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Audited Financial Statements |
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for the Period |
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24 July 2019 to 30 June 2020 |
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for |
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Merchant Money SPV A Ltd |
REGISTERED NUMBER:
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Audited Financial Statements |
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for the Period |
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24 July 2019 to 30 June 2020 |
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for |
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Merchant Money SPV A Ltd |
Merchant Money SPV A Ltd (Registered number: 12118918) |
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Contents of the Financial Statements |
for the Period 24 July 2019 to 30 June 2020 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Merchant Money SPV A Ltd |
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Company Information |
for the Period 24 July 2019 to 30 June 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
Carlton House |
High Street |
Higham Ferrers |
Northamptonshire |
NN10 8BW |
Merchant Money SPV A Ltd (Registered number: 12118918) |
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Balance Sheet |
30 June 2020 |
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Notes | £ |
CURRENT ASSETS |
Debtors | 4 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 5 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one year | 6 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Merchant Money SPV A Ltd (Registered number: 12118918) |
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Notes to the Financial Statements |
for the Period 24 July 2019 to 30 June 2020 |
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1. | STATUTORY INFORMATION |
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Merchant Money SPV A Ltd is a
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The company's place of business is Suite C, 1-3 Canfield Place, London, NW6 3BT. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The company has net assets on the balance sheet of £85 as at 30 June 2020. The financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons. The directors have considered cashflow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking into account of reasonably possible downsides, the Company will have sufficient funds, through its borrowings from its related companies and other funders, to meet its liabilities as they fall due for that period. those forecasts are dependent on the related entities not seeking repayment of the amounts due and providing additional financial support during that period. |
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As part of these enquiries, the Directors have also considered the impact of the COVID-19 global pandemic, which has resulted in unprecedented risks and significant levels of volatility. The main risks resulting from COVID-19 for the Company is the impact on continued access to debt facilities. The related companies and funders have indicated their intention to continue to make available such funds as are needed and does not intend to seek repayment of the amounts due at the balance sheet date for the forecast period. The Directors believe the Company, and the related companies and lenders, have sufficient reserves and business controls to address any financial impact and to meet its liabilities as they fall due. The Directors therefore consider there is no significant impact on the going concern basis of preparation of these financial statements. |
Merchant Money SPV A Ltd (Registered number: 12118918) |
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Notes to the Financial Statements - continued |
for the Period 24 July 2019 to 30 June 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Critical accounting judgements and key sources of estimation uncertainty |
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: |
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Judgements |
Going concern |
As described in the basis of preparation and going concern, the validity of the going concern basis is dependent upon the ability of the Company to generate sufficient cash flow in the future or to continue to obtain additional finance to make loan repayments to its lenders. However, it is not possible to predict the unknowable factors or all possible future implications for a company and this is now particularly the case in relation to COVID-19 and Britain's exit from the EU. |
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Estimates |
Bad and doubtful debt provision of loan receivables. |
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The Company is a provider of loan facilities and as such has certain inherent estimation uncertainties on the recoverability of such assets. The Company estimates the bad debt provision to reflect the company's assessment of the risk of non-recoverability of debts. It is calculated by applying percentage values to debts in arrears outstanding at the end of the accounting period. These percentage values take into account the arrears stage of the debt. |
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Higher provisioning percentages are applied to debts which are considered to be of greater risk, including those with known arrangements in place. In these cases, judgment used was based on the best available facts and circumstances. Actual amounts recovered may differ from the estimated levels of recovery which could significantly impact on operating results. It is also not possible to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to COVID-19 and the impact on the borrower and the distortion caused by payment holidays. |
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Debts will only be written off where all the collection processes have been exhausted and the debt is deemed to be irrecoverable. |
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At 30 June 2020, provisions for doubtful debts amounted to £5,567. |
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In the next year the Company will adopt a more general provision policy based on ageing brackets set by retrospective historic data that until sufficient data has been collected and analysed, may increase the provision. |
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Turnover |
Income is accounted for at the point when the company becomes contractually entitled. |
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The interest due on ordinary loans made by the company to its clients is accounted for in accordance with the interest schedule within the loan agreement. Other loans may be repaid by an agreed percentage of merchant card takings until the contracted total repayments have been made. In these cases, the interest is accounted for on a pro rata basis of each client repayment. |
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Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like loans, other debtors, trade creditors and borrowings. Loans are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
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Merchant Money SPV A Ltd (Registered number: 12118918) |
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Notes to the Financial Statements - continued |
for the Period 24 July 2019 to 30 June 2020 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period 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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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The company has tax losses of £915 to carry forward against future profits from the same trade. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the period was NIL. |
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4. | DEBTORS |
£ |
Amounts falling due within one year: |
Trade debtors |
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Amounts falling due after more than one year: |
Trade debtors |
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Aggregate amounts |
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5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
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Amounts owed to group undertakings |
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6. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
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Other creditors | 1,375,000 |
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7. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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Other creditors | 1,375,000 |
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The above loans were secured by a floating charge on the assets of the company. |
Merchant Money SPV A Ltd (Registered number: 12118918) |
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Notes to the Financial Statements - continued |
for the Period 24 July 2019 to 30 June 2020 |
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8. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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Uncertainties related to the effects of Britain leaving the Eurpean Union and Coronavirus are relevant to understanding our audit of the financial statements. All audits assess and challenge the reasonableness of estimates made by the directors, such as the appropriateness of the going concern basis of preparation of the financial statements. All of these depend on assessments of the future economic environment and the company's future prospects and performance. |
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Brexit and now the Coronavirus are some of the most significant economic events for the UK, and at the date of this report its effects are | subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects unknown. We applied a standardised | approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be | expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to | Brexit and the Coronavirus. Our opinion is not modified in respect of this matter. |
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for and on behalf of
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9. | ULTIMATE CONTROLLING PARTY |
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The parent undertaking is Merchant Money Ltd, a company incorporated in England and Wales. The parent company has prepared group financial statements and their registered office address is the same as that shown on page 1. |