REGISTERED NUMBER:
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MOUNTAIN BERG LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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REGISTERED NUMBER:
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MOUNTAIN BERG LIMITED |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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AUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 | to | 6 |
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Report of the Directors | 7 | to | 8 |
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Report of the Independent Auditors | 9 | to | 12 |
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Income Statement | 13 |
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Other Comprehensive Income | 14 |
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Statement of Financial Position | 15 |
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Statement of Changes in Equity | 16 |
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Statement of Cash Flows | 17 |
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Notes to the Statement of Cash Flows | 18 |
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Notes to the Financial Statements | 19 | to | 31 |
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MOUNTAIN BERG LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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INDEPENDENT AUDITORS : |
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14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their strategic report for the year ended 31 December 2020. |
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REVIEW OF BUSINESS |
The directors aim to present a balanced and comprehensive review of the business development and performance during the year and its position at the year end. The review is consistent with the size and the non-complex nature of the company and is written in the context of the risks and uncertainties faced. |
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The company is a wholly-owned subsidiary of Mountain Berg Holdings Limited (‘MBHL’). |
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The results of the company for the period show a profit on ordinary activities before taxation of £38.4 million (31 December 2019: £42.4million). Profits on investments held within private equity limited partnerships are included within turnover. Turnover has increased for the year to 31 December 2020 to £48.4 million compared to the year to 31 December 2019 of £48.2 million. |
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Net assets increased by £36.7 million to £134.6 million as at 31 December 2020 as both realised and unrealised gains significantly increased net asset values. |
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The company typically makes investments for periods of between 5 years and 15 years with some investments held for longer than this period. For this reason all investment decisions are made with consideration of economic and market forecasts over the long term. |
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DEVELOPMENT AND PERFORMANCE |
The Directors are satisfied with the overall investment performance of the company and despite the uncertainties of Covid-19 they remain confident that performance in 2021 will meet expectations. |
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There have been no significant changes in the Company’s activities in the period under review. The Directors are not aware, at the date of this report, of any likely major changes in the Company’s activities next year. |
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KEY PERFORMANCE INDICATORS (KPI's) |
The Company’s investments are varied and the Directors continually review investment reports, management accounts and quarterly valuation reports. |
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The Directors also monitor the performance of underlying investment KPI's on a quarterly basis. These KPIs include; |
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· Valuation compared to capital invested |
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· Valuation multiple to capital invested |
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· Absolute returns compared to total capital invested |
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· The multiple of absolute returns to capital invested |
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Given the nature of the investments KPIs will only provide a limited understanding of the development performance or position of the company. |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company's activities expose it to a number of financial risks including market price fluctuations, interest rates movements, foreign exchange exposure, credit and liquidity risk, Covid-19 and Brexit implications. |
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Impacts of COVID-19 |
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The company has been monitoring its exposure and the impact of the covid-19 pandemic on the company's investments and we are referring to government and professional advice being published so that action can be considered which may help minimise the impact of this risk. Covid-19 has caused extensive disruptions to businesses and economic activities on a global scale which has caused significant market volatility worldwide. |
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Whilst we have seen some movements in underlying asset values for a variety of investments, it is not practical to quantify the financial impact and in fact much of the short-term movement has reversed or is forecast to reverse. Through the diversified nature of the company's investment portfolio it is confident that it is in a good position to manage and mitigate the risks. |
