1.
General Information
FC Capital Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
10004632
. The registered office is 19 Holborn, London, EC1N 2JS.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
2.2.
Basis Of Consolidation
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates made up to 31 December 2025.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting.
Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.
Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.
Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group’s interest in the entity.
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.3.
Business Combinations
Business combinations are accounted for by applying the purchase method.
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.
Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.
2.4.
Going Concern Disclosure
The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the group and parent company's ability to continue as a going concern.
2.5.
Turnover
2.5.
Turnover - continued
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied, services rendered, net of discounts and Value Added Tax.
The group generates its revenue from the following major operational areas:
- Pawnbroking
- Foreign currency exchange
- Retail sale of jewellery
- Pawnbroking scrap
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
Pawnbroking
Revenue from pawnbroking operations comprises interest income earned on the secured loans. In line with FRS 102, the interest income is recognized using the effective interest method, which allocates income over the expected life of the loan based on the effective interest rate. In the event of customer default, the pledged item is sold at auction, and interest income is recognised only to the extent that it is recoverable after deducting the auction commission and the principal loan amount from the proceeds. Where the proceeds are sufficient to cover all outstanding amounts, the revenue will also include an administrative charge relating to the arrangement of the auction.
Revenue from pawnbroking operations comprises interest income earned on the secured loans. In line with FRS 102, the interest income is recognized using the effective interest method, which allocates income over the expected life of the loan based on the effective interest rate. In the event of customer default, the pledged item is sold at auction, and interest income is recognised only to the extent that it is recoverable after deducting the auction commission and the principal loan amount from the proceeds. Where the proceeds are sufficient to cover all outstanding amounts, the revenue will also include an administrative charge relating to the arrangement of the auction.
Foreign currency exchange
Revenue from foreign currency exchange comprises the margin between the purchase and sale rates offered to customers. The margin is recognised upon completion of the exchange transaction, at which point the service has been fully.
Retail sales of jewellery
The Group earns revenue from the sale of new and pre-owned jewellery through the Group’s network of physical retail branches and its online platform. The revenue is recognised when the significant risks and rewards of ownership are transferred to the buyer, which occurs at the point of sale for in-store transactions or upon delivery of goods for online sales.
Pawnbroking scrap
Revenue represents the proceeds from the sale of pledged items in the form of scrap gold. The proceeds are recognised when the significant risks and rewards of ownership have been transferred to the buyer, which occurs upon delivery of the goods.
2.6.
Intangible Fixed Assets and Amortisation - Goodwill
Goodwill represents the excess of the cost of a business combination over the fair value of the group’s share of the identifiable net assets, liabilities and contingent liabilities acquired.
Goodwill arising on the acquisition of subsidiaries is included in Intangible Assets. Goodwill arising on the acquisition of associates and joint ventures is included in the related equity accounted investment value.
Goodwill is amortised over its expected useful life which is estimated to be 10 years.
Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the profit and loss account. No reversals of impairment are recognised.
2.7.
Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are comprised of software. It is amortised to the profit and loss account at 20% reducing balance.
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.8.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Leasehold |
|
| Plant & Machinery |
|
| Motor Vehicles |
|
| Fixtures & Fittings |
|
The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, where there is an indication of a significant change since the last reporting date.
2.9.
Stocks and Work in Progress
Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.
Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.
2.10.
Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.11.
Financial Instruments
2.11.
Financial Instruments - continued
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment.
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
2.12.
Foreign Currencies
The group's functional and presentation currency is the sterling. Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.13.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.14.
Pensions
The group operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
2.15.
Changes in Accounting Policy
Previously, the compnay depreciated its tangible fixed assets at 20% per annum using the reducing balance method. During the year, management concluded that the straight-line basis better reflects the pattern in which the assets’ future economic benefits are expected to be consumed. The change has been accounted for prospectively as a change in accounting estimate in accordance with FRS 102.
3.
Turnover
Analysis of turnover by catagory of business is as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 36,705,725 | 17,882,924 | ||
4.
Operating Profit
The operating profit is stated after charging:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bad debts | 47,182 | 201,090 | |
| Operating lease rentals |
|
|
|
| Exchange differences |
|
( |
|
| Depreciation of tangible fixed assets |
|
|
|
| Amortisation of intangible fixed assets |
|
|
|
5.
Auditor's Remuneration
Remuneration received by the group's auditors and their associates during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the group and company's financial statements |
|
|
|
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
6.
Staff Costs
Staff costs, including director's remuneration, were as follows:
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Wages and salaries |
|
|
|
|
|||
| Social security costs |
|
|
|
|
|||
| Other pension costs |
|
|
|
|
|||
|
|
|
|
|
||||
7.
