Company registration number 12294118 (England and Wales)
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 APRIL 2022
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
COMPANY INFORMATION
Directors
Mr C Lynn
Mr Y Singh
Secretary
SGH Company Secretaries Limited
Company number
12294118
Registered office
6th Floor
60 Gracechurch Street
London
EC3V 0HR
Auditor
Simpson Wreford LLP
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 19
Detailed profit and loss account
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
STRATEGIC REPORT
FOR THE YEAR ENDED 29 APRIL 2022
- 1 -
The directors present the strategic report for the year ended 29 April 2022.
Review of the business
London Bonds 1 Ltd was incorporated in November 2019. Corporate details are available on the Companies House resource: https://find-and-update.company-information.service.gov.uk/company/12294118.
The principal activity of London Bonds 1 Ltd is that of securing investment by issuing loan notes and using those funds to assist related companies to buy and refurbish properties to sell at profit.
The company aims to build up strong and loyal relations with core clients, clearly understand their requirements and be flexible to develop unique solutions to satisfy their needs and expectations in timely manner.
The focus of the business remains to achieve the right balance between the needs and expectations of our customers, expectations of shareholders as well as of other stakeholders, by controlling our costs and managing our cash efficiently while making sufficient profit to support growth plans.
The company considers its key performance indicator to be the level of capital raised. During the financial period the company raised £2.0m.
Principle risks and uncertainties
The directors identified several risks which may affect the Company's ability to deliver its strategic goals. The list of such identified risks is given below.
The company seeks to minimise its exposure to external financial risks. The Company is exposed to various financial risks, including currency exchange rate fluctuations as the company operates internationally. Another major risk of adverse AML deficiencies in operations is adequately mitigated by comprehensive measures including an external audit which the Company has undergone successfully. In order to properly mitigate operational risks, the company has a combination of various controls in place, both internal and external, aimed at the elimination of possible threats to operations. Company directors manage these risks and have a reasonable expectation that company maintains adequate resources to minifies the negative impact on its financials.
Regulatory and Compliance Risk
The company accepts customers from different countries and faces some uncertainty in regard to changing regulatory requirements in those countries. As part of its legal and regulatory compliance, the company faces the challenge of reacting and quickly implementing different legal and regulatory changes. The company and its clients must comply with all applicable money-laundering rules and legislation.
The company as a whole has a risk appetite set down, documented and agreed by the board. To ensure that this appetite is adhered to in terms of customer risk, the company is responsible for assessing each area of the business to ensure that the AML policies are appropriate to mitigate any risk posed by, but not limited to, the following: new customers, new jurisdictions, new services, existing customers, existing jurisdictions, existing services. All of the company's clients undergo rigorous KYC processes in line with regulatory requirements.
Liquidity Risk
The company does not consider it has a high level of liquidity risk in view of the level of capitalisation required and the
policy of the Directors not to take on obligations unless there is a source of finance to satisfy those obligations.
Foreign Currency Risk
The company's principal foreign currency exposures arise from trading with overseas clients.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
- 2 -
Section 172(1) Statement
This section describes how we have engaged with and had regard to the interests of our key stakeholders when exercising our duty to promote the success of the company under section 172(1) of the Companies Act 2006. The principles underpinning section 172 are not something that are only considered at board level, they are embedded throughout our company.
Sometimes decisions must be made based on competing priorities of stakeholders. We describe below how the board seeks to understand what matters to stakeholders and carefully considers all the relevant factors when selecting the appropriate course of action.
Customers
Our customers are the reason we exist. They have near limitless choice, so it is essential to our future that we can
consistently and continuously design and offer attractive and high quality products to new and existing customers at an accessible price. In doing so, we build our brand value and loyalty.
Regulators
We seek to enjoy a constructive and cooperative relationship with the bodies that authorise and regulate our business activities. This helps us maintain a reputation for high standards of business conduct. They expect us to comply with applicable laws and regulations.
Communities and the Environment
Communities and the wider public expect us to act as a responsible company and neighbour, and to minimise any adverse impact we might have on local communities and the environment.
Investors
We rely on our shareholder as essential sources of capital to further our business objectives. They rely on us to protect and manage their investments in a responsible and sustainable way that generates value for them.
The company remains committed to increase the amount of capital raised from investors. With a strong and stable management team the company is well positioned to continue its growth and increase the performance and the assets of the business.
Mr Y Singh
Director
28 April 2023
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 APRIL 2022
- 3 -
The directors present their annual report and financial statements for the year ended 29 April 2022.
