March 2024 |
2,984,425 |
22,611 |
3,007,036 |
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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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 group and 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 group and 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.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2025.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Going concern
The group, in context, has performed well in 24/25 and the outlook for operations in 25/26 remains positive. Demand remains across our sector for affordable loan facilities despite some macro-economic challenges. In preparing and approving these financial statements the directors have given due consideration to all economic factors that can impact our business model.
The group has strong net assets, £3,516k (2024 - £3,007k). Whilst trade fell to a loss-making position of (£59k) (2024 - £70k) this was primarily due to the timing of onboarding funds and macro-economic factors (e.g. General Election). Our lending capacity outlook gives cause for optimism that our budgets and plans can be achieved. The contracted funds (SWLFII, SWIF and SULs) retained not only lending facilities but also consistent income levels. They play an important role in the anticipated financial performance and further diversifies the portfolio of lending sources. It should also be noted that one of these contracted funds is held with our fellow subsidiary SWIG Capital. Therefore, effectively this is on-balance sheet lending for the SWIG Ltd Group and the true trading performance is determined at this level, which remains profitable.
The group utilises the Government-backed GGS loan guarantee scheme and will ensure a continued focus on our loan portfolios to ensure losses are minimised as far as possible. We recognise the present economic situation is challenging but we remain optimistic that loan-losses will be within anticipated and risk-mitigated criteria.
The Board considers it is appropriate for the accounts to be prepared on a going concern basis for the reasons set out above and especially given the Group’s strong balance sheet and cash reserves outlined which provides sufficient headroom to deal with any potential loan write offs that may occur in the next 12 months from the date of approval of the financial statements.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Revenue recognition
Turnover comprises of fees and loan interest receivable on loans advanced by the group.
Loan interest is recognised on an accruals basis, with monitoring fees in relation to loans advanced under certain funds being recognised on a receipts basis.
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 group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
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:
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Asset class |
Depreciation method and rate |
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Fixtures and fittings |
15% per annum |
|
Computer equipment |
33% straight line |
Intangible assets
Intangible fixed assets relate to software costs and project costs. Project costs in turn relate to compliance costs incurred in previous years.
Software costs have a finite useful life, and are carried at cost less accumulated amortisation and impairment losses.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life.
The board reviewed the useful life of these projects, and this was estimated to be in the range of one to three years.
Amortisation has been charged as follows:
|
Asset class |
Amortisation method and rate |
|
Project costs |
33% - 100% per annum |
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Software costs |
33% per annum |
Investments in subsidiaries
Investments are carried at cost less provision for impairment.
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans and intercompany loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
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.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Critical accounting estimates and judgements
In applying the group’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 outlined below:
Recognition of deferred tax asset
The financial statements recognise a deferred tax asset of £118k (2024 - £104k).
In considering the ability to recognise a deferred tax asset management have considered the expected trading and taxable profits based on forecasts. As at 31st March 2025 there is a deferred tax asset of £Nil (2024 - £Nil) which management have elected not to recognise in the financial statements.
Provisioning of loans advanced
The financial statements recognise an investment loan provision increase of £194k (2024 - £200k) which is expected to be recovered through the EFG, CBILS and RLS protection, which provides 70% - 80% cover on bad loans providing certain conditions are met.
Consolidation of SWIF Smaller Loans Limited Partnership
The directors have assessed whether the group has control over the operations of the Limited Partnership by reviewing the Limited Partnership agreement and considering the application of section 1162 of the Companies Act 2006. In the directors’ view, the Limited Partnership is deemed to be under the control of the Limited Partner by virtue of its contractual rights, including operational guidelines, as stipulated in the Limited Partnership agreement. Consequently, the results of the Limited Partnership have not been included in the consolidated accounts.
