REGISTERED NUMBER: 05188971 (England and Wales)

Audited Financial Statements

for the Year Ended 31 March 2025

for

Coventry and Warwickshire Reinvestment

Trust Ltd

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

A S Bhabra

S P Byrne

C Humphrey

J S Farnell

S L Sulskis

L C Heeley

C K Balrey

T J Sawrey

SECRETARY:

S L Sulskis

REGISTERED OFFICE:

Enterprise Centre

Coventry University Technology Park

Puma Way

Coventry

West Midlands

CV1 2TX

REGISTERED NUMBER:

05188971 (England and Wales)

SENIOR STATUTORY AUDITOR:

C A Christou FCCA MAE

INDEPENDENT AUDITORS:

Leigh Christou Ltd

Chartered Certified Accountants and

Statutory Auditor

Leofric House

Binley Road

Coventry

CV3 1JN

FIXED ASSETS

Intangible assets

4

3,967

7,367

Tangible assets

5

38,917

29,432

42,884

36,799

CURRENT ASSETS

Debtors

6

5,636,404

7,120,720

Cash at bank and in hand

385,936

1,814,842

6,022,340

8,935,562

CREDITORS

Amounts falling due within one year

7

1,302,278

1,887,262

NET CURRENT ASSETS

4,720,062

7,048,300

TOTAL ASSETS LESS CURRENT LIABILITIES

4,762,946

7,085,099

CREDITORS

Amounts falling due after more than one year

8

4,558,049

5,703,759

NET ASSETS

204,897

1,381,340

RESERVES

Other reserves

12

195,478

1,016,515

Income and expenditure account

12

9,419

364,825

204,897

1,381,340

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 October 2025 and were signed on its behalf by:

S P Byrne - Director

S L Sulskis - Director

1.	STATUTORY INFORMATION

Coventry and Warwickshire Reinvestment Trust Ltd is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The company has reported a deficit for the year. Despite this, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. In making this assessment, the Directors have considered a wide range of information relating to present and future conditions, including the current state of the balance sheet, future projections of profitability, cash flows and capital resources and the longer-term strategy of the business.

Much of the financial pressures placed upon the business can be explained by interest rates. Whilst some of CWRT's borrowings are at a variable rate, the loans advanced by CWRT are made at a fixed interest rate, and are of a long-term nature. As the Bank of England base rate has risen since the loans were advanced, this has impacted CWRT's margin. During the year, the Directors have taken appropriate action to ensure the company is adequately resourced, including by re-negotiating the interest rates with lenders.

Other difficulties faced by the company include funding constraints. As noted in the Directors report, the company has applied for additional funding, including through the British Business Bank "Community Enabled Fund" (CEF) programme. CWRT achieved accreditation in August 2025. CWRT will generate income as a share of the fund return, and commenced issuing CEF loans in September 2025.

The directors are confident that CEF accreditation will enable the provision of new capital to support future growth. However, CEF lending is at an early stage, and there is a material uncertainty that the scheme will generate sufficient funds for CWRT to remain a going concern.

After making enquiries, the Directors believe the company has sufficient resources to continue its activities for the 12 months from the reporting date.

Significant judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material misstatement to the carrying amounts of assets and liabilities within the next financial year are as follows:

Loan bad and doubtful debt provision

The calculation and measurement of expected credit losses requires significant judgement and represents a key source of estimation uncertainty. Details of the critical judgements and accounting estimates are set out below.

Deferred income

Loan arrangement fees are recognised on an accrual basis over the term of the loan. Deferred income reflects management expectation of fees over the remaining term of outstanding loans, where material.

Turnover

Turnover represents loan interest receivable and loan arrangement fees derived from capital advanced to new and existing business and social enterprises and individuals. Loan interest and arrangement fees are recognised on an accruals basis over the term of the loan.

Turnover relating to fund management services is recognised as contractual obligations are performed, in accordance with the agreed payment terms.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

Straight line over 10 years

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Financial instruments

Where acting as fund manager, and where the risks and rewards of lending belong to an external party, the associated assets and liabilities are not included on the balance sheet of the fund manager.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation

Deferred tax is recognised in respect of all 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. 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 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to surplus or deficit on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants received

Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets.

Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Capital loan funding grants

Capital grants received for onward lending are credited to the commercial funding reserve account where the value is maintained according to the specific rules of each grant scheme.

Similarly, bad debt provision and write-off is offset against commercial funding reserves. When the age or the rules of the fund permit, a transfer to the income and expenditure account reserve is made to reflect any changes in what remains restricted.

In broad terms, the amount remaining in the funding reserves accounts are equal to the grant funded element of the performing loan book, net of specific bad debt provisions, write offs and released reserves.