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UK relationship with the European Union |
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The company continues to monitor its risks related to the effects of the United Kingdom’s withdrawal from membership of the EU (referred to as Brexit), including financial, legal, tax and trade implications. The company has a diverse portfolio with investments worldwide which have mitigated some of the impacts of Brexit. |
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Interest rate risk |
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Interest rate risk is the risk that unexpected changes in interest rates could impact the overall financial performance of the company. The company has financial exposure to UK, European and USA interest rates arising from investments denominated in all 3 currencies across worldwide markets. The principle impact on the company would be via its borrowing facilities. The risk is managed by closely monitoring economic conditions that could impact interest rates and the company has the ability to borrow on either a floating or fixed term basis. |
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Foreign exchange risk |
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The company's activities expose it to financial risks of changes in foreign currency exchange rates. The company has investments in US Dollar, GBP Pound and Euro denominations. The company takes a long-term view, making investments over a period of time and building a diversified portfolio. Returns from these investments can be used to fund new investments in the same currency. Alongside this the company has the ability to draw loans in the currency of the investment to be made and to make loan repayments using investment returns in the currency received. |
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Market Price Risk |
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Market risk is the risk to an investment portfolio from movements in market prices such as global listed equities, interest rates and foreign exchange rates. The company is exposed to these market risks through its investment activities. Indirect exposure to equity market risk is derived from the Company's significant investments in externally managed private markets funds most typically held via private equity LP interests and direct investment in quoted shares. This is a long-term portfolio where risk is managed with appropriate diversification by geography, sector and investment cycle vintage. The external managers have the ability to time new investments and exits from portfolio holdings according to their views on markets and underlying market conditions. The company manages its commitments to these external funds with consideration to both its recognised and forecast exposures. |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Credit risk |
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Credit risk is the risk that a counterparty, will not meet its obligations under a financial instrument, leading to a financial loss. The company manages credit risk by entering into financial instruments with reputable counterparties with good creditworthiness and monitors investment performance on a regular basis. |
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The balance sheet of the company includes receivables due from third parties, as well as intercompany balances due from related parties. The company is therefore exposed to credit risk on these balances. With third party risk the Company recognises credit losses where applicable in accordance with sections 11 and 12 of FRS102 in respect of financial instruments. For related parties the company takes a long term view with an expectation that this will ensure the credit risk is minimised. |
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The credit risk on cash, cash equivalents and short term deposits is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. |
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The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties, other than Group companies. |
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Liquidity risk |
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The company Treasury function manages its liquidity needs to ensure sufficient funds are available for ongoing operations and future developments. The company currently has access to a US$100 million revolving credit facility with Credit Suisse. |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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SECTION 172(1) STATEMENT |
The Directors are bound by their duties under the Companies Act 2006 (the "Act") and understand each duty is in the interest of the overall success of the company. This statement sets out how the directors have regard to the matters set out in Section 172 of the Act whilst undertaking their roles, including but not limited to: |
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(a) the likely consequences of any decision in the long term; |
(b) the need to foster the company's business relationships with suppliers, customers and others; |
(c) the impact of the company's operations on the community and the environment; |
(d) the desirability of the company maintaining a reputation for high standards of business conduct; and |
(e) need to act fairly as between members of the company. |
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As a company engaged in making and holding investments, the company has no employees other than its directors. The directors manage the company for the benefit of all stakeholders. In making decisions, the directors take into account their potential short and long-term implications. The objectives include; the long-term sustainable growth and success of the business which will see returns to the shareholder increasing, the preservation and growth of capital and also building deep and long term relationships with the company's wider stakeholders. |