Principal activities
The principal activity of the company continued to be that of investment activities.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C Lynn
Mr Y Singh
Auditor
The auditor, Simpson Wreford LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. Sch. 7 to be contained in the directors' report. It has done so in respect of:
i) Review of the business
ii) Risk and uncertainty
iii) Analysis of development and performance
iv) Future developments
v) Key Performance Indicators
vi) Non Key Performance Indicators
vii) Additional information
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr Y Singh
Director
28 April 2023
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 APRIL 2022
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
INDEPENDENT AUDITOR REPORT
TO THE MEMBERS OF LONDON BONDS 1 LTD
- 5 -
Opinion
We have audited the financial statements of London Bonds 1 Ltd (the 'company') for the year ended 29 April 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 29 April 2022 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw attention to note 1 of the financial statements, which describes the directors going concern assessment and their plans for the future repayment of loan notes. Our opinion is not modified in this respect.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBERS OF LONDON BONDS 1 LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, data protection and FCA regulation;
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
INDEPENDENT AUDITOR REPORT (CONTINUED)
TO THE MEMBERS OF LONDON BONDS 1 LTD
- 7 -
Audit response to risks identified
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation and;
enquiring of management as to actual and potential litigation and claims.
reviewing correspondence with the FCA
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Kate Taylor FCA (Senior Statutory Auditor)
For and on behalf of Simpson Wreford LLP
28 April 2023
Chartered Accountants
Statutory Auditor
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 APRIL 2022
- 8 -
Year
Period
ended
ended
29 April
30 April
2022
2021
Notes
£
£
Turnover
3
350,000
Administrative expenses
(506,910)
(145,514)
Loss before taxation
(156,910)
(145,514)
Tax on loss
6
Loss for the financial year
(156,910)
(145,514)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 APRIL 2022
- 9 -
Year
Period
ended
ended
2022
2021
£
£
Loss for the year
(156,910)
(145,514)
Other comprehensive income
-
-
Total comprehensive income for the year
(156,910)
(145,514)
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
BALANCE SHEET
AS AT
29 APRIL 2022
29 April 2022
- 10 -
29 April 2022
30 April 2021
Notes
£
£
£
£
Current assets
Debtors
8
2,695,395
925,360
Creditors: amounts falling due within one year
9
(386,168)
(64,751)
Net current assets
2,309,227
860,609
Creditors: amounts falling due after more than one year
10
(2,561,651)
(956,123)
Net liabilities
(252,424)
(95,514)
Capital and reserves
Called up share capital
12
50,000
50,000
Profit and loss reserves
(302,424)
(145,514)
Total equity
(252,424)
(95,514)
The financial statements were approved by the board of directors and authorised for issue on 28 April 2023 and are signed on its behalf by:
Mr Y Singh
Director
Company Registration No. 12294118
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 APRIL 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2019
-
Period ended 30 April 2021:
Loss and total comprehensive income for the period
-
(145,514)
(145,514)
Issue of share capital
12
50,000
-
50,000
Balance at 30 April 2021
50,000
(145,514)
(95,514)
Year ended 29 April 2022:
Loss and total comprehensive income for the year
-
(156,910)
(156,910)
Balance at 29 April 2022
50,000
(302,424)
(252,424)
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 APRIL 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
16
(1,917,605)
(1,008,998)
Income taxes refunded
2,875
Net cash outflow from operating activities
(1,917,605)
(1,006,123)
Financing activities
Proceeds from issue of shares
50,000
Repayment of bank loans
1,917,605
956,123
Net cash generated from financing activities
1,917,605
1,006,123
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 APRIL 2022
- 13 -
1
Accounting policies
Company information
London Bonds 1 Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 60 Gracechurch Street, London, EC3V 0HR.
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention to include the financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
When preparing financial statements, the management of an entity using this FRS shall make an assessment of thetrue entity’s ability to continue as a going concern. An entity is a going concern unless management either intends to liquidate the entity or to cease trading, or has no realistic alternative but to do so. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but is not limited to, twelve months from the date when the financial statements are authorised for issue.
When management is aware, in making its assessment, of material uncertainties related to events or conditions that cast significant doubt upon the entity’s ability to continue as a going concern, the entity shall disclose those
uncertainties. When an entity does not prepare financial statements on a going concern basis, it shall disclose that fact, together with the basis on which it prepared the financial statements and the reason why the entity is not
regarded as a going concern.
The company has suffered losses for the past 2 years, and currently has a negative balance sheet. As part of restructuring the debts of the company, the long term plan is to offer reinvestment of loan notes with a connected company, London Richmond Ltd, through either loan notes or equity, the company is listed on the Merj exchange. There is are no issues with the company being unable to meet it's current obligations for the next 12 months.