|
Staff numbers |
The average number of persons employed by the group (including directors) during the year, was
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Grant income |
|
- |
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - other |
|
|
|
Auditor's remuneration |
Amounts recognised in relation to auditors remuneration in the year totalled £31,900 (2024: £16,720) which consisted of £19,450 (2024: £11,640) for the audit of financial statements and £12,450 (2024: £5,080) in relation to non-audit services.
|
Intangible assets |
Group and company
|
Project costs |
Software costs |
Total |
|
|
Cost or valuation |
|||
|
At 1 April 2024 |
|
|
|
|
At 31 March 2025 |
|
|
|
|
Amortisation |
|||
|
At 1 April 2024 |
|
|
|
|
Amortisation charge |
- |
|
|
|
At 31 March 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 March 2025 |
- |
|
|
|
At 31 March 2024 |
- |
|
|
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Tangible assets |
Group and company
|
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2024 |
|
|
|
Additions |
|
|
|
At 31 March 2025 |
|
|
|
Depreciation |
||
|
At 1 April 2024 |
|
|
|
Charge for the year |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
|
|
|
At 31 March 2024 |
|
|
|
Investments |
Group
|
2025 |
2024 |
|
|
Investments in Limited Partnership |
|
|
|
Investments in Limited Partnership |
£ |
|
Cost or valuation |
|
|
At 1 April 2024 |
|
|
Additions |
|
|
At 31 March 2025 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 March 2025 |
|
|
At 31 March 2024 |
|
In the year ended March 2025, the company made a further £30,000 loan to the SWIF Smaller Loans Limited Partnership. These loans are treated as fixed asset investments, with consideration to the terms within the Limited Partnership Agreement.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Fixed asset group loan |
80,000 |
- |
|
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2024 |
|
|
Additions |
|
|
At 31 March 2025 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 March 2025 |
|
|
At 31 March 2024 |
|
Fixed asset group loan
|
£ |
|
|
Cost or valuation |
|
|
Additions |
80,000 |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Holding |
Proportion of voting rights and shares held |
||
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
SWIG SWIF Smaller Loans GP Limited is the general partner of SWIF Smaller Loans Limited Partnership however is not deemed to have control.
The registered office of each of these entities is the same as the parent undertaking of the group, being Lowena House, Glenthorne Court, Truro Business Park, Threemilestone, Truro, Cornwall, TR4 9NY.
Each of these companies are incorporated in England and Wales.
|
Debtors |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Trade debtors |
|
|
|
|
|
Amounts due from group undertakings |
|
|
|
|
|
Other debtors |
|
|
- |
|
|
Prepayments |
|
|
|
|
|
Accrued income |
|
|
|
|
|
Deferred tax assets |
|
|
|
|
|
|
|
|
|
|
The Amounts due from group undertakings are amounts due from SWIF Smaller Loans Limited Partnership and South West Investment Group (Capital) Limited, which is not included in this sub-group.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Loans advanced |
Group
|
Loans advanced |
Total |
|
|
Loans advanced |
||
|
Cost or valuation |
||
|
At 1 April 2024 |
9,783,270 |
9,783,270 |
|
Additions |
3,190,001 |
3,190,001 |
|
Repaid in year |
(4,066,218) |
(4,066,218) |
|
At 31 March 2025 |
8,907,053 |
8,907,053 |
|
Impairment |
||
|
At 1 April 2024 |
392,113 |
392,113 |
|
Provision movement in the year |
193,795 |
193,795 |
|
At 31 March 2025 |
585,908 |
585,908 |
|
Carrying amount |
||
|
At 31 March 2025 |
|
8,321,145 |
|
At 31 March 2024 |
|
9,391,157 |
Of the total loans advanced above, £6.283,722 (2024 - £6,766,406) is recoverable in more than one year.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Company
|
Loans advanced |
Total |
|
|
Loans advanced |
||
|
Cost or valuation |
||
|
At 1 April 2024 |
9,783,270 |
9,783,270 |
|
Additions |
1,188,329 |
1,188,329 |
|
Repaid in the year |
(3,916,657) |
(3,916,657) |
|
At 31 March 2025 |
7,054,942 |
7,054,942 |
|
Impairment |
||
|
At 1 April 2024 |
392,113 |
392,113 |
|
Provision movement in the year |
184,649 |
184,649 |
|
At 31 March 2025 |
576,762 |
576,762 |
|
Carrying amount |
||
|
At 31 March 2025 |
|
6,478,180 |
|
At 31 March 2024 |
|
9,391,157 |
Of the total loans advanced above, £4,596,054 (2024 - £6,766,406) is recoverable in more than one year.