Average Number of Employees
Group
The average monthly number of persons (including executive directors) employed by the group during the year was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| Office and administration |
|
|
|
|
|
|
||
Company
Average number of employees, including directors, during the year was: 85 (2024: 70)
8.
Director's remuneration
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
Information regarding the highest paid director was as follows:
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
9.
Interest Receivable and Similar Income
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
10.
Interest Payable and Similar Charges
| 2025 | 2024 | ||
|---|---|---|---|
| £ | £ | ||
| Bank loans and overdrafts |
|
|
|
| Interest payable on other loans |
|
|
|
| Late payment tax charges |
|
|
|
| Other finance charges | - |
|
|
| 1,276,342 | 239,121 | ||
11.
Tax on Profit
The tax charge on the profit for the year was as follows:
| Tax Rate | 2025 | 2024 | |||
|---|---|---|---|---|---|
| 2025 | 2024 | £ | £ | ||
| Current tax | |||||
| UK Corporation Tax | 25.0% | 25.0% |
|
|
|
| Deferred Tax | |||||
| Deferred taxation |
|
|
|||
| Total tax charge for the period |
|
|
|||
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Profit before tax | 17,601,961 | 6,355,807 | |||
| Tax on profit at 25% (UK standard rate) |
|
|
|||
| Goodwill/depreciation not allowed for tax |
|
|
|||
| Tax losses utilised |
( |
|
|||
| Capital allowances |
( |
( |
|||
| Short term timing differences |
|
|
|||
| Group relief |
|
( |
|||
| Total tax charge for the period | 4,281,527 | 1,900,061 | |||
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
12.
Intangible Assets
Group
Company
| Goodwill | Other | Total | |
|---|---|---|---|
| £ | £ | £ | |
| Cost | |||
| As at 1 January 2025 |
|
|
|
| Additions |
|
|
|
| As at 31 December 2025 |
|
|
|
| Amortisation | |||
| As at 1 January 2025 |
|
|
|
| Provided during the period |
|
|
|
| As at 31 December 2025 |
|
|
|
| Net Book Value | |||
| As at 31 December 2025 |
|
|
|
| As at 1 January 2025 |
|
|
|
Other intangible asset comprise software that supports the Group’s retail arm, specifically its jewellery and precious metals operations, facilitating business processes and customer transactions. Costs incurred in developing new features that enhance the customer experience and accommodate technological developments are capitalised where the relevant recognition criteria are met.
The useful life of the software is determined based on the period over which it is expected to be utilized by the Group.
The company had no intangible fixed assets as at 31 December 2025 or 31 December 2024.
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
13.
Tangible Assets
Group
Company
| Land & Property | |||||
|---|---|---|---|---|---|
| Leasehold | Plant & Machinery | Motor Vehicles | Fixtures & Fittings | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Additions |
|
|
|
|
|
| Disposals |
|
|
|
( |
( |
| As at 31 December 2025 |
|
|
|
|
|
| Depreciation | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Provided during the period |
|
|
|
|
|
| Disposals |
|
|
|
( |
( |
| As at 31 December 2025 |
|
|
|
|
|
| Net Book Value | |||||
| As at 31 December 2025 |
|
|
|
|
|
| As at 1 January 2025 |
|
|
|
|
|
| Land & Property | |||||
|---|---|---|---|---|---|
| Leasehold | Plant & Machinery | Motor Vehicles | Fixtures & Fittings | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Additions |
|
|
|
|
|
| As at 31 December 2025 |
|
|
|
|
|
| Depreciation | |||||
| As at 1 January 2025 |
|
|
|
|
|
| Provided during the period |
|
|
|
|
|
| As at 31 December 2025 |
|
|
|
|
|
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
| Net Book Value | |||||
| As at 31 December 2025 |
|
|
|
|
|
| As at 1 January 2025 |
|
|
|
|
|
14.
Investments
Company
| 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 |
|
Subsidiaries
Details of the group's subsidiaries as at 31 December 2025 are as follows:
| Name of undertaking | Registered Office | Class of shares held | Direct holding | Indirect holding |
|---|---|---|---|---|
|
|
11810719 |
|
|
- |
The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:
| Capital and Reserves | Profit/(loss) | |
|---|---|---|
| £ | £ | |
| Fjewellery Limited |
( |
|
15.
Stocks
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Stock |
|
|
|
|
|||
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
16.
Debtors
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Due within one year | |||||||
| Trade debtors |
|
|
|
|
|||
| Amounts owed by group undertakings | - | - | 12,329,321 | 7,184,818 | |||
| Other debtors | 7,964,221 | 4,348,391 | 7,554,332 | 4,061,047 | |||
|
|
|
|
|
||||
17.