Loan bad and doubtful debt provision

Understanding the appetite for risk inherent in the market sector in which the Company operates, the directors have made a provision for bad and doubtful loan debts on the following basis:

Commercial

Number of days value of loans in arrears

loans %

1 - 10 days in arrears

0

11 - 30 days in arrears

10

31 - 60 days in arrears

25

61 - 90 days in arrears

50

91 - 120 days in arrears

75

121 plus days in arrears

100

The bad debt calculation is initially on a strict day basis. Management then review the level of bad and doubtful debt provision, updating the above basis to reflect other relevant factors such as communication with the customer, and any guarantees or security in place that would mitigate the expected credit losses.

Loan debts deemed irrecoverable are written off in full as soon as it becomes clear that repayment will not be received.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2024 - 13 ) .

4.	INTANGIBLE FIXED ASSETS

Computer

software

£

COST

At 1 April 2024

and 31 March 2025

10,200

AMORTISATION

At 1 April 2024

2,833

Amortisation for year

3,400

At 31 March 2025

6,233

NET BOOK VALUE

At 31 March 2025

3,967

At 31 March 2024

7,367

5.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 April 2024

8,000

12,498

24,031

44,529

Additions

13,300

-

5,682

18,982

At 31 March 2025

21,300

12,498

29,713

63,511

DEPRECIATION

At 1 April 2024

200

1,562

13,335

15,097

Charge for year

1,322

2,734

5,441

9,497

At 31 March 2025

1,522

4,296

18,776

24,594

NET BOOK VALUE

At 31 March 2025

19,778

8,202

10,937

38,917

At 31 March 2024

7,800

10,936

10,696

29,432

6.

DEBTORS

31.3.25

31.3.24

£

£

Amounts falling due within one year:

Loans outstanding

1,893,019

2,259,068

Other debtors

37,123

79,316

Directors' current accounts

380

6,969

Prepayments

45,977

35,624

1,976,499

2,380,977

Amounts falling due after more than one year:

Loans outstanding

3,659,905

4,739,743

Aggregate amounts

5,636,404

7,120,720

Loans outstanding represent capital advanced to new and existing businesses, social enterprises and to individuals in order to fulfil the aims of the company. Loans are made within an agreed repayment schedule; they are however repayable on demand in certain circumstances. Accordingly, these have been disclosed within current debtors but if settled to terms, the repayment would be split as shown above.

These loans represent a mix of secured and unsecured lending at varying rates above the bank base rates fixed at the time the loans are advanced and are repayable in accordance with a payment schedule agreed at the commencement of the term. Generally, the loans are made over a 12 month to 60 month period.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.25

31.3.24

£

£

Bank loans and overdrafts (see note 9)

242,228

285,820

Other loans (see note 9)

815,166

1,322,467

Trade creditors

5,733

4,991

Social security and other taxes

11,887

15,591

Other creditors

17

18,234

Accrued expenses

227,247

240,159

1,302,278

1,887,262

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.25

31.3.24

£

£

Bank loans (see note 9)

456,667

787,500

Other loans (see note 9)

4,101,382

4,916,259

4,558,049

5,703,759

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Other loans more 5yrs non-inst

3,000,000

4,000,000

Included within other loans as detailed at note 10 and 11, are loans of £2,000,000 (2024: £2,000,000) from Coventry City Council, and £2,000,000 (2024: £2,000,000) from Warwickshire County Council which are to support the work of the company's Duplex lending scheme to businesses in the Coventry and Warwickshire area. Interest is payable quarterly in arrears, with capital repayments commencing June 2029.

Included within other loans as detailed at note 10 and 11 are loans from local Councils, for the purposes of CWRT providing loans under the Coronavirus Business Interruption Loan Scheme (CBILS), and the follow up Recovery Loan Scheme (RLS). Interest is payable quarterly in arrears, with capital repayments made in bi-annual instalments following an agreed repayment schedule.

2025

2024

CBILS/RLS Lender

£

£

Coventry City Council

238,848

834,479

Warwickshire County Council

573,272

1,169,284

Nuneaton & Bedworth Borough Council

52,214

104,428

Warwick District Council

52,214

130535

916,548

2,238,726

9.

LOANS

An analysis of the maturity of loans is given below:

31.3.25

31.3.24

£

£

Amounts falling due within one year or on demand:

Bank loans

242,228

285,820

Other loans

815,166

1,322,467

1,057,394

1,608,287

Amounts falling due between one and two years:

Bank loans - 1-2 years

228,333

262,500

Other loans - 1-2 years

101,382

789,790

329,715

1,052,290

Amounts falling due between two and five years:

Bank loans - 2-5 years

228,334

525,000

Other loans - 2-5 years

1,000,000

126,469

1,228,334

651,469

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Other loans more 5yrs non-inst

3,000,000

4,000,000

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.3.25

31.3.24

£

£

Within one year

35,208

35,154

Between one and five years

6,300

6,300

41,508

41,454

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.25

31.3.24

£

£

Bank loans

698,895

1,073,320

Other loans, within one year

815,116

1,322,467

Other loans, over one year

4,101,382

4,916,259

5,615,393

7,312,046

Duplex loans:

Funds have been provided by Warwickshire County Council, and Coventry City Council.

