Company Registration No. 10671489 (England and Wales)
ASTUTE CAPITAL ADVISORS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
FILLETED ACCOUNTS
ASTUTE CAPITAL ADVISORS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 13
ASTUTE CAPITAL ADVISORS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
5
52,701
-
Investments
6
10,049
9,882
62,750
9,882
Current assets
Debtors falling due after more than one year
7
8,390,897
6,978,474
Debtors falling due within one year
7
5,402,547
2,244,039
Cash at bank and in hand
352,014
23,677
14,145,458
9,246,190
Creditors: amounts falling due within one year
8
(3,493,140)
(1,575,445)
Net current assets
10,652,318
7,670,745
Total assets less current liabilities
10,715,068
7,680,627
Creditors: amounts falling due after more than one year
9
(17,591,971)
(11,078,387)
Net liabilities
(6,876,903)
(3,397,760)
Capital and reserves
Called up share capital
11
3
3
Profit and loss reserves
12
(6,876,906)
(3,397,763)
Total equity
(6,876,903)
(3,397,760)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 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.
ASTUTE CAPITAL ADVISORS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2020
31 March 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 31 March 2021 and are signed on its behalf by:
Mr A D Symondson
Director
Company Registration No. 10671489
ASTUTE CAPITAL ADVISORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2018
3
(210,835)
(210,832)
Period ended 31 March 2019:
Loss and total comprehensive income for the period
-
(3,186,928)
(3,186,928)
Balance at 31 March 2019
3
(3,397,763)
(3,397,760)
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
(3,479,143)
(3,479,143)
Balance at 31 March 2020
3
(6,876,906)
(6,876,903)
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
1
Accounting policies
Company information
Astute Capital Advisors Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
96-98 Baker Street, London, W1U 6TJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
The preparation of financial statement in compliance with FRS 102 section 1A requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.
1.2
Going concern
The Company is still in its early years of existence. During the year the Company recorded a loss of £3,479,143. The loss for the year is consistent with the Directors’ expectations for a newly commenced business, with profits not expected to be realised until the 2021/22 financial year.
The Director is confident that the Company will be successful going forward as it develops the scale of its activities. After making enquiries and preparing 3 year cashflow forecasts in respect of the company's future activities, the Director have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Directors have prepared the financial statements on a going concern basis.
1.3
Interest income
Interest income is recognised when it is probable that the economic benefits will flow, to the Company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
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:
Leasehold improvements
Nil
Fixtures and fittings
Straight line over 3 years
Computers
Straight line over 3 years
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 5 -
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
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.
1.8
Financial instruments
Basic financial assets
Financial assets are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost.
Basic financial liabilities
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. Financial liabilities are initially measured at transaction price (including transaction costs) and subsequently held at amortised cost.
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 6 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax
Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except:
•The recognition of deferred tax assets ls limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits·,
•Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax.
Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 7 -
1.14
Administration expenses are expensed or accrued in the period the services are incurred. Costs can include, but are not limited to, commission and lead costs paid to introducers, collateral interest paid to Astute Capital PLC, advertising and marketing, consulting, salaries, printing and stationery, audit and accountancy fees, and rent.
2
Judgements and key sources of estimation uncertainty
In the application of the Company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Recoverability of loans to 3rd party borrowers
All loans made by the Company must be asset backed and must not breach Astute Capital PLC prospectus. Beyond this the Company includes further policies to provide additional security around loans to assist with recoverability, these include but are not limited to: personal guarantees from borrowers, full transparency of borrower operation including mandates over key bank accounts, ownership over security assets and enhanced levels of control and management during the lifetime of each loan. Should the Company need to recover these loans it would call upon the security held in the form of legal charges over all the assets lent against.