Creditors: Amounts Falling Due Within One Year
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Trade creditors |
|
|
|
|
|||
| Bank loans and overdrafts |
|
|
|
|
|||
| Other creditors | 44,171 | 43,816 | 22,252 | 4,936 | |||
| Corporation tax |
|
|
|
|
|||
| Taxation and social security | 271,823 | 232,004 | 164,079 | 94,185 | |||
| Accruals and deferred income | 87,093 | 74,410 | 49,462 | 34,277 | |||
|
|
|
|
|
||||
18.
Creditors: Amounts Falling Due After More Than One Year
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Bank loans |
|
|
|
|
|||
| Other loans |
|
|
|
|
|||
| Amounts owed to group undertakings | - | - |
|
|
|||
|
|
|
|
|
||||
Other loans include £52,876,174 (2024: £52,048,376) in respect of interest-bearing notes, shareholder loans of £20,000,814 (2024: £5,060,811) and loans from connected companies of £7,289,174 (2024: £7,144,354).
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
Of the creditors falling due after more than one year the following amounts are due after more than five years.
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Other loans |
|
|
|
|
|||
19.
Loans
An analysis of the maturity of loans is given below:
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Amounts falling due within one year or on demand: | |||||||
| Bank loans |
|
|
|
|
|||
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Amounts falling due between one and five years: | |||||||
| Bank loans |
|
|
|
|
|||
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Amounts falling due after more than five years: | |||||||
| Other loans |
|
|
|
|
|||
20.
Deferred Taxation
The provision for deferred tax is made up as follows:
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Other timing differences | 344,969 | 326,956 | 36,775 | 35,757 | |||
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
21.
Provisions for Liabilities
| Group | ||
|---|---|---|
| Deferred Tax | Total | |
| £ | £ | |
| As at 1 January 2025 |
|
326,956 |
| Deferred taxation |
|
|
| Balance at 31 December 2025 |
|
344,969 |
| Company | ||
|---|---|---|
| Deferred Tax | Total | |
| £ | £ | |
| As at 1 January 2025 |
|
35,757 |
| Deferred taxation |
|
|
| Balance at 31 December 2025 |
|
36,775 |
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
23.
Financial Instruments
23.
Financial Instruments - continued
23.
Financial Instruments - continued
The carrying amount for each category of financial instrument is as follows:
|
Group
|
Company
|
|
2025
|
2024
|
2025
|
2024
|
|
|
£
|
£
|
£
|
£
|
|
|
Financial assets measured at amortised cost
|
||||
|
Trade debtors
|
104,946,613
|
71,349,706
|
104,899,757
|
71,345,495
|
|
Amount owed by group undertaking
|
-
|
-
|
12,329,321
|
7,184,818
|
|
Other debtors
|
7,964,221
|
4,348,391
|
7,554,332
|
4,061,047
|
|
Cash at bank and in hand
|
1,844,886
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
9,360,567
|
1,334,300
|
8,634,623
|
|
114,755,720
![image](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
85,058,664
|
126,117,710
|
91,225,983
|
|
|
Financial liabilities measured at amortised cost
|
||||
|
Trade creditors
|
331,435
|
286,107
|
304,861
|
210,189
|
|
Bank loans and overdraft
|
3,895,277
|
20,744
|
3,885,695
|
-
|
|
Accruals and deferred income
|
87,093
|
74,410
|
49,462
|
34,277
|
|
Amounts owed to group undertakings
|
-
|
-
|
3,400,000
|
-
|
|
Other loans and creditors
|
80,210,333
|
64,297,357
|
72,499,240
|
57,114,123
|
|
84,524,138
|
64,678,618
|
80,139,258
|
57,358,589
|
|
The principal financial risks arising from the Group’s financial instruments are credit risk, liquidity risk, exchange rate risk, price risk and interest rate risk. These are monitored and managed in accordance with the Group’s established risk management policies. Details of the Group’s exposure to these risks are set out below.
Credit Risk
Credit risk is the risk of financial loss to the Group if a counterparty fails to meet its contractual obligations.
Trade Debtors
The Group is exposed to credit risk through trade debtors. This risk is mitigated by securing pawnbroking loans with pledged items, which are carefully evaluated to determine their value and authenticity before the loan is granted. This process ensures that the collateral adequately covers the exposure.
In addition, the Group has established robust procedures to ensure that the products and services offered are appropriate and suitable for its customers. The short-term nature of the pawnbroking loans, further limits the Group’s exposure to credit risk. As a result, trade debtors that are neither past due nor impaired are assessed to be of good credit quality.
