Debtors include a loan of £2,921,715 (after impairment of £2,600,000) made to FREUR Reading Limited, a 100% subsidiary.
Debtors include a loan of £4,858,065 (after impairment of £900,000) made to FREUR Bristol Limited, a 100% subsidiary.
In respect of the above loans, no interest has been charged or accrued.
The loans were provided to each subsidiary to fund the purchase of commercial real estate. However due to the downturn in the commercial real estate market since the balance sheet date, the recovery of the above loans in full, has been cast into significant doubt.
As such the directors have decided to impair each loan to their expected realisable value.