3
Interest receiveable
Interest receivable and similar income comprises the income received from the 3
rd
party borrowers for interest chargeable on the respective loan balance between a range of 1% to 2% per month. In addition, arrangement fees at 1% in the month of first drawdown and exit fees at 1% in the month that the loan matures, both are calculated on the facility value.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
10
3
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2019
-
-
-
Additions
4,368
72,139
76,507
At 31 March 2020
4,368
72,139
76,507
Depreciation and impairment
At 1 April 2019
-
-
-
Depreciation charged in the year
-
23,806
23,806
At 31 March 2020
-
23,806
23,806
Carrying amount
At 31 March 2020
4,368
48,333
52,701
At 31 March 2019
-
-
-
6
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
10,049
9,882
Investments represent warrants to acquire 49% shareholding in Parneus Limited and 49% shareholding in Simple Car Funding Limited, In August 2019, Astute Capital Advisors Ltd exercised the share warrant to acquire the 49% holding in Parneus Limited.
The balance represents
100% shareholding in Astute Capital Partners Ltd. Astute Capital Partners Ltd was incorporated on 11 February 2019 and is that of a holding company to 31 March 2020.
99% shareholding in Churchgate ACA Limited incorporated on 9 October 2019 and 99% shareholding in Eastgate ACA Ltd incorporated on 18 July 2019.
On 3 December 2019, the investment 100% in AIM Distribution Ltd was disposed of, as the company began proceedings to liquidate the company. Astute Capital Advisors Limited has taken on the debt of this company.
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
6
Fixed asset investments
(Continued)
- 9 -
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost or valuation
At 1 April 2019
9,882
Additions
267
Disposals
(100)
At 31 March 2020
10,049
Carrying amount
At 31 March 2020
10,049
At 31 March 2019
9,882
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
-
198,687
Loans to 3rd party borrowers
5,376,547
2,032,635
Other debtors
26,000
12,717
5,402,547
2,244,039
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
7
Debtors
(Continued)
- 10 -
2020
2019
Amounts falling due after more than one year:
£
£
Loans to 3rd party borrowers
8,390,897
6,978,474
Total debtors
13,793,444
9,222,513
8
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
210,094
43,915
Amounts owed to group undertakings
-
30,797
Taxation and social security
24,837
17,070
Collateral interest due to the issuer
-
1,047,342
Collateral loans due to the issuer
3,206,000
385,000
Other creditors
52,209
51,321
3,493,140
1,575,445
9
Creditors: amounts falling due after more than one year
2020
2019
£
£
Amounts due to related parties
3,253,969
2,683,861
Collateral loans due to the issuer
14,338,002
8,394,526
17,591,971
11,078,387
Amounts owed to related parties comprise £3,253,969 (£2,683,861) owed to Astute Capital PLC for expenditure paid on behalf of the company. This is repayable on demand and is interest free.
Collateral loans to the issuer represent loans due to Astute Capital PLC. These loans are contractually due for repayment one month prior to the relevant bond series redemption date.
10
Loans and overdrafts
2020
2019
£
£
Loans from group undertakings and related parties
17,544,002
8,779,526
Payable within one year
3,206,000
385,000
Payable after one year
14,338,002
8,394,526
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 11 -
11
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
3
3
3
3
12
Profit and loss reserves
Retained earnings represents the cumulative profits or losses, net of dividends paid and other adjustments.
13
Operating lease commitments
Lessee
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
104,000
92,310
Between two and five years
4,333
61,540
108,333
153,850
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 12 -
14
Related party transactions
Remuneration of key management personnel
Astute Capital PLC
Astute Capital PLC was established to raise funds through a £500M secured limited recourse bond programme, listed on the Irish Stock Exchange, The funds raised by the issuer are lent to Astute Capital Advisors Limited under a collateral management agreement under which Astute Capital Advisors Limited will deal with loan origination, approve and enter into borrower loans on behalf of Astute Capital PLC.
Interest payable is collateral interest on monies advanced by Astute Capital PLC to Astute Capital Advisors Ltd acting as collateral manager for onward lending to 3rd party borrowers at an annual interest rate of 12% (2019: 12.5%) as documented in the Collateral Management Agreement (CMA).