The Group continuously monitors credit risk by reviewing loan-to-value ratios to evaluate the adequacy of collateral. At the end of each reporting period, the Group also performs an assessment to identify whether there is objective evidence of impairment of trade debtors.
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
Other Debtors
The other debtors are related to secured loans and have a similar risk profile to the trade debtors described above.
Cash and Cash Equivalents
The credit risk associated with cash held at bank is considered low, owing to the strong creditworthiness and established reputation of the counterparties.
Liquidity Risk
The Group is exposed to liquidity risk arising from its financial obligations as they fall due. This risk is managed through prudent cash flow management, regular forecasting and continuous monitoring of expected cash requirements. Adequate cash reserves are maintained to ensure that the Group can meet both its operational and financing obligations as they arise. The Group also holds gold reserves which may provide an additional source of liquidity when required.
The table below provides a maturity analysis of the Group’s financial liabilities:
|
At 31 December 2025
|
Less than 1 Year
£
|
1-5 years
£
|
More than 5 Years
£
|
Total
£
|
|
Other creditors
|
44,171
|
-
|
-
|
44,171
|
|
Trade and other payables
|
418,528
|
-
|
-
|
418,528
|
|
Other loans
|
-
|
-
|
80,166,162
|
80,166,162
|
|
Bank loans
|
90,074
|
3,805,203
|
-
|
3,895,277
|
|
Total
|
552,773
|
3,805,203
|
80,166,162
|
84,524,138
|
Market Risk
Exchange Rate Risk
The Group is exposed to exchange rate risk primarily through its USD-denominated notes and loans, as well as its foreign currency cash holdings. These exposures are monitored on an ongoing basis, with regular assessment of exchange rate movements and their potential financial impact.
Having regard to the level of exposure and prevailing market conditions, formal hedging arrangements are not considered necessary at this time. The Group continues to monitor its exposures and will adopt appropriate risk management strategies if circumstances change.
An adverse movement of 1% in exchange rates would not have a significant impact on the profits.
Price Risk
The Group is exposed to price risk arising from fluctuations in the market price of gold. Changes in gold prices may affect the profitability of gold transactions, as well as the realisable value of inventory and pledged items held as security for pawnbroking loans.
The Group manages this exposure by regularly monitoring movements in the commodity markets and reviewing relevant economic indicators that may influence gold price. Loan-to-value ratios on pawnbroking advances are adjusted, where appropriate, to ensure that lending decisions remain prudent. Market trends are also considered as part of the Group’s inventory management strategies, helping to moderate the impact of short-term volatility on financial performance.
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
An adverse movement of 1% in gold price would not have a significant impact on the profits.
Interest Rate Risk
The Group has limited exposure to interest rate risk, as both secured loans advanced to customers and borrowings bear fixed interest rates. Accordingly, the Group’s net interest position is not significantly affected by fluctuations in market interest rates.
24.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| Group | Company | ||||||
|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||||
| £ | £ | £ | £ | ||||
| Not later than one year |
|
|
|
|
|||
| Later than one year and not later than five years |
|
|
|
|
|||
| Later than five years |
|
|
|
|
|||
|
|
|
|
|
||||
There were no other off balance sheet arrangements.
25.
Pension Commitments
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £46,181 (2024: £23,698).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
26.
Related Party Disclosures
26.
Related Party Disclosures - continued
Group
Transactions with connected companies
During the year, the Group received a bank loan of $5,200,000 (£3,928,478) from a connected company. At 31 December 2025, the outstanding balance in respect of this loan was £3,869,627, translated at the exchange rate prevailing at that date (2024: nil).
In addition, at 31 December 2025, a balance of £7,289,174 (2024: £7,144,354) was outstanding in relation to other loans from connected companies.
The group wrote off receivable amount of £26,760 following liquidation of a connected entity.
Amounts due to shareholders
At 31 December 2025, a balance of £20,000,814 (2024: £5,606,810) was due to the shareholders.
...CONTINUED
FC Capital Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 December 2025
Company
Transactions with connected companies
During the year, the Group received a bank loan of $5,200,000 (£3,928,478) from a connected company. At 31 December 2025, the outstanding balance in respect of this loan was £3,869,627, translated at the exchange rate prevailing at that date (2024: nil).
The group wrote off receivable amount of £26,760 following liquidation of a connected entity.
Amounts due to shareholders
At 31 December 2025, a balance of £19,600,814 (2024: £5,606,810) was due to the shareholders.
Other transactions
Other than the transactions disclosed in note 8, the company’s other related party transactions were with wholly owned subsidiaries.
27.
Controlling Parties
The company has no ultimate controlling party.
28.
Events after the End of the Reporting Period
There have been no significant events affecting the Group since the end of the financial year.