Lendwise Ltd
Unaudited Financial Statements
For Filing with Registrar
For the year ended 31 December 2020
Company Registration No. 10466048 (England and Wales)
Lendwise Ltd
Company Information
Directors
C Panayiotou
R Zaveri
K Mouzouros
(Appointed 24 February 2021)
I Georgiou
(Appointed 24 February 2021)
Secretary
Norose Company Secretarial Services Limited
Company number
10466048
Registered office
3 More London Riverside
London
SE1 2AQ
Accountants
Moore Kingston Smith LLP
Devonshire House
60 Goswell Road
London
EC1M 7AD
Lendwise Ltd
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
Lendwise Ltd
Balance Sheet
As at 31 December 2020
Page 1
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,826
4,209
Current assets
Debtors
4
64,257
116,954
Cash at bank and in hand
590,414
91,339
654,671
208,293
Creditors: amounts falling due within one year
5
(180,664)
(196,974)
Net current assets
474,007
11,319
Total assets less current liabilities
476,833
15,528
Creditors: amounts falling due after more than one year
6
(22,083)
-
Net assets
454,750
15,528
Capital and reserves
Called up share capital
7
1,844,947
914,948
Profit and loss reserves
(1,390,197)
(899,420)
Total equity
454,750
15,528
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
Lendwise Ltd
Balance Sheet (Continued)
As at 31 December 2020
Page 2
The financial statements were approved by the board of directors and authorised for issue on 27 April 2021 and are signed on its behalf by:
R Zaveri
Director
Company Registration No. 10466048
Lendwise Ltd
Notes to the Financial Statements
For the year ended 31 December 2020
Page 3
1
Accounting policies
Company information
Lendwise Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
3 More London Riverside, London, United Kingdom, SE1 2AQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have considered the potential impact of the coronavirus, and the various measures taken to contain it, on the operations of the company for the year ended 31 December 2020 and subsequently. The introduction of lockdown measures affected the company’s operations by reducing the budgeted UK revenue growth. However, the company has mitigated the impact by taking advantage of government assistance programmes including a Bounce Back Loan of £25,000.
true
The company is in its growth phase and is currently incurring losses, it is therefore reliant on external investment to fund its working capital needs, this includes the issue of share capital. A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future
, being at least one year from the date of approval of the financial statements, so not to jeopardise the going concern status of the company nor to prejudice the interests of creditors
. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Arrangement fees earned from borrowers are recognised on initiation of the loan. Loan servicing fees are recognised on
a cash
basis over the term
as loans are repaid
.
All turnover is recognised on the basis that the company acts as an agent to the transaction rather than the principal.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
3 year straight line
Computers
3 year straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
Lendwise Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
1
Accounting policies
(Continued)
Page 4
1.5
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Clients assets in the form of loans and client money are not recognised in the financial statements
.
1.6
Financial instruments
Basic financial instruments are measured at cost. The company has no other financial
instruments or
basic financial instruments measured at fair value.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 5
(2019 - 3).
Lendwise Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
Page 5
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020
6,735
Additions
1,520
Disposals
(349)
At 31 December 2020
7,906
Depreciation and impairment
At 1 January 2020
2,526
Depreciation charged in the year
2,558
Eliminated in respect of disposals
(4)
At 31 December 2020
5,080
Carrying amount
At 31 December 2020
2,826
At 31 December 2019
4,209
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts due from group undertakings
8,370
58,369
Other debtors
55,887
58,585
64,257
116,954
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
2,917
-
Trade creditors
8,371
107,380
Other taxation and social security
143,417
72,414
Other creditors
25,959
17,180
180,664
196,974
Lendwise Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 December 2020
Page 6
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
22,083
-
Bank loans consists of a Bounce Bank Loan repayable in May 2026, and incurs interest of 2.5% per annum. The amounts due within one year are included within note 5.
7
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1,844,947 Ordinary shares of £1 each
1,844,947
914,948
1,844,947
914,948
During the year 929,999 ordinary shares of £1 each were issued at par for cash.
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
Within one year
7,744
56,304
9
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 section 33 'Related Party Disclosures' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group with which it is party to the transactions.
10
Control
The ultimate controlling party is Finovex Holdings Limited, a company incorporated in Cyprus.