REGISTERED NUMBER:
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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COMPASS BUSINESS FINANCE LIMITED |
REGISTERED NUMBER:
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2021 |
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FOR |
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COMPASS BUSINESS FINANCE LIMITED |
COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2021 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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COMPASS BUSINESS FINANCE LIMITED |
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COMPANY INFORMATION |
For The Year Ended 31 December 2021 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Equinox House |
Clifton Park |
Shipton Road |
York |
Yorkshire |
YO30 5PA |
COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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BALANCE SHEET |
31 December 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Debtors | 5 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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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 |
7 |
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PROVISIONS FOR LIABILITIES | ( |
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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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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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BALANCE SHEET - continued |
31 December 2021 |
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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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COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Compass Business Finance Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Significant judgements and estimates |
In the application of the company's accounting policies, the directors are 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 ad associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
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The estimates are 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. |
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Key sources of estimation uncertainty |
The estimates and assumptions which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
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Accrual for clawbacks: The company receives commission when clients are introduced to the ultimate funder. However, where the client withdraws from the deal within a set period, the funder can claw back some of the commission already paid. This is an area of estimation whereby the directors use their knowledge and experience to estimate the amount of commission that will be clawed back as at the year end. |
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Turnover |
Turnover represents amounts receivable for commissions and operating lease rentals net of VAT and trade discounts. In addition, turnover includes finance funding interest which is accounted for on an accrual basis. |
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Finance lease and instalment credit agreements: Income from assets leased to customers and from instalment credit agreements is determined by spreading interest and charged over the period of repayment in proportion to the net cash investment. Amounts due from customers under finance lease and instalment credi agreements are included in debtors. |
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Operating lease assets: Operating lease rental income is recognised on a straight line basis over the term of the related hire agreement. |
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Other income: Fees and commission income are recognised on an accruals basis and are stated net of VAT where applicable. |
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Tangible fixed assets |
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Operating lease assets Straight line over period of lease |
Fixtures, fittings and equipment 25% Straight line |
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COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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. |
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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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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of the ownership to the lessees. All other leases are classified as operating leases. |
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Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
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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 leases assets are consumed. |
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Amounts due from lessees under finance leases are recognised as receivables at the amount of the company's net investment in the lease. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company's net investment outstanding in respect of leases. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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4. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
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Additions |
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Disposals | ( |
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At 31 December 2021 |
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DEPRECIATION |
At 1 January 2021 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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At 31 December 2020 |
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5. | DEBTORS |
2021 | 2020 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
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Amounts owed by group undertakings |
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Amounts receivable in respect of
finance leases |
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Other debtors |
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Amounts falling due after more than one year: |
Amounts receivable in respect of
finance leases |
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Aggregate amounts |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Hire purchase contracts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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COMPASS BUSINESS FINANCE LIMITED (REGISTERED NUMBER: 05649414) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2021 |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
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Other creditors include block discount financing agreement of £14,923,047 (2020 - £8,609,640), which are secured by fixed charges over the underlying finance agreements. |
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7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts |
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Other creditors |
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Other creditors include block discount financing agreement of £28,512,209 (2020 - £17,144,963), which are secured by fixed charges over the underlying finance agreements. |
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8. | PARENT COMPANY |
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The company is wholly owned subsidiary of CBF Holdings Limited, a company registered in England and Wales, which is the immediate and ultimate parent undertaking, CBF Holdings Limited is not required to prepare group accounts. |