1.3
Turnover
Revenue is measured at the fair value of consideration received or Receivable, excluding discounts, rebates, value added tax and other sales taxes.
1.4
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.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
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.
1.7
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 in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
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 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.
3
Turnover
2022
2021
£
£
Turnover analysed by class of business
Provision of services
350,000
-
2022
2021
£
£
Turnover analysed by geographical market
UK Sales
350,000
-
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
- 16 -
4
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
(98,591)
(14,729)
Fees payable to the company's auditor for the audit of the company's financial statements
5,040
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
6
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Loss before taxation
(156,910)
(145,514)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(29,813)
(27,648)
Change in unrecognised deferred tax assets
29,813
27,648
Taxation charge for the year
-
-
7
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
2,003,154
556,129
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
2,760,059
1,018,809
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
- 17 -
8
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
350,000
Other debtors
2,691,381
702,751
3,041,381
702,751
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
(345,986)
222,609
Total debtors
2,695,395
925,360
9
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Loan notes
11
312,077
Trade creditors
4,374
Corporation tax
2,875
2,875
Other creditors
56,359
59,811
Accruals and deferred income
10,483
2,065
386,168
64,751
10
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Loan notes
11
2,561,651
956,123
11
Loans and overdrafts
2022
2021
£
£
Bank loans
2,873,728
956,123
Payable within one year
312,077
Payable after one year
2,561,651
956,123
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
11
Loans and overdrafts
(Continued)
- 18 -
12
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
5,000,000
5,000,000
50,000
50,000
13
Events after the reporting date
After the year end further loan notes have been issued totalling GBP196,000, EUR410,000 USD552,000
14
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company recognised income of £350,000 during the year received from London Bonds 3 Ltd a group company in respect of commissions received as a 45% share of the commissions received from London Bonds 2 Ltd, also a group company.
London Bonds 3 Ltd has charged £12,000 in management fees to London Bonds 1 Ltd.
During the period May - September 2021 a residential rental agreement was taken out by Andrew Thompson, key management for London Bonds 1 Ltd, on behalf of the company to provide office space for the company. The contract was held personally but all payments were made by the company.
Capital raising costs were paid to the following related parties during the year:
London Chelsea Homes Ltd, a company which Christopher Lyn has control of - £28,286 (2021 - 26,004)
London Bonds 3 Ltd - £38,225 (2021 - £80,901)
London Richmond Ltd, a company Yadwinder Gill and Andrew Thompsin are directors - £5,005 (2021 - £nil)
London Bonds Ltd, the parent company - £12,658 (2021 - £nil)
Yadwinder Gill, a director - £15,000 (6,000)
Christopher Lynn, a director - £28,550 (49,100)
Gill Trust Homes Ltd, a company in which Yadwinder Gill is a Director and controlling party - £10,000 (2021 - £nil)
The following amounts were outstanding at the reporting end date:
LONDON BONDS 1 LTD
PREVIOUSLY NAMED 'LONDON INVESTMENT BONDS PLC'
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 APRIL 2022
14
Related party transactions
(Continued)
- 19 -
There is a loan due from London Richmond Limited, of £787,214, a company which Andrew Thompson and Yadwinder Singh are directors, it is not part of the group. In the previous year a loan of £50,000 was due to London Richmond Limited. No interest is received by London Bonds 1 Ltd in regards of this loan and it repayable on demand.
There is a loan due from London Bonds Ltd, the parent company of £829,424 (2021: £50,000), no interest is paid on these loans and they are repayable on demand,
There is an intercompany balance due from London Bonds 3 Ltd, a group company, of £7,500 (2021: £138,883). There is also cash funds held within a London Bonds 3 Ltd's bank account totalling £251 (2021: £367,245).
There is an intercompany balance due from London Bonds 2 Ltd, a group company, of £28,765 (2021: Nil).
15
Ultimate controlling party
The company is a subsidiary of London Bonds Ltd (previously named London Chelsea Group Ltd), a company registered in England & Wales, company number 13220711, registered office at 6th Floor, Gracechurch Street, London, EC3V 0HR.
16
Cash absorbed by operations
2022
2021
£
£
Loss for the year after tax
(156,910)
(145,514)
Movements in working capital:
Increase in debtors
(1,770,035)
(925,360)
Increase in creditors
9,340
61,876
Cash absorbed by operations
(1,917,605)
(1,008,998)
17
Analysis of changes in net debt
1 May 2021
Cash flows
29 April 2022
£
£
£
Borrowings excluding overdrafts
(956,123)
(1,917,605)
(2,873,728)
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