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Due to the nature of the company, the underlying activities are carried out by the investment funds in which it participates. The company is not involved directly in the management of those activities, as they are the responsibility of the managing partner of each fund. Instead, the company focuses on selection of investment partners and the strategies they pursue. Each manager is responsible for the activities of their fund and the underlying companies in each fund have boards of directors with duties including those towards employees, community and environmental matters, standards of business conduct and the long-term consequences of decisions. |
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The Directors report regularly to the shareholder both formally and on an ad-hoc basis. Quarterly accounts are produced for the shareholder and quarterly meetings with the shareholder and his investment committee give an opportunity for more formal dialogue alongside the open and constant communication flow as significant decisions are taken including the selection of investments and as transactions and projects progress. |
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Our suppliers can broadly be categorised as investment partners and professional advisers. Through the commitment of all parties, the Directors have developed strong and mutually beneficial relationships with their partners and advisers and recognise the importance of those relationships in delivering the performance and long term success of the company. Through those relationships the Directors and partners are able to work together on unique projects and the advisers build a significant knowledge, enabling them to support the Directors in achieving their objectives. The Directors seek to work with counter-parties who demonstrate high regard for the impact of their operations on communities and the environment. The directors also respect and adhere to the terms of their partners including payment terms etc. |
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Our lenders are important stakeholders, with whom we maintain an open dialogue alongside our covenant compliance obligations. Despite the disruption caused by Covid-19 in the markets, we maintained a strong liquidity position and, through our long term relationship with our lenders, we were able to extend and enhance our credit facilities for the future. |
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The board recognises that the environmental and social impact of the company is an important consideration in the current and long-term goals of the company and wider group. |
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Mountain Berg is committed to being a socially and environmentally responsible investor and incorporates Environmental, Social and Governance principles ('ESG') into the Investment Strategy and Principles. In making investment decisions the Company selects external asset managers, advisers and partners that integrate these principles into their investment process. |
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Whilst Mountain Berg focusses on investments, it is part of a wider group that makes positive contributions to charitable causes and local communities. |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The board of directors aims to maintain the strong reputation of the company, and to ensure that decisions are made with the highest standard of business conduct in mind. Integrity is a key element of business behaviour throughout the company and group, and the board of directors recognise that acting ethically and with integrity protects the reputation of the company, shareholders and stakeholders, and that the culture and values of the company are fundamental to the success of the company and group in the longer term. |
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Mountain Berg is committed to maintaining the highest standard of ethics and compliance with all relevant laws and regulations wherever it does business. |
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ON BEHALF OF THE BOARD: |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of making and holding investments. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2020. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOUNTAIN BERG LIMITED |
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Opinion |
We have audited the financial statements of Mountain Berg Limited (the 'company') for the year ended 31 December 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit 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. |
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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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Emphasis of matter |
As discussed in note 2 to the financial statements, the financial statements include investments in Limited Partnerships valued at £135,951,847 (approximately 53% of total assets) as at 31 December 2020, whose fair value has been estimated by the investment fund's management in the absence of readily determinable fair values. Management's estimates are based on information provided by the General Partner of the Limited Partnerships. |
Our opinion is not modified with respect to this matter. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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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 this gives rise to a material misstatement in the financial statements themselves. 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. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOUNTAIN BERG LIMITED |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOUNTAIN BERG LIMITED |
