1.
General Information
EAL Holdings Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
13799741
. The registered office is 505 Pinner Road, Harrow, Middlesex, HA2 6EH.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
These financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, including the provisions of Section 1A “Small Entities”, and the Companies Act 2006.
These are the company’s first financial statements prepared in accordance with FRS 102 Section 1A. The financial statements for the year ended 31 December 2024 were prepared in accordance with FRS 105, The Financial Reporting Standard applicable to the Micro-entities Regime. The date of transition to FRS 102 was 1 January 2024.
The adoption of FRS 102 Section 1A has not resulted in any adjustments to the amounts previously reported under FRS 105. Accordingly, there has been no change to the company’s assets, liabilities or shareholders’ funds at 1 January 2024 or 31 December 2024, nor to the profit reported for the year ended 31 December 2024.
2.2.
Turnover
Turnover represents interest, arrangement fees, commission and other income receivable in connection with the company’s short-term lending activities, net of value added tax where applicable.
Interest income is recognised using the effective interest method over the period of the relevant loan. Arrangement fees and other amounts that are integral to the yield of a loan are included in the calculation of the effective interest rate and recognised over the expected term of the loan.
Fees for separately identifiable services are recognised when the relevant service has been provided and the company’s entitlement to the income can be measured reliably.
Where the recovery of interest or fees is considered doubtful, income recognition is suspended or an appropriate impairment provision is recognised.
2.3.
Financial Instruments
The company has elected to apply the recognition and measurement provisions of Sections 11 and 12 of FRS 102 in respect of financial instruments.
Basic financial assets, including loans receivable, amounts owed by connected companies and cash at bank, are initially recognised at the transaction price, including transaction costs where applicable. They are subsequently measured at amortised cost using the effective interest method, less any impairment.
Basic financial liabilities, including amounts owed to lenders and investors, amounts owed to connected companies and directors’ loan accounts, are initially recognised at the transaction price and subsequently measured at amortised cost using the effective interest method.
Financial assets and liabilities are derecognised when the contractual rights or obligations expire, are settled or are transferred and the transfer qualifies for derecognition.
2.4.
Taxation
The taxation expense represents the aggregate of current and deferred tax recognised in the reporting period.
Current tax is recognised on taxable profit for the year using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, except where otherwise required by FRS 102. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the timing differences reverse.
EAL Holdings Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.5.
Impairment of loans receivable
At each reporting date, the company assesses whether there is objective evidence that any financial asset measured at cost or amortised cost is impaired.
In assessing impairment, the directors consider the borrower’s payment history and financial position, breaches or extensions of contractual terms, the expected timing of recovery, the value and enforceability of any security held, and estimated costs of recovery or enforcement.
Where objective evidence of impairment exists, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the asset’s original effective interest rate. Any impairment loss is recognised immediately in profit or loss.
If, in a subsequent period, the amount of an impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent permitted by FRS 102.
2.6.
Interest and borrowing costs
Interest expense and other borrowing costs arising on funds obtained to finance the company’s lending activities are recognised using the effective interest method over the period of the relevant borrowing.
Borrowing costs are recognised in profit or loss in the period in which they are incurred.
3.
Average Number of Employees
Average number of employees, including directors, during the year was: 2 (2024: 2)
4.
Investments
| Subsidiaries | |
|---|---|
| £ | |
| Cost or Valuation | |
| As at 1 January 2025 |
|
| As at 31 December 2025 |
|
| Provision | |
| As at 1 January 2025 |
|
| As at 31 December 2025 |
|
| Net Book Value | |
| As at 31 December 2025 |
|
| As at 1 January 2025 |
|
The company's investments at the Balance Sheet date in the share capital of companies include the following:
|
COOMBE LANE (PROPERTY) LTD
Country of incorporation: England and Wales
Nature of business: Property Development and Investment
Ordinary Shares of £1 |
% of Holdings
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|
EAL Holdings Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
5.
Debtors
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| £ | £ | ||
| Due within one year | |||
| Trade debtors |
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| Loans receiveable |
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| Amounts owed by connected companies |
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| Amounts owed by group undertakings |
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6.
Creditors: Amounts Falling Due Within One Year
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Trade creditors |
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| Corporation tax |
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| Loan creditors |
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| Amounts owed to connected companies |
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| Accruals and deferred income |
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| Directors' loan accounts |
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8.
Related Party Transactions
During the year, the company entered into financing and other transactions with companies under common control or in which the directors have a beneficial interest.
At 31 December 2025, amounts of £254,250 (2024: £662,800) were due from connected companies and amounts of £348,000 (2024: £Nil) were due to connected companies.
At the reporting date, the company owed £854,731 (2024: £1,299,512) to its directors. The balances are unsecured and bear interest at a rate of 4.29% per annum. They have no fixed repayment date and are repayable on demand.
9.
Transition to FRS 102
These are the company’s first financial statements prepared in accordance with FRS 102, “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, including the provisions of Section 1A “Small Entities”.
The company’s previous financial statements were prepared in accordance with FRS 105, “The Financial Reporting Standard applicable to the Micro-entities Regime”. The date of transition to FRS 102 was 1 January 2023.
The transition from FRS 105 to FRS 102 has not resulted in any adjustments to the company’s previously reported assets, liabilities, equity or profit for the comparative period. Accordingly, no transition adjustments were required.