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
Group
As at the year end £3,911,704 of the bank balances held were ringfenced for the specific fund to which each bank account relates. These funds become unrestricted as each fund is realised.
Company
As at the year end £3,048,787 of the bank balances held were ringfenced for the specific fund to which each bank account relates. These funds become unrestricted as each fund is realised.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Other creditors |
- |
- |
|
|
|
|
Accruals |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
|
Other borrowings |
|
- |
- |
- |
|
|
|
|
|
|
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
The balance above is made up of seven loans, all denominated in GBP.
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Interest rate |
Final installment |
Carrying value 2025 |
Carrying value 2024 |
||
|
Bank loan 1 |
1% + base rate |
08/08/2024 |
- |
950,000 |
|
|
Bank loan 2 |
1% + base rate |
15/09/2025 |
675,000 |
900,000 |
|
|
Bank loan 3 |
4.5% + base rate |
28/09/2027 |
2,524,034 |
3,488,083 |
|
|
Bank loan 4 |
3.9% + base rate |
16/11/2028 |
1,777,764 |
2,160,381 |
|
|
Bank loan 5 |
4% + base rate |
23/06/2029 |
1,972,236 |
2,250,000 |
|
|
Bank loan 6 |
1% + base rate |
25/02/2030 |
1,600,000 |
- |
|
|
Bank loan 7 |
3.5% + base rate |
22/07/2029 |
368,000 |
- |
|
|
8,917,034 |
9,748,464 |
The other borrowings are from a third party, Better Society Capital, as part of the company’s funding agreement and are also repayable in full on 25 February 2030. Interest charged at 4% above the Bank of England base rate.
Loans 1 - 5 are secured over all assets of SWIG Finance Limited and also include a 'negative pledge' clause preventing the company offering security over any assets to other lenders or creditors.
Loans 6 is secured by a debenture over the assets of SWIG 7 Limited. This creates fixed and floating charges in favour of the lender.
Loans 7 is secured by a debenture over the assets of SWIG Newco Limited and a share carve-out arrangement, granting the lender a charge over the shares in the business.
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £Nil (2024 - £Nil) were payable to the scheme at the end of the year and are included in creditors.
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
3,184,425 |
|
2,984,425 |
During the year the company issued share capital of £200,000 (2024 - £300,000).
SWIG Finance Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Financial commitments, guarantees and contingencies |
Group and company
Amounts not provided for in the balance sheet
The total amount of other financial commitments not provided in the financial statements was £
|
Leases |
Group and company
Operating lease commitments
As above, the company is a lessee of the property from which it operates.
The company has also entered into an agreement with a third party under which it is entitled to receive a total of £Nil (2024 - £4,204) from the balance sheet date to the 16th August 2024. £Nil (2024 - £4,204) is due within one year of the balance sheet date.
|
Related party transactions |
Group and company
During the year SWIG Finance Limited charged £526,920 (2024 - £392,685) of management fees to SWIF Smaller Loans Limited Partnership. At year end, £51,767 (2024 - £99,252) was due from SWIF Smaller Loans Limited Partnership.
|
Parent and ultimate parent undertaking |
The company's immediate parent is South West Investment Group Limited, incorporated in England and Wales. The registered office of this company is Lowena House, Glenthorne Court, Truro Business Park, Truro, Cornwall, TR4 9NY.
The most senior parent entity producing publicly available financial statements is South West Investment Group Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.