At the 31 March 2020, Astute Capital Advisors Limited had a creditor balance with Astute Capital PLC of £17,544,002 (2019: £8,779,526) representing monies lent to it for third party borrower loans. In addition at 31 March 2020 there was a further £3,253,969 (2019: £2,638,861) owing to Astute Capital PLC for expenditure relating to Astute Capital Advisors Limited paid on its behalf.
AIM Distribution Ltd
AIM Distribution Limited was established to pay and contract all marketing related activities on bond sales for internal sales staff and commissions to external agents. On 25
th
February 2019 AIM Distribution Limited became a 100% subsidiary of Astute Capital Advisors Limited incurring intercompany debt on its related expenditure paid by and Astute Capital Advisors Limited. At 31 March 2020, the balance owed by AIM Distribution Limited to Astute Capital Advisors Limited was nil (2019: £198,687). As of 3 December 2019, AIM Distribution Limited ceased trading and the company is in the process of liquidation, the amounts owed to Astute Capital Advisors Limited was written off. Astute Capital Advisors Limited has been assigned its debt with Astute Capital PLC.
Fincap Marketing Limited
During the year Fincap Marketing Limited invoiced Astute Capital Advisors £168,000 for financial services. One of the Directors has a personal interest in this company.
ASTUTE CAPITAL ADVISORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
14
Related party transactions
(Continued)
- 13 -
Symonds Capital
In the year, no transactions took place between the Astute Capital Advisors Limited and Symonds Capital Ltd, a company under common control. In 2019, Symonds Capital Ltd were paid £41,337 for rent, £100,000 for consultancy fees and £260,218 for introducer commissions by Astute Capital Advisors Limited.
At 31 March 2020, the amount due to Astute Capital Advisors Limited was nil (2019: £6,231), Symonds Capital Ltd was dissolved 2 July 2019.
Parneus Limited and Simple Car Funding Limited
Astute Capital Advisors Ltd exercised the warrant to acquire a 49% shareholding in Parneus Limited, and currently hold a warrant to acquire a 49% shareholding in Simple Car Funding Limited. At 31 March 2020 these companies owed Astute Capital Advisors Limited £757,914 (2019: £144,666).
Churchgate ACA Limited
Astute Capital Advisors Limited hold a 99% shareholding of the 100 issued shares in Churchgate ACA Limited, a company incorporated on 9 October 2019 for the development of building projects, financed partly by the loans provided by Astute Capital Advisors Ltd. As at 31 March 2020, the amount owed to Astute Capital Advisors Limited from Churchgate ACA Limited was £414,162, and is shown within loans to 3rd party borrowers. The loan provided to Churchgate ACA Limited is secured by fixed and floating charge over the freehold property of the company.
Eastgate ACA Ltd
Astute Capital Advisors Limited hold a 99% shareholding of the 100 issued shares in Eastgate ACA Ltd, a company incorporated on 18 July 2019 for the development of building projects, financed partly by the loans provided by Astute Capital Advisors Ltd. As at 31 March 2020, the amount owed to Astute Capital Advisors Limited from Eastgate ACA Ltd was £56,748, and is shown within loans to 3rd party borrowers.
After the balance sheet date, in October 2020, the 99% holding was disposed of.
Other Third Party Loans
In the year Astute Capital Advisors provided loan finance to subsidiary companies of Astute Capital Partners Ltd, a wholly owned subsidiary of Astute Capital Advisors Ltd.
The companies and their respective balances are as follows:
Alexandra Road ACP Limited - £720,968
Molesworth Street ACP Ltd - £1,256,499
Rodney Street ACP Limited - £1,036,643
Convent Road ACP Limited - £1,892,225
Artus Yelverton Limited - £235,414
Other transactions
At 31 March 2020, no amounts were owed to the director by the company (2019: £175 owed to the company).
15
Controlling party
The company is controlled by Richard Anthony Symonds, who owns 100% of the issued share capital of the company.
2020-03-31
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false
CCH Software
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No description of principal activity
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Mr A D Symondson
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