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Auditors' 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 a Report of the Auditors 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. |
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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: |
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We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably. |
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Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as the valuation of investments and group loans, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, reperforming the calculation, reviewing the outcome of prior year estimates, and also reviewing the outcome of current year estimates since the financial reporting date. |
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Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations and Employment laws. |
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Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MOUNTAIN BERG LIMITED |
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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 a Report of the Auditors 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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for and on behalf of
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14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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REVENUE |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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OPERATING PROFIT | 4 |
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Interest receivable and similar income | 5 |
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39,756,261 | 44,426,868 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 8 |
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CURRENT ASSETS |
Debtors | 9 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 10 |
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NET CURRENT LIABILITIES |
( |
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( |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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PROVISIONS FOR LIABILITIES | 14 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 15 |
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Retained earnings | 16 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2020 |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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( |
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Interest paid | ( |
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Tax paid |
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( |
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Net cash from operating activities | ( |
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( |
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Cash flows from investing activities |
Purchase of fixed asset investments |
( |
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( |
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Sale of fixed asset investments |
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Interest received |
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Dividends received |
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Net cash from investing activities |
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Cash flows from financing activities |
New loans in year |
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Amount introduced by directors |
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Amount withdrawn by directors |
( |
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Net cash from financing activities | ( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning of
year |
2 |
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1,187,693 |
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Cash and cash equivalents at end of year | 2 |
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MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
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NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2020 | 2019 |
£ | £ |
Profit before taxation |
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Profit on disposal of fixed assets |
( |
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( |
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Unrealised gains |
( |
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Foreign exchange losses |
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Finance costs |
|
|
Finance income | ( |
) | ( |
) |
(1,033,474 | ) | (772,834 | ) |
Increase in trade and other debtors | ( |
) |
( |
) |
Increase in trade and other creditors |
|
|
Cash generated from operations | ( |
) |
( |
) |
|
2. | CASH AND CASH EQUIVALENTS |
|
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
|
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 602,900 | 2,655,892 |
Year ended 31 December 2019 |
31.12.19 | 1.1.19 |
£ | £ |
Cash and cash equivalents | 2,655,892 | 1,187,693 |
|
|
3. | ANALYSIS OF CHANGES IN NET DEBT |
|
At 1.1.20 | Cash flow | At 31.12.20 |
£ | £ | £ |
Net cash |
Cash at bank | 2,655,892 | (2,052,992 | ) | 602,900 |
2,655,892 | ( |
) | 602,900 |
Debt |
Debts falling due within 1 year | (36,222,248 | ) | (1,584,357 | ) | (37,806,605 | ) |
(36,222,248 | ) | (1,584,357 | ) | (37,806,605 | ) |
Total | (33,566,356 | ) | (3,637,349 | ) | (37,203,705 | ) |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
1. | GENERAL INFORMATION |
|