These loans are secured by debentures dated 30 September 2019.

CBILS loans:

Funds have been provided by Warwickshire County Council, Coventry City Council, Nuneaton & Bedworth Borough Council, and Warwick District Council.

These loans are secured by debentures dated between 24 August 2020 and 25 February 2021.

Recovery Loan Scheme (RLS) loans:

Funds have been provided by Coventry City Council and Unity Trust Bank Plc.

The Coventry City Council loan is secured by debentures listed above (CBILS). The Unity Trust Bank Plc loan is secured by a debenture dated 31 December 2021.

Warwickshire Recovery and Investment Fund (WRIF) loans:

Warwickshire County Council have a fixed charge over the property and undertakings of the company, as security for loan facilities made available under the WRIF Local Communities and Enterprise (LCE) fund.

As disclosed in Note 3, the company acts only as fund manager, and the risks and rewards of loans advanced lie with Warwickshire County Council. Accordingly, the associated assets and liabilities are not included on the balance sheet of the company.

12.

RESERVES

Reserves consist of the following:

Income and

Commercial

Duplex

Access/

Total

Expenditure

Funding

Grant

SDCC Grant

Account

Reserve

Reserve

Reserve

£

£

£

£

£

At 1 April 2023

364,825

386,754

564,761

65,000

1,381,340

Grant receipts

75,000

75,000

Grants paid out

(523,829

)

(140,000

(663,829

)

Grant of restricted funds to CWRT

(239,681

)

(239,681

)

Surplus/deficit for year

(355,406

)

(355,406

)

Movement in provisions

7,473

7,473

9,419

154,546

40,932

-

204,897

Commercial Funding Reserve, Duplex Grant Reserve and Access Grant Reserve relate to Restricted Funds. These funds relate to grant funding received, to be utilised in line with the funding restrictions in place.

Duplex Grant Reserve relates to grant funds held in partnership with Coventry City Council, Warwickshire County Council, and Coventry and Warwickshire Local Enterprise Partnership.

Reserve transfer relates to the two remaining RGN funds being released in full. Funds have been released to unrestricted funds, taken through the income statement.

13.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

C A Christou FCCA MAE (Senior Statutory Auditor)

for and on behalf of Leigh Christou Ltd

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2025 and 31 March 2024:

31.3.25

31.3.24

£

£

S L Sulskis

Balance outstanding at start of year

6,968

15,142

Amounts advanced

63,167

-

Amounts repaid

(69,755

)

(8,174

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

380

6,968

Interest is charged at an agreed rate over the 48 month duration of the agreement. The loan is repayable in full on the director ceasing to be employed by the company.

During the year, £63,100 (2024: £0) was advanced to Sheridan Sulskis to make purchases on behalf of the company, through a supplier account set up in the name of the director. At the start of the year, the company was owed £0, and at the end of the year the company was owed £380.

Advances on the supplier account to Sheridan Sulskis are interest-free and repayable on demand.

15.	RELATED PARTY DISCLOSURES

ADECS Limited

Common directorship

The company received goods and services from ADECS Limited, a company in which Mr A Bhabra is a director. The total value of goods and services provided during the year amounted to £8,071 (2024: £7,401). At the balance sheet date £450 (2024: £Nil) was owed to ADECS Limited.

Coventry & Warwickshire Chamber of Commerce

Common directorship

The company received goods and services from Coventry & Warwickshire Chamber of Commerce, a company in which Mr A Bhabra was a director until the point of resigning on the 2nd December 2024. The total value of goods and services provided during the period under common directorship amounted to £432 (2024: £467).

The value of revenue grant received during the year amounted to £Nil (2024: £32,000), and contribution towards costs was £13,200 (2024: £10,800).

At the balance sheet date £Nil (2024: £30,400) was owed from Coventry & Warwickshire Chamber of Commerce.

Coventry and Warwickshire Growth Hub Limited

Common directorship

The company received goods and services from Coventry and Warwickshire Growth Hub Limited, a company in which Mrs S Sulskis, and Mr J S W Farnell are directors. The total value of goods and services provided during the year amounted to £20,450 (2024: £20,874). At the balance sheet date £Nil (2024: £Nil) was owed to Coventry and Warwickshire Growth Hub Limited.

16.	AUDITOR LIABILITY LIMITATION AGREEMENT

Auditors Liability is limited to a maximum of twenty-five times the fee relating to the audit engagement.

The director approved the agreement on 24 March 2025.

17.	ULTIMATE CONTROLLING PARTY

Throughout the current and previous period the company was controlled by the directors.

18.	SHARE CAPITAL

The company is limited by guarantee and has no share capital.