Mountain Berg Limited is a limited company incorporated in England and Wales. The address of the registered office is given in the company information on page one of these financial statements. The nature of the company's operations and principal activities are detailed in the report of the directors on page five. |
|
The presentation currency of the financial statements is the Pound Sterling (£). |
|
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
|
|
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" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of certain assets. |
|
Preparation of consolidated financial statements |
The financial statements contain information about Mountain Berg Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its ultimate parent, Mountain Berg Holdings Limited. |
|
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
|
Significant judgements and estimates |
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 key sources of estimation uncertainty that have a significant effect on the financial statements are described below; |
|
(i) Valuation of investments in Limited Partnerships |
|
Investments in Limited Partnerships are stated at fair value, based on valuations determined by the General Partner in accordance with the International Private Equity and Venture Capital ("IPEVC") guidelines. The Limited Partnerships invest in a portfolio of worldwide investments, including unquoted companies. |
|
Factors considered when valuing unquoted companies include the current financial position, operating results and the market value of comparable publicly traded companies (discounted for illiquidity). The values assigned to portfolio investments are based on available information and do not necessarily represent the amounts that might ultimately be realised, since such amounts depend on further circumstances and cannot be determined until the investments are actually liquidated. The General Partner's objectives are to provide a solid and sustainable value assessment to give the Limited Partners of the Partnership a balanced appreciation of fair value given the characteristics of portfolio companies. |
|
(ii) Impairment of unlisted investments |
|
The company makes investments in private unlisted companies which are stated at cost, less provision for impairment. |
|
When assessing impairment, management considers the financial performance of the underlying entity, their credit rating, historical performance and anticipated future earnings. |
|
Revenue |
Revenue represents profits on investments held within private equity limited partnerships, commissions receivable and foreign exchange gains relating to investments. |
|
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date. |
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other 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. |
|
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
|
Interest receivable and payable |
Interest amounts are accounted for on an accruals basis. |
|
Investments |
Fixed asset investments represent long term investments and are stated as follows: |
|
Unlisted fixed asset investments and 'other' investments are stated at cost less provision for impairment, as the directors do not consider that fair value can be measured reliably. |
|
Listed fixed asset investments are stated at fair value, based on market value. |
|
The company has also invested in private equity limited partnerships, and receives a share in the profits or losses of the funds in proportion to the amount of capital contributed by the investment partners. The value of the investment is stated at the company's share of partner equity, as reported in the financial statements of the investment partnership, including unrealised gains and losses, adjusted for exchange fluctuations. This is considered to be the fair value of the limited partnership investments. Movements in fair value are taken to profit and loss in the year. |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
|
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
|
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
|
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
|
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
|
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the income statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
|
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
|
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
|
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
|
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
|
3. | EMPLOYEES AND DIRECTORS |
|
There were no staff costs for the year ended 31 December 2020 nor for the year ended 31 December 2019. |
|
The average number of employees during the year was as follows: |
2020 | 2019 |
|
Directors |
|
|
|
2020 | 2019 |
£ | £ |
Directors' remuneration |
|
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
4. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2020 | 2019 |
£ | £ |
Amounts written off investments | - | 136,096 |
Auditors' remuneration | 12,000 | 12,000 |
Foreign exchange differences - investments | 412,080 | 4,336,725 |
|
Foreign exchange differences relate to fixed asset investments denominated in foreign currencies. The above losses have been recognised in cost of sales in the income statement for the period. |
|
5. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2020 | 2019 |
£ | £ |
Corporation tax interest |
|
|
Dividends receivable |
|
|
Arrangement fee |
|
|
Loan interest receivable |
|
|
Foreign exchange gains - bank |
accounts |
|
|
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Corporation tax interest |
|
|
Bank charges |
|
|
Loan interest |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Adjustment re previous years | - | 18,495 |
Total current tax |
|
|
|
Deferred tax | ( |
) | ( |
) |
Tax on profit |
|
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
2020 | 2019 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Capital gain |
|
|
Unrealised gains/losses | ( |
) | ( |
) |
Other | - | 13,106 |
Deferred tax movement on unrealised gains | ( |
) | ( |
) |
Adjustment re prior years corporation tax | - | 18,495 |
|
Total tax charge |
|
|
|
The taxable profit has been reduced by £nil (2019 - £nil) due to the availability of group relief. |
|
8. | FIXED ASSET INVESTMENTS |
|
2020 | 2019 |
£ | £ |
Shares in group undertakings |
|
|
Participating interests |
|
|
Other investments not loans |
|
|
Other loans |
|
|
Other investments |
|
|
|
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
8. | FIXED ASSET INVESTMENTS - continued |
|
Additional information is as follows: |
Shares in |
group | Unlisted | Listed |
undertakings | investments | investments |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2020 |
|
|
|
Additions |
|
|
|
Disposals |
|
- |
( |
) |
Revaluations |
|
|
|
At 31 December 2020 |
|
|
|
PROVISIONS |
At 1 January 2020 |
and 31 December 2020 | 136,091 |
|
- |
NET BOOK VALUE |
At 31 December 2020 |
|
|
|
At 31 December 2019 |
|
|
|
Limited | Other |
partnerships | investments | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2020 | 124,688,129 |
|
182,144,950 |
Additions |
|
|
87,233,129 |
Disposals |
( |
) | ( |
) | (65,587,981 | ) |
Revaluations |
|
|
10,581,343 |
Exchange differences | ( |
) |
|
(412,080 | ) |
At 31 December 2020 |
|
|
213,959,361 |
PROVISIONS |
At 1 January 2020 |
and 31 December 2020 | - | - | 2,136,091 |
NET BOOK VALUE |
At 31 December 2020 |
|
|
211,823,270 |
At 31 December 2019 |
|
|
180,008,859 |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
8. | FIXED ASSET INVESTMENTS - continued |
|
Cost or valuation at 31 December 2020 is represented by: |
|
Shares in |
group | Unlisted | Listed | Limited |
undertakings | investments | investments | partnerships | Totals |
£ | £ | £ | £ | £ |
Valuation in 2020 | - | - | 58,024,271 | 135,951,847 | 193,976,118 |
Cost | 6,661,537 | 13,321,706 | - | - | 19,983,243 |
6,661,537 | 13,321,706 | 58,024,271 | 135,951,847 | 213,959,361 |
|
The market value of listed investments at the financial reporting date is considered to be £58,024,271 (2019 - £40,536,486). |
|
The company has made investments in certain private equity investment limited partnerships. The company receives a share in the profits or losses of the funds in proportion to the amount of capital contributed by the investment partners. |
Other |
loans |
£ |
At 1 January 2020 |
|
Repayment in year | ( |
) |
At 31 December 2020 |
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
8. | FIXED ASSET INVESTMENTS - continued |
|
Unlisted investments include an investment of 6,874 Preferred voting shares of £1 each in Gift-Library.com Limited, a company incorporated in England and Wales. This represents 100% of the Preferred voting shares, but only 18.8% of the total issued shares. Preferred voting shares have no rights to dividends but have priority payment entitlement in a distribution. Gift-Library.com went into administration on 16 February 2015 therefore a provision for permanent diminution in value of £2 million was included in the financial statements in the period ending 31 December 2015. |
|
Unlisted investments include an investment of 4,319 Preferred Ordinary shares of £0.001 each and 618 Ordinary shares of £0.001 each, in iSmash Group Limited, a company incorporated in the British Virgin Islands. This represents 31.5% of the total issued shares. Statutory financial statements for for iSmash Group Limited for the period to 31 December 2020 are not yet available. The group made a loss for the period to 31 December 2019 totalling £2,056,500 and net liabilities were £3,127,411. |
|
Shares in group undertakings represent a 100% interest in the share capital of 10 SJP No.2 Limited, a company registered in England and Wales with the same registered office as that of Mountain Berg Limited. |
|
Shares in group undertakings also include a 50.01% interest in the share capital and 100% interest in A1 preference shares, A2 preference shares and preferred ordinary shares of Robinson Webster (Holdings) Limited, a company registered in England and Wales with registered office as 159 Mortlake Road, Richmond, Surrey, TW9 4AW. |
|
Fair Value determination of investments in Limited Partnerships |
|
The fair value of investments in Limited Partnerships has been estimated by the following fair value hierarchy: |
|
Level (1): Using unadjusted quoted prices in an active market for identical assets or liabilities that can be assessed at the reporting date. |
|
Level (2): Using inputs other than quoted prices included within level 1 that are observable (i.e developed using market data ) for the asset or liability, either directly or indirectly. |
|
Level (3): Using inputs that are unobservable (i.e. for which market data in unavailable) for the asset or liability. |
|
The company's investments have been fair valued using the above hierarchy categories as follows |
|
At 31 December 2020: |
|
Level 1 | Level 2 | Level 3 | Total |
Limited partnerships | 8,238,805 | 25,262,172 | 102,450,870 | 135,951,847 |
Listed investments | 58,024,271 | - | - | 58,024,271 |
66,263,076 | 25,262,172 | 102,450,870 | 193,976,118 |
|
At 31 December 2019: |
|
Level 1 | Level 2 | Level 3 | Total |
Limited partnerships | 11,438,047 | 8,747,309 | 104,502,773 | 124,688,129 |
Listed investments | 40,536,486 | - | - | 40,536,486 |
51,974,533 | 8,747,309 | 104,502,773 | 165,224,615 |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
9. | DEBTORS |
2020 | 2019 |
£ | £ |
Amounts falling due within one year: |
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income | 956,721 | - |
|
|
|
Amounts falling due after more than one year: |
Prepayments and accrued income |
|
|
|
Aggregate amounts |
|
|
|
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 11) |
|
|
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Amounts owed to related parties |
|
|
Corporation tax |
|
|
VAT | 9,973 | - |
Accruals and deferred income |
|
|
|
|
|
11. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
|
12. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank loans |
|
|
|
The company's bankers hold a fixed charge over certain fixed asset investments. The borrowings have also been guaranteed by the company's ultimate controlling party. |
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
13. | FINANCIAL INSTRUMENTS |
|
The company has the following financial instruments: |
|
2020 | 2019 |
£ | £ |
Financial assets at fair value through profit or loss |
Fixed asset investments - limited partnerships | 135,951,847 | 124,688,129 |
Fixed asset investments - listed investments | 58,024,271 | 40,536,486 |
|
Financial assets that are debt instruments measured at amortised
cost |
|
Unsecured loan stock | 7,142,778 | 7,158,178 |
Amounts owed by group undertakings | 36,245,421 | 30,322,491 |
Other debtors | - | 491 |
|
Equity instruments measured at cost less impairment |
Fixed asset investments - unlisted investments | 11,321,706 | 7,892,596 |
|
Financial liabilities measured at amortised cost |
Bank loans and overdrafts | 37,806,605 | 36,222,248 |
Trade creditors | 17,934 | 230,446 |
Amounts owed to group undertakings | 1,258,394 | 510,429 |
Amounts owed to related parties | 73,386,287 | 77,377,330 |
|
The income, expenses, net gains and net losses attributable the company's financial instruments are summarised as follows: |
|
2020 | 2019 |
£ | £ |
Income and expense |
Financial assets measured at fair value through profit or loss | 12,197,580 | 36,586,225 |
|
Net gains and losses (including changes in fair value) |
Financial assets measured at fair value through profit or loss | 24,951,940 | 9,340,738 |
|
The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £2,652,571 (2019 - £1,953,325) and £1,176,099 (2019 - £1,885,912) respectively. |
|
Impairment losses reversals recognised on fixed asset investments totalled £nil (2019 - £36,619). |
|
14. | PROVISIONS FOR LIABILITIES |
2020 | 2019 |
£ | £ |
Deferred tax |
Unrealised gains - investments |
|
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
14. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred |
tax |
£ |
Balance at 1 January 2020 |
|
Transfer to income statement | ( |
) |
Balance at 31 December 2020 |
|
|
The expected net reversal of deferred tax liabilities in 2021 is not expected to be significant based on planned expenditure for the company. |
|
15. | CALLED UP SHARE CAPITAL |
|
|
Allotted and issued: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 |
|
|
|
16. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2020 |
|
Profit for the year |
|
At 31 December 2020 |
|
|
17. | OTHER FINANCIAL COMMITMENTS |
|
As at 31 December 2020 the company had outstanding commitments to contribute further capital to certain investments held amounting to US$10,654,223, €26,187,774 and £2,048,561. |
|
As at 31 December 2020, the company has provided a guarantee for the borrowings of Robinson Webster (Holdings) Limited at Secure Trust Bank totalling £4.4m. |
|
18. | RELATED PARTY DISCLOSURES |
|
|
|
During the period, Mountain Berg Limited charged a company under common control management fees totalling £220,110 (2019 - £143,014). |
|
During the period, Mountain Berg Limited advanced loans totalling £9,100,000 (2019 - 2,000,000) to a company under common control. Interest due on the loans totalled £409,517 (2019 - £214,963), loans repaid during the period totalled £3,071,961 (2109 - £nil) and dividends were received totalling £226,850 (2019 - £527,671). The total amount due from the related party at 31 December 2020 was £6,273,398 (2019 - £2,885,649). |
|
MOUNTAIN BERG LIMITED (REGISTERED NUMBER: 07851252) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
18. | RELATED PARTY DISCLOSURES - continued |
|
|
2020 | 2019 |
£ | £ |
Amount due to related party |
|
|
|
|
|
|
|
19. | SUBSEQUENT EVENTS |
|
Subsequent to the year end, the company has disposed of listed investments totalling £18.3m at 31 December 2020 and made further fixed asset investments to the value of £17.9m which were funded by fixed asset disposals and by way of further loans made to the company by the ultimate controlling party. |
|
The valuation of the remaining listed investment has fallen by £11.8m to the date of this report as a result of wider market volatility. |
|
On 31 March 2021, £1.0m loan stock held in an unlisted company has been converted into ordinary shares. |
|
On 28 April 2021, the company entered into an agreement to guarantee the borrowings of Robinson Webster (Holdings) Limited at Secure Trust Bank up to a limit of £6m. |
|
On 17 September 2021, the company received payment of £5.1m relating to loan notes and accrued interest due from iSmash Group Limited. The remaining loan note balance of £1.7m was converted to equity and the company now holds 22.5% of the issued shares. |
|
20. | ULTIMATE PARENT COMPANY |
|
The directors consider that Mountain Berg Holdings Limited, a company registered in England and Wales, is the company's ultimate parent company. |
|
Mountain Berg Holdings Limited, a fellow group company registered in England and Wales, heads the smallest and largest group in which the results of the company are consolidated. The financial statements of Mountain Berg Holdings Limited are available from Companies House, Crown Way, Cardiff CF14 3UZ. The registered office of the ultimate parent company is the same as that shown on the company information page. |
|
21. | GOING CONCERN |
|
At the period end the company had net current liabilities. The company's ultimate controlling party has confirmed his intention to provide finance to enable the company to meet its debts as they fall due for a period of at least 12 months from the date of approval of the financial statements. For this reason the financial statements are prepared on the